Author: openjargon

There are a number of great ASX shares with high dividend yields worth knowing about. Australian companies can be some of the best options for passive income due to their generous dividend payout ratios and the bonus of franking credits.

We’re going to look at two ASX dividend shares with exceptionally high dividend yields. They offer significantly more income than the current interest rate on cash in the bank.

Below are two of my favourite ideas for large dividend yields.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is a listed investment company (LIC) offering shareholders a large and growing dividend.

Instead of being managed by one fund manager, this LIC’s money is managed by 16 different fund managers who all work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities – a great initiative.

This portfolio is significantly less exposed to the largest 10 businesses on the ASX, making it much more diversified, in my opinion. It gives exposure to more than 430 underlying securities.

Future Generation’s portfolio has outperformed the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA), returning an average of 0.9% per annum more than the index between inception in September 2014 and May 2026. I think it helps to look at smaller, faster-growing businesses.

The solid investment returns have allowed this ASX share to steadily increase its payout each year since 2015 – that’s a decade of dividend growth! The business recently announced a 5.5% increase of its interim dividend and gave guidance of an annual dividend per share of 7.6 cents per share for FY26.

In other words, it’s guiding it will pay a grossed-up dividend yield of around 8% for 2026, including franking credits.

WAM Microcap Ltd (ASX: WMI)

WAM Microcap is the other ASX share I want to highlight. It’s also a LIC, targeting the most exciting undervalued growth opportunities in the Australian microcap market.

As an example of the businesses in the portfolio, some of its current holdings include Artryra Ltd (ASX: AYA), Beacon Lighting Group Ltd (ASX: BLX), EchoIQ Ltd (ASX: EIQ), FINEOS Corporation Holdings PLC (ASX: FCL) and Kogan.com Ltd (ASX: KGN).

Its investment performance has been solid, with its portfolio delivering an average return per year of 14.4% since inception in June 2017, before fees, expenses and taxes.

Due to that high level of passive income, the business has regularly increased its annual dividend since FY18, with no dividend reductions during that period (along with a few special dividend payments).

WAM Microcap has provided guidance that it will pay an annual dividend per share of 10.7 cents in FY26. That translates into a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing. It’s hard to find a business with a consistent dividend that has a larger yield than that.

These aren’t the only businesses offering appealing dividend income on the ASX.

The post 2 ASX shares with dividend yields above 7.5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wam Microcap. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation and Kogan.com. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has recommended Kogan.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the Australian Age Pension is one of the most generous in the world, I’d rather rely on quality, high-yield ASX dividend stocks.

I enjoy owning businesses that are able to provide a good level of passive income and payout growth over time.

Australian Foundation Investment Co Ltd (ASX: AFI) is one of the ASX dividend stocks I’d be comfortable relying on, though it wouldn’t be the only one. I believe it’s important to have a diversified portfolio when it comes to dividends.

There are a few aspects that make the listed investment company (LIC) an appealing option.

Diversification

If I had to rely on an ASX dividend stock to continue paying passive income across all economic conditions, I’d pick an investment with the ability to pay resilient passive income.

Some older Australians who may have relied on dividend income from large ASX bank shares and ASX mining shares may already have seen their payouts cut this decade. At the start of the 2020s, we saw COVID-19 impact bank payouts. Iron ore price volatility has led miners to reduce their payouts.

The AFIC business model is about giving investors exposure to a portfolio of ASX blue-chip shares, allowing the LIC can provide investors with a mixture of passive income and long-term capital growth.

Some of the positions in the portfolio include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Transurban Group (ASX: TCL).

But, it owns plenty of other ASX shares in the portfolio too.

High-yield ASX dividend stock

One of the most appealing aspects of Australian Foundation Investment Co is the pleasing level of passive income it can provide to our bank accounts.

The business has been very consistent with its payout this century, giving investors a high level of income security.

AFIC recently announced that it intends to declare a final dividend of 14.5 cents per share, as well as a special dividend of 2.5 cents per share.

That means its regular dividend for FY26 equates to a grossed-up dividend yield of 5.5%, including franking credits, at the time of writing. Including special dividends, its payout translates into a grossed-up dividend yield of 6.5%, including franking credits.

While the company’s regular annual dividend isn’t increased every single year, it has increased regularly since FY22.

