Author: openjargon

Austal shares climbed again this week, extending a run that has now added more than 30% since July.

The catalyst for this? The possibility that a second buyer has appeared for the company’s American shipyard.

Why Austal shares are moving

Austal Ltd (ASX: ASB) confirmed on Monday that it had held an initial discussion with Wildcat Infrastructure, a United States investment firm, after media reports identified it as a potential buyer of Austal USA.

The company was clear that it had not received a formal offer.

The reason the market reacted at all is that a bidder already exists.

Hanwha Defence USA lodged a non-binding, indicative proposal in August, and the board granted it a four-week due diligence window.

A second interested party changes the negotiating dynamic significantly for Austal.

What Hanwha has actually offered

Hanwha’s proposal values Austal USA at between US$1.05 billion and US$1.2 billion on an enterprise value basis, cash and debt free.

It is an offer for the shares in the Austal USA holding entities only.

It explicitly excludes the listed shares in Austal Limited, the Australasian operations across Australia, the Philippines and Vietnam, and the Strategic Shipbuilding Agreement with the Commonwealth.

Completion would require approval from CFIUS, the Defense Counterintelligence and Security Agency, and United States antitrust regulators.

The board set out its thinking in the announcement.

The Austal Board and its advisers have carefully assessed the Proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal.

Hanwha is already Austal’s largest shareholder with 19.9% of the register, a stake approved by the Treasurer in December 2025 with conditions attached.

The FY26 result behind the bid

Austal’s full-year numbers explain why the American business is the one on the block.

Revenue rose 11% to $2.03 billion and the order book reached a record $16.5 billion.

The Australasian division produced record earnings before interest and tax of $85.3 million, up 137%.

Austal USA went the other way, posting a $202.8 million EBIT loss after provisions on legacy Navy programs, which dragged the group to a statutory loss of $53.6 million.

Chief executive Paddy Gregg described the Australian side as follows:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

What a sale would mean for Austal shares

Austal’s whole market capitalisation is roughly $1.8 billion.

The indicative value placed on Austal USA alone is between A$1.5 billion and A$1.7 billion.

If a sale completed near that range, shareholders would be left holding a debt-free Australian shipbuilder with record earnings and a decade of committed work, plus a very large pile of cash.

However, investors should nonetheless adopt a degree of caution.

Hanwha’s proposal is non-binding, Wildcat has made no offer, and United States regulatory approval is not a formality.

Foolish takeaway

Austal shares are still down over twelve months, which tells you how much damage the American contracts did.

A competitive process for Austal USA would be the fastest available route to recovering some of that.

Ultimately, the Australian business is performing well enough to justify holding whatever happens, and that is the better reason to own Austal shares today.

The post Austal shares are surging. Is a bidding war brewing? appeared first on The Motley Fool Australia.

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• Austal shares jump again as takeover interest heats up
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• Down 28% to 46%: Are these beaten-down ASX shares cheap buys?
• Austal shares jump despite a $54 million loss. Here’s why investors are buying

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.

Ten years is a long time in the share market. Companies rise and fall, technology changes, and entire industries can look very different by the end of a decade.

That is why I think ASX exchange traded funds (ETFs) can be such a good fit for long-term investors.

They allow investors to back markets, investment styles, and major trends without needing every individual stock pick to work out.

With that in mind, here are three ASX ETFs that I think could be excellent buy and hold options for the next 10 years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a strong option for investors who want long-term exposure to some of the world’s leading growth companies.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. That means investors gain exposure to businesses involved in artificial intelligence, cloud computing, software, semiconductors, ecommerce, digital advertising, streaming, and consumer technology.

I think technology is likely to keep playing a larger role in how businesses operate and how people work, shop, communicate, and spend their time over the next decade. The Betashares Nasdaq 100 ETF gives investors a way to own a collection of businesses at the centre of that change, such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World ex-US Shares Index ETF is another ASX ETF to consider for the long term.

This fund gives investors exposure to a large group of companies outside the United States, including businesses across Europe, Japan, Asia, emerging markets, and other parts of the world. That can be valuable for investors who already have plenty of US exposure.

After all, the next decade will not necessarily be dominated by one country or one market.

