Author: openjargon

Lovisa vs Baby Bunting shares: A retail face-off for ASX investors

It’s not every day you pit a global fast-fashion jewellery success against a homegrown baby goods specialist, but Lovisa Holdings Ltd (ASX: LOV) and Baby Bunting Group Ltd (ASX: BBN) give investors two very different options in the ASX consumer discretionary space. Whether you’re drawn to Lovisa’s international expansion or Baby Bunting’s niche positioning, choosing between these shares means weighing growth, value, dividends, and momentum.

The case for Lovisa

Lovisa operates a sprawling network of fashion jewellery and accessories stores, starting from humble Sydney beginnings in 2010 and now spanning over 900 locations in 45+ countries, with seven online stores as well. This business model is fast, vertically integrated, and sharply focused on affordable, on-trend pieces for a global shopper.

When I look at Lovisa, a few data points leap out:

• Market cap of $2.66 billion shows major scale for an Australian retailer.
• P/E ratio of 28.21 positions Lovisa at a growth-type multiple.
• Dividend yield is 3.53% — healthy for a retailer, though only 50% franked according to latest data.
• Year-to-date return is down, at -14.0%, signalling a recent pullback after a strong run in prior years.

Lovisa’s dividend history suggests some variability in franking and amount, with recent payments split between fully and partially franked. According to its most recent public profile, the brand has achieved impressive global penetration.

The case for Baby Bunting

Baby Bunting is a specialist in baby and young children’s products, running around 76 stores across Australia and New Zealand. It’s a familiar destination for expectant or new parents, stocking all the essential brands as well as some exclusive private-label ranges.

Looking at Baby Bunting right now, what stands out is:

• Market cap of just $143 million makes it much smaller than Lovisa — a real David and Goliath scenario.
• P/E ratio of 13.48 means the market currently prices this business at less than half the earnings multiple of Lovisa.
• Dividend yield is 0.00% based on the latest fundamentals — a big change from a solid dividend payer history, possibly reflecting current earnings pressure.
• Year-to-date return has been very tough at -58.4%, pointing to a challenging operational period or structural concern.

Dividend history shows Baby Bunting was consistently fully franked and paid (if small) dividends up to 2024; the absence of a yield now suggests a pause due to weaker earnings or cash flow. According to its latest company profile, Baby Bunting has grown into a category leader in baby goods, supported by a focused product range and a loyal customer base.

Valuation comparison

There are some big numbers on display when you line up Lovisa and Baby Bunting. Let’s break down the key metrics:

	Lovisa	Baby Bunting
Market Cap	$2.66 billion	$143 million
P/E Ratio	28.21	13.48
Dividend Yield	3.53% (50% franked)	0.00% (100% franking in most recent payments)
EPS	$0.792	$0.079
Dividend per Share	$0.86	$0.07
Year-to-date Return	-14.0%	-58.4%

It’s worth noting Lovisa’s higher market cap, higher multiple, and higher yield, offset against Baby Bunting’s rock-bottom valuation multiple — a reflection of recent struggles. Lovisa’s P/E and EPS, and Baby Bunting’s P/E and EPS, do appear mathematically consistent based on the data given. Also, Lovisa’s dividends are only partially franked, while Baby Bunting’s prior dividends were fully franked, though now absent.

Recent share price performance

Comparing recent share activity up to 28 September 2026:

• Lovisa closed at $24.06. Over the prior 15 trading days, its price fluctuated, recording sharp daily changes both up and down, but trended lower since the start of September 2026. Its year-to-date return is -14.0%.
• Baby Bunting Group closed at $1.05. Its share price has dropped steeply over the same period, with several negative sessions and only minor positive days. Its year-to-date return sits at a bruising -58.4%.

Which is the better buy?

If I’m forced to pick between Lovisa and Baby Bunting, I’d lean towards Lovisa for now. The company is showing clear profit generation (EPS and dividend), has the scale and international reach to weather retail storms, and continues to pay a reasonably attractive dividend — even if only 50% franked.

