Author: openjargon

Woodside Energy Group Ltd (ASX: WDS) and ANZ Group Holdings Ltd (ASX: ANZ) shares have both smashed the 5.1% 12-month returns delivered by the S&P/ASX 200 Index (ASX: XJO).

In morning trade today, Woodside shares are changing hands for $30.77 apiece. That sees the ASX 200 energy stock up a whopping 47.9% since this time last year, spurred by the company’s own operational successes alongside surging global oil and gas prices.

And that strong performance does not even include dividends. Atop those capital gains, Woodside shares trade on a fully-franked 5.4% trailing dividend yield.

You’re also unlikely to hear longer-term ANZ stockholders complaining.

ANZ shares are trading for $35.21 at the time of writing on Tuesday. This puts the ASX 200 bank stock up 20.7% over 12 months. And ANZ also pays twice yearly dividends, with the big four bank stock trading on a partly franked 4.7% trailing dividend yield.

If you owned ANZ shares at market close last Friday, you can expect to receive the 83 cents per share interim dividend payout (franked at 75%) on 1 July. ANZ traded ex-dividend yesterday.

But following on this strong run, Sanlam Private Wealth’s Remo Greco believes investors would do well to consider locking in some profits (courtesy of The Bull).

Here’s why.

Time to take profits on ANZ shares?

“The bank delivered a cash profit of $3.780 billion in the first half of 2026, up 14%, excluding significant items, on the second half of 2025,” Greco said of the H1 results ANZ reported on 1 May.

He added:

Return on equity was up 149 basis points. The company posted an interim dividend of 83 cents a share, with franking increased to 75%. The company’s share price has performed well in the past 12 months.

Explaining his sell recommendation on ANZ shares, Greco noted:

Our concern is higher interest rates potentially increasing provisions as mortgage and credit card holders struggle to meet increasing repayments in a weaker economy. It may be prudent to trim holdings and take some profits.

Are Woodside shares a sell today?

Atop recommending taking profits on ANZ shares, Greco also foresees potential headwinds building for Woodside’s outperforming shares.

“The energy company produced a record 198.8 million barrels of oil equivalent in full year 2025,” he said. “However, production was offset by lower realised prices.”

Greco concluded:

Consequently, net profit after tax of $2.718 billion was down 24% on the prior corresponding period. Full year fully franked dividends were down 8%.

In our view, relying on dividends carries risk if commodity prices or production fall. Investors may want to take advantage of elevated crude oil prices to cash in some gains.

The post Sell alert! Why this expert is calling time on Woodside and ANZ shares appeared first on The Motley Fool Australia.

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• Buy, hold, sell: TechnologyOne, Telstra, 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 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 Pinnacle Investment Management Group Ltd (ASX: PNI) share price has seen its fair share of pain within the past couple of years, dropping 36%, as the below chart shows. It could be a compelling choice for passive income at today’s valuation.

This company takes stakes in funds management businesses (affiliates) and helps them grow. Pinnacle says it’s a high-quality, scalable multi-affiliate platform compounding earnings and dividends through cycles.

It’s invested in 19 affiliates across public and private markets, spanning asset classes, investment styles and geographies. These affiliates have a long-term track record of delivering sustained outperformance over their benchmarks.

Strong long-term growth

I think it’s important not to lose sight of long-term performance, particularly if the business has been afflicted by short-term volatility. Over time, the market should realise the company is a high-performer and is delivering strong underlying growth.

In the five years to 30 June 2025, the company delivered a compound annual growth rate (CAGR) of 33% for net profit after tax (NPAT), 28% for earnings per share (EPS), and 31% for dividends per share.

The ASX share reported that it achieved aggregate affiliate funds under management (FUM) of $208.1 billion at 31 March 2026. That’s 2.9% growth since 31 December 2025 and 16% growth since 30 June 2025.

Plus, 31 March 2026 was a low point for the global share market – it has risen by high single digits since then (in percentage terms), so it looks like another strong financial year for FUM growth.

In the three months to 31 March 2026, aggregate affiliate FUM net inflows came to $9.4 billion, including $1.6 billion of Australian retail net inflows, $5.2 billion of international net inflows and $2.6 billion of Australian institutional net inflows.

I think it’s a great time to invest when there’s market volatility because fund managers are exposed to market declines, but then they benefit strongly when the market eventually recovers.

The long-term investment performance of the funds and the ongoing net inflows are a great sign for further earnings growth.

Great option for passive income

As I’ve mentioned, the business has delivered excellent dividend growth this decade, and I think it has great potential to increase its dividend significantly by 2030.