This ASX ETF allows investors to participate if growth comes from areas such as Asian consumer spending, European industrials, Japanese companies, emerging market financials, or global healthcare. It is a simple way to spread investments across a very large part of the global economy.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund takes a selective approach to buying US shares. Rather than simply buying the biggest companies, it focuses on businesses believed to have sustainable competitive advantages and attractive valuations.

Those advantages could come from strong brands, cost leadership, intellectual property, network effects, or customers that are difficult to lose.

This could be a good thing when investing over a 10-year period. Businesses with genuine competitive advantages have a better chance of protecting profits and compounding earnings for many years.

The valuation discipline is important as well, because even a great company can be a poor investment if investors pay far too much for it.

For investors looking for a more selective way to own quality US businesses, I think the VanEck Morningstar Wide Moat ETF could be a strong long-term choice.

The post 3 of the best ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The latest property data from Cotality has indicated that Australian home values continue to fall. 

Cotality’s national Home Value Index fell 0.9% in August, marking a fifth consecutive month of decline and taking national home values 3.6% below the market peak recorded in March.

Property snapshot

According to the report, home value declines spread sharply across Australia’s housing market through winter, with home values falling across 93% of capital city suburbs. Every capital city except Darwin has recorded a decline over the past three months.

Tim Lawless, Cotality’s Research Director, said the latest figures show the downturn is no longer confined to select markets or higher-value segments. 

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

The proportion of capital city suburbs recording a fall in home values more than doubled through winter, rising from 45.8% in autumn to 93%, highlighting a much broader weakening in housing conditions.

How does this impact real estate shares?

As investors look at these numbers, the important distinction is that falling Australian house prices do not automatically mean all ASX property stocks will suffer.

However, there are some important considerations. 

Firstly, residential developers – these are likely the most vulnerable. 

Companies selling new houses/land can be hit by lower selling prices, slower presales, cancellations and weaker margins. 

If the housing correction continues, these equities are the ones I would be most cautious about.

Looking at REITs, falling residential house prices don’t directly determine the value of office, industrial, logistics, retail or healthcare property. 

For REITs, interest rates, bond yields, debt costs, occupancy and rental growth can matter considerably more. 

Finally, property/infrastructure owners with long leases are potentially relatively defensive.

Retail, logistics, healthcare and other assets with strong occupancy and contractual rental increases can continue generating cash flow even while residential property falls. 

Why interest rates are the bigger issue 

While investors may focus on dwelling prices, interest rates are the more important issue at hand. 

The housing decline is partly a consequence of higher borrowing costs, so the same monetary tightening that hurts residential property can hurt listed property. 

Higher rates increase REIT financing costs, which can reduce distributions and funds from operations. 

This can push property valuations lower and ultimately weigh on share prices. 

Based on these factors, the ASX real estate shares that could offer defensive profiles are: 

• Goodman Group (ASX: GMG) – Major exposure to logistics and data centres rather than Australian residential property.
• GPT Group (ASX: GPT) – More diversified across office, retail and logistics and less directly exposed to the residential downturn.

The post Home values decline for a 5th straight month – what does it mean for ASX real estate shares? appeared first on The Motley Fool Australia.

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

ASX defence shares have had a wild ride this year.

One company in the sector is fielding takeover approaches from two directions at once.

Another has fallen 74% from its high.

Whereas a final one has just delivered its first genuinely profitable half at scale.

All three are funded by the same wave of government spending underpinning the defence sector. This begs the question, why are there so many different narratives?

Why ASX defence shares have a decade-long tailwind

The money behind this sector is far from speculative.

Australia has committed to lifting defence spending toward 3% of GDP by 2033, which the Australian Strategic Policy Institute (ASPI) puts at roughly $96.6 billion a year in its budget brief.

That is an increase of about $53 billion on previous projections.

However, ASPI also makes the fair point that only around four cents in every announced dollar actually lands inside the current budget year.

The build-out is significant, but it is a decade-long story, and that backdrop underpins every one of the ASX defence shares below.

1. Austal Ltd (ASX: ASB)

Austal is the cheapest name here, yet also the most complicated.

FY26 revenue rose 11% to $2.03 billion, and the order book reached a record $16.5 billion.

The Australasian business delivered record earnings before interest and tax of $85.3 million, up 137% on the prior year.

The group still posted a statutory loss of $53.6 million, because provisions on legacy United States Navy contracts drove a $202.8 million EBIT loss at Austal USA.

