Author: openjargon

DroneShield Ltd (ASX: DRO) has given investors another reason to pay attention this week.

On Tuesday, the counter-drone technology company announced that it has secured a contract supporting the mission of US Joint Interagency Task Force 401.

The contract has an initial value of $19.3 million, with a further $5.6 million in options over a five-year period. It covers mobile and fixed-site counter-drone solutions, including hardware, subscriptions, warranties, and services.

Why the contract is positive

I think this contract is important for a few reasons.

First, it adds revenue visibility. DroneShield expects at least $10 million of the initial value to be committed revenue for FY26, with the balance expected in FY27.

Second, it shows the company is continuing to gain traction in the United States. That is a key market because defence, government, and critical infrastructure customers are increasingly focused on drone threats.

Third, the contract includes more than just one product sale. It involves mobile and fixed-site systems, along with subscriptions, warranties, and services. I like that because it points to a broader solution rather than a simple equipment order.

Counter-drone technology is not a one-and-done market. Threats change, software needs updating, customers need support, and systems need to remain effective as drones become cheaper, faster, and more capable.

A growing defence need

The main reason I like DroneShield shares is that the problem the company is solving appears to be getting more important.

Drones are now a major part of modern conflict and security planning. They can be used for surveillance, disruption, targeting, and attacks. Outside the battlefield, they can create risks for airports, prisons, public events, critical infrastructure, military bases, and government sites.

That creates demand for technology that can detect, track, identify, and defeat drone threats.

DroneShield is positioned in that market through its sensing, electronic warfare, and command-and-control solutions. The company is also using artificial intelligence to improve its products and help customers respond to fast-changing aerial threats.

There are risks to consider. Defence sales can be lumpy, contract timing can move around, and the share price can be volatile when expectations are high. Investors also need to watch competition, production capacity, margins, and execution.

But I think the latest US contract supports the view that this is not just a speculative theme. Customers are committing meaningful capital to counter-drone capability.

Would I buy DroneShield shares?

Yes, I would buy DroneShield shares after this contract win.

Not because one contract changes everything, but because it adds another piece of evidence to a larger growth story.

The company appears to be gaining credibility with important customers, expanding in the US, and selling into a market where demand could keep rising as drone threats become more widespread.

This is still a higher-risk ASX share. I would not treat it like a mature defence prime or a defensive blue-chip stock. But for investors comfortable with volatility, I think the long-term opportunity is compelling.

Foolish Takeaway

The US contract win is a positive development for DroneShield, but it is not the whole investment case.

The real attraction is the direction of the market. Drones are changing how governments, militaries, and infrastructure operators think about security. That shift could create a long runway for companies with proven counter-drone technology.

DroneShield still has plenty to prove as it scales. But this latest win suggests it is moving in the right direction. For patient investors who can handle the risks, I think the shares remain a buy.

The post Should I buy DroneShield shares after its US contract win? appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, Pro Medicus, SRG Global, and Woodside shares are charging higher today
• DroneShield shares jump as fresh US defence deal fires up investors
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• What happened to DroneShield shares in May?
• 3 ASX shares that brokers tipped to soar in the next 12 months

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Do you know if you have enough money in your superannuation account to retire in your 60s? Or how your superannuation compares to others the same age?

Here’s a run-through of the average superannuation balance of Australians aged 57. 

How does yours stack up?

What is the average superannuation balance for Australian men aged 57?

There aren’t exact figures, but brackets determined by the Association of Superannuation Funds of Australia (ASFA) provide a good guide.

The data shows that the average Australian male aged 55 to 59 has around $319,743 in their super.

What about the superannuation balance for women the same age?

Women the same age have quite a lot less. The average balance for Australian women aged 55 to 59 is $242,945. That’s a gap of around $76,000.

The lower balance is usually because women typically take time out of the workforce to raise children or work fewer hours. They also tend to have lower overall incomes.

Is it enough to live a comfortable lifestyle when I want to retire?

Here’s the bad news. Even if your superannuation is on track with the rest of the population around the same age, it might not actually be enough to retire on.

Especially if you want to live a comfortable retirement lifestyle.

ASFA retirement standard figures calculate that a comfortable retirement will cost single Australians approximately $54,840 per year. For couples, it’ll cost around $77,373.

In order to afford that, singles will need a superannuation balance of around $630,000, and couples will need around $730,000. These figures assume you’ll also get a part-Age Pension payment.

