Author: openjargon

There are plenty of interesting investment opportunities available on the ASX share market right now.

The experts in charge of WAM Capital Ltd (ASX: WAM) have outlined some compelling opportunities in its portfolio that have pleasing outlooks.

WAM Capital is a listed investment company (LIC) – a company that invests in other shares to generate profits for shareholders. Which ASX shares? The LIC wants to find the “most compelling undervalued growth opportunities in the Australian market”.

Let’s dive into the two stocks that Wilson Asset Management highlighted as ideas in its August 2026 update.

EVT Ltd (ASX: EVT)

The first ASX share that WAM discussed was EVT, an Australian leisure and property company that operates cinemas, hotels and commercial properties. Its cinema chains are reportedly the largest in Australia and New Zealand.

The fund manager noted that the EVT share price rose in August following the release of its FY26 annual result. It shot up 18% during last month.

Wilson Asset Management highlighted that the ASX share’s reported net profit after tax (NPAT) rose 51.9% year-over-year to $50.7 million. The company’s board of directors declared a fully franked final dividend of 23 cents per share, representing a year-over-year rise of 4.5%.

WAM said that the FY26 result was ahead of the consensus of analysts’ expectations, driven by the cinema segment.

The fund manager also noted the business plans to divest approximately $800 million of non-core property assets, as well as an independent strategic review of the group structure.

WAM said the proposed asset divestments are expected to support hotel growth and potential special dividends, while the strategic review is a potential catalyst to unlock further shareholder value.

FDC Consolidated Holdings Ltd (ASX: FDC)

The other ASX share that Wilson Asset Management wanted to highlight was FDC, an integrated construction and building services company that delivers major construction, fit-out and refurbishment solutions across Australia.

The FDC share price also increased by 19% in August 2026. This positive performance was in response to the company’s first annual result as an ASX-listed company.

FDC reported that revenue grew by 13% year-over-year, which reflected the strength of its diversified business model and national footprint, according to WAM. There was double-digit growth across its construction, fit-out and refurbishment segments.

WAM then pointed out that FDC also reaffirmed its FY27 prospectus forecasts and highlighted a diversified project pipeline, which supported confidence in the ASX share’s future earnings growth.

The post Why a fund manager loves these ASX shares right now appeared first on The Motley Fool Australia.

More reading

• 40 ASX shares with ex-dividend dates next week
• Ouch: WAM Capital shares crash 15% as dividend cut in half
• WAM Capital trims FY27 dividend after portfolio setback in FY26
• Here are the top 10 ASX 200 shares today
• EVT Ltd posts profit jump and pivots focus to hotel growth in FY26 results

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.

CSL Ltd (ASX: CSL) shares have been one of the more spectacular ASX recovery stories of the past few months.

After a difficult period for the healthcare giant, investors have returned quickly as confidence in its earnings outlook improved.

With the shares now trading around $173.18, I think the valuation deserves another look.

A very different price

Back in June, CSL shares could be bought for just $90.

At that level, I thought the stock looked dirt cheap for a global healthcare business with strong market positions across plasma therapies, vaccines, and specialist medicines.

The market clearly agreed eventually. At around $173.18 on Tuesday, CSL shares have almost doubled in roughly three months.

That is an extraordinary move for a company of this size, and it changes the valuation discussion quite considerably.

The easy answer is that CSL is no longer cheap in the way it was at $90.

But I do not think that automatically makes the shares expensive.

What does the valuation look like now?

According to consensus estimates, CSL is expected to generate earnings per share of $9.01 in FY27, rising to $9.51 in FY28 and $10.10 in FY29.

At the current share price, that puts CSL on a PE ratio of roughly 19 times forecast FY27 earnings.

While I would not call that cheap, I think it is still a reasonable price for a business with CSL’s global position and the prospect of returning to steady earnings growth.

The valuation also becomes a little more attractive if those earnings forecasts are delivered. Based on the FY29 estimate, the shares are trading at around 17 times earnings.

That gives investors some room for the earnings recovery to do more of the work from here.

Why I still see value

CSL still has several qualities I like as a long-term investment.

Its plasma collection network, scale in immunoglobulin therapies, and established global operations are difficult to replicate.