Based on the latest two dividend payments, it has a grossed-up dividend yield of around 4.75%, including franking credits. I think it’s likely to continue growing in the coming years.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 83 cents in FY27. If the business delivers that payout, it would be a grossed-up dividend yield of more than 7%, including franking credits, at the time of writing.

I think this is a great time to invest for the long-term in the ASX share.

The post A 7% yield but down 36%! Is it time for me to buy this ASX share to earn passive income? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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

Shape Australia Ltd (ASX: SHA) shares are trading higher after the fit-out and construction services company released a strongly positive update to the market.

Records tumbling

The company said in a statement released to the ASX that its project wins had hit a record high of more than $1.16 billion as at the end of April, “significantly exceeding the FY25 full-year result of $981.6 million”.

Shape said it expected revenue to be between $1.175 and $1.225 billion, up 22.8% of FY25 revenue.

Net profit was also expected to surge, with it forecast to come in at $30 to $32 million, up from $21.2 million in FY25.

The company also said it had a strong forward pipeline of about $4.2 billion worth of work, “providing significant visibility into FY27 and beyond”.

Shape said in its statement that its strategy to grow in new sectors was paying off, with revenue from the education sector coming in at 22% of the whole this year, up from 12%, “largely underpinned by our modular operations”.

Data centre revenue had grown from less than 1% in FY25 to more than 10%, “driven by increased market activity in the Data Centre refurbishment market”.

Shape Chief Executive Officer Peter Matrix-Evans said regarding the update:

Shape is again delivering strong performance across key financial and operational metrics in FY26, continuing to drive results for our shareholders. Our resilient business model, with a strong weighting towards shorter-duration projects, combined with our focus on maintaining a shared risk profile with both our supply chain and clients, minimises potential impacts from cost escalation pressures. In addition, our strong and diversified pipeline of more than $4.2 billion enables SHAPE to remain selective, pursuing only the highest-quality opportunities and underpinning our continued growth trajectory into FY27. Through our deliberate sector and capability diversification strategy, SHAPE continues to strengthen its project portfolio while building the foundation for improved margins as we scale.

Shape also increased its headcount by 12% year on year to more than 850 people.

Analysts like what they see

Shaw and Partners’ most recent research note on Shape came with a buy recommendation and suggests there could be share price upside from the current levels of $7.05, up 5% on Tuesday.

The Shaw team said the company had done a good job of diversifying its work streams.

Aided by acquisitions, Shape has diversified its sector exposure into more resilient sectors including healthcare, defence, education, hospitality, and retail, and has expanded into solutions that capture more of the project lifecycle such as design & build and aftercare/facilities maintenance. This strategic shift contributed to its impressive financial results.

Shaw said Shape had a market-leading position in high margin fit out and a strong pipeline and net cash position.

The Shaw team in March upgraded their price target on Shape shares from $7.40 to $8.25 per share.

Shape also pays a fully-franked dividend yield of 3.94%.

The post With a record order book this ASX small cap is surging higher appeared first on The Motley Fool Australia.

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• What’s going on with this ASX 200 stock today?
• Sell alert! Why this expert is calling time on Woodside and ANZ shares
• A 7% yield but down 36%! Is it time for me to buy this ASX share to earn passive income?
• Up 138% in a year, ASX All Ords share taking off again today on development milestone

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

The All Ordinaries Index (ASX: XAO) is flat in morning trade today, but that’s not holding back this outperforming ASX All Ords share.

The high-flying company in question is Metallium Ltd (ASX: MTM).

Shares in the precious metals recovery company closed yesterday trading for 59 cents. In early trade on Tuesday, shares are changing hands for 59.5 cents apiece, up 0.9%.

This sees the Metallium share price up 138% since this time last year, smashing the 5.6% 12-month gains delivered by the benchmark index.

Here’s what investors are mulling over today.

ASX All Ords share lifts on reactor progress

Metallium shares are marching higher after the company announced it has successfully completed a 12-hour continuous Flash Joule Heating (FJH) reactor campaign at its Gator Point Technology Campus, located in Texas.

Metallium said this extended duration test run showed the stable, repeatable, and controlled operation of its Generation-1 commercial-scale FJH reactor platform.

The FJH reactor is intended to efficiently process electronic waste and other metal-bearing feedstocks to recover valuable metals like gold, silver, and copper.

Management said the latest 12-hour campaign validates reactor integrity, automation systems, and operating procedures ahead of the company’s planned multi-reactor deployment.

