Author: openjargon

When it comes to building a reliable passive income stream, the Australian share market remains one of the most attractive hunting grounds in the world.

Thanks to a mix of yield-focused shares, franked dividends, and favourable payout cultures, ASX investors have access to income opportunities that are hard to replicate offshore.

With that in mind, here are two ASX dividend stocks that brokers currently rate as buys, and which could offer eye-catching dividend yields and capital upside in 2026.

Dexus Convenience Retail REIT (ASX: DXC)

For investors seeking defensive, property-backed income, Dexus Convenience Retail REIT could be worth a closer look.

This real estate investment trust (REIT) owns a nationwide portfolio of service stations and convenience retail sites, leased to high-quality tenants under long-term, inflation-linked contracts. These types of assets are widely regarded as resilient, with demand for fuel and convenience retail proving relatively stable across economic cycles.

Importantly for income investors, the majority of its leases include annual rental increases, helping to support distribution growth and protect purchasing power over time.

Bell Potter is bullish on the REIT and currently has a buy rating with a $3.45 price target. Based on today’s share price of $2.86, that implies potential upside of around 21%.

On the income front, the broker is forecasting dividends of 20.9 cents per share in FY 2026 and then 21.6 cents per share in FY 2027. This represents forecast dividend yields of approximately 7.3% in FY 2026 and 7.6% in FY 2027, which could make it an appealing option for investors seeking dependable cash flow in the current interest rate environment.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that analysts continue to back is global intellectual property services firm IPH.

The company operates a portfolio of well-established IP businesses across Australia, New Zealand, Canada, and Asia, including AJ Park, Smart & Biggar, and Spruson & Ferguson.

This gives IPH exposure to a specialised professional services niche characterised by recurring demand, high client retention, and strong industry barriers to entry.

While IPH’s share price performance has been disappointing over the past couple of years, the team at Morgans believes the market may be overlooking its income potential.

Morgans has described the stock’s valuation as undemanding and currently rates it as a buy, with a $6.05 price target. Compared to today’s share price of $3.55, that suggests potential upside of more than 70% if sentiment improves.

Even without a rerating, IPH’s forecast dividends are hard to ignore. Morgans is expecting fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. At its current share price, this equates to dividend yields of over 10% for each year.

The post 2 ASX dividend stocks tipped to deliver 7% to 10% yields in 2026 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 IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO), the cloud accounting powerhouse beloved by Aussie small businesses and accountants, has had a rough ride.

After trading near record highs in mid-2025, the share price is now approximately 36% lower than it was this time last year. At the time of writing, Xero shares are up 0.8% to $108.78, suggesting selling pressure may be starting to ease.

So, is this a buying opportunity or a falling knife?

Let’s break it down.

Why Xero shares have fallen

Xero’s share price has fallen sharply over the past year, wiping out gains from prior periods and hitting fresh lows in late 2025. Bearish sentiment has been building as investors digest strategic moves and profit results that didn’t quite hit the market’s expectations.

The US$2.5 billion Melio acquisition in mid-2025 also weighed on sentiment. The deal was partly funded by a $1.85 billion discounted equity raising, which diluted existing shareholders and pressured the share price.

Even with positive financial metrics, such as revenue growth and improving cash flow, Xero’s share price continued to slide, suggesting that investors remain cautious.

The business is still growing

Despite the share price weakness, Xero’s underlying business continues to move in the right direction.

In its FY26 interim results, the company reported revenue growth of approximately 20% year on year, bringing revenue to around NZ$1.19 billion. EBITDA was also higher than the prior year, showing improved profitability even as the company continued to invest in the business.

Xero’s annualised monthly recurring revenue increased strongly, supported by ongoing subscriber growth and improved pricing. The company also made progress on key strategic initiatives, including its Melio acquisition and the rollout of new AI-driven features across the platform.

On paper, these results show Xero is still growing its core business and generating cash, which provides a solid fundamental backdrop. However, some key metrics missed market expectations, particularly earnings per share (EPS), and that disappointment helped push the share price lower.