There is also potential for earnings to improve as the business works through the operational issues and restructuring that weighed on investor confidence previously.

I would not expect the next few years to be completely smooth.

CSL still needs to show that it can deliver the earnings recovery the market is now pricing in, and any disappointment could put pressure on the share price after such a strong rebound.

Even so, I think the current valuation leaves the stock in a reasonable position if earnings continue moving higher.

Foolish takeaway

CSL shares looked exceptionally cheap around $90 in June.

At $173.18, I do not think that description fits anymore.

The shares have almost doubled, and investors are now paying around 19 times forecast FY27 earnings.

For me, that moves CSL from dirt cheap to decent value.

I would still be comfortable buying at today’s price for the long term, but I think the opportunity now rests much more on future earnings growth than on an obviously depressed valuation.

The post Are CSL shares still cheap after almost doubling since June? appeared first on The Motley Fool Australia.

More reading

• UBS names its 10 top ASX picks for the next 3-6 months
• CSL led the ASX healthcare shares rebound. Can it continue?
• These ASX shares benefit from a high Aussie dollar
• CSL shares are up 94% from their low. What are brokers forecasting next?
• Looking to bank the upcoming CSL dividend? You better hurry!

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

Three thousand dollars is a good starting point for buying ASX shares.

The important element to focus on is diversification.

The three companies below are chosen to do different jobs.

One pays you now, one is geared to markets, and one is as close to defensive as our market gets.

1. Woodside Energy Group Ltd (ASX: WDS)

Woodside is the income anchor.

The shares trade near $32.33 on a price-to-earnings ratio of about 14.5 and a fully franked yield close to 5%.

That is the cheapest multiple and the highest yield of the three by a wide margin.

However, the company is still performing. The first half of calendar 2026 demonstrated this.

Operating revenue rose 13% to US$7.45 billion and net profit after tax reached US$1.67 billion.

Production came in at 86.5 million barrels of oil equivalent, and the interim dividend was 57 US cents fully franked at an 80% payout ratio.

Gearing is at 20.6%, marginally above the target range, which is the one number worth watching.

There are many things to like about this company.

2. Macquarie Group Ltd (ASX: MQG)

Macquarie Group is the geared exposure to markets.

FY26 net profit rose 30% to $4.85 billion, return on equity recovered to 14.0%, and earnings per share climbed 30% to $12.77.

The company’s full-year dividend was $7.00, though only 35% franked, which is important if you are buying this stock for income.

Importantly, assets under management reached $748 billion at 30 June, up 4% in a quarter.

Chief executive Shemara Wikramanayake described the year in characteristically measured terms:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.

At current levels the shares trade on a price-to-earnings ratio near 19.7, which is not obviously cheap.

The future investment case depends on Commodities and Global Markets and Macquarie Capital both still running hot.

3. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the awkward stock in this list.

Results were good: FY26 revenue rose 3.4% to $47.3 billion and net profit excluding significant items rose 8.3% to $2.87 billion.

Bunnings lifted earnings before tax 5.1% to $2.46 billion and Kmart Group added 6.0% to $1.11 billion.

The company’s full-year dividend rose 7.8% to $2.22 fully franked.

The problem however is the price.

At $77.30 the shares trade on a price-to-earnings ratio above 30 for a business growing revenue at 3.4%, and the broker consensus sits at a modest sell.

I still want it here, because a strong Australian dollar is lowering Kmart’s landed costs and the shares are already down more than 13% over twelve months.

Managing director Rob Scott pointed to the operating discipline behind the result:

Our businesses focused on mitigating cost pressures through productivity initiatives and were able to deliver more value, better service and increased convenience for our retail and business customers.

Why these ASX shares work together

They barely overlap.

Woodside is leveraged to LNG prices and a project starting up this quarter.

Macquarie rises and falls with market activity and deal flow.

Wesfarmers depends on Australian households and imported goods.

A poor year for one does not mean a poor year for the others.

Foolish takeaway

None of these three ASX shares are bargains, and only Woodside looks cheap.

What the current package gives you is a 5% franked yield, exposure to global markets, and a defensive retailer bought after a 13% fall.

Woodside is the one I would size largest, because the dividend is paid whether or not the share price cooperates.