That American problem may now be for sale.

Hanwha Defence USA has offered between US$1.05 billion and US$1.2 billion for Austal USA alone, and a second party has since held preliminary talks.

Austal’s entire market capitalisation is only about $1.8 billion.

Chief executive Paddy Gregg was clear about what this means strategically for the company:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

2. DroneShield Ltd (ASX: DRO)

DroneShield is the contrarian pick of the three.

DoneShield shares change hands near $1.75, down from a 52-week high of $6.71, a decline of roughly 74%.

The half-year numbers explain a good deal of that.

Revenue jumped 74% to $125.8 million, yet underlying EBITDA swung to a $12.4 million loss and the statutory result was a $32.2 million loss.

The balance sheet is the reassuring part, with $180 million of cash and no debt at all.

Management has reaffirmed FY2026 revenue guidance of $250 million to $270 million, and committed revenue already stands at $240.4 million.

3. Electro Optic Systems Ltd (ASX: EOS)

Electro Optic Systems had the best half of the three by a wide margin.

Revenue surged 283% to $168.8 million and underlying EBITDA reached a positive $21.6 million, against a $14.9 million loss a year earlier.

The unconditional order book almost doubled to a record $846 million.

The company still reported a statutory loss of $33.7 million, though most of that came from revaluing the MARSS acquisition payment after its own share price rose.

Chief executive Dr Andreas Schwer summed the period up:

The first half year has been exceptionally good. It has been a record year for Electro Optic Systems.

Foolish takeaway

The temptation with ASX defence shares is to treat the whole sector as a single trade. However, it is nothing of the sort.

Austal is being repriced by bidders, Electro Optic Systems by earnings, and DroneShield by scepticism.

I would rather own all three in different sizes than try to pick the one winner.

The spending is committed for a decade, which is a long time for three very different businesses to sort out their respective problems.

The post Top 3 ASX defence shares to buy right now appeared first on The Motley Fool Australia.

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• Austal shares jump again as takeover interest heats up
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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 positions in and has recommended DroneShield and Electro Optic Systems. 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 materials stock Solstice Minerals Ltd (ASX: SLS) continued its stellar run yesterday. It rose 10% to open the week on Monday. 

The mineral exploration company rose 10% on Monday, and is now up an impressive 770% in the last 12 months. 

Why is this ASX materials stock soaring?

Solstice Minerals is a Western Australian copper-gold explorer focused on its flagship 100%-owned Nanadie Copper-Gold Project (Nanadie). 

It has been one of the copper shares to exploded in the last year.

This has come because investors are simultaneously pricing in record copper prices, tightening supply and a structural demand boom. 

At the same time, AI data centres, electricity grids, EVs, renewables and broader electrification are creating a powerful long-term demand story for copper.

Additionally, U.S. tariff uncertainty has pulled large volumes of metal into America and further tightened availability elsewhere. 

ASX copper miners have relatively fixed operating costs. This means every extra dollar in the copper price can translate into disproportionately higher margins, cash flow and project valuations. 

This has resulted in investors aggressively rerating both established producers and smaller exploration/development stocks. 

Why this stock can keep rising

A new report from Bell Potter has suggested this ASX materials stock still has more room for growth. 

The report highlighted that When the company bought the Nanadie site, the estimated resource was 40.4 million tonnes at about 0.40% copper, plus gold and silver.

However, since then, drilling results suggest that Nanadie is much larger than previously thought.

The mineralised zone is now around 100-200 metres wide, has been drilled to about 840 metres downhole, and extends over at least 1.3 km of strike. It is still open, meaning it could become larger.

In simple terms, Nanadie was originally thought to be a modest copper deposit. Drilling is showing that it could be a much bigger and potentially higher-grade deposit.

If the resource continues to grow and the project can eventually be developed into a mine, the company could be worth substantially more than it is today.

Big upside and buy rating 

Based on this analysis, Bell Potter has initiated coverage on this ASX materials stock with a speculative buy rating and $3.25 valuation. 

From yesterday’s closing price, this indicates an upside potential of approximately 32%. 

We initiate coverage of SLS with a SPECULATIVE BUY recommendation and a A$3.25/sh valuation. Nanadie is a genuinely large and still growing copper- gold system on granted mining tenure in a Tier-1 mining jurisdiction. We expect SLS will re-rate on release of ongoing exploration results and project development studies.

