Author: openjargon

Cochlear vs Pro Medicus shares: Which ASX healthcare giant deserves a spot in your portfolio?

If you’re sizing up Cochlear Ltd (ASX: COH) against Pro Medicus Ltd (ASX: PME), you’re comparing two homegrown titans of Australian healthcare tech. Both companies are recognised leaders globally, but their share prices have taken a hit from recent peaks. So, which one stands out for long-term investors today?

The case for Cochlear

Cochlear is the world’s top cochlear implant maker, holding about half of the global market. Founded in 1983, it commercialised technology pioneered by Dr Graeme Clark, and now supplies devices that are the standard of care for children with severe hearing loss and an increasing number of seniors. Most of its revenue comes from overseas, especially the US and Europe.

• A few notable numbers jump out for Cochlear:
• It has a $8.92 billion market cap, reflecting strong global scale.
• Recently raised dividends: its payout climbed from $1.75 per share (final, 2023) to $2.15 (final, 2025 and 2026), with 85% franking.
• The company offers a solid 3.15% dividend yield, much higher than many healthcare peers.

The case for Pro Medicus

Pro Medicus specialises in cutting-edge medical imaging and radiology IT for hospitals and medical clinics worldwide. Its product suite includes systems for image archiving, reporting, appointments, billing, and workflow optimisation, with a strong presence in US hospital networks.

• Key highlights for Pro Medicus:
• It’s a heavyweight, with a $17.28 billion market cap—nearly double Cochlear’s.
• Its dividend yield is much more modest at 0.42%, but fully franked at 100%.
• Pro Medicus’ dividends are growing fast: from 12 cents per share (final, 2022) up to 37 cents (final, 2026), suggesting growing profits and cash flow for shareholders.

Valuation comparison

Here’s how these two measure up on the basics:

Metric	Cochlear (COH)	Pro Medicus (PME)
Market Cap	$8.92b	$17.28b
P/E Ratio	60.59	65.22
Dividend Yield	3.15%	0.42%
EPS	$2.252	$2.536
Franking	85%	100%

Cochlear trades at a slightly lower P/E but offers a much higher dividend yield, while Pro Medicus is bigger, with marginally higher earnings per share and full franking.

Recent share price performance

Based on prices as of 15 September 2026 (not live data), both have seen sharp slides from their recent highs, but the scale differs:

• Cochlear’s year-to-date return is a sobering -46.83%.
• Pro Medicus is less bruised, down -24.80% for the year.

Looking at the last two weeks, both stocks have been volatile. Cochlear slipped from around $140–$145 to $136.43, while Pro Medicus dropped from above $190 to $165.45 over the same period. Neither is escaping the market’s negativity, but the percentage drawdown has been much steeper for Cochlear.

Which is the better buy?

If I had to choose, my pick would be Pro Medicus. Here’s why: While both shares look expensive by P/E and have fallen hard from their peaks, Pro Medicus has weathered the storm better and shows faster recent growth in earnings and dividends. Its fully franked dividends are on a rapid upward trajectory, and the company’s bigger global footprint (especially in the US hospital market) suggests more room for upside if conditions improve.

Cochlear is terrific for yield hunters, with a higher dividend yield and solid franking, but its aggressive price fall and slightly lower growth rate leave me wanting more momentum. Both businesses are quality names, and neither is cheap, but given how Pro Medicus has held up better and seems to have more earnings power right now, I’d lean toward Pro Medicus for future upside—even if it means accepting a lower current yield.

The post Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today? 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 positions in and has recommended Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Cochlear and Pro Medicus. 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.

“Is this an AI bubble?”

It’s a question being asked more frequently as share prices rise, optimism grows and investors become increasingly excited about artificial intelligence.

And fair enough, too.

We’ve seen this movie before. A genuinely transformative technology appears. Investors imagine the possibilities. Capital pours in. Share prices rise. And, eventually, enthusiasm gets ahead of reality.

The dot-com boom is the obvious comparison. The internet really did change the world, just as its champions predicted. But that didn’t stop investors losing fortunes when the bubble burst.

So, is history repeating?

Maybe.

But maybe not.

There’s no rule that says rapidly rising share prices must fall. Nor that excitement must end in disaster. Sometimes businesses grow into apparently expensive valuations. Sometimes the optimists are right.

And AI is already producing real products, real revenue and real productivity gains. Some of today’s leading companies are immensely profitable, rather than hopeful start-ups with little more than a web address and a breathless business plan.