The successful test run was also reported to have “materially reduced” technical and operational scale-up risk as Metallium advances toward its next major milestone of multiple FJH reactors operating simultaneously in parallel.

Parallel reactor deployment forming the basis of Metallium’s modular throughput scale-up strategy.

Separately, the ASX All Ords share also announced the appointment of metallurgist, Rod Lawry, to its Technical Advisory Team. Lawry has more than 45 years of global experience in the mining sector, including holding senior technical roles with Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP).

What did Metallium management say?

Commenting on the progress helping lift the ASX All Ords share today, Metallium managing director and CEO Michael Walshe said, “This milestone represents an important transition point for Metallium as we move from individual reactor commissioning toward sustained multi-reactor operations.”

Walshe added:

Successfully operating a commercial-scale FJH reactor continuously over an extended duration provides critical validation of reactor integrity, process stability, automation systems and operating procedures.

Looking ahead, Walshe said:

Importantly, these results materially reduce risk ahead of our next major objective of operating multiple FJH reactors simultaneously in parallel, which forms the basis of our modular scale-up strategy.

The campaign has also generated important operating and engineering learnings expected to support ongoing throughput optimisation, reactor refinement and broader process integration activities as commissioning progresses across the Gator Point flowsheet.

The post Up 138% in a year, ASX All Ords share taking off again today on development milestone 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for some exposure to the small side of the market, then it could be worth hearing what the team at Securities Vault is saying, courtesy of The Bull.

It has just given its verdict on several small-cap ASX shares. Here’s what it is recommending:

Mach7 Technologies Ltd (ASX: M7T)

Securities Vault has named Mach7 as a small-cap ASX share to buy.

It believes the enterprise imaging platform provider is well-placed to grow its recurring revenue thanks to expanding budgets in the US healthcare sector. It explains:

The company provides enterprise imaging platforms used by hospitals across the globe, positioning it as a scalable SaaS (software-as-a-service) style health technology play. Recent quarterly updates have shown improving cost discipline and operating leverage. The real upside lies in recurring revenue growth and contract wins across North America, where healthcare information technology budgets are structurally expanding.

As hospitals modernise legacy systems, Mach7’s vendor-neutral archive (VNA) offering becomes increasingly relevant. If management continues to convert its pipeline into contracts, the market could materially re-rate earnings visibility. At current levels, it still trades at a discount to global peers despite similar growth characteristics.

Oneview Healthcare (ASX: ONE)

Another small-cap ASX share that Securities Vault rates as a buy is Oneview Healthcare.

It is feeling positive about the care experience platform provider’s outlook due to favourable funding tailwinds in the US market. It explains:

Its care experience platform integrates patient engagement tools into hospital systems. The company’s offering should generate demand. Potential upside exits following positive momentum. The investment thesis hinges on hospital digitisation and patient experience mandates, particularly in the US, where funding tailwinds remain supportive.

As deployments scale up, Oneview’s recurring revenue model should drive operating leverage. Importantly, the company has already secured major hospital clients, reducing execution risk compared to earlier stage peers.

WRKR Ltd (ASX: WRK)

One small-cap ASX share that Securities Vault isn’t positive on is WRKR. It has named the workforce compliance and payroll solutions company’s shares as a sell this week.

Securities Vault has concerns over elevated execution risks and an uncertain pathway to profitability. It explains:

The company operates in workforce compliance and payroll solutions—an attractive theme—but execution risk remains elevated, in our view. Despite operating in a growing sector, the pathway to profitability remains uncertain. The company posted a loss after tax of $2.66 million in the first half of 2026. Investors chasing the theme may be better served in bigger, more established platforms offering stronger execution capabilities.

The post Buy, hold, sell: 3 small cap ASX shares 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 positions in and has recommended Mach7 Technologies. 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 Centuria Industrial REIT (ASX: CIP) share price is in focus after delivering $188 million of property divestments at a 17% average premium to book value and reaffirming FY26 funds from operations (FFO) guidance.

What did Centuria Industrial REIT report?

• Divested four properties for $188 million, averaging a 17% premium to book value
• Development of 50-64 Mirage Road, Direk SA completed and sold at a 33% premium to project costs
• Approximately 14,400sqm of new lease terms agreed in Q3, with FY26 year-to-date re-leasing spreads at 36%
• FY26 FFO guidance reaffirmed at 18.2–18.5 cents per unit (cpu); distribution guidance at 16.8cpu
• Gearing set to reduce by approximately 3% post-settlement of divestments

What else do investors need to know?

Centuria Industrial REIT continues to focus on active asset management. Settlement of divested properties is expected by December 2026, supporting the trust’s ongoing gearing reduction and portfolio optimisation strategy.