Wesfarmers is the one that needs the most patience, given where the multiple sits.

Three thousand dollars invested this September will not change your life, and that has never been the point of buying ASX shares.

The post Top 3 ASX shares to buy with $3,000 in September appeared first on The Motley Fool Australia.

More reading

• Which ASX shares win when the Aussie dollar is strong?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• These ASX shares benefit from a high Aussie dollar
• How Woodside shares are building a ‘unique position’ to supply global LNG markets
• What Warren Buffett’s investing style can teach superannuation investors

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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended 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.

Which ASX shares benefit from a strong Australian dollar is an important question for investors betting on a stronger AUD.

The currency has done a lot of work over the past year.

It buys near 72 US cents, according to the Reserve Bank’s daily exchange rates.

Twelve months ago, it bought around 65.5 US cents.

That is a move of roughly 10%.

Why the currency matters for ASX shares

The mechanism is relatively straightforward.

Companies that import goods and sell them here pay less for their stock.

Companies that sell in United States dollars and report in Australian dollars bring home less.

The Reserve Bank’s commodity price index shows how large this effect has become.

Over the year to August, the index rose 15.5% measured in special drawing rights but only 5.8% measured in Australian dollars.

Roughly ten percentage points of a true commodity upswing has been eaten by the currency.

The Reserve Bank has raised the cash rate three times in 2026, to 4.35%, and held it there in August.

Its August statement made the connection explicit.

Despite depreciating since the May Statement, the Australian dollar remains higher than at the start of the year, consistent with the tightening in monetary policy in Australia compared with other economies.

Wesfarmers: The importer’s advantage

Wesfarmers Ltd (ASX: WES) is one of the clearest domestic beneficiaries.

Kmart and Bunnings both source heavily from Asia in United States dollars.

A stronger Australian dollar lowers the landed cost of everything on the shelf.

FY26 revenue rose 3.4% to $47.3 billion, with net profit after tax was up 8.3% excluding significant items to $2.87 billion.

Bunnings earned $2.46 billion before tax on revenue of $20.4 billion, while Kmart Group lifted earnings 6.0% to $1.11 billion.

The important nuance came from Kmart Group managing director Aleksandra Spaseska on the results call.

From a fuel and an ocean freight perspective, it is an inflationary environment. The strengthening of the Australian dollar plays a mitigating impact to all of that.

She also explained why the benefit arrives more slowly than investors would have liked.

The business hedges twelve to eighteen months ahead, so spot rate moves do not flow through immediately.

For investors, that means most of the currency benefit from this year’s move is still ahead of Wesfarmers.

ResMed: The other side of the trade

ResMed Inc (ASX: RMD) shows the opposite.

The business itself is performing well.

FY26 revenue rose 10% to US$5.65 billion, with non-GAAP earnings per share up 17% to US$11.17.

The problem for Australian holders is translation.

ResMed lists here through CDIs and declares its dividend in United States dollars, converted at the record date.

The most recent quarterly payment of US$0.66 per underlying share converted to just 9.28 Australian cents per CDI at an exchange rate of 0.7112.

The same American dividend buys fewer Australian cents when the currency is high.

The same arithmetic applies to the share price itself.

Despite this, chief executive Mick Farrell was upbeat about the underlying business.

We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy.

Foolish takeaway

Currency may be a tailwind or a headwind.

However, I would not buy Wesfarmers purely because the Aussie dollar is high.

The shares sit on a price-to-earnings ratio above 30, and most brokers are cool on them.

Nor would I sell ResMed over an exchange rate, since its weakness this year owes more to a product safety action than to the currency.

What the strong dollar does is change the order in which good businesses compound.

The post Which ASX shares win when the Aussie dollar is strong? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy with $3,000 in September
• CSL led the ASX healthcare shares rebound. Can it continue?
• 4 high conviction ASX stock picks from Canaccord Genuity
• These ASX shares benefit from a high Aussie dollar
• What Warren Buffett’s investing style can teach superannuation investors

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 positions in and has recommended ResMed and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. 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.

Santos Ltd (ASX: STO) shares could be one to watch on Tuesday after the company dropped a new update after yesterday’s market close.

The Santos share price finished the session at $8.35, up 1.7%, and has now climbed around 35% since the start of 2026.