That doesn’t mean their shares are cheap. It doesn’t mean every AI-related investment will succeed. And it certainly doesn’t mean prices can’t fall.

It simply means we should resist the temptation to confidently predict what happens next.

(It’s possible AI continues its rise, and the losers are those businesses most exposed to that disruption!)

A better approach?

Prepare, don’t predict.

Use today’s enthusiasm – and the possibility that it ends – as a prompt to check what you actually own.

Not just AI, though.

Everything.

Because tough times tend to reveal what the good times hide.

When share prices are climbing, almost every investment seems smart. The ‘rising tide lifts all boats’.

(That phrase apparently goes back at least to the 1600s – a reminder that while technology advances, there really is nothing new under the sun!)

It’s easy to get caught up in the story… and to convince ourselves that it’s skill, not luck.

It’s only when conditions change that the differences become obvious.

Consider retail.

A good retailer can have a tough year. We might reduce our spending and costs might rise. 

As a result, sales can slow and profits can fall.

But short-term troubles don’t necessarily make it a bad business.

The important questions are whether customers still value what it sells, whether it is taking or losing market share, whether its stores remain productive and whether management can sensibly navigate the downturn.

Because a healthy retailer can emerge from a difficult period in a stronger competitive position, particularly if weaker rivals close stores, cut investment or… disappear altogether.

A structurally challenged retailer is different, of course. Customers may not want its products, or might prefer shopping at the competition. Margins might be permanently shrinking. A cyclical recovery won’t necessarily rescue a business whose competitive position has deteriorated.

Here’s the thing: the share price might fall in both cases. But they’re not the same business.

Your job is to know which one you own.

Then there’s debt.

Borrowing can make a good business look even better when times are favourable. It can fund expansion, lift margins and improve returns on equity. Things that are otherwise hallmarks of a successful business.

But banks don’t care whether the economy is strong or weak. The interest bill still needs to be paid. Loans still need to be refinanced.

And lenders tend to be least generous when borrowers need them most.

That’s when the difference between a strong balance sheet and a fragile one becomes painfully clear.

A financially strong company can keep investing through a downturn. It might acquire a competitor, open new locations or buy back shares at attractive prices.

A heavily indebted company usually doesn’t have those choices. It can be forced to cut investment, sell assets, sack staff, or raise capital at exactly the wrong time.

We learned that during COVID.

The time to think about these things is before things get messy.

What things? Ask yourself some of these questions:

Does the company generate positive cash flow?

Does it earn attractive returns on capital?

Does it have a strong balance sheet?

Do customers genuinely value its products?

Does it have an advantage competitors will struggle to copy or beat?

And does it have room to grow?

Then consider what you’re paying. A wonderful business can still be a poor investment if its share price assumes everything will go perfectly.

The thing is, those fundamentals don’t seem to matter when prices are rising. They get ignored when everyone is focused on growth, and optimism, and when ‘what can go wrong?’ is a rhetorical question, not a real one.

And then… things go wrong.

The economy stutters. Rates go up. Investors get nervous. Prices fall.

It can be hard to remember that when the highly leveraged, high risk companies are flying high. 

It can be tempting to abandon disciplined investing and join the party.

Until the music stops.

And when it does, it’ll be too late to realise you own a collection of exciting stories, ephemeral profits, overleveraged balance sheets, and ‘hopes and dreams’.

You’ll realise you should have prioritised quality and value over high-risk and high hopes.

No-one can know what will happen, when. 

No-one.

And when you really understand that, you stop playing Russian roulette.

You make sure you’re prepared.

The time to make sure? Before the bad times come.

When will that be? No-one knows.

That’s why you should be prepared.

Fool on!

The post Do this before the bubble bursts appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been on fire this week.

Despite the market weakness, the radiopharmaceuticals company’s shares have rocketed around 14% higher.

The catalyst for this has been news that the company’s Pixclara product has been granted US FDA approval.

So, should you be buying Telix shares as well because of this big news? Let’s find out what Bell Potter thinks.

What is the broker saying?

Bell Potter was pleased with the Pixclara news, highlighting that Telix is entering a new era with revenues set to jump in FY 2027. It said:

The FDA’s approval of the new drug application for Pixclara (floretyrosine F18 aka FET-PET) heralds a new era for TLX, expanding its revenue base beyond the PSMA imaging. In fact, TLX now has multiple revenue streams inclusive of it is isotope manufacturing business, with FY27 revenues now likely to expand well beyond the US$1bn mark .