Low costs

The LIC has one of the lowest costs in the country when it comes to the annual management costs. That’s important because it significantly helps the net return of the portfolio.

The high-yield ASX dividend stock has an annual management fee of 0.16%, which means most of the returns are staying in the hands of investors rather than being lost to management fees or performance fees.

With a solid long-term portfolio net return, the business has built an excellent profit reserve, enabling the business to continue paying good dividends in the long-term.

How many AFIC shares would it take to match the Age Pension?

Right now, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive $31,200 annually from AFIC (excluding special dividends), an investor would need 117,736 Australian Foundation Investment Co shares based on the expected FY26 payout excluding the franking credits and 82,416 AFIC shares including the franking credits.

I’d suggest Australian investors should have more than just one high-yield ASX dividend stock in a portfolio, though AFIC would be an effective inclusion, in my opinion.

The post 117,736 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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• How much is needed in superannuation to target an $11,000 monthly passive income?
• AFIC reveals 2026 dividend plans for shareholders
• 2 ASX blue-chip shares offering big dividend yields

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

Ioneer Ltd (ASX: INR) shares have been strong performers over the past 12 months.

During this time, the ASX lithium share has risen a sizeable 45%.

But if you thought the gains were over, think again! 

Why this ASX lithium share could keep rising

Bell Potter was pleased to see the lithium developer announce agreements with the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Hyundai Engineering. The broker believes it is a testament to the quality of the company’s Rhyolite Ridge project. It said:

While the engagement remains non-binding, the calibre of and the commentary from these counterparties provides a strong endorsement of INR’s Rhyolite Ridge project development pathway. The MOUs are clearly part of INR’s Strategic Partnering Process to introduce new project-level equity funding in support of a Final Investment Decision. 

Rhyolite Ridge is fully permitted; an October 2025 project economic update outlined potential production of 27.8ktpa lithium hydroxide and 135.5ktpa boric acid at a capital cost of US$1.7b and with a lithium AISC of US$4,628/t LCE (net of boron coproduct credits). The project is also backed by a US$996m US Department of Energy concessional loan. With cash of US$62m (31 March 2026), INR is fully funded to FID.

Big potential returns

In response to the news, Bell Potter has retained its speculative buy rating and 40 cents price target on the ASX lithium share.

Based on its current share price of 14.5 cents, this implies potential upside of 175% for investors over the next 12 months.

Commenting on its investment thesis, Bell Potter said:

Rhyolite Ridge is strategically important as a fully permitted, near-term and USlocated source of lithium and boron supply. Both lithium and boron are USGS-designated critical minerals. Rhyolite Ridge received development approval in October 2024 and engineering design is 70% complete. Lithium markets have recently strengthened, and we expect that continued growth in underlying demand and limited new sources of supply will support lithium chemicals prices over the medium to long term. Our INR valuation is $0.40/sh. 

Key INR value catalysts are the outcomes of the Strategic Partnering Process in the lead-up to a Final Investment Decision and commencement of development, all expected in 2H 2026. INR is an asset development company with forecast cash flows only; our Speculative risk rating recognises this higher level of investment risk and share price volatility.

The post Why this red hot ASX lithium share could rise 175% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Building a portfolio for retirement income isn’t just about finding the highest dividend yields. The goal is to create a reliable stream of income that can continue growing over time, while also preserving capital through different market cycles.

That’s why I prefer a mix of high-quality companies and diversified exchange-traded funds (ETFs). Together, they can provide exposure to different sectors, geographies and income sources, reducing the reliance on any single investment.

If I were building a portfolio for retirement income today, these five ASX investments would be at the top of my list.

BHP Group Ltd (ASX: BHP)

When it comes to retirement income, BHP offers something few companies can match: ownership of some of the world’s lowest-cost mining assets.

The mining giant generates enormous cash flows from iron ore, copper and metallurgical coal, allowing it to return significant amounts of capital to shareholders through dividends over the long term.

While earnings and dividends will naturally fluctuate with commodity prices, BHP’s strong balance sheet, operational scale and diversified resource base make it one of the most dependable dividend payers on the ASX.

The growing importance of copper in electrification and renewable energy also provides an attractive long-term growth opportunity alongside its income appeal.