With the stock already trading close to its 52-week high, investors will be watching closely to see how the market reacts to the company’s latest move in Papua New Guinea.

Here’s what we know.

Santos is increasing its exposure

Santos has agreed to spend around US$189 million, or roughly $262 million, to buy another 3.3% of the Papua LNG project from TotalEnergies.

Once the Papua New Guinea Government’s planned back-in is taken into account, Santos expects its stake to increase from 17.7% to 21%.

The deal is still subject to regulatory approvals and the project reaching a final investment decision, which is currently targeted for the fourth quarter of 2026.

If everything goes ahead, Santos expects its share of LNG production from Papua LNG to rise by around 19% to about 1.2 million tonnes a year.

There’s also a change at the top of the project, with ExxonMobil set to take over as operator from TotalEnergies and increase its own interest to 34.1%.

Santos believes having ExxonMobil operate both Papua LNG and the existing PNG LNG project could improve efficiency and help with execution.

CEO Kevin Gallagher said the deal gives Santos a larger position in a project the company sees as part of its next stage of growth, alongside Barossa and Pikka.

Gas policy is back in focus

The Papua LNG deal is not the only thing Santos investors have to watch this week.

The Australian reported today that Australia Pacific LNG wants exporters blocked from buying domestic gas to meet export commitments under the Federal Government’s proposed reservation scheme.

APLNG chief executive Dan Clark also warned that the proposed 20% reservation target could discourage investment in new supply.

Santos has raised similar concerns, arguing that pushing too much gas into the domestic market could lower prices in the short term but make future projects less attractive.

But the debate could get more attention tomorrow, when Santos CEO Kevin Gallagher speaks at the National Press Club.

Is there much upside left?

After a 35% rise this year, Santos shares are already trading close to their 52-week high.

TipRanks shows an average 12-month price target of $8.44, only slightly above Monday’s close. Six of the eight analysts shown still rate the stock as a buy, with the other two on hold.

That still leaves brokers broadly positive on Santos, although the average target is only a touch above the current share price.

The post Santos shares on watch after major Papua LNG deal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• Buying Santos shares? Here’s why the company is celebrating this production milestone

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.

If I were a retiree, there would be only a few ASX shares I’d be willing to rely heavily on for returns, including dividends. One of the top stocks I’d consider for the long-term is L1 Long Short Fund Ltd (ASX: LSF).

This business is one of the larger listed investment companies (LICs) available to Australians. The job of a LIC is to invest in shares and other assets on behalf of shareholders. It’s operated by the fund managers and analysts at L1 Group Ltd (ASX: L1G).

When I think about what retirees may be searching for, or may benefit from, I think the ASX share can tick all of the boxes.

Compelling passive dividend income

The feature retirees may be after most is passive income. Dividends from ASX shares are a great option, in my view.

For me, it’s not just a question of how large the dividend yield is. I’d also want to see dividend reliability and payout growth as well.

L1 Long Short Fund has certainly ticked the box for income. It has increased its annual dividend per share every year since 2021, when it first started paying a dividend. The LIC changed to quarterly dividends in 2025, and it has grown its quarterly dividend every quarter since then.

The business has a stated goal of increasing its dividend for shareholders, which it’s clearly doing.

If the business continues to increase its dividend payout each quarter over the next 12 months, it would have a FY27 grossed-up dividend yield of 4.7%, including franking credits, at the time of writing. I think that would be a great starting dividend yield for retiree investors.

Pleasing diversification

Another aspect that retiree investors may really benefit from is the diversification that the LIC can provide.

It invests in both ASX shares and international shares, using long-term investing and short-selling strategies. Short selling is when you can generate profit if a share price goes down, so it’s a good way to protect against falling markets.

Given its investments across Australia, New Zealand, North America, Europe and Asia, it can provide diversification for retiree portfolios that may be too focused on Australian assets (including property).

The LIC also tends to avoid investing in the tech sector or ASX bank shares, so it can generate returns in ways that differ from those of typical exchange-traded funds (ETFs) that focus on US or ASX shares. Its three most fruitful sector hunting grounds have been materials, industrials and communication services.