The post This ASX materials stock is up 700% this year and could be the next big copper winner appeared first on The Motley Fool Australia.

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

BHP Group Ltd (ASX: BHP) shares represent one business that most Australians will have exposure to in their superannuation fund.

Whether that’s the superannuation fund investing in it through an ‘Australian shares’ option, Australians picking an exchange-traded fund (ETF) that owns BHP shares, or directly buying BHP shares – it has a large presence on the ASX share market.

There’s now a sizeable gap in the market capitalisation between BHP and Commonwealth Bank of Australia (ASX: CBA) following a 53% rise of the BHP share price in the last year.

But, if I were considering investing in BHP shares directly in superannuation, I think it could be a wise idea to wait before investing.

ASX mining shares are volatile

I’m not afraid of ASX share market volatility. However, it’s important to recognise that miners are often cyclical.

That’s the nature of resource prices – they go up and down depending on supply and demand. Commodity prices don’t stay consistent every month or even year to year.

A business like BHP has fairly consistent operating costs, so a rise in revenue can significantly boost profitability thanks to operating leverage.

We saw that in the 2026 financial year, with revenue rising 15% to US$58.8 billion, profit from operations improving 23% to US$23.9 billion, and underlying attributable profit climbing 30% to US$13.2 billion.

When commodity prices strengthen, it can lead to great results. Copper was the big driver for BHP – the copper price improved 35% to US$5.74 per pound, helping copper underlying operating profit (EBITDA) improve 48% to US$18.2 billion.

But, I think it would be unwise to expect that the copper price will increase by another 35% in FY27, so I’m not expecting BHP to deliver another strong year of growth.

Miners are not usually the type of business to consistently grow earnings at a similar pace year after year. I think earnings are likely to bounce around.

Why I’d wait to buy BHP shares in superannuation

BHP is a very impressive operator, one of the best in the world at what it does.

However, I think the last decade has shown how the company’s earnings can be cyclical, particularly the iron ore earnings. So, there may be a time when the market is not as optimistic about the outlook for commodities as it is right now.

I’d rather buy when the BHP share price is relatively low, which happens when commodity prices are weaker.

I do believe there will be another opportunity to buy BHP shares at a better valuation, though I don’t know exactly when that will be. But, we don’t have to buy at this higher valuation. We should look at other opportunities in the meantime if we’re trying to generate good returns.

The post Why I’d wait to buy BHP shares in superannuation 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think some of the best ASX shares to buy are those that can deliver excellent long-term returns through powerful compounding.

When earnings grow at a strong compound annual growth rate (CAGR), it means the underlying intrinsic value is improving rapidly and does so for a long time.

I believe the following two names are excellent ideas for the decade ahead.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a global retailer of affordable jeweller around the world.

It has at least five stores in Australia, New Zealand, Singapore, Malaysia, Hong Kong, South Africa, the UK, Ireland, Spain, France, Germany, Belgium, the Netherlands, Austria, Switzerland, Poland, Italy, the UAE, the USA, Canada, Mexico, its Middle East and Africa franchise and its South America franchise.

The ASX share’s expanding global store network is a key driver of the company’s financial progress. In FY26 alone, its store count increased by 10.2% (or 105 stores) year-over-year to 1,136.

Revenue growth at its store network helped revenue grow by 17.6% to $938.8 million, underlying operating profit (EBITDA) rose 20.9% and net profit after tax (NPAT) increased 10.7% (despite all of the investing in new stores globally).

With so many markets it can grow in, including new markets like China, Vietnam, Taiwan, I think the business has a very promising future of expansion in the decade ahead. Operating leverage could help improve its profit margins over time.

According to the forecast on CMC Invest, the Lovisa share price is valued at 19x FY28’s estimated earnings.

Siteminder Ltd (ASX: SDR)

Siteminder is one of the world’s leading hotel commerce and management software providers. The business generates 140 million hotel reservations worth over A$85 billion in revenue for its hotel customers.

In an increasingly digital world, the ASX share is seeing strong adoption around the world.

In FY26, Siteminder reported that revenue grew 18.6% to $266.1 million and annual recurring revenue (ARR) improved 14.9% to $313.7 million, despite softer global travel conditions.