So, should you buy at these levels?

A 36% fall in a high-quality ASX tech stock is hard to ignore.

Xero remains a dominant player in cloud accounting, with a strong product, loyal customers, and a long runway for growth. While short-term uncertainty remains, the current share price is starting to look far more appealing than it did a year ago.

For long-term investors willing to weather some volatility, Xero remains a stock worth watching closely.

The post Down 36% in a year, is it time to consider buying shares in this dominant ASX tech company? appeared first on The Motley Fool Australia.

More reading

• 3 no-brainer ASX stocks to buy with $1,000 right now for the New Year
• How to turn small ASX share investments into life-changing money
• 2 incredible ASX 200 shares I’d buy with $2,000 right now
• Here are my top 3 ASX shares to buy in January
• How to make $20,000 of passive income from ASX shares

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

The start of a new year is often when investors feel the most eager to put money to work in the share market.

But rather than overthinking where to invest, I think the goal should be simplicity.

This means focusing on high-quality ASX stocks that are a cut above the rest, with scale, resilience, and clear long-term relevance.

If I had $1,000 to invest as the New Year begins, these are three ASX stocks I’d consider genuine no-brainers.

Xero Ltd (ASX: XRO)

I believe Xero is one of the highest-quality software businesses on the ASX, and currently, the share price tells a very different story to the business itself.

The company has grown from a small New Zealand startup into a global platform with 4.6 million subscribers, serving small businesses across multiple large markets. Its revenue is largely recurring, customer churn is low, and the product is deeply embedded in day-to-day operations.

What makes Xero particularly interesting right now is its valuation. This ASX stock is down more than 40% from its 52-week high, despite the company continuing to grow, generate cash, and execute on its long-term strategy. For long-term investors, that disconnect is hard to ignore.

For someone starting the year with a modest investment, owning a global SaaS leader at a materially lower price than a year ago looks compelling.

Transurban Group (ASX: TCL)

Transurban is about as simple as it gets.

It owns and operates toll roads in major cities where population growth, congestion, and commuting are long-term realities. People don’t need to love tolls, they just need to use the roads.

Recent traffic data shows that demand remains resilient, with average daily traffic continuing to grow across all markets. At the same time, Transurban is investing in major projects, including the opening of the West Gate Tunnel, which adds capacity and improves connectivity in Melbourne.

For investors, Transurban also offers predictable income, with distributions expected to grow again this year. That combination of infrastructure stability and income makes it an easy stock to hold through market ups and downs.

Macquarie Group Ltd (ASX: MQG)

Macquarie adds diversification and optional upside to the mix.

Unlike traditional banks, Macquarie operates across asset management, banking, commodities, capital markets, and advisory services. That diversity helps smooth earnings through different market conditions.

The ASX stock’s results highlighted solid underlying performance across multiple divisions, particularly in asset management and capital markets, despite mixed global conditions. Macquarie’s ability to invest patiently, manage risk conservatively, and adapt its business mix has been proven across multiple cycles.

For a New Year investment, I think Macquarie offers exposure to global growth, infrastructure, and financial markets, all through a single, well-managed business.

The post 3 no-brainer ASX stocks to buy with $1,000 right now for the New Year appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, Transurban Group, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The start of a new year is a useful moment to step back and reassess where long-term growth is coming from.

In 2026, I’m drawn to ASX growth stocks that are still scaling, still taking share, and still proving their models across larger markets.

Two ASX stocks that stand out to me on that basis are named below.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa has established itself as one of the ASX’s most compelling global retail growth stories.

The company operates a fast-fashion jewellery model that has proven highly scalable across geographies. With more than a thousand stores operating across over 50 markets, Lovisa continues to demonstrate that its concept travels well. Growth has been driven primarily by ongoing store expansion, supported by disciplined execution and a strong focus on returns on capital.