Commonwealth Bank of Australia (ASX: CBA)

No retirement income portfolio feels complete without exposure to Australia’s biggest bank.

Commonwealth Bank has built an enviable record of generating consistent profits through economic cycles, supported by its dominant position in home lending, deposits and business banking.

Although the shares rarely look cheap, investors aren’t simply paying for today’s earnings. They’re buying a business with outstanding profitability, a powerful brand and a history of delivering fully franked dividends.

For retirees seeking dependable income, CBA continues to earn its place.

Transurban Group Ltd (ASX: TCL)

Infrastructure can add another layer of stability to retirement income, and that’s exactly where Transurban shines.

The company owns and operates many of Australia’s busiest toll roads, generating recurring cash flows from assets that are extremely difficult to replicate. As cities continue growing and traffic volumes increase over time, Transurban benefits from both rising usage and inflation-linked toll increases across many of its concessions.

That combination has supported a long history of attractive distributions.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

No single company should determine the success of a retirement income portfolio. That’s why I’d include the Vanguard Australian Shares High Yield ETF.

VHY provides exposure to dozens of Australia’s highest-yielding dividend-paying companies across sectors including banking, resources, healthcare, telecommunications and consumer staples. Instead of relying on one dividend stream, investors receive income from a broad collection of established Australian businesses.

That diversification helps smooth income over time while reducing stock-specific risk.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

While VGS isn’t known for delivering a high dividend yield, I still believe it plays an important role in generating retirement income.

The ETF invests in hundreds of leading companies across developed markets, including many of the world’s largest technology, healthcare and consumer businesses. Those companies may pay lower dividends today, but they also offer significant earnings and capital growth potential.

Over a long retirement, that growth can help offset inflation, increase portfolio value and support rising future income through capital appreciation or selective withdrawals.

The post I’d buy these 5 ASX dividend investments for retirement income appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are arguably one of the best options in the mining sector.

However, the potential upside from current levels could be somewhat limited.

So, if you are looking for big potential returns and have a high tolerance for risk, then it could be worth checking out the ASX mining share in this article.

That’s because Bell Potter believes it could more than double in value over the next 12 months.

Which ASX mining share?

The mining share that Bell Potter is recommending to investors is Minerals 260 Ltd (ASX: MI6).

It highlights that the company has released an updated mineral resource estimate (MRE), a pre-feasibility study (PFS) and a maiden ore reserve estimate (ORE) for its 100% owned, 6.2Moz Bullabulling Gold Project (BGP) in Western Australia.

While the market didn’t react positively to these releases, with its shares crashing following their release, Bell Potter remains positive and notes that they mark the delivery of key catalysts in line with guidance and major milestones in the advancement of the BGP towards development.

Bell Potter believes BGP will be a significant, high margin, long-life project. It said:

The PFS presents a compelling case for project development. It outlines a long-life, high margin gold project that positions MI6 to become a stand-alone, mid-tier gold producer. It is based on a 2.5Moz Maiden ORE that is the largest undeveloped gold Reserve in Australia not owned by an existing producer. 

Key parameters include a maiden ORE of 90Mt @ 0.86g/t Au for 2.5Moz Au supporting a 5.0Mtpa process plant producing an average of 150kozpa (years 1-10) at average All-In-Sustaining-Costs (AISC): A$2,520/oz (years 1-10) over a 19 year mine life for CAPEX of $180m preFID plus $675m (post-FID, pre-production). MI6 estimate a project NPV5 of US$2.3b and IRR of 43% using a US$3,800/oz (A$5,500/oz) gold price. The PFS does not yet incorporate upside from today’s updated MRE.

Shares tipped to more than double

According to the note, the broker has retained its speculative buy rating on the ASX mining share with an improved price target of $1.40 (from $1.35). 

Based on its current share price of 63.5 cents, this implies potential upside of 120% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

MI6 offers gold exposure via the 6.2Moz Bullabulling MRE, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works. We lift our valuation to $1.40/sh and retain our Speculative Buy recommendation.

The post BHP shares may not double in 12 months but this ASX mining share could appeared first on The Motley Fool Australia.

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

ASX exchange-traded funds (ETFs) are no longer a niche investment. They’ve become one of the fastest-growing parts of the Australian sharemarket.

Today, around two million Australians invest through ASX ETFs, attracted by their simplicity, low costs and ability to gain instant diversification without having to pick individual shares or hire an expensive fund manager.