It’s benefiting from growing traction in new product initiatives, such as its smart platform modules that help customers analyse financial performance, decide on room prices, and even automatically adjust them so customers can generate the most revenue over the year.

In terms of profitability, the nature of software means revenue can rise much faster than expenses.

While the ASX share’s revenue grew 18.6% in FY26, underlying operating profit (EBITDA) jumped 96.5% to $28.1 million, and adjusted free cash flow surged 123% to $10.5 million. I expect its profit margins will continue to improve in the years ahead, although they are unlikely to do so at the same pace as in FY26.

According to the projection on CMC Invest, the Siteminder share price is valued at under 30x FY28’s estimated earnings.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in SiteMinder. 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.

Owning Qantas Airways Ltd (ASX: QAN) shares has been a solid choice for passive income in recent times, following the COVID-19 pandemic. Investors may be wondering what the upcoming dividends could be for shareholders.

It has been a volatile decade for the airline so far, with the Middle East events causing a big increase in fuel prices for the airline.

As we saw in the FY26 result, the company reported that was a Middle East net impact of $420 million, leading to an underlying profit before tax falling $330 million to $2.06 billion and statutory net profit after tax dropped $316 million.

This allowed the business to pay a FY26 final dividend of $300 million (19.8 cents per share), which combined with its $300 million interim dividend.

Let’s take a look at what analysts think could happen with the dividends in the coming years.

FY27

We are already a few months into the 2027 financial year, and we still don’t know how the situation in the Middle East will play out or how long it could take. Travel demand and fuel prices could be significantly impacted, so we’ll have to see what happens next.

When Qantas announced its FY27 result, the airline gave some outlook commentary, which gave some insight into what could happen during this new financial year.

The airline said that travel demand remains resilient as customers continue to prioritise travel. International demand across Qantas and Jetstar remains “strong”, supported by customers redirecting travel away from the Middle East, while domestic demand is tracking “broadly in line with the fourth quarter of FY26.”

Qantas said that domestic and international total unit revenue (TRASK) is expected to rise between 8% to 10% in the first half of FY27 compared to the first half of FY26.

With the above in mind, the projection on Commsec suggests the business could deliver higher earnings but maintain its annual dividend per Qantas share at 39.6 cents. That would be a dividend yield of 4.25% and a grossed-up dividend yield of 6%, including franking credits.

FY28

In the next financial year, being FY28, analysts predict that the earnings and dividend could grow further.

According to the projection on Commsec, the ASX share could hike its annual dividend per Qantas share of 43.1 cents in FY28. That would be a grossed-up dividend yield of 6.6%, including franking credits, at the time of writing.

FY29

The 2029 financial year could be the best of all for this series of projections.

According to the estimate on Commsec, the business could pay an annual dividend per Qantas share of 49.6 cents. That would translate into a grossed-up dividend yield of 7.6%, including franking credits.

Overall, it seems like the airline could produce solid dividend returns in the coming years.

The post Here’s the dividend forecast out to 2029 for Qantas shares appeared first on The Motley Fool Australia.

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• How many Qantas shares do I need to buy for $10,000 per year of passive income?

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.

There is a group of ASX dividend shares that I believe will make great long-term investments for both capital growth and passive income over the long-term.

I’m so optimistic about certain names that I’ve invested in them for my own portfolio, and I’m planning to buy more in the coming months and years.

In my view, the names below are two of the most compelling passive income stocks right now.

L1 Global Long Short Fund Ltd (ASX: GLS)

This business is a listed investment company (LIC) and it’s a recent addition to my portfolio. It’s similar to the L1 Long Short Fund Ltd (ASX: LSF), except it only invests in global shares, rather than a mixture of ASX shares and global shares.

The globally-focused business focuses on company-specific opportunities where valuation and earnings delivery can drive returns across a “range of potential macro environments”.

In its monthly update for July 2026, it noted that its median ‘long’ position is trading on a price/earnings (P/E) ratio of 10, supported by double-digit earnings per share (EPS) growth and modest debt levels.

As its name suggests, the LIC can also short businesses, which essentially means it can bet on certain names in the portfolio going down in value. Therefore, it can make investment returns whether the market goes up or down.

The ASX dividend share can give Australian investors exposure to a diversified portfolio, with investments (and short positions) across North America, Europe and the Asia Pacific regions.