Speaking about the product, the broker adds:

The work now commences to execute on the commercialisation strategy commencing with the establishment of reimbursement and the appointment of radiopharmaceutical networks for distribution.

We expect strong demand from the outset as FET-PET is the standard of care for the management of gliomas outside of the US. The drug has been available to a limited extent under the expanded access program in the US and there is a highly concentrated user group amongst radiation oncologists. The premium reimbursement relative to reimbursement on most other nuclear medicine exams will help prioritise FET-PET for machine time.

Should you invest?

According to the note, in response to the news, Bell Potter upgraded Telix shares to a buy rating with a $19.00 price target.

Based on its current share price of $17.75, this implies potential upside of 7% for investors.

Commenting on its investment thesis, it said:

First revenues expected 2Q27. Revenues will be modest in the initial instance and not material to overall revenue growth in the short term. Despite this, the Pixclara approval is an important catalyst, particularly if the label expands to the larger brain metastases indication. We had previously included revenues from Pixclara in forecasts, hence no changes to earnings required. We upgrade our recommendation from Hold to Buy, PT $19.00.

Overal, the broker appears to see potential for Telix shares to keep climbing in the near term. Though, the easy gains appear to be behind them.

The post Are Telix shares a buy after its big US FDA news? 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 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.

The James Hardie Industries PLC (ASX: JHX) share price is in focus after the company hosted its 2026 Investor Day, where it reaffirmed guidance and raised its free cash flow target for FY27. Management highlighted the rapid progress on cost synergies and provided a strategic growth outlook.

What did James Hardie report?

• Targets annual organic growth of 4% to 7% above market, with compounding earnings
• Expects to deliver US$125 million in cost synergies one year ahead of schedule
• US$500 million in revenue synergies from the AZEK integration remain on track
• Raised FY27 free cash flow target; reaffirmed FY27 net sales and Adjusted EBITDA guidance (excluding Europe)
• Commits to capital allocation priorities, aiming to reduce net leverage to below 2.0x by Q2 FY28

What else do investors need to know?

James Hardie is accelerating the integration with AZEK, achieving faster-than-expected cost synergy targets. The company expects to complete the US$125 million cost synergy target a full year ahead of schedule, while revenue synergies are progressing as planned.

The company is pressing ahead with the divestment of its European operations for about US$980 million. Proceeds are earmarked to pay down debt and fund share buybacks, which should support balance sheet strength and shareholder returns.

What did James Hardie management say?

Chief Executive Officer Aaron Erter said:

We are also introducing our financial growth algorithm that outlines the building blocks to deliver 4% to 7% growth above market. This will be driven by a $23 billion material conversion opportunity, self-help growth initiatives, and $500 million in anticipated revenue synergies – all without underwriting a housing recovery.

What’s next for James Hardie?

James Hardie reaffirmed its FY27 sales and Adjusted EBITDA targets and lifted its free cash flow outlook, signalling confidence despite broader macroeconomic challenges. The company is prioritising organic growth, disciplined capital allocation—including debt reduction—and further bolt-on acquisitions.

Management’s focus on compounding earnings and a robust North American growth strategy puts James Hardie on a path to deliver above-market returns, supported by structural drivers in the repair, remodel and new-build markets.

James Hardie share price snapshot

Over the past 12 months, James Hardie shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post James Hardie lifts guidance and details long-term growth at 2026 Investor Day 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 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.

Passive income is one key reason to invest in ASX shares.

Once you have built a large enough portfolio, money can arrive in your account without having to work another hour for it.

That could eventually mean extra holidays, fewer days at work, help with household bills, or simply more freedom.

Yet I think many people underestimate what they could build by starting with relatively modest amounts.

Let’s look at what could happen with $500 a month.

Getting started

Investing $500 does not feel life-changing in itself.

Even after a year, you would have contributed just $6,000.

But the real value of those early investments is the amount of time they have to compound.

If $500 were invested every month and the portfolio generated an average return of 10% per annum, the balance could grow to approximately $100,000 after 10 years.

After 15 years, it could be worth around $200,000.

And after 20 years, the portfolio could reach approximately $360,000.

These figures assume returns are reinvested and are only illustrations. A 10% annual return is possible to achieve, but certainly not guaranteed.

Overall, I think this demonstrates how seemingly small decisions made today can have major consequences decades later.

I wouldn’t chase dividends straight away

If I were starting this portfolio from scratch, income would not be my main priority.

I would want to grow the capital first. That could mean investing in high-quality ASX growth shares such as Xero Ltd (ASX: XRO), Goodman Group (ASX: GMG), and ResMed Inc (ASX: RMD).