What I like about Lovisa is that it doesn’t rely solely on strong consumer spending to succeed. Its ability to open new stores at attractive economics has been the key growth driver, rather than needing aggressive comparable sales growth. That makes the story more resilient than many traditional retailers.

Retail will always be cyclical to some extent, but Lovisa’s global footprint and operational flexibility give it options. If management continues to execute as it has in recent years, I think the business has plenty of room to keep growing in 2026 and beyond.

SiteMinder (ASX: SDR)

SiteMinder offers exposure to a very different kind of growth, one driven by software adoption rather than physical expansion.

The company provides cloud-based software that helps hotels manage bookings, pricing, and distribution across multiple channels. As the global hospitality industry becomes more digitised, tools like SiteMinder’s are increasingly becoming essential infrastructure rather than optional add-ons.

What stands out to me is the size of the opportunity still ahead. The hotel market is large, fragmented, and relatively early in its software adoption curve. That gives SiteMinder a long runway to grow both its customer base and the amount it earns from each customer over time.

Profitability remains a work in progress, which can lead to share price volatility. But for growth investors, that volatility often comes with opportunity. As the business scales and operating leverage improves, the financial profile could look very different to today.

Why these two stand out in 2026

Lovisa and SiteMinder operate in very different industries, but they share some important characteristics. Both have proven business models, expanding addressable markets, and management teams focused on long-term growth rather than short-term optics.

Neither stock is risk-free, and both will likely experience ups and downs along the way. But for investors looking to add growth exposure in 2026, I think they represent two compelling ways to back businesses that are still in the expansion phase of their journeys.

Foolish Takeaway

For me, 2026 doesn’t require a new investing playbook; it just requires selectivity. Lovisa offers global retail expansion backed by execution, while SiteMinder provides exposure to the ongoing digitisation of the hospitality industry. For investors with a long-term mindset, I believe these two ASX growth stocks remain well-positioned as the year unfolds.

The post 2 super ASX growth stocks to buy in bunches in 2026 appeared first on The Motley Fool Australia.

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

While a stronger Australian dollar is likely to be good news for some ASX shares, it’s equally likely to throw up headwinds for others.

That’s important to note here in these early days of 2026, as analysts at the Commonwealth Bank of Australia (ASX: CBA) are forecasting an uplift in the Australian dollar this year.

We’ll take look at what a stronger domestic currency could mean for your returns if you’re buying ASX shares below.

But first…

Why CBA forecasts a stronger Aussie dollar in 2026

When I first moved to Australia in 2010, the Aussie dollar roared to US$1.10.

But the past few years have been a very different story. And it’s created different dynamics for ASX shares.

“The nation’s currency has been trending lower since 2021 largely because China’s escalating property crisis has weighed on demand for steel and the iron ore that provides more than $100 billion a year in Australian export income,” CBA noted.

But after hitting a five-year low of 59.22 US cents in April amid global angst over US President Donald Trump’s sweeping tariffs, the Aussie dollar has staged a strong rebound to currently be fetching 67.22 US cents.

CBA head of FX International and Geo Economics Joseph Capurso noted:

The Aussie typically does well against most currencies when the world economy is in a cyclical upswing. And you’ve seen that at a very extreme level this past year, with the Aussie dollar against the Japanese yen and Aussie-Euro, and the Aussie-Sterling up a bit as well.

Investors in ASX shares could also be eyeing a stronger domestic currency thanks to planned tax cuts in the US.

According to Capurso:

This past year we talked about US tariffs but in 2026 we’re going to be talking about US tax cuts.

Those tax cuts are going to support the US economy, at least for 2026 and probably next year, and will offset some of the negatives from the big increase in tariffs we and global economies have had to absorb.

Atop US tax cuts, the US Fed is also still widely expected to cut interest rates in 2026, while the Reserve Bank of Australia is increasingly expected to hold tight or even increase rates.

CBA noted that interest rate differentials are likely to support the Aussie dollar.

Which ASX shares could benefit and which could suffer?