Baby Bunting trades at a far lower earnings multiple and looks much cheaper on paper, but the absence of a dividend and the sharp share price decline tell a story: confidence in near-term recovery is weak, and market doubt is high. While I can see the value argument, I’d need to see a turnaround before getting confident.

For investors after growth plus income, Lovisa ticks more boxes. For contrarians happy with a turnaround gamble, Baby Bunting is a speculative play — but I wouldn’t call it the better buy.

The post Lovisa vs Baby Bunting: Which ASX retailer is the better buy today? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest in ASX shares after the recent RBA rate rise
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Buy, hold, sell: Echo IQ, Bluescope Steel, Lovisa shares
• Top broker names 2 growing ASX dividend shares to buy now
• Here are the top 10 ASX 200 shares today

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 Lovisa. The Motley Fool Australia has recommended Lovisa. 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 S&P/ASX 200 Index (ASX: XJO) staged a strong advance this hump day, driving the value of many ASX shares markedly higher. In what is shaping up to be a fairly optimistic week on the markets, the ASX 200 recovered from some early wobbles to decisively push upwards, banking a solid 0.92% rise by the time trading finished today. That leaves the index at 8,789.3 points.

This jubilant Wednesday for the Australian markets followed a far less rosy night over on the American bourse.

The Dow Jones Industrial Average Index (DJX: .DJI) sold down again, losing 0.26% of its value.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did a little better, but still lost 0.085%.

Let’s return to the local markets now and take a closer look at what was happening amongst the different ASX sectors this session.

Winners and losers

There was only one sector that was left behind in the stampede to higher ground.

That unfortunate sector was tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was left out in the cold, diving 0.41%.

It was much more exciting everywhere else.

Leading the charge higher this Wednesday were real estate investment trusts (REITs), with the S&P/ASX 200 A-REIT Index (ASX: XPJ) rocketing 3.6%.

Consumer discretionary shares were on fire, too. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) soared up 2.27%.

Communications shares ran hot as well, as you can see by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 1.93% surge.

Industrial stocks also saw decent demand. The S&P/ASX 200 Industrials Index (ASX: XNJ) galloped 1.65% higher.

Energy shares didn’t miss out, with the S&P/ASX 200 Energy Index (ASX: XEJ) vaulting up 1.56%.

We could say the same for gold stocks. The All Ordinaries Gold Index (ASX: XGD) jumped 1.35% this session.

Healthcare shares were a little less enthusiastic, though, evidenced by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 0.71% leap higher.

Mining stocks followed healthcare. The S&P/ASX 200 Materials Index (ASX: XMJ) saw its value get a 0.67% bump today.

Consumer staples shares came back from an early retreat, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) adding 0.57% to its total.

Utilities stocks fared decently as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) enjoyed a 0.48% lift.

Finally, financial shares managed to stay on the right side of the ledger, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.27% dip.

Top 10 ASX 200 shares countdown

Today’s index winner was REIT LendLease Group (ASX: LLC). LendLease units roared 11.3% higher this Wednesday to close at $2.66. There wasn’t any price-sensitive news out of the REIT today, although most of its peers did very well.

Here’s how the other high-flyers landed their planes:

ASX-listed company	Share price	Price change
LendLease Group (ASX: LLC)	$2.66	11.30%
Karoon Energy Ltd (ASX: KAR)	$1.58	8.97%
Charter Hall Group (ASX: CHC)	$18.86	6.43%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$20.53	6.32%
Northern Star Resources Ltd (ASX: NST)	$24.77	6.35%
Beach Energy Ltd (ASX: BPT)	$0.875	6.06%
REA Group Ltd (ASX: REA)	$157.50	5.85%
Austal Ltd (ASX: ASB)	$4.49	5.65%
Atlas Arteria (ASX: ALX)	$3.95	5.33%
DroneShield Ltd (ASX: DRO)	$1.70	5.26%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• 6 ASX shares upgraded by experts amid a weak market 
• 2 ASX real estate funds that could return 23% to 35%
• Why has the ASX 200 jumped to its highest level in 3 weeks?
• Why are Northern Star shares rocketing 8% on Wednesday?
• Why is the DroneShield share price surging 9% on Wednesday?