Strong portfolio returns is delivering capital growth

The portfolio strategy has been very effective, generating strong net returns. In the past five years, the LIC’s net return has been an average of 16.1% per year. Only some of this was used to pay dividends, with the rest of the investment returns retained within the business.

The increasing portfolio value has driven a rise in the share price. Over the past five years, the L1 Long Short Fund share price has risen 78% (at the time of writing).

Of course, past performance is not a guarantee of future returns, but I’m optimistic it can continue to deliver pleasing long-term returns.

The post Why this top ASX share is a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

More reading

• Why these 3 top ASX dividend shares are my biggest holdings
• How much do I need to retire on $120,000 a year at 55?
• I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income
• How much is needed in superannuation to target a $5,500 monthly passive income?
• How much is needed in superannuation to target a $40,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in L1 Group and L1 Long Short Fund. 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 most shorted ASX shares tell investors which companies professional investors expect to suffer.

The latest short position reports from ASIC, covering the week to 1 September 2026, contain two names that have each had their respective issues.

One company is shorted because it is losing money.

The other is shorted because it made too much, too quickly.

The 10 most shorted ASX shares right now

DroneShield Ltd (ASX: DRO) sits at the top of the list with 15.37% of its register sold short.
Lotus Resources Ltd (ASX: LOT) follows at 15.04%, then 4DMedical Ltd (ASX: 4DX) at 12.37%.
Domino’s Pizza Enterprises Ltd (ASX: DMP) is at 11.98% and Treasury Wine Estates Ltd (ASX: TWE) at 11.74%.

The week-on-week movement is worth noting.

CAR Group Ltd (ASX: CAR) has dropped out of the top ten entirely, and Elders Ltd (ASX: ELD) has taken its place.

DroneShield’s short interest actually rose, from the 14.9% recorded a week earlier, despite the shares already having fallen sharply.

DroneShield: Shorted because it lost money

DroneShield has become the most shorted stock on the market for reasons that become clearer when investors look at the company’s annual accounts.

First-half revenue rose 74% to $125.8 million, which is a strong number.

Underneath it, gross margin fell from 65.3% to 60.0%, underlying EBITDA swung to a $12.4 million loss, and the statutory result was a $32.2 million loss, compared with a $2.1 million profit a year earlier.

The company also has an ASIC investigation running into share trading and disclosures from November 2025.

The counter-argument is that the balance sheet is untouched.

DroneShield holds $180 million of cash with no debt and has reaffirmed FY 2026 revenue guidance of $250 million to $270 million.

The shares are down about 74% from their high, which is a lot of scepticism already in the price.

PLS Group: Shorted because it made too much

PLS Group Ltd (ASX: PLS) is the opposite case entirely.

FY26 revenue rose 152% to $1.93 billion, underlying EBITDA reached $1.14 billion at a 59% margin, and the company swung from a $196 million loss to a $526 million profit.

The company resumed dividends with a fully-franked 5 cents per share.

Shares rocketed 30% in August alone and have roughly doubled over twelve months.

So why short it?

Because the result rests on a realised spodumene price of US$1,488 per tonne, more than double the prior year.

FY27 capital expenditure is guided at $620 million to $685 million, roughly double the prior year, which competes directly with the dividend just restored.

Lithium has always been a violently cyclical business, and bears are betting the cycle turns before the capital is spent.

Managing director Dale Henderson said of the results:

That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share.

Foolish takeaway

Short interest is a reading list, not a verdict.

Plenty of heavily shorted companies go on to perform perfectly well, and a crowded short position can unwind violently.

What I take from this particular table is that the most shorted ASX shares are not all the same bet.

For DroneShield, the question is profitability, and for PLS Group, it is the lithium price.

The post What are the most shorted ASX shares on the market right now? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX defence shares to buy right now
• Here are the top 10 ASX 200 shares today
• 3 reasons to buy DroneShield shares after their 74% decline
• These are the 10 most shorted ASX shares
• 9 ASX shares downgraded by experts post-results this week

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 positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, and Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk and are seeking strong returns for your portfolio, then read on.

That’s because the team at Bell Potter believes the ASX stock in this article could rise over 85%.

Which ASX stock?

The stock that the broker is bullish on is Devex Resources Ltd (ASX: DEV).