Every listed company has its own strengths and weaknesses that could see it outperform or underperform in 2026, regardless of the exchange rate.

But, broadly speaking, ASX shares that are heavily reliant on imports, like some of the major ASX 200 electronics and homewares retailers, should enjoy better margins with a stronger domestic currency.

Conversely, companies that are more export oriented, like ASX 200 mining and energy stocks, could face headwinds. That’s because most of these exports (oil, iron ore, gold, copper, etc.) are priced in US dollars, and they’ll receive a lower payback with a stronger Aussie dollar.

The post Why CBA is forecasting a stronger Aussie dollar in 2026, and what that means if you’re buying ASX shares appeared first on The Motley Fool Australia.

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

US stocks outperformed ASX shares for a third consecutive year in 2025.

The S&P 500 Index (SP: INX) soared 16.39% and delivered total returns, including dividends, of 17.88%, according to S&P Global.

The S&P 500 reached a record 6,945.77 points in December before closing the year at 6,845.5 points.

The Nasdaq Composite Index (NASDAQ: .IXIC) did even better, rising 20.36% with total returns of 21.33%.

The Nasdaq Composite hit its peak in October at 24,019.99 points before closing at 23,241.99 points on 31 December.

The Dow Jones Industrial Average Index (DJX: .DJI), which tracks the performance of 30 selected S&P 500 stocks, rose 12.97% and delivered total returns of 14.92%.

The Dow Jones Index closed 2025 at 48,063.29 points, and hit a new record overnight at 49,209.95 points.

By comparison, S&P/ASX 200 Index (ASX: XJO) shares rose 6.8% and produced total returns of 10.32% in 2025.

The ASX 200 rose to a record 9,115.2 points in October before finishing the year at 8,714.3 points.

The S&P/ASX All Ords Index (ASX: XAO), which tracks the top 500 companies, rose by 7.11% and gave a total return of 10.56%.

The ASX All Ords closed 2025 at 9,018.8 points after hitting a record in October at 9,414.6 points.

Top 5 US stocks and ASX shares of 2025

According to Yahoo Finance, the top five US stocks for growth last year were:

1. Flash memory designer and manufacturer Sandisk Corp (NASDAQ: SNDK), up 548%

2. Data storage company and hardware manufacturer, Western Digital Corp (NASDAQ: WDC), up 335%

3. Computer data storage company, Micron Technology Inc (NASDAQ: MU), up 222%

4. Global data storage solutions company, Seagate Technology Holdings PLC (NASDAQ: STX), up 220%

5. US stocks trading platform provider, Robinhood Markets, Inc. (NASDAQ: HOOD), up 183%

The top five ASX All Ords shares for growth were:

1. Anti-drone technology company DroneShield Ltd (ASX: DRO), up 300%

2. Gold miner Pantoro Gold Ltd (ASX: PNR), up 220%

3. Gold explorer Predictive Discovery Ltd (ASX: PDI), up 220%

4. Gold miner Resolute Mining Ltd (ASX: RSG), up 206%

5. Lithium miner Core Lithium Ltd (ASX: CXO), up 206%

Check out the best performing ASX 200 shares here.

What’s next for US stocks in 2026?

In its 2026 investment outlook, Morgan Stanley projected that S&P 500 shares will rise to 7,800 points by the end of the new year.

That would represent an annual gain of 13%.

The broker expects US earnings and cash flow growth due to a market-friendly policy mix, interest rate cuts, corporate tax cuts from the ‘One Big Beautiful Act’, positive operating leverage, and the re-emergence of pricing power and AI-driven efficiency gains.

Serena Tang, Morgan Stanley’s Chief Global Cross-Asset Strategist, said:

There will be some bumps along the way, but we believe that the bull market is intact.

Another broker, UBS, predicts the S&P 500 will lift to 7,300 points by June and 7,700 points by Christmas.

UBS said US stocks will be driven by about 10% earnings growth and lower interest rates.