And the momentum is only building. According to ASX data, ETF trading activity increased 26% during the last financial year, comfortably outpacing the broader sharemarket, where trading rose 22%.

So, what’s behind the surge, and are there any risks investors should keep in mind?

Why investors love ASX ETFs

The appeal of ASX ETFs is easy to understand. Instead of researching dozens of companies, investors can buy a single ETF and instantly gain exposure to hundreds of shares, bonds or other assets.

Some track the entire Australian sharemarket. Others focus on global shares, technology, healthcare, dividends or specific investment themes.

Fees also tend to be significantly lower than those charged by actively managed funds because most ETFs simply track an index rather than trying to outperform it.

For long-term investors, that combination of diversification, transparency and low costs has proven incredibly attractive.

Many ETFs also pay regular distributions, making them popular with income-focused investors and retirees.

Perhaps most importantly, they’re easy to buy. Investors can purchase ETFs through the ASX in exactly the same way they buy ordinary shares.

The market keeps getting bigger

It’s not just investor numbers that are climbing. The number of ETFs listed on the ASX has more than doubled over the past five years to 456 products. Last financial year alone saw another 72 ASX ETFs launched, according to ASX data.

Meanwhile, funds under management across Australia’s ETF industry have now surpassed $350 billion, highlighting just how quickly the sector has matured.

That’s good news for investors because it provides more choice than ever before. Whether someone wants exposure to Australian blue-chips, US technology giants, emerging markets or fixed income, there’s now likely to be an ASX ETF designed for that purpose.

More choice also means more risk

However, rapid growth brings its own challenges. As investor demand continues rising, fund managers are racing to launch new products targeting the latest investment trends.

Artificial intelligence has become the newest battleground.

Several ASX ETF providers have recently launched AI-focused funds that promise investors exposure to companies expected to benefit from the AI revolution. Examples include the Global X Artificial Intelligence ETF (ASX: GXAI), the Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) and the VanEck Global Defence ETF (ASX: DFND), which also has meaningful exposure to AI-driven defence technologies.

While thematic ETFs can provide targeted exposure to exciting industries, they often carry higher risks than broad-market index funds. Many hold relatively concentrated portfolios, while others launch after a sector has already experienced a significant rally.

In other words, investors may end up buying into yesterday’s hottest trend rather than tomorrow’s biggest opportunity.

Foolish takeaway

The growth of ASX ETFs reflects a broader shift towards simple, low-cost investing. With two million Australians now using ETFs and more than $350 billion invested in the sector, they have become a mainstream way to build long-term wealth.

But as the number of available products continues to explode, investors should remember that not all ETFs are created equal. Choosing a diversified, well-constructed fund remains just as important as deciding to invest in an ETF in the first place.

The post ASX ETFs are booming. Should you join in? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Yesterday, Adairs Ltd (ASX: ADH) shares fell 1.3% following a trading update.

The homewares and home furnishings retailer has now seen its share price fall by 18% for the year to date. 

This has reflected broader sector wide headwinds for consumer discretionary shares. The sector has been hit hard by high interest rates and inflation. 

What did the company announce?

As my colleague Aaron Teboneras reported yesterday, Adairs announced it expects FY26 group sales to land between $640 million and $641.5 million.

At the midpoint, this represents an increase of 3.7% on FY25.

However, group underlying EBIT is expected to come in between $53.5 million and $55.5 million. This would be down 1.3% on FY25.

This put a halt to the positive momentum it had felt over the past month. Subsequently, the team at Bell Potter has provided updated guidance on Adairs shares for the next 12 months. 

Here is the broker’s updated view. 

Slightly below expectations

Bell Potter said Adairs’ FY26 trading update was slightly below market expectations on revenue (around 1%).

The core Adairs brand was the standout performer. It delivered 3% sales growth from late February to June and stronger margins following product range improvements under the new management. This helped offset weaker performance at Focus on Furniture.

Mocka (an online furniture and homewares retailer owned by Adairs) performed largely as expected. Meanwhile, Focus on Furniture continued to face pressure from increased competition and its ongoing turnaround under new leadership.

Following the update, Bell Potter has lifted its assumptions for the core Adairs business but now expects Focus on Furniture to remain loss-making in the second half of FY26 and continue to weigh on earnings in coming years. 