Blue chips such as Wesfarmers Ltd (ASX: WES) could also have a role.

And ASX exchange traded funds (ETFs) such as the iShares S&P 500 ETF (ASX: IVV) or Vanguard MSCI Index International Shares ETF (ASX: VGS) could provide exposure to hundreds of global companies.

The aim during these years would be simple. It would be to keep investing, reinvest anything the portfolio pays out, and give compounding as much time as possible.

Turning growth into income

To generate $26,000 of passive income, I would target a portfolio valued at approximately $520,000 and a 5% dividend yield across it.

At our assumed 10% return, investing $500 every month could take the portfolio to this level in roughly 23 years.

Once there, this is when I would start thinking much more seriously about income.

Some of the growth investments could remain, while more money could gradually move toward dividend shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), HomeCo Daily Needs REIT (ASX: HDN), and Charter Hall Long WALE REIT (ASX: CLW).

A $520,000 portfolio yielding 5% would then produce $26,000 a year.

And all of it could have started with the decision to put aside $500 each month.

The post How to make $26,000 of passive income from ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, ResMed, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The PLS Group Ltd (ASX: PLS) share price has been one of the strongest performers in the S&P/ASX 200 Index (ASX: XJO) of the past year.

As the chart below shows, it has risen by close to 100% in the last 12 months!

After such a large rise, I think it’s worthwhile asking if it’s an opportunity or if it has reached a plateau.

Better lithium prices driving stronger profits

Every shareholder wants to see their business generating pleasing profits. After a difficult couple of years, PLS Group has seen an enormous upswing in its financials thanks to a large increase in the lithium price.

During FY26, the realised (sold) price for its lithium saw a 109% year-over-year increase to US$1,488 per tonne. The company also increased its production by 17% as it ramps up to meet the growing demand.

For FY26, PLS Group reported 152% growth of revenue to $1.9 billion, underlying operating profit (EBITDA) grew 1,067% to $1.1 billion, while net profit after tax (NPAT) soared 608% to $1.36 billion. Its cash margin from operations improved by 608% to $1.36 billion.

The massive improvement of profitability allowed the business to declare a dividend of 5 cents per share.

PLS Group has managed to deliver significant profits while also investing to increase production. The company is working towards its P2000 project target for Pilgangoora, with a pre-final investment decision (FID) investment of around $175 million. The Colina project feasibility study is also progressing, and it has restarted the Ngungaju processing plant.

Overall, it was an excellent year for the business. However, the result wasn’t really a surprise for the market because it was clear that the lithium price was rising throughout the year.

The current PLS Group share price also reflects a lot of the improved positivity about the lithium sector.

Is the PLS Group share price attractive?

The company expects to grow production by at least 17% in FY27, a solid tailwind for earnings growth in the new financial year, though changes in lithium prices could also have a significant impact.

PLS Group highlights that lithium demand is forecast to triple by 2040, with that growth broadening across geographies and end-uses. Electric vehicle demand is growing and solar and wind generation is expected to continue rising, requiring significant energy storage.

The ASX lithium share also suggested that lengthening development timelines could constrain the industry’s ability to meet the growing demand. In the 2010s, mine development took 16 years on average from discovery to production; in this decade, it has taken 18 years on average.

According to CMC Invest, there have been 12 analyst rating calls on the business within the last three months, with seven of those ratings being a buy, three being a hold, and two being a sell.

The average price target from those 12 analysts is $5.52, suggesting a potential rise of about 30% over the next year. That implies the PLS Group share price could be a solid buy today.

The post Is the PLS Group share price a buy in September? appeared first on The Motley Fool Australia.

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

The Infratil Ltd (ASX: IFT) share price is in focus today after the company upgraded its FY27 proportionate EBITDAF guidance on soaring data centre demand. Key highlights include contracted capacity at CDC Data Centres reaching 1.1GW and a step-up in earnings outlook for both CDC and US-based Longroad Energy.

What did Infratil report?

• FY27 proportionate EBITDAF guidance lifted to NZ$1,320 million–$1,420 million (previously NZ$1,300 million–$1,400 million).
• CDC Data Centres’ FY27 EBITDAF guidance raised to A$710 million–$750 million (from A$680 million–$720 million) after new contract wins and operating cost savings.
• CDC now has 1.1GW of contracted capacity, expected to deliver A$2.2 billion annualised EBITDAF when fully deployed.
• Longroad Energy is scaling up, acquiring a 2.8GW project and targeting a 14GW energy fleet by 2029.
• One New Zealand continues strong cash generation, growing mobile revenue share and progressing IT simplification.