In an article, the broker said: 

In addition to the transformative force of AI, we believe the structural trends of electrification and longevity will also drive equity performance for the long term.

Tactically, we believe AI beneficiaries are broadening out both within and beyond tech, and we see opportunities in companies facilitating grid modernization and supply critical raw materials.

In the longevity field, we expect strong growth in the obesity, oncology, and medical device markets.

Check out which US stocks are most popular with Aussie investors and why.

The post US stocks vs. ASX shares in 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Core Lithium. 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.

The Coronado Global Resources Inc (ASX: CRN) share price has rebounded after a heavy selling session yesterday. This comes despite the company not making any new announcements on Tuesday.

The coal producer’s share price fell 11.11% on Monday to a one-month low of 28 cents. This followed news of a fatal incident at its Curragh operations in Queensland.

Sentiment has, however, since improved. At the time of writing, Coronado shares are swapping hands for 36.5 cents, up 14.06% for the day.

Here is what investors are weighing up.

What happened at Curragh?

Late last week, an incident occurred at Coronado’s Mammoth Underground Mine, part of the Curragh mine complex near Blackwater in central Queensland.

According to the release, the company confirmed that a worker was fatally injured during the incident and said it was supporting the worker’s family, friends, and colleagues.

Operations at the Mammoth Underground Mine were suspended following the incident. As a precaution, Coronado also temporarily halted work at its Curragh North and Curragh South open-cut mines.

The company later confirmed that both open-cut mines have since restarted operations in a staged manner. The underground mine remains suspended while investigations continue. Queensland safety authorities have launched a formal investigation.

Why did the share price fall?

The fall in Coronado’s share price on Monday reflected investor uncertainty around the potential impact on operations.

The Mammoth Underground Mine is an important part of Coronado’s metallurgical coal production at Curragh, and any extended shutdown could affect output and costs. With limited information available at the time, the market appeared to take a more cautious approach.

Why are Coronado shares rebounding?

Today’s rebound suggests investors are beginning to reassess the scale of the disruption.

With open-cut operations back online, the immediate production impact appears more limited. Coronado also has a broader portfolio of assets, reducing its reliance on any single operation.

Coal prices have also been supportive, with coking coal trading above US$220 per tonne over the past month. After Monday’s sharp fall, some investors may also see the stock as being oversold.

What to watch next

The key focus will be updates on the investigation and any guidance on when Mammoth Underground Mine may resume operations.

Until then, Coronado shares are likely to remain volatile as investors balance operational uncertainty with movements in coal prices.

For now, I will be watching developments from the sidelines until there is clearer visibility on its operations.

The post Coronado shares surge 12% after Monday’s sell-off appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras 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.

Buying S&P/ASX 200 Index (ASX: XJO) energy shares like Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO)? Then you’ll want to keep one eye on what’s unfolding in South America.

As I’m sure you’re aware, over the weekend the United States sent special forces into Venezuela, capturing President Nicolas Maduro and his wife, Cilia Flores.

US President Donald Trump has a long running feud with Maduro, who stands accused of narco-terrorism.

But, in a development relevant to ASX 200 energy shares like Woodside and Santos, the US president also clearly has an eye on Venezuela’s oil riches.

At a press conference, Trump said (quoted by Bloomberg):

We built Venezuela’s oil industry with American talent, drive and skill, and the socialist regime stole it from us during those previous administrations, and they stole it through force. This constituted one of the largest thefts of American property in the history of our country.

In the first two days of trading on the ASX following the US military operation, Woodside shares have slipped 0.9% while Santos shares are down 0.8% since Friday’s close.

As for the other big Aussie energy stocks, Beach Energy Ltd (ASX: BPT) shares have dropped 2.6% over this period, while the Karoon Energy Ltd (ASX: KAR) share price is down 2.4%.

That’s despite a slight uptick in global oil prices since Friday, with Brent crude oil now trading for US$61.63 per barrel amid concerns of short-term disruptions to Venezuela’s oil exports.