I’ve crunched the numbers, and Aussies aged 57 will need a superannuation balance of around $439,000 in order to meet that balance before retirement.

You’ll note that this is up to $196,000 more than the balance of average Australians the same age.

Do you have any tips to boost my superannuation balance before it’s too late?

The good news is that, at age 57, there are still several things you can do to turbocharge your superannuation balance before you retire.

My first advice is always to check that your super fund is performing well and that your investment strategy and risk profile match your own. There isn’t much use in adding additional funds until your super fund is working efficiently.

Next is time to add extra contributions wherever you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15% and up to an annual cap. You can also make after-tax payments within your annual limits. 

Government contributions might also be available depending on your personal circumstances. There is a downsizer contributions rule, a bring-forward rule, a government co-contribution rule, and many others.

If you’ve done all these things and your superannuation balance still doesn’t stack up, another option is to delay your retirement. If you think about it, retiring in your early 70s rather than mid-60s gives you an extra five or so years of income and compound growth.

The post Average superannuation balance at age 57 in 2026. How does yours compare? appeared first on The Motley Fool Australia.

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

Depending on your investor profile, a strong dividend stream can be a good target to have.

I’ve had a look at the research reports coming out of Macquarie and have selected three companies which the broker’s analyst team predicts will continue to pay strong dividend yields for the next couple of years at least.

Not surprisingly, one is an infrastructure company, but the other two might be from less obvious sectors for steady payouts.

Let’s have a look what they’re saying.

APA Group (ASX: APA)

This company is a gas pipeline operator, and hence its revenues and returns tend to be fairly stable over time.

Macquarie said in its recent research note on the company that APA has highlighted that it expects further opportunities as coal exits the energy market, and from increasing demand from data centres.

The broker also highlights the fact that the Federal Government’s gas reservation policy creates incentives for companies to develop new gas fields.

The Macquarie team said:

For APA the policy also includes an expectation the exporters ‘are pursuing commercial arrangements to overcome any infrastructure constraints that may otherwise prevent them supplying’. This should provide support for more pipeline investment medium term.

Macquarie’s share price target on the company is $10.41, which is only slightly higher than the $10.13 price at the time of writing, but the broker is predicting a dividend yield of 5.7% this year, rising to 5.9% by 2028.

EBOS Group Ltd (ASX: EBO)

This company is, in its own words, “the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products”.

Macquarie actually has a very bullish price target on the stock in addition to the dividend yield which has brought it into this list.   

EBOS in April downgraded its FY26 underlying EBITDA guidance to $610 to $620 million, down from a previous range of $615 to $635 million, due to higher fuel and energy costs.

Macquarie said on the positive side of the ledger, a new First Pharmaceutical Wholesaler Agreement has been struck with the Federal Government, which will benefit EBOS’ Symbion division.

Macquarie has a price target of NZ$36.44 on the stock compared with NZ$19.60 at the time of writing.

The broker is forecasting a dividend yield of 5.9% for this year, rising to 6.9% by 2028.

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The Macquarie team said in their research note on Nine that they believed the advertising market could be approaching a cyclical low point, “with early signs of improved business confidence”.

Macquarie added:

Assuming inflation does not materially worsen versus expectations, we are optimistic on an improving ad market in FY27.

The Macquarie analysts also noted that a new agreement requiring digital platforms to pay for news is likely to be struck in early FY27, which could also be a benefit for Nine, which owns titles such as the Australian Financial Review and The Age.

Macquarie has a price target of $1.05 on the shares, compared with 93.5 cents at the time of writing, and is predicting a dividend yield of 6.4% this year, rising to 8% in 2028.

The post These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VGN) shares give investors two different ways to invest in Australian aviation.

I think both are worth watching, but my preference is clear.

I would buy Qantas shares by far.

Virgin has some appeal on valuation, but I think Qantas has the stronger business, broader earnings base, better dividend outlook, and more attractive long-term investment case.

Virgin Australia shares look cheap

Virgin Australia is the cheaper of the two airline stocks on headline earnings multiples.

According to CommSec, consensus estimates point to earnings per share of 50 cents in FY26, 46.9 cents in FY27, and 54.4 cents in FY28.

Based on a share price of $2.64, that puts Virgin on around 5 times FY26 earnings, 6 times FY27 earnings, and less than 5 times FY28 earnings.