The broker forecasts modest group growth of 2.6% in revenue and 1.8% in EBIT, supported by foreign exchange benefits in FY27 and healthy inventory levels. 

As a result, Bell Potter increased its FY26 NPAT forecast by 16%, while reducing FY27 and FY28 forecasts by 5% and 8%, respectively.

Minimal upside

Based on this guidance, Bell Potter slightly increased its target price on Adairs shares to $1.45 (previously $1.40). 

It retained its hold recommendation. 

Despite raising its target, it appears Adairs shares are trading close to fair value, after closing yesterday just above Bell Potter’s target price. 

With the positive customer response to the range curation efforts at Adairs continuing to play out from the CY25 peak to the 4Q26 seasonal period and appears to be maintained into FY27, we attribute successful management strategy. 

However, our views on the recovery timeline at FoF in a highly competitive near-term value furniture market sees us remaining cautious over the next 12 months considering the current transition phase at ADH.

The post Are Adairs shares a buy, hold or sell after their trading update? appeared first on The Motley Fool Australia.

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

This ASX healthcare share has finally come back to earth.

4DMedical Ltd (ASX: 4DX) shares fell 7% to $4.10 during Wednesday’s session, extending a sharp pullback that has now left the stock about 46% below the record highs reached in April.

Before anyone panics, though, it’s worth zooming out. This ASX healthcare share is still up an astonishing 1,528% over the past 12 months. Yes, that’s more than fifteen-fold in a year.

But here’s the catch: 4DMedical isn’t a tiny speculative medical technology company anymore. With a market capitalisation of roughly $2.6 billion, investors are already betting on a business that becomes much, much larger.

So where does it go from here?

Solving a real problem

The story behind this ASX healthcare share isn’t just hype.

4DMedical has developed advanced respiratory imaging technology that shows how lungs actually function rather than simply what they look like.

Using proprietary software and artificial intelligence, its technology creates detailed functional images that can help doctors diagnose and monitor respiratory diseases far more effectively than traditional imaging.

That’s a powerful proposition in a world increasingly embracing AI-driven healthcare.

Company keeps expanding its opportunity

This ASX healthcare share hasn’t been sitting still. One of management’s biggest recent moves was acquiring Austrian imaging specialist Contextflow.

The deal immediately strengthened 4DMedical’s presence in Europe, added lung cancer screening capabilities and provided access to existing reimbursement pathways in Germany.

Management believes the acquisition expands its addressable market by around 50%. That’s no small upgrade. Instead of being an emerging Australian medical technology company, 4DMedical is steadily building the foundations of a global imaging business.

Major scalp in the US

The United States remains the biggest prize for this ASX healthcare share. Recently, the company signed a major agreement with SimonMed, one of America’s largest outpatient imaging providers with more than 170 imaging centres.

The partnership supports the rollout of 4DMedical’s CT:VQ lung imaging technology across a substantial healthcare network. Even more importantly, the company believes these initiatives could expand its US addressable market for CT:VQ to around US$3 billion.

If adoption continues gathering pace, that’s a very large runway.

Where to from here?

Success creates a funny problem. The better this ASX healthcare share performs, the higher the expectations become.

After last year’s extraordinary rally, investors are no longer rewarding exciting stories alone. They want evidence of growing revenue, expanding reimbursement coverage and increasing commercial adoption.

The Contextflow acquisition also needs to deliver on its promise.

Any slowdown in customer adoption or execution could trigger more volatility, particularly after such an enormous share price run.

The next chapter now depends less on headlines and more on execution. If 4DMedical continues converting clinical success into commercial wins, today’s speed bump could eventually look like just another pit stop on a much longer journey.

The post This red-hot ASX healthcare share hit a speed bump. What next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Consumer staples shares have performed strongly in 2026 as investors have pushed towards defensive options.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has risen 13% year to date. 

This has far outpaced the S&P/ASX 200 Index (ASX: XJO), which is up just 0.66% in the same span. 

Despite the sector performing well, ASX consumer staples stock Select Harvests Ltd (ASX: SHV) is down significantly year to date. 

However, a new report from Bell Potter has indicated it could be set for a strong rebound. 