How much could Venezuela’s oil impact ASX 200 energy shares?

Over the short to medium-term, the direct impact on ASX 200 energy shares like Woodside and Santos from the US incursion into Venezuela is likely to be minimal.

Twenty years ago, the nation was producing around three million barrels of oil per day. Over the past year that had fallen to less than a million barrels per day, or enough to meet about 1% of global demand.

While analysts agree it will take at least a few years before Venezuela’s production is able to ramp back to earlier levels, or beyond, it’s worth noting that the country sits on one of the world’s largest oil reserves.

Stephen Dover, head of Franklin Templeton Institute, believes the nation could produce more than five million barrels per day by 2030, representing some 5% of global oil production.

Noting this would be “enough to keep oil prices depressed for longer”, Dover said (quoted by The Australian Financial Review):

Over the longer run, a more stable, productive, and prosperous Venezuela will have the potential to offer the world significant supplies of oil. That would be significant for global growth, but it will take political stability and considerable investment to unlock that potential.

Goldman Sachs strategist Daan Struyven added (quoted by Bloomberg), “Any recovery in production would likely be gradual and partial as the infrastructure is degraded and would require strong incentives for substantial upstream investment.”

Goldman doesn’t see Venezuela’s oil output lifting materially until 2030. But the broker said the Brent crude oil price could end up US$4 per barrel below its existing forecast for 2030 if the nation ups production to two million barrels per day by then.

And ASX 200 energy shares like Woodside and Santos have some big US competitors that might step in to help kick start Venezuela’s oil revival.

“All of our oil companies are ready and willing to make big investments in Venezuela that will rebuild their oil infrastructure,” White House spokeswoman Taylor Rogers said.

The post Buying ASX energy shares like Woodside and Santos? Here’s why Venezuela matters appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Light & Wonder, NAB, and Woodside shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

ASX dividend stocks that pay out to investors every month are quite rare on the ASX. But there are still a few options for investors to consider if receiving monthly passive income paycheques is a priority.

We’ve written extensively on a number of these here at the Motley Fool, ranging from Plato Income Maximiser Ltd (ASX: PL8) to Metrics Master Income Trust (ASX: MXT).

But today, let’s discuss the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD). This exchange-traded fund (ETF) is specifically designed to cater to the needs of income-hungry investors. One of those caterings is a monthly dividend policy.

Like most ASX ETFs, HYLD holds an underlying portfolio of assets. In this case, those assets consist of a portfolio of around 50 ASX shares. These 50 shares are selected using screens that assess a company’s dividend history, as well as its perceived ability to continue to afford to pay out substantial income to shareholders.

According to the provider, some current holdings in HYLD’s portfolio include ANZ Group Holdings Ltd (ASX: ANZ), Rio Tinto Ltd (ASX: RIO), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS) and Telstra Group Ltd (ASX: TLS).

The BetaShares S&P Australian Shares High Yield ETF is a relatively new fund, having started ASX life back in August of 2025. Even so, we can get a good grasp of the kind of income investors can expect from HYLD.

An ASX monthly dividend stock with a 4.6% yield?

Starting from 16 September, this dividend stock has kept to its creed and paid out a monthly dividend distribution. The four dividends that investors have received since then have each come in at 11.92 cents per unit. These dividends only usually come with partial franking credits attached. This reflects the varied nature of HYLD’s portfolio.

If we annualise that monthly dividend of 11.92 cents per unit, we get a figure of $1.43 in dividend distributions per unit. At the current HYLD unit price of $31.14 (at the time of writing), that gives this ASX dividend stock an annualised dividend yield of 4.59%.

Of course, investors should not take that figure to the bank. No ASX dividend stock is obliged to pay out future dividends at past levels. And HYLD only had a few months of performance for investors to evaluate.

But even so, income investors who value monthly paycheques could arguably do worse than taking a deeper look at this ASX dividend stock.

The BetaShares S&P Australian Shares High Yield ETF charges a management fee of 0.25% per annum.