That looks inexpensive.

Virgin also has a clearer position than it had in the past. The business is now more focused, and its role in the Australian market appears more disciplined. It has a well-known brand, exposure to domestic travel, and the potential to benefit if demand remains solid.

However, I do not think the low valuation is enough to make it my preferred pick.

Airline earnings can move quickly when fuel prices rise, competition increases, or demand weakens. A low price-to-earnings (P/E) ratio can look attractive, but it needs to be weighed against the quality and resilience of the earnings.

The dividend outlook is also modest. CommSec estimates dividends per share of 5 cents in FY26 and 4.5 cents in FY27, implying dividend yields of around 1.9% and 1.7%.

Virgin Australia may do well from here, but I think there is a better airline stock to buy.

Why I prefer Qantas shares

Qantas trades on a higher valuation, but I think it deserves to.

CommSec estimates point to earnings per share of 98.4 cents in FY26, $1.16 in FY27, and $1.15 in FY28.

Based on a share price of $9.21, that puts Qantas on around 9 times FY26 earnings and around 8 times FY27 and FY28 earnings.

That is more expensive than Virgin, but I do not think it looks stretched for a business with Qantas’ advantages.

The dividend outlook is also much stronger. CommSec forecasts dividends per share of 39.6 cents in FY26, 44.8 cents in FY27, and 56.2 cents in FY28. That implies forward yields of around 4.3%, 4.9%, and 6.1%.

I would not treat an airline as a defensive dividend share. But if those forecasts are achieved, the income stream could become a meaningful part of the total return.

What I like most about Qantas is the quality of the overall business.

It has the premium Qantas brand, Jetstar for value-focused travel, a strong domestic position, international exposure, and a loyalty business that adds another layer to the investment case.

That loyalty business is a major difference in my view. Frequent Flyer points, partners, financial products, retail offers, and customer engagement give Qantas ways to earn from its customer base beyond simply selling seats on planes.

Qantas also has more strategic flexibility. Fleet renewal, network adjustments, premium travel, low-cost travel, loyalty, and capital management all give the group several levers to pull over time.

Foolish Takeaway

Virgin Australia may appeal to value-focused investors, but Qantas is the clear winner for me.

I think its higher valuation is justified by the quality of the business, the strength of its brands, and the broader ways it can generate earnings over time.

The share price will still be volatile at times. That comes with the airline sector. But for investors looking for the ASX airline stock to buy and hold, I think Qantas is comfortably the better choice.

The post Qantas shares vs Virgin Australia shares: Which ASX airline stock would I buy? appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy Qantas shares today
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• How high could Virgin Australia shares fly? RBC Capital Markets weighs in
• Why brokers are turning bullish on Qantas shares after a strong May performance
• How Qantas shares soared ahead of the ASX 200 in May

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

Northern Star Resources Ltd (ASX: NST) shares are jumping on Wednesday.

At the time of writing, the gold miner’s shares are up 8% to $22.79.

This is the second day in a row of strong gains, with news of an activist investor taking a position boosting its shares on Tuesday.

Why are Northern Star shares rising today?

The company’s shares are rising today after it released its latest mineral resource and ore reserve estimate.

Investors appear pleased with the scale of the update, which shows a major increase in Northern Star’s resource and reserve base.

According to the release, group mineral resources have increased to 88.9 million ounces. This represents an increase of 18.2 million ounces, or 26%, after mining depletion.

Group ore reserves have also increased strongly, rising by 6.1 million ounces, or 27%, to 28.4 million ounces after mining depletion.

This is important because mineral resources and ore reserves are key indicators of a gold miner’s long-term production potential. A larger reserve base can support longer mine lives, future production growth, and greater confidence in the company’s development plans.

Hemi included for the first time

A key driver of the increase was the first inclusion of the Hemi Project following Northern Star’s acquisition of De Grey Mining.

Hemi contributed mineral resources of 13.2 million ounces and ore reserves of 5.5 million ounces.

Management said the project is expected to become Northern Star’s fourth production centre and a major long-term growth platform.

This appears to be one of the standout parts of the update, given Hemi’s scale and strategic importance to the company’s future.

KCGM and Pogo also grow

There was also positive news from Northern Star’s existing key assets.

At KCGM, mineral resources increased to 42.2 million ounces, up 3.3 million ounces. Ore reserves rose to 15 million ounces, with growth driven largely by the Fimiston Underground.