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 Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Yancoal Australia Ltd (ASX: YAL) share price is in focus today after the NSW Independent Planning Commission approved the Hunter Valley Operations (HVO) Continuation Project, extending mining at the HVO site until 2045—a key milestone for the company and the region.

What did Yancoal Australia report?

• NSW Independent Planning Commission approval for the HVO Continuation Project
• Project extends the Hunter Valley Operations mine life to the end of 2045
• HVO employs around 1,570 mine workers
• Six-year regulatory process included extensive community and stakeholder engagement
• Project aligned with State and Federal legislative and environmental standards

What else do investors need to know?

The State-level approval marks a significant step but isn’t the final hurdle. Yancoal’s Hunter Valley Operations still requires Federal environmental approval from the National EPA by the end of 2026.

Throughout the approval process, HVO worked closely with regulators, adapting its design to meet rigorous environmental and net-zero standards. The company acknowledges the ongoing support from its workforce, local suppliers, and the Hunter Valley community.

What did Yancoal Australia management say?

CEO of Yancoal Mr Sharif Burra said:

The HVO Continuation Project enjoyed support from the vast majority of submissions made during the IPC public hearing. Support was also voiced by local and State Government representatives. We are optimistic the final elements required can be secured, allowing HVO to operate the next 19 years to the benefit of our workforce, local business partners, regional community, shareholders, customers and the NSW economy.

What’s next for Yancoal Australia?

Yancoal is now focusing on securing Federal environmental approval before the 31 December 2026 deadline. The company will continue working with the National EPA to finalise the necessary requirements.

Securing full approval would bring long-term operating certainty for the HVO mine and provide ongoing benefits for Yancoal’s workforce, partners, and the wider Hunter Valley region.

Yancoal share price snapshot

Over the past 12 months, Yancoal shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Yancoal shares in focus after Hunter Valley mine approval appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why these ASX shares are worth watching closely today
• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week

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 high-yield ASX dividend stock APA Group (ASX: APA) is one of the top picks out there for passive income, in my opinion. I’d rather own shares of it than receive the Age Pension.

Australia’s Age Pension is one of the most generous in the world. It’s great that retirees have that safety net, but I like the idea of income coming into my bank account from assets I own myself.

APA is one of the biggest energy businesses on the ASX. Its main asset is a network of gas pipelines that spans the country. It also owns gas power stations, gas storage, gas processing, solar farms, wind farms, and electricity transmission.

Australia needs energy for residential and business usage, so APA plays an important role in Australian society. It actually transports half of the nation’s gas usage, so it’s an essential part of the national energy picture.

Let’s take a look at how an investor could use the high-yield ASX dividend stock to match the Age Pension.

Passive income guidance

I view APA as one of the most impressive passive income businesses on the ASX because of how consistently it has increased its payout. Of course, past dividend growth is not a guarantee of future dividend growth.

APA has increased its annual distribution for 22 years in a row. That’s the second-longest payout growth streak for a business on the ASX.

The business has provided distribution guidance that will take it to 23 years of consecutive growth.

APA management expects the business to hike its payout to 59 cents per security. At the time of writing, that represents a forward distribution yield of 5.6%, which I think is an excellent starting point and extremely competitive against the best term deposit rates right now.

Its earnings and cash flow are growing thanks to inflation-linked revenue, new energy projects being built and completed, and acquisitions.

Equal the Age Pension

Australian retirees recently received a payment increase, which is great news during this period of higher inflation and cost of living.