The post This 4.6% dividend stock sends cash to investors every single month appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX small-cap shares outperformed the larger players by almost 2.5 times last year, according to S&P Global data.

S&P/ASX All Ords Index (ASX: XAO) shares delivered total returns (capital growth plus dividends) of 10.56% last year.

The ASX All Ords tracks the performance of the market’s top 500 companies by market capitalisation.

The S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, delivered a total return of 24.96%.

Small-cap shares typically have market caps between a few hundred million dollars and $2 billion.

So, why was it such a great year for the smaller players?

ASX small-cap shares make a comeback

Blackwattle Investment Partners portfolio managers, Robert Hawkesford and Daniel Broeren, who run the fund manager’s Small Cap Quality Fund, said ASX small-cap shares outperformed largely due to the rising value of junior gold explorers.

In a recent update, Hawkesford and Broeren said geopolitical instability prompted investors to buy precious and critical metals shares.

Additionally, interest rate cuts worldwide encouraged investors to buy companies in earlier stages of growth because “smaller cap companies offer the greatest range of opportunities”.

Lower interest rates reduce smaller companies’ debt servicing costs and boost their earnings potential.

Perpetual portfolio managers Alex Patten and James Rutledge, co-portfolio managers of the Perpetual Smaller Companies Fund, said the economic landscape “decisively” turned in favour of ASX small-cap shares in 2025.

They point out that during the August earnings season, the ASX Small Ords Index lifted 8.5% while the S&P/ASX 100 rose by 2%.

Patten said:

You’re starting to see some decent outperformance from small caps and micro caps.

This is the first time that’s happened in a number of years.

Over the past few years, when rates were going up quite quickly, that’s not typically a great environment for small caps.

But now that rates are starting to come down, we’re seeing more interest in small and micro caps and bit more liquidity in the market.

Exposure to Aussie economy

Patten and Rutledge also point out that ASX small-cap shares are more influenced by the domestic economy while large-caps are globally exposed.

Many ASX small-cap shares are domestic cyclicals, with retailers and residential building companies reporting an uptick in demand last year.

Smaller companies also benefitted from moderating wage growth.

ETF provider Global X reported strong inflows into its ASX small-cap shares ETFs in November.

This reflected investors’ desire to diversify away from large-caps with stretched valuations, such as the ASX bank shares.

Global X said:

Whether investors are aiming for the top 300 Australian companies rather than just the top 200, or focusing exclusively on smaller companies, small-caps could be making a comeback.

The impact of rising small-caps last year can be seen in the annual returns of Australia’s key indices.

Total returns of key ASX indices

Index	This index tracks	Total return in 2025
ASX Small Ords	ASX companies ranked 101 to 300 by market cap	24.96%
S&P/ASX 300 Index (ASX: XKO)	Top 300 companies by market cap	10.66%
ASX All Ords	Top 500 companies by market cap	10.56%
S&P/ASX 200 Index (ASX: XJO)	Top 200 companies by market cap	10.32%

5 best ASX small-cap shares for price growth in 2025

These were the five best-performing ASX small-cap shares for capital growth in 2025.

1. Anti-drone technology company DroneShield Ltd (ASX: DRO), up 300%

2. Gold miner Pantoro Gold Ltd (ASX: PNR), up 220%

3. Gold explorer Predictive Discovery Ltd (ASX: PDI), up 220%

4. Gold producer Resolute Mining Ltd (ASX: RSG), up 206%

5. Gold explorer Southern Cross Gold Consolidated CDI (ASX: SX2), up 204%

The post Why 2025 was the year of the ASX small-cap shares appeared first on The Motley Fool Australia.

More reading

• Why BlueScope, DroneShield, Monadelphous, and SGH shares are racing higher today
• My top 5 ASX stocks to buy in early 2026
• Why did DroneShield shares rocket 300% in 2025?
• These are the 10 most shorted ASX shares
• 2 ASX mining shares to buy for 2026

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 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.