At Pogo, mineral resources increased by 3.1 million ounces to 9.3 million ounces, while ore reserves increased by 0.3 million ounces to 2.4 million ounces.

Northern Star said the higher tonnes and lower grade at Pogo enhance future development optionality.

Together, KCGM, Pogo and Hemi now account for 65 million ounces, or 73%, of the company’s total resource base.

Low-cost discovery

Another positive was the cost of adding new ounces.

Northern Star revealed that additional resource ounces were added at an average discovery cost of less than $23 per ounce.

For a gold miner, adding ounces cheaply through exploration can be a powerful way to create shareholder value.

Management commentary

Northern Star’s managing director, Stuart Tonkin, was pleased with the results. He said:

The results highlight Northern Star’s commitment to exploration investment, which continues to drive strong organic and inorganic growth across our expanding portfolio year-on-year and deliver long-term returns for shareholders. For the first time, the Hemi Mineral Resources and Ore Reserves have been reported under the Northern Star methodology and economic framework, establishing a consistent, portfolio-wide approach that enhances comparability and underpins future growth opportunities. Technical work continues to optimise ore feed sources to determine the inputs that will be utilised for a final business case assessment.

KCGM, Pogo and Hemi are key strategic assets that are central to positioning the Company within the first half of the global cost curve, reinforcing the strength, quality and resilience of our future portfolio and supporting a compelling long-term growth outlook.

The post Why are Northern Star shares jumping 8% today? appeared first on The Motley Fool Australia.

More reading

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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.

Megaport Ltd (ASX: MP1) shares will be out of action on Wednesday.

The network services company requested a trading halt while it undertakes a major capital raising.

What did Megaport announce?

This morning, Megaport announced four new artificial intelligence (AI) infrastructure contracts with a combined total contract value of approximately $458.9 million.

These contracts relate to AI inference workloads and are expected to commence in the first half of FY 2027.

The company revealed that the contracts will require approximately $369.5 million of capital expenditure, mainly for high-performance NVIDIA GPUs, as well as network and storage infrastructure.

Megaport also plans to establish an on-demand GPU Pool, supported by $350 million of investment.

This will allow enterprise customers to access AI infrastructure through both contracted and consumption-based commercial models.

Why is this important?

Megaport is positioning itself to build what it calls a Globally-Distributed AI Inference Cloud.

This essentially means providing the infrastructure that companies need to run AI applications closer to their customers.

This is important because AI inference workloads often need low latency. Megaport believes its footprint of more than 1,100 connected data centres across 31 countries gives it an advantage in supporting these workloads.

The company notes that demand for GPU-based compute is currently outstripping supply as enterprise AI adoption accelerates.

Commenting on the news, Megaport’s CEO, Michael Reid, said:

AI inference represents one of the biggest infrastructure opportunities of the next decade. The contracts announced today reflect the accelerating demand for globally-distributed AI inference infrastructure. Megaport’s software-provisioned compute, network, and storage platform positions us strongly to meet that demand.

AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.

Capital raising

To fund the contracts and the GPU Pool, Megaport is undertaking a fully underwritten entitlement offer to raise $827.3 million.

Eligible shareholders will be able to subscribe for one new share for every 3.08 existing shares held.

The new Megaport shares will be issued at $14.30 per share. This represents a 13.9% discount to Megaport’s last closing price of $16.61 on Monday.

The proceeds will be used to fund hardware for the new contracts, establish the GPU Pool, cover transaction costs, and provide balance sheet flexibility for future growth opportunities.

Trading update

Megaport also provided a trading update this morning.

It advised that its network annual recurring revenue increased 25% year on year on a constant currency basis to $277.7 million in April 2026.

Including the new strategic contracts, its Compute division has pro forma annual recurring revenue of $385.2 million. This lifts total group pro forma annual recurring revenue to $662.9 million.

The company has also tightened its FY 2026 revenue guidance range to between $307 million and $315 million.

Its FY 2026 EBITDA margin and group capital expenditure guidance remain unchanged.

Megaport shares are expected to return to trade on Friday.

The post Megaport shares in focus amid $458.9m AI contract wins and capital raising appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Something significant happened to Australia’s largest gold miner.