The maximum Age Pension that a single Australian can receive is $1,237.70 per fortnight. That translates into an approximate annualised figure of $32,180.

If an investor wanted to receive $32,180 of annual income from the high-yield ASX dividend stock from its projected FY27 payout of 59 cents per security, that investor would need to own 54,543 APA Group shares.

Of course, diversification is an important element of investing for passive income. I wouldn’t have 100% of my portfolio invested in APA shares; I’d spread it across a number of ASX shares that can generate returns.

The post 54,543 shares of this high-yield ASX dividend stock pay an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth
• Where to invest $20,000 in ASX dividend shares for passive income
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Where to invest as interest rates charge higher
• How to build a $50,000 passive income from ASX shares

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

S&P/ASX 300 Metal & Mining Index (ASX: XMM) shares are up 1.1% to 8,346.6 points on Wednesday.

Over 12 months, ASX mining shares have soared 29% while the S&P/ASX 300 Index (ASX: XKO) has fallen 1%.

The mining index reached a record high of 9,326.9 points on 26 August. 

Higher demand for metals and minerals due to the green energy transition and strong commodity prices has contributed to the 29% rise.

This week, brokers have indicated continued confidence in several ASX mining shares by renewing their buy recommendations.

The brokers have also given each stock a 12-month price target, indicating where they think the valuation will go.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is $61.21, up 1% today.

Over the past month, this ASX 200 iron ore share has fallen 8%.

Morgan Stanley renewed its buy rating on BHP shares on Monday.

The broker has a 12-month price target of $68.

This suggests a potential 11% upside ahead.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is 31 cents, up 3.3% today.

This ASX lithium share has fallen 23% over the past month.

Canaccord Genuity reiterated its buy rating on Galan Lithium shares on Monday.

The broker has a 12-month price target of 80 cents.

This implies potential capital gains of 158% ahead.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 88 cents, down 2% today.

Over the past month, this ASX 200 gold share has risen 1%.

Bell Potter reaffirmed its buy rating on Minerals 260 shares with a 12-month target of $1.45.

This suggests a potential 64% upside ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $52.63, up 0.5% today.

This ASX 200 mining share has fallen 19% over the past month.

UBS renewed its buy rating on the stock with a $74 target.

This implies potential capital growth of 40% over the next year.

South32 Ltd (ASX: S32)

The South32 share price is $5.04, up 0.3% today.

Over the past month, this ASX 200 mining share has fallen 2%.

Citi renewed its buy rating on South32 shares yesterday.

The broker has a $6 target, implying a potential 19% upside ahead.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is $3.11, up 1.1% today.

This ASX iron ore share has fallen 12% over the past month.

UBS reiterated its buy rating on Champion Iron shares with a price target of $4.15.

This implies a potential 34% upside ahead.

AIC Mines Ltd (ASX: A1M)

The AIC Mines share price is 88 cents, down 2.8% today.

This ASX copper share has risen 9% over the past month.

Morgans reiterated its buy rating on AIC Mines shares with a price target of $1.20.

This implies potential capital gains of 36% ahead.

The post 7 ASX mining shares with 11% to 158% upside ahead: experts appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Corporate Travel Management, JB Hi-Fi, BHP shares
• ASX 200 holds steady as investors brace for a big afternoon
• This ASX iron ore junior could rise more than 33% UBS says
• BHP vs Coles: Which ASX share is better for passive income?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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.

S&P/ASX 200 Index (ASX: XJO) shares are 1% higher at 8,797 points on Wednesday. 

However, the market has fallen into the red over 12 months, down 0.6%, amid rising oil prices and interest rates.

The Reserve Bank of Australia (RBA) lifted the official cash rate from 4.35% to 4.6% yesterday.

Experts say another rate rise may be required in November to combat persistently high inflation.

Inflation rose from 3.5% over the 12 months to July to 4% last month, according to data released today.