L1 Group Ltd (ASX: L1G) only started managing this LIC in November 2025, but its portfolio’s net return has been 17.9% since then, outperforming the global share market by 6.6% in that time.

The global LIC has provided dividend guidance of at least 8 cents per share in FY27, with quarterly dividends of 2 cents per share. It has also stated an intention to pay sustainable and growing dividends over time.

Its guidance implies a guided grossed-up dividend yield of at least 5.4%, including franking credits, at the time of writing.

Rural Funds Group (ASX: RFF)

Rural Funds is the other ASX dividend share I want to talk about. It’s a real estate investment trust (REIT) that provides exposure to a portfolio of agricultural properties.

The business offers a diversified portfolio across cattle, almonds, macadamias, vineyards and cropping.

The FY26 result highlighted the strength of the REIT’s ability to deliver good passive income despite challenging conditions in relation to higher interest rates.

Rural Funds reported that FY26 net property increase grew 5.7% thanks to additional rental income on capital expenditure (primarily macadamia orchards) and indexation. Its rental contracts have income growth from fixed annual increases and inflation-linked increases.

It also reported that adjusted funds from operations (AFFO) – the net rental profit – rose by 1.7%, despite interest costs increasing significantly.

The business has announced a few asset sales, at a premium to the stated book value, which will decrease interest costs and put the balance sheet in a healthier position. It had adjusted net asset value (NAV) of $3.22 as of June 2026 (which was a 4.5% rise year over year) – that means, it’s trading at a 40% discount to the stated value.

It expects to pay a distribution per unit of 11.73 cents in FY27, which is a distribution yield of 6%.

The post 2 great ASX dividend share buys for passive income in September appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Global Long Short Fund Ltd, L1 Group, L1 Long Short Fund, and Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While having recovered from their February one-year lows, Pro Medicus Ltd (ASX: PME) shares remain sharply lower over the past year.

On Monday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company were trading for $170.11apiece. That sees the share price down a sharp 43.2% over 12 months, well behind the 1.9% gains posted by the benchmark index over this same period.

A lot of the pressure on Pro Medicus shares has come amid wider concerns that AI can potentially replace the services that many global Software as a Service (SaaS) companies provide.

You may have heard this called the ‘SaaSpocalypse’.

But following the big selldown, Medallion Financial Group’s Stuart Bromley believes Pro Medicus is now trading at “an attractive entry point” (courtesy of The Bull).

Here’s why.

Should I buy Pro Medicus shares today?

“Pro Medicus is a global leader in medical imaging software, with its Visage platform increasingly adopted by major US hospital networks,” Bromley said, citing the first reason he’s bullish on the ASX 200 healthcare stock.

As for the second reason you might want to buy Pro Medicus shares today, he said:

Revenue of $261.7 million in full year 2026 rose 22.9 per cent on the prior corresponding period. Underlying net profit after tax of $144.7 million was up 24.1 per cent. Revenue and underlying net profit exceeded expectations, while the underlying earnings before interest and tax margin reached an exceptional 74.9 per cent.

Then there’s the company’s solid revenue pipeline.

“It signed 10 new contacts worth $407 million in full year 2026. It renewed six contracts on five-year terms to the value of $141 million,” Bromley noted.

As for the fourth reason this ASX share is buy today, Bromley concluded, “Recent share price weakness provides an attractive entry point into a high-quality growth business.”

What’s the latest from the ASX 200 healthcare share?

Pro Medicus reported its FY 2026 results on 18 August.

Atop the strong financial results Bromley mentioned above, the company declared an all-time high final dividend of 37 cents per share, fully franked. It’s a bit too late to grab that record passive income payout, though. The stock traded ex-dividend yesterday.

Commenting on the company’s strong results on the day, Pro Medicus CEO Sam Hupert said:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis… Progress made in the cardiology market represents another important string to our bow. We see this trend continuing.

Pro Medicus shares closed up 11.9% on the day of the results release.

The post Down 43%! 4 reasons to buy the BIG dip in Pro Medicus shares today appeared first on The Motley Fool Australia.

More reading

• Experts name 3 top ASX shares to buy this week
• Buy, hold, sell: Pro Medicus, BHP, CBA shares
• These ASX 50 shares have lost up to 60%. Is the sell-off overdone?
• 5 things to watch on the ASX 200 on Monday
• Top 3 ASX healthcare shares to buy after a brutal year

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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.