Northern Star Resources Ltd (ASX: NST) shares surged as much as 13.75% yesterday after one of the world’s most powerful activist hedge funds disclosed a major position in the company and issued a public call for dramatic change.

That fund is Elliott Investment Management, a Florida-based firm that manages approximately US$80 billion in assets. The activist has a track record of forcing change at some of the world’s largest companies.

For Northern Star shareholders who have endured a painful 2026, today’s news is the most significant development the stock has seen in years.

What Elliott has done and what it wants

Elliott confirmed it has amassed a position “well over A$1 billion” in Northern Star. This represents approximately 4% of the company’s register, placing Elliott among the top five shareholders.

In a 39-page presentation titled “Northern Star Rising”, Elliott laid out a detailed and damning critique of the company’s recent operational performance.

The fund highlighted Northern Star’s 200% underperformance against its peers and noted four reductions in production guidance over the past three months.

Elliott described Northern Star as having

A pattern of operational missteps and repeated failures to execute capital projects on time and on budget.

The fund urged Northern Star to undertake a strategic review, consider a potential sale, and appoint new directors with fresh perspectives while searching for a new CEO.

Why Elliott chose now

The timing of the intervention is not accidental.

Northern Star’s market capitalisation has fallen from a peak of A$44 billion in February to A$26 billion. This is primarily due to production challenges and the announcement that its key Hemi mine would not produce gold until 2030, three years later than initially projected.

That delay was a bombshell for investors who had paid a premium for Northern Star’s growth pipeline.

Furthermore, the company is already in leadership transition, with long-serving CEO Stuart Tonkin having announced his departure in May 2026.

Elliott pointed to a considerable valuation gap, noting Northern Star’s price-to-net-asset-value multiple is 55% below the peer average.

With the gold price still near historically elevated levels, that discount to peers is exactly the kind of situation Elliott specialises in closing.

Northern Star’s response

The company has not been hostile.

Northern Star said it “welcomes the opportunity for constructive dialogue” and “shares Elliott’s view” that the company’s assets are capable of delivering superior returns to shareholders.

That statement does not commit to a sale or a strategic review, but it does not dismiss Elliott either.

For investors, the language of “constructive dialogue” is the same language that typically precedes board-level negotiations rather than outright rejection.

What this means for NST shareholders

Even after today’s jump, Northern Star shares are still down around 14% in 2026.

Elliott’s arrival has clearly changed the near-term narrative from one of operational disappointment to one of potential value realisation.

However, investors should understand what Elliott is and is not saying.

The fund is calling for a strategic review that could include a sale, but it is not announcing a binding takeover offer.

A strategic review could result in a sale, a merger, an asset disposal, or simply operational improvements and board changes.

The probability of a formal takeover offer materialising depends entirely on who might bid, at what price, and whether Northern Star’s board engages constructively with the process.

Elliott’s track record in Australia

This is not Elliott’s first engagement with an ASX-listed company.

The investment marks Elliott’s largest ASX position since its successful BHP campaign in 2017. In this transaction, Elliott pushed for a corporate structure simplification that ultimately delivered significant value for shareholders.

That precedent will not be lost on Northern Star’s board. When Elliott arrives with a billion-dollar stake and a 39-page presentation, companies tend to listen.

Foolish takeaway

Northern Star shares have had a difficult 2026.

The operational disappointments have been, well, disappointing. The Hemi delay was a significant blow, and the leadership transition adds further uncertainty.

Elliott’s arrival changes the dynamic. The fund has the resources, the track record, and the conviction to push for change at the highest level.

For existing shareholders, today’s rally is welcome relief after months of pain.

For investors who do not yet hold NST shares, the situation warrants close attention over the coming weeks as the strategic review dialogue unfolds.

The post Why this activist hedge fund is buying Northern Star shares and what this means for investors appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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• Northern Star shares just rocketed 12%. Is a takeover battle brewing?

Motley Fool contributor Mark Verhoeven 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 ASX dividend share space has seen a lot of volatility in the last year, amid significant changes surrounding tariffs, inflation and interest rates.

A higher interest rate is a significant headwind for the valuations and profitability of certain businesses due to how it could impact demand for their products and services, and/or increase the cost of debt.

Let’s look at two businesses I believe are significantly undervalued on a long-term basis, while their current dividend yields are very attractive.

Dexus Industria REIT (ASX: DXI)

This business is a real estate investment trust (REIT) that is largely invested in high-quality industrial warehouses across major Australian cities, providing sustainable income and capital growth.