Amid the market weakness, brokers have raised their ratings on several ASX shares this week.

Let’s see a sample. 

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $15.22, up 1.9% today.

Over the past month, this ASX 200 gold share has fallen 8%.

Bell Potter upgraded Capricorn Metals shares to a buy rating this week.

The broker raised its 12-month price target from $18.05 to $18.10.

This implies a potential 19% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.40, up 1% today.

Over the past month, this ASX 200 mining share has fallen 10%.

UBS upgraded Evolution shares to a buy call this week.

The broker increased its 12-month price target from $15.20 to $16.

This suggests a potential 19% gain ahead.

REA Group Ltd (ASX: REA)

The REA share price is $156.16, up 4.9% today.

Over the past month, this ASX 200 communications share has dropped 12%.

Bell Potter upgraded REA to a hold recommendation with a price target of $148.

This suggests a potential 5% downside ahead.

Healius Ltd (ASX: HLS)

The Healius share price is 42 cents, up 1.7% today.

Over the past month, this ASX 200 healthcare share has fallen 2%.

RBC Capital upgraded Healius shares to a hold rating with a 12-month price target of 42 cents.

This implies the stock is fully valued.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation Services share price is 54 cents, up 6.9% today.

Over the past month, this ASX industrials share has fallen 18%.

Morgans upgraded Alliance Aviation Services shares to a buy rating on Monday.

The broker has a 12-month price target of 85 cents.

This indicates potential capital gains of 57% over the next year. 

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management shares are $13.30 apiece, down 4.7% today.

Over the past month, this ASX 200 financial share has declined 21%.

UBS upgraded the stock to a buy rating but reduced its price target from $18 to $17.

This suggest a potential 28% upside ahead.

The post 6 ASX shares upgraded by experts amid a weak market  appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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Motley Fool contributor Bronwyn Allen 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The APA Group Ltd (ASX: APA) share price is in focus after announcing a new $1.3 billion majority stake in the Brigalow Peaking Power Plant, set to deliver 400MW of dispatchable energy in Queensland. A 25-year, inflation-linked agreement with CS Energy underpins project returns.

What did APA Group report?

• APA to acquire 80% majority stake in the Brigalow Peaking Power Plant for approximately $1,015 million.
• Total project cost estimated at $1,269 million, with existing balance sheet capacity to fund APA’s share.
• Returns supported by a 25-year inflation-linked hedge offtake agreement with CS Energy.
• The 400MW gas power plant will support electricity for over 150,000 homes.
• Part of APA’s broader $3.5 billion organic growth pipeline.

What else do investors need to know?

The Brigalow Peaking Power Plant will be located next to CS Energy’s Kogan Creek Power Station, boosting Queensland’s fast-start energy generation. APA will lead delivery under a construction management agreement, while CS Energy will retain a 20% interest and operate the facility once complete.

APA is also building a new gas lateral and storage pipeline, linking the plant with its Roma to Brisbane Pipeline under a separate agreement. Early works are now finished, with GE Vernova supplying turbines and Monadelphous starting main construction. Project completion is targeted for early 2029.

What did APA Group management say?

CEO and Managing Director Adam Watson said:

We are pleased to confirm this partnership with CS Energy to support Queensland’s energy security and transition.

The Brigalow project aligns with the goals of the Queensland Government’s Energy Roadmap, supporting energy reliability and affordability and demonstrating the important role the private sector can play to bring critical energy infrastructure projects to life.

The project also demonstrates momentum with our contracted power generation growth strategy as we continue to progress further opportunities to support Australia’s energy transition on both the east and west coasts.

What’s next for APA Group?

APA expects the Brigalow project to deliver returns in line with its hurdle rates and to play a vital role in supporting the energy transition. Management says the project forms part of its strategy to expand contracted power generation and strengthen national energy reliability.