It is a Perth-based uranium company focused on the Alligator Rivers Uranium Province (ARUP) on the north-western margin of the Northern Territory’s McArthur Basin. 

Bell Potter notes that the ASX stock has consolidated a district-scale land position with over 50km of highly prospective fault corridors which host existing uranium discoveries. 

The broker has been pleased with recent exploration progress and believes there’s more to come. It said:

One month in, the program has delivered encouraging results. At the KP Prospect (2km radon anomaly), DEV hit a 10m-wide fault breccia above the unconformity, geochemically similar to the geology overlying the likes of Jabiluka. Big Radon Prospect (3km radiometric and bedrock alteration anomaly) drilling has identified a 20m wide fault zone and down hole gamma reporting 1.6m at 680ppm eU3O8 in chlorite altered schist with further assays pending. 

At Sandfire, drilling will test for the position of the Angularli Fault Zone along strike from Deep Yellow’s 32.9Mlb U3O8 deposit. DEV continues to work-up prospects by relogging historic drill core and analysis of recently consolidated datasets. A recent airborne hyperspectral survey of DEV’s granted tenements will add further data granularity. The historic Caramal deposit (6.5Mlbs at 0.31% U3O8) provides an important geological analogue.

Big potential returns

According to the note, Bell Potter has put a speculative buy rating and 41 cents price target on the ASX stock.

Based on its current share price of 22 cents, this implies potential upside of just over 85% for investors over the next 12 months.

Commenting on its buy thesis, the broker said:

The key value catalysts for DEV include uranium market fundamentals, exploration results and M&A-led growth. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. 

DEV has embarked on a systematic exploration program across a district-scale consolidated landholding in a historical but underexplored uranium province analogous to Canada’s Athabasca Basin, a region supplying around one quarter of the world’s uranium needs. We expect DEV to be disciplined in further consolidating uranium assets in support of its ambitious growth targets. At 30 June 2026, DEV had cash of $27m.

The post Guess which ASX stock could rise 85% appeared first on The Motley Fool Australia.

More reading

• Santos shares on watch after major Papua LNG deal
• Why this top ASX share is a retiree’s dream for FY27
• What are the most shorted ASX shares on the market right now?
• How many ANZ shares do you need for $8000 of passive income?
• How much is needed in superannuation for $3,000 in weekly passive income?

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.

Working out how many ANZ shares you need to generate $8,000 of annual passive income is an important exercise.

The bank currently yields 4.38% on a share price around $38.

That sounds modest.

Once franking credits are included the picture changes considerably, and so does the amount of capital required.

The maths behind $8,000 from ANZ shares

ANZ Group Holdings Ltd (ASX: ANZ) has paid 166 cents per share over the past twelve months.

That comprises an 83 cent final dividend franked at 70%, paid last December, and an 83 cent interim dividend franked at 75%, paid on 1 July.

Divide $8,000 by $1.66 and you need 4,820 shares.

At $37.93 each, that is an investment of roughly $182,800.

What franking credits change

The calculation looks quite different at tax time.

At 75% franking and a 30% company tax rate, each dollar of dividend carries about 32 cents of franking credit.

That lifts the grossed-up dividend to roughly $2.19 per share.

On that basis you need about 3,650 ANZ shares, or an investment near $138,300.

The franking credits have saved you more than $44,000 of capital.

Whether you actually receive that benefit depends on your marginal tax rate, and retirees in pension phase capture the most of it.

Can ANZ keep paying it?

This is the important question to ask for long-term investors.

The half-year result to 31 March delivered cash profit of $3.78 billion, up 14% on the prior half excluding significant items.

Cash return on tangible equity improved 161 basis points to 11.6%, and the cost-to-income ratio fell from 54.6% to 49.4%.

Common equity tier one capital was 12.39%.

On top of this, the August quarterly update was steady rather than spectacular.

Cash profit was $1.90 billion, up 1% on the first-half quarterly average.

Net interest margin edged up one basis point to 1.54%, and capital strengthened again to 12.51%.

The individual credit impairment charge was just $65 million, or three basis points annualised.

Chief executive Nuno Matos kept the message simple:

Our balance sheet and capital position remain strong, and we are staying close to our customers should they need support.