Rental income is incredibly consistent and enables reliable distributions. In FY26, it expects to generate funds from operations (FFO) – net rental profit – of 17.4 cents per security. This is expected to fund an annual distribution per unit of 16.6 cents, which translates into a distribution yield of around 7%.

The business notes that underlying supply-demand fundamentals are solid, with low vacancy rates across core industrial markets, with high land and construction costs putting pressure on pipelines. In the medium-to-long-term, the sector is expected to be supported by a growing population and limited available supply.

In terms of the valuation, the ASX dividend share reported a net tangible asset (NTA) per security of $3.39 as at 31 December 2025. At the time of writing, it’s trading at a discount of around 30% to this figure.

Nick Scali Ltd (ASX: NCK)

The other ASX dividend share I want to highlight is Nick Scali, a furniture retailer.

The business operates Nick Scali in both Australia and the UK. It also sells furniture through the Plush brand in Australia after recently acquiring it.

Time will tell how much the recent changes to the economic environment impact the furniture retailer, but I’m optimistic the company can perform once conditions improve again.

But, the current Nick Scali share price looks too good (and low) to ignore because the economic backdrop won’t always be like this.

For starters, the company’s FY26 half-year result was very pleasing – ANZ revenue grew 13.1% to $251.7 million and ANZ net profit rose 29.4% to $46 million. Overall revenue (including the UK) rose 7.2% to $269.3 million and net profit grew 23.1% to $41 million. This allowed the business to hike its interim dividend per share by 30% to 39 cents.

One of the most exciting parts of the result was that the UK’s gross profit margin improved by 14.1 percentage points, going from 45.1% to 59.2%. I think this bodes well for future profitability in the UK as it opens more stores there. The projection on CMC Invest suggests the business could pay an annual dividend per share of 72 cents in FY26, which translates into a grossed-up dividend yield of 7.1%, including franking credits, at the time of writing. The forecast currently also suggests the business could increase its annual dividend per share in FY27 and FY28.

The post These 2 ASX dividend shares are great buys right now 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 recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Reserve Bank of Australia has already raised the cash rate three times in 2026.

The official cash rate now sits at 4.35%, matching the highest level since December 2011.

On 16 June, the RBA board will meet again. And while markets are currently pricing in a hold at near-certainty, the language that accompanies that decision could move ASX shares as much as the decision itself.

Here is why this meeting matters so much, and what it means for three of the most widely held stocks on the ASX.

Why the June meeting is so consequential

The RBA will announce its next interest rate decision on 16 June.

Futures markets moved decisively after the April CPI release. Swap pricing is now assigning a probability exceeding 95% to the RBA holding the official cash rate at 4.35% when the board convenes in mid-June.

That represents a sharp reversal from earlier in May, when markets had assigned meaningful odds to a fourth consecutive hike following the surprising jump in March CPI to 4.6%.

However, the pause may be fragile. The focal point for the RBA will be the trimmed mean inflation print. This indicator would need to break decisively below the top of the 2% to 3% target band.

Unfortunately for investors, this has not yet happened. Trimmed mean inflation rose to 3.4% in April, its highest reading since late 2024.

Markets are pricing in at least one further 25 basis point increase later in the year, likely during the September or October meeting. This would take the cash rate to 4.60%.

What the RBA says on 16 June about the outlook for further hikes will therefore be just as important as the decision itself.

What it means for CBA shares

Commonwealth Bank of Australia (ASX: CBA) sits in an unusual position relative to the RBA’s hiking cycle.

Higher rates support net interest margins, which is good for earnings.

But elevated rates also increase mortgage stress across CBA’s enormous home loan book, which is the most important credit risk variable the bank manages.

CBA has in recent times traded at a very significant premium to its historical valuation.

A RBA hold on 16 June, accompanied by dovish language suggesting the hiking cycle is complete, would likely sustain CBA’s momentum.

A hold with hawkish language, or worse a surprise hike, could trigger a sharp reversal.

What it means for Westpac shares

Westpac Banking Corp (ASX: WBC) is a simpler story than CBA on rates.

Westpac has approximately 69% of its loan book in residential mortgages, making it the most mortgage-exposed of the big four banks.

That means Westpac shareholders want the RBA to stop hiking more urgently than almost any other group of investors in Australia.