Completion is slated for early 2029, with all major construction partners now engaged and works progressing. Investors can watch for further updates as APA advances its $3.5 billion growth pipeline.

APA Group share price snapshot

Over the past 12 months, APA Group shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth appeared first on The Motley Fool Australia.

More reading

• 54,543 shares of this high-yield ASX dividend stock pay an income equal to the Age Pension
• Where to invest $20,000 in ASX dividend shares for passive income
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Where to invest as interest rates charge higher
• How to build a $50,000 passive income from ASX shares

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa 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.

By now, you’d probably be aware that the Reserve Bank of Australia (RBA) increased interest rates yesterday. The RBA’s 25-basis-point hike was the third time interest rates have been increased in 2026. The new cash rate of 4.60% is the highest Australians have seen since late 2011. This move has profound implications for ASX shares and Australian investors. So let’s get into how we should be investing in a high-rate world.

Most people associate an interest rate hike with higher mortgage payments. Whilst that is probably the most obvious and painful consequence of a rise in interest rates, there are other consequences as well.

The RBA made this move in order to tame the sticky inflation that has crept into the Australian (really the global) economy. Yes, higher interest rates mean that banks and other lenders must charge higher interest rates of their own on mortgages, business lending, and other lines of credit. But it also works to encourage saving over spending by bumping up the interest rates we can receive on products like term deposits, savings accounts, and government bonds.

As such, higher rates have traditionally been bad news for the share market. For one, they slow economic activity, which increases pressure on any company trying to extract profits from the Australian economy. For another, investors have a higher incentive to leave their cash in a safe investment like a term deposit, rather than risking it on the share market.

Higher rates also tend to have an impact on how investors value ASX shares, and not in a good way. But we’ll leave that for another time.

So how does one invest in this kind of environment? Well, I can only tell you what I’m doing.

ASX shares or cash?

For starters, I am not selling out of any of my high-conviction ASX share investments. The data consistently tells us that the share market is the place where the best investing returns are generated. That’s irrespective of how high or low interest rates are.

Saying that, I have slowed down my buying. With a safe, risk-free return of what is now approaching 5.5% from many savings accounts, I am keeping more of my cash in the bank. I think this is prudent, given what is going on in the world right now. I don’t know what the future holds. But I do know that periods of high interest rates have often ended in recessions in the past. Thus, it makes sense to take advantage of these high rates while we can, and perhaps deploy that cash into more ASX shares once rates start falling.

I won’t be putting the majority of my capital into cash. International and ASX shares will remain the core of my investing portfolio for a long time to come. However, I do think that the relatively high returns that cash offers today are something to note. Depending on your own circumstances, it might be worth another look at the structure of your own portfolio.

The post Cash rate at 4.6%: Here’s how I’m investing in ASX shares appeared first on The Motley Fool Australia.

More reading

• Yancoal shares in focus after Hunter Valley mine approval
• 54,543 shares of this high-yield ASX dividend stock pay an income equal to the Age Pension
• 7 ASX mining shares with 11% to 158% upside ahead: experts
• 6 ASX shares upgraded by experts amid a weak market 
• APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth

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

Global X has announced the estimated distribution amounts for a variety of its ASX exchange-traded funds (ETFs).

The ex-dividend date is Friday, 2 October.

In order to be eligible to receive an upcoming distribution, you must own the ASX ETF before it goes ex-dividend.

Global X reveals next lot of dividends for ASX ETFs

Here are the distribution amounts, rounded to two decimal places.

Global X will confirm the final payment figures tomorrow.

Investors will receive their distributions on 19 October.

Global X is offering a distribution reinvestment plan (DRP) for all of these ASX ETFs.

If you would like Global X to use your dividends to buy more units, you must complete a DRP election form.

Global X registrar, Computershare Ltd (ASX: CPU), needs to receive your DRP election form by 5pm AEST tomorrow.