The risk with ANZ shares

Two risks deserve attention before investors commit $138,000 to a single bank.

The first is regulatory.

APRA raised ANZ’s capital add-on to $1 billion in April 2025 alongside a court enforceable undertaking over non-financial risk management, and that overlay has not been removed.

The bank also booked a NZ$125 million provision for a New Zealand class action in the third quarter.

The second is concentration.

Suncorp Bank integration is 57% complete and the single customer front-end is 45% complete, both on schedule, but integrations are where banks tend to find unpleasant surprises.

Foolish takeaway

ANZ shares can produce $8,000 a year, and the capital required is either $182,800 or $138,300 depending on whether franking credits count for you.

I would treat the grossed-up number as the realistic one for most Australian investors.

What I would not do is build the whole income stream from a single bank on a price-to-earnings ratio above 19.

Allocating the same capital across three or four payers yields a little less but removes a great deal of risk.

The post How many ANZ shares do you need for $8000 of passive income? appeared first on The Motley Fool Australia.

More reading

• Are NAB, ANZ, Westpac and CBA shares attractive buys right now?
• By September 2027, ANZ shares could turn $10,000 into…
• How much superannuation do I need to retire with a $50,000 annual passive income?
• ASX 200 bank shares led a financial sector rebound last week
• What’s driving the ASX 200 higher today?

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.

Having a goal in mind for how much income you’d like to receive in retirement can be a very comforting strategy.

So how much do you need? What most of us aim for is a comfortable retirement, which means something different to everyone.

But it’s fair to say that an income stream of $3,000 per week would provide a standard of living most people would deem very comfortable.

How much is needed for a comfortable retirement?

Indeed, the Association of Superannuation Funds of Australia (ASFA) estimates singles will need $55,923 per year to fund a comfortable retirement. So $3,000 per week, or $156,000 per year, is well above this.

The ASFA figure does assume a retiree owns their own home and draws a part pension from the age of 67 when they become eligible.

So, how much superannuation would you need to generate $3,000 per week in passive income?

For simplicity’s sake, I will assume that a retiree is living off of dividends and not drawing down any capital.

Naturally, how much you would need in superannuation savings depends on what sort of dividend yield you can regularly rely on.

If the figure was just 5%, you would need $3.12 million in superannuation savings.

I would argue that this figure is too low, as retirees who are paying a zero per cent tax rate get the benefit of franking credits – that is, they get paid back the tax already paid by the companies whose shares they own.

In practice, this means that if a company is paying a 5% dividend yield, what is called the “grossed up” yield comes out at 7.14%.

If you were able to maintain a 10% dividend yield, you’d only need $1.56 million in superannuation, but I’d argue that somewhere in the middle, let’s call it 7.5%, is realistic.

At this level you’d need $2.08 million in retirement savings.

Which shares deliver good dividend yields?

So, what are some shares you might consider investing in to deliver these sorts of returns?

Keep in mind that companies with excessively high returns might not be able to sustain them over time.

A class of shares that tends to offer stability over time is infrastructure. In this sector, gas pipeline operator APA Group Ltd (ASX: APA) pays a 5.29% dividend yield, 31% franked, while toll roads operator Atlas Arteria Ltd (ASX: ALX) pays 8.84% with no franking.

Among financial services stocks, Regal Partners Ltd (ASX: RPL) is paying 11.15%, fully franked, while among the banks, Westpac Banking Corporation (ASX: WBC) is paying 4.4%.

Retailer Universal Store Holdings Ltd (ASX: UNI) is paying 5.67% (fully franked), while major retailer Coles Ltd (ASX: COL) is paying 3.29% fully franked.

There are also a diverse array of exchange traded funds such as the Betashares Australian Dividend Harvester (ASX: HVST) which are focussed on dividend payouts, with this one yielding 5.53%.

So as you can see, it’s possible to build a portfolio returning a decent yield, which can help hit your income targets.

The post How much is needed in superannuation for $3,000 in weekly passive income? appeared first on The Motley Fool Australia.

More reading

• Are NAB, ANZ, Westpac and CBA shares attractive buys right now?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Post-earnings: I’d buy these ASX dividend stocks for income today
• How I’d target $5,000 a year in passive income from ASX shares

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