What else do investors need to know?

Infratil’s portfolio now stands at NZ$22 billion in total assets, with data centre investments making up over half that value. The company is actively refining its portfolio, including a sales process for its Qscan radiology business, and ongoing investments in infrastructure optimisation.

Longroad Energy is meeting strong US market demand by ramping up its renewables development, while also exploring data centre co-location at its solar farm sites. In New Zealand, EonFibre has completed its first year as a separated business and is positioned to capture future AI-driven data centre growth.

What did Infratil management say?

Infratil Chief Executive Officer Jason Boyes said:

Our global portfolio provides multiple pathways to grow returns across the AI infrastructure value chain. We’re pursuing attractive opportunities adjacent to our core energy and data centre investments, including leveraging our existing platforms across geographically diverse markets, as well as exploring new sectors for future growth.

What’s next for Infratil?

Infratil is focused on scaling its core data centre and renewables businesses, maintaining capacity for future growth with a strong BBB+ balance sheet rating. The company is also searching for new verticals and adjacencies that align with its infrastructure expertise and target returns.

Capital management remains a priority, with further divestments planned to fund growth opportunities. Infratil’s strategy is underpinned by steady contracted revenue streams and a disciplined approach to deploying capital in high-demand sectors like AI, digital infrastructure, and renewables.

Infratil share price snapshot

Over the past 12 months, Infratil shares have declined 2%, matching the S&P/ASX 200 Index (ASX: XJO), which has also fallen 2% over the same period.

View Original Announcement

The post Infratil hikes earnings guidance as data centre growth accelerates 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 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.

There are plenty of ASX dividend shares offering attractive dividend yields right now.

But which ones could be buys this week?

Let’s take a look at three with big yields that could be excellent picks for income investors.

APA Group (ASX: APA)

APA could be a strong option for income investors. It owns and operates a large portfolio of energy infrastructure assets across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

These are important assets that help move energy around the country.

A large portion of APA’s earnings is also supported by long-term contracts and regulated revenue, which gives the business good visibility over future cash flows.

That has helped APA build a long record of growing its distributions.

Management is expecting FY 2027 dividends of 59 cents per share, up from 58 cents in FY 2026.

Based on its current share price of $10.81, this represents a forward dividend yield of approximately 5.5%.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share for income investors to consider is the HomeCo Daily Needs REIT.

It is a property company that owns neighbourhood retail, large-format retail, healthcare, and other properties focused on everyday spending.

Its tenants include supermarkets, pharmacies, healthcare providers, childcare operators, and other businesses that tend to remain well used through different economic conditions. This creates a relatively defensive source of rental income.

More positives are that HomeCo Daily Needs REIT has high occupancy levels and has been growing rental income across its portfolio.

This is expected to underpin a dividend of 8.6 cents per share in FY 2027. Based on its current share price of around $1.11, this would mean a very large dividend yield of approximately 7.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share for income investors to look at this week is Universal Store.

The youth fashion retailer operates Universal Store, Perfect Stranger, and Thrills, giving it exposure to several different customer groups and price points.

Across these brands, Universal Store has built a clear position in the youth fashion market. Its stores are carefully curated, while its growing portfolio of owned brands gives the company more control over margins and product.

The retail industry has been a tough place to be recently, but that hasn’t stopped Universal Store from growing its sales, profits, and dividends strongly.

The good news is that the market expects this trend to continue in FY 2027. It is forecasting a fully franked dividend of 46 cents per share.

Based on its current share price of $7.09, this represents a generous 6.5% dividend yield.

The post 3 excellent ASX dividend shares with 5.5% to 7.7% yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Apa Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to invest some of your superannuation savings in ASX shares to earn an extra $60,000 of passive income in 2027?

Here’s what you need to know before investing a single dollar of your super balance.

Franking credits and diversification

Whether you’re investing from your savings account or tapping into your superannuation, if you’re after passive income, I recommend sticking to the larger end of the market. So, generally, S&P/ASX 200 Index (ASX: XJO) dividend stocks.

These tend to have less volatile share price moves and more stable dividend payments than small-cap ASX dividend shares.

I’d also preference ASX 200 shares paying fully franked dividends. This gives you credit for the 30% in taxes the companies you’re buying have already forked over to the ATO on the profits they made.

Then there’s the crucial ‘don’t put all your eggs in one basket’ rule.