ASX ETF name	Distribution amount
Global X Australia 300 ETF (ASX: A300)	44.32 cents per unit
Global X S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD)	11.14 cents per unit
Global X Australian Bank Credit ETF (ASX: BANK)	6.34 cents per unit
Global X Australia ex Financial & Resources ETF (ASX: OZXX)	9.32 cents per unit
Global X Nasdaq 100 Covered Call Complex ETF (ASX: QYLD)	8.54 cents per unit
Global X Russell 2000 ETF (ASX: RSSL)	1.43 cents per unit
Global X USD High Yield Bond (Currency Hedged) ETF (ASX: USHY)	12.42 cents per unit
Global X USD Corporate Bond (Currency Hedged) ETF (ASX: USIG)	10.44 cents per unit
Global X US Treasury Bond (Currency Hedged) ETF (ASX: USTB)	8.13 cents per unit
Global X S&P 500 Covered Call Complex ETF (ASX: UYLD)	6.29 cents per unit
Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)	16.52 cents per unit
Global X S&P 500 High Yield Low Volatility ETF (ASX: ZYUS)	12.81 cents per unit

Vanguard has also announced its next batch of estimated distributions for its ASX ETFs.

They include the most popular ETF on the Aussie market, Vanguard Australian Shares Index ETF (ASX: VAS), as well as Vanguard Australian Shares High Yield ETF (ASX: VHY), and Vanguard MSCI Index International Shares ETF (ASX: VGS).

The ex-dividend date for Vanguard distributions is tomorrow. Vanguard will pay investors on 16 October.

BlackRock has also announced its next lot of estimated distributions for iShares S&P 500 ETF (ASX: IVV) and many others.

Those ETFs have already gone ex-dividend. BlackRock will pay its ETF investors on 9 October.

A group of 15 other ASX stocks and REITs are going ex-dividend this week.

The post ASX ETF dividends: Global X reveals next payments appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, 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.

There has been a sell-off among some of the real estate investment trusts recently, which analysts argue is creating a buying opportunity.

I’ve selected two research reports published this week that make the case that the trusts in question have been oversold and are now worth a look for investors.

Let’s see who the analysts like.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo is down nearly 20% on a 12-month basis and is trading not far above its low for the period.

The shares have been sold off, particularly since the release of HomeCo’s results on 13 August.

Bell Potter has run the ruler over the company and believes the shares now represent good value.

One major selling point is the dividend yield, which is now sitting at 8.2%.

Bell Potter also argues that the sell-off in the shares has been overdone.

The broker said:

The stock has fallen 13.3% since results and underperformed peers over 3 months, a reaction we view as disproportionate to the underlying 2.2% FY27 earnings decline.  

Bell Potter said they expected earnings to trough this financial year, with growth returning in FY28 as the cost of debt reduces, assets are sold, and developments are completed.

The broker added that retail supply was lagging demand, “driving vacancy down and rental growth up”.

Bell Potter has a buy recommendation on HomeCo shares with a price target of $1.20 compared to $1.08 currently.

Charter Hall Group Ltd (ASX: CHC)

UBS believes Charter Hall has been oversold since early August and calls the company a “top pick” in the real estate sector.

The broker said:

Of the large cap REITs, CHC’s relative returns are most negatively correlated to bond yields which are up ~50bp in the past two months. While rising yields are clearly a headwind for the business (e.g. via lower valuations and transaction volumes), we think the market is assigning too much weight to a downside outcome despite a more resilient earnings base this cycle.

UBS said the market was likely wary of the shares, which were heavily sold off during the last interest rate increase cycle in 2022-23.

But the broker said the current rate cycle is far less dramatic, and “property values should hold up better given sharp devaluations booked across 2022-24”.

UBS has slightly reduced their price target on Charter Hall from $24.50 to $24, but that’s still well above the current level of $18.56.

Charter Hall is valued at $8.38 billion.

The post 2 ASX real estate funds that could return 23% to 35% 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 recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.