Company overview

Select Harvests is an integrated grower, processor and marketer of almonds, owning and operating farming and processing assets in Australia. 

It offers a vertically integrated model with core capabilities in farming, processing and marketing.

The company operates a diversified portfolio of almond orchards as well as a state-of-the-art processing facility in Carina VIC (with capacity to process 50,000t of almonds).

In 2026, the stock has fallen 20%, however Bell Potter’s latest guidance indicates it could recover in the next 12 months. 

Here’s what the broker had to say. 

Production maintained

Bell Potter said in yesterday’s report that the recent weakness in this ASX consumer staples stock is not supported by improving almond market fundamentals. 

Global almond prices have risen 11% year-on-year, while a weaker Australian dollar has lifted implied Californian almond prices to A$10.55-10.60/kg. 

This is above SHV’s 1H26 pricing assumption of A$10.21/kg.

Despite Select Harvest shares falling around 20% since the start of 2026, the company has maintained FY26 production guidance of 28,000–31,000 tonnes, which aligns with its expected theoretical production of around 29,000 tonnes. 

Bell Potter believes this suggests the market is overly focused on past operational issues rather than current fundamentals.

Taking into account the company’s foreign exchange hedge position, stronger-than-expected almond price trends, and benchmark market performance, Bell Potter sees upside risk to the company’s 1H26 almond price assumption. 

If current market prices persist, realised prices could be closer to A$10.50–10.60/kg, providing potential upside to earnings and the share price.

Strong upside in tact for consumer staples stock

Based on this guidance, Bell Potter has retained its buy recommendation and $5.30 price target. 

From current levels, this indicates an upside potential of 35%. 

SHV has had a series of disappointing results in recent years, however, the fundamental drivers of the business are improving – almond prices are rising, crop input prices (fertiliser and ag-chem) have weakened from the highs and forward year water lease coverage has improved.

The post Why this could be the best buy in the consumer staples sector right now: Expert  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Superannuation may be the best place to invest for passive income, thanks to the fact that the tax rate is so low compared to individual and company tax rates.

Superannuation investors could have a low tax rate in the accumulation phase and perhaps a 0% tax rate in the retirement phase.

When the income is taxed so little, it means investors’ after-tax income can be similar (or identical) to the before-tax income. It’s the after-tax income figure that investors should focus on, in my view.

If superannuation investors are after passive income, I think the following ideas are very compelling with $5,000 (or more).

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a portfolio of industrial properties across the country. These buildings are located across high-demand areas where vacancy is low.

With tailwinds like e-commerce adoption, refrigerated space, and data centres driving increased demand for industrial demand, this is a strong tailwind for rental income and supporting distributions.

In the first half of FY26, the business reported like-for-like net operating income (NOI) growth of 5.1%, which I think is a solid rate of growth for a REIT. It also noted that its portfolio’s rental income potential growth is strong, with an average under-renting of 20% of its real estate, suggesting a big rental increase when the contract comes up for renewal.

The business declared passive income of 16.8 cents per security in FY26, translating into a distribution yield of 5.6%. I think it’s a good time to invest while interest rates are higher because that’s a headwind for property values – this effect could reverse once interest rates start coming down again.

Plus, it’s trading at a large double-digit discount to its net tangible assets (NTA), which was reported as $3.95 per unit as of 31 December 2025.

MFF Capital Investments Ltd (ASX: MFF)

Another ASX share that looks like an excellent passive income buy for superannuation is the listed investment company (LIC) MFF. LICs are a great investment structure because they enable the board to declare the size of dividends they want, allowing for consistent, growing dividends.

MFF has a stated intention to increase dividend payments to investors, which I believe makes it an appealing pick for investors seeking payout stability (and growth).

Companies pay for dividends from the profit they make. MFF generates income by generating investment returns from a portfolio of high-quality international shares with strong economic moats.

If you’re going to invest in shares, why not own some of the best contenders that can deliver good compounding earnings, which is a key driver of shareholder returns?  Retained investment returns that aren’t paid out as dividends can help drive the MFF share price higher over time as the underlying value of the business – measured by the NTA – grows.

MFF intends to pay an annual dividend per share of 21 cents for FY26, translating into a grossed-up dividend yield of 5.8%, including franking credits.

The post How to invest $5,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

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• How should I invest my money in FY27?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 148,572 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.