If you’re investing a sizeable portion of your superannuation savings to target $60,000 of passive income in 2027, then you’ll want to invest in a diverse range of say 15 to 20 stocks.

Ideally these will operate in various sectors and locations. This will reduce the risk of your passive income stream taking an outsized hit if any single company or sector runs into a rough patch.

And finally, keep in mind that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

How much superannuation do I need to invest for a $60,000 passive income?

Precisely how much superannuation you’ll need to invest to achieve your 2027 $60,000 passive income goal will, of course, depend on the yield you achieve from the ASX shares you’re buying.

Using the below three diverse ASX 200 dividend stocks as an example, here’s what you might expect, without needing to draw down on your initial investment.

First up, Westpac Banking Corp (ASX: WBC) shares.

Over the past full year, Westpac paid two fully franked dividends, totalling $1.54 a share. At the recent Westpac share price of $34.23, the ASX 200 bank stock trades on a fully franked 4.5% trailing dividend yield.

Next up, I’d look at investing some of my superannuation into ASX 200 coal stock New Hope Corp Ltd (ASX: NHC).

New Hope paid a 10 cent per share fully franked interim dividend on 20 April. The 30 cent per share final dividend is still up for grabs. To score that, you’ll need to own New Hope shares at market close this Friday. You can then expect to get paid on October.

At the recent share price of $6.57, New Hope shares trade on a fully franked dividend yield (partly trailing, partly confirmed) of 6.1%.

And third, we have ASX 200 telco Telstra Group Ltd (ASX: TLS).

Over the past year Telstra has paid out two 90% franked dividends totalling 21 cents per share. At the recent share price of $4.83, Telstra shares trade on a 4.4% trailing dividend yield.

If you were to invest the same amount of your superannuation into each of the above ASX 200 dividend stocks, you could expect to earn a yield of 5.0%.

To earn $60,000 of passive income in 2027 you’d then need to invest $1.2 million today.

The post How much of my superannuation do I need to invest to earn $60,000 of passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $70,000 per year in passive income?
• Here are the top 10 ASX 200 shares today
• $10,000 invested in Zip and New Hope shares 3 years ago is now worth…
• New Hope shares near 52-week high. Here’s what stood out in the result
• Are Telstra shares a good buy for 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence (AI) could be one of the biggest investment themes of the next decade.

But investors do not have to find the next Nvidia or pick which software company will ultimately come out on top.

ASX exchange traded funds (ETFs) can provide a simpler way to gain exposure to the theme.

Here are three very different options. Investors could choose the one that best suits their portfolio, or potentially own more than one.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a good option for investors who want AI exposure without making it the entire investment case.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange.

That includes businesses involved in semiconductors, cloud computing, software, digital advertising, ecommerce, and consumer technology.

Many of these companies are investing heavily in AI or are providing the infrastructure needed to support it. This includes Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Google parent Alphabet (NASDAQ: GOOG).

Overall, this gives investors exposure to the theme while still owning a wider collection of leading growth companies.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another option is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives investors exposure to companies involved in robotics, automation, artificial intelligence, drones, autonomous systems, and related technologies.

I think this is an interesting way to approach AI because it looks beyond chatbots and software.

AI can also help machines perform more complicated tasks in factories, warehouses, hospitals, farms, and logistics networks.

Businesses around the world are constantly looking for ways to lift productivity and automate repetitive work.

If that continues, robotics and intelligent machines could become far more common over the next decade.

Global X Artificial Intelligence ETF (ASX: GXAI)

For investors wanting more direct exposure to the AI theme, the Global X Artificial Intelligence ETF could be worth considering.

This fund invests across different parts of the AI ecosystem.

That can include companies involved in semiconductors, software, cloud computing, data infrastructure, automation, and other technologies needed to develop and deploy artificial intelligence.

The good thing here is that nobody really knows where all the winners will come from.

Some winners could build AI models. Others could supply the chips, computing power, software tools, or infrastructure required to run them.

The Global X Artificial Intelligence ETF gives investors a way to back that wider opportunity rather than trying to identify one company that will dominate the AI era.

The post 3 ASX ETFs for easy artificial intelligence (AI) exposure appeared first on The Motley Fool Australia.

More reading

• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• 3 very exciting ASX ETFs for investors to watch
• How much could $10,000 invested in these AI focussed ETFs be worth in a year?
• 3 of the best ASX ETFs to buy and hold for 10 years
• NDQ vs IVV: One could be the better US growth ASX ETF

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.