Each additional rate rise puts further pressure on the households servicing the $500-odd billion in mortgages on Westpac’s books, raising the risk of arrears and credit losses.

A clean hold on 16 June, with language signalling the RBA is comfortable waiting for inflation data to improve, would be the best possible outcome for Westpac shares.

Westpac declared a fully-franked interim dividend of 77 cents per share, payable 26 June.

This implies a forward grossed-up yield of approximately 6.2% at the current share price of $35.59.

That income floor remains attractive regardless of what the RBA does, but the capital outlook depends heavily on credit quality holding up.

What it means for Mirvac shares

For Mirvac Group (ASX: MGR), the RBA’s 16 June decision could be the single most important short-term catalyst the stock has faced all year.

Property trusts are acutely sensitive to interest rates because higher rates simultaneously increase borrowing costs and compress asset valuations through the discount rate applied to future cash flows.

Mirvac shares have fallen 30% over the past twelve months as the RBA’s hiking cycle has weighed on REIT valuations across the sector.

A definitive signal on 16 June that the RBA is done hiking would remove the single biggest overhang on the stock.

In the first half of FY 2026, Mirvac posted a 38% year-on-year lift in residential sales, confirming the underlying residential business is growing strongly regardless of the rate backdrop.

The federal budget’s new-build negative gearing exemption adds a further demand tailwind.

A dovish RBA signal on 16 June could significantly accelerate a re-rating for Mirvac shares.

Foolish Takeaway

Three rate hikes have already done significant damage to rate-sensitive ASX shares in 2026.

The 16 June meeting will not necessarily resolve the uncertainty, but the language accompanying the decision will tell investors a great deal about whether the worst is behind them.

For CBA, Westpac, and Mirvac shareholders, it is the most important date in the calendar right now.

The post Why the RBA’s next move could be the most important event for ASX shares in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 S&P/ASX 200 Index (ASX: XJO) share Centuria Industrial REIT (ASX: CIP) would be my pick of the index because of its underlying value and the earnings growth prospects.

Recent tax changes announced by the Australian government appear to have made residential property less attractive. Commercial property still looks like a great buy to me and they’re usually positively geared.

It looks like a great time to invest in this real estate investment trust (REIT) for a few key reasons.

Strong rental outlook

Over the long term, I believe rising earnings (supported by income growth) will drive share prices higher.

Not many REITs have a strong rental outlook, but I believe this ASX 200 share (one of the country’s leading industrial property owners) does.

In the FY26 half-year result, the business reported that its portfolio was on average 20% under-rented, providing future earnings growth potential. That’s because the market rent of its properties has increased significantly since the previous rental contract was first signed.

In the FY26 third-quarter update, the REIT reported that re-leasing spreads averaged 36%, reflecting the “significant under-renting that exists within CIP’s portfolio and the ongoing comparatively strong market conditions that are prevalent across Australian industrial markets.” In other words, the new rental contracts are generating 36% more income than the old ones – that’s a huge increase!

The HY26 result also saw the business report an overall 5.1% increase in like-for-like (LFL) net operating income (NOI). I expect the ASX 200 share can continue to benefit from strong demand for facilities focused on e-commerce (distribution and logistics), data centres and refrigerated space (for food and medicine).

The manager of the REIT, Grant Nichols, said in February:

CIP maintains significant earnings upside due to its strong, anticipated medium-term income growth resulting from material under-renting across the portfolio, expected improved portfolio occupancy, prudent completed capital management and the expected market rental growth stemming from Australia’s favourable industrial market conditions. Improving tenant demand and constrained supply is expected to drive the national vacancy to less than 2.0% by 2030, providing a pathway to continued strong market rental growth.

Compelling valuation

Despite this strong outlook for the business, it’s trading at a sizeable discount to its net asset value (NAV).

I love investing in assets for less than they’re worth and this REIT is definitely trading at a cheap price.

It reported in the HY26 result that the net tangible assets (NTA) came to $3.95, so it’s trading at a discount of 25% at the time of writing.

There is a large discount despite the REIT’s track record of selling assets at a significant premium to the book value. Since FY23, it has sold almost $460 million of assets at an average premium to book value of 12%. This gives me confidence the NTA could actually be conservative, or at the very least fair.

As a bonus, it offers a distribution yield of 5.7%, at the time of writing.

The post If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share 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.