Key development milestones were reached, including completion and sale of the Mirage Road project in South Australia. In addition, CIP recently settled the acquisition of a data centre in Wellcamp and a strategic industrial site in Yarraville, Victoria. The trust is also exploring its data centre redevelopment pipeline with potential joint ventures or demerger options on the table, depending on future outcomes and market conditions.

What’s next for Centuria Industrial REIT?

Looking forward, the trust expects the supply-demand imbalance in the Australian industrial market to persist, with tight availability of new warehousing and strong occupier demand. CIP is progressing further development opportunities, especially in data centre infrastructure, with construction on new, multi-unit industrial estates underway.

Management remains focused on optimising the existing portfolio, exploring potential partnerships for its data centre assets, and delivering on updated guidance while responding to broader macroeconomic shifts impacting inflation and market supply.

Centuria Industrial REIT share price snapshot

Over the past 12 months, Centuria Industrial REIT shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Centuria Industrial REIT books $188m in Q3 asset sales, reaffirms FY26 outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Life360 Inc (ASX: 360) shares are sinking on Tuesday morning.

At the time of writing, the family safety and location technology company’s shares are down 8% to $18.53.

This follows the release of its first-quarter results before the market open, which appears to have been overshadowed by another tech selloff.

The S&P/ASX All Technology Index is down 3.5% in early trade.

Life360 shares sink on results day

Not even the release of another record quarterly result and upgraded full-year guidance has stopped its shares from falling today.

Life360 reported total revenue of US$143.1 million for the quarter, up 38% on the prior corresponding period. This was driven primarily by a 32% increase in subscription revenue to US$108.2 million, with core subscription revenue rising 36% to US$103.5 million.

Global monthly active users (MAUs) increased 17% year on year to approximately 97.8 million, with first-quarter net additions of 1.9 million.

Life360 recorded 201,000 net additions to its paying circles, bringing the total to approximately 3 million. This is up 27% year on year thanks to U.S. and international performance.

Advertising was another standout. The company disclosed advertising revenue separately for the first time, with this segment generating US$19.7 million in the quarter, up 329% year on year. Hardware revenue was weaker, falling 49% to US$4.5 million. This was due to lower units shipped and discounts linked to the company’s exit from its brick-and-mortar retail channel.

Gross profit increased to US$110.6 million from US$83.5 million, although gross margin eased to 77% from 81%. Operating expenses rose 46% to US$118.6 million, reflecting higher personnel costs, the Nativo acquisition, and increased growth media spend.

Life360 reported net income of US$2.8 million, compared with US$4.4 million a year earlier. Adjusted EBITDA increased 7% to US$17.1 million, supported by subscription and advertising revenue growth. Operating cash flow was positive at US$17.2 million, up 42% year on year.

Management commentary

Life360’s chief financial officer, Russell Burke, highlighted the strength of revenue growth and the emergence of advertising as a material contributor. He said:

Life360 delivered strong growth and financial performance in Q1’26. Quarterly revenue grew 38% year-over-year to $143.1 million, and our Annualized Monthly Revenue of $517.9 million was up 32% year-over-year. We are disclosing our Advertising Revenue separately for the first time this quarter, which reached $19.7 million in the quarter and was up 329% year-over-year, as the Life360 Advertising Platform took flight following the closing of the Nativo acquisition.

We ended Q1’26 with $459.0 million in cash, cash equivalents, restricted cash, and short-term investments, a significant increase from $170.4 million a year ago at this time, primarily driven by the net proceeds from our June 2025 convertible notes offering and operating cash flows generated over the last twelve months. In Q1’26 alone, we generated operating cash flows of $17.2 million, up 42% year-over-year.

Outlook

Life360 has upgraded its FY 2026 guidance. It now expects consolidated revenue of US$650 million to US$685 million, which is up from its previous range of US$640 million to US$680 million. This implies year-on-year growth of 33% to 40%.

It also lifted adjusted EBITDA guidance to US$130 million to US$140 million, from US$128 million to US$138 million previously, representing an expected margin of around 20%.

Management expects revenue growth to accelerate in the second half of 2026, supported by subscriptions and the seasonal strength of its advertising platform.

Commenting on its outlook, Burke said:

Looking ahead, we expect revenue growth acceleration into the back half of 2026 driven by both our core subscription business and our advertising platform entering its strongest seasonal window. We will continue to invest in strategic initiatives including international expansion, advertising platform scaling, and product innovation, while remaining committed to balancing growth investment with margin expansion.

The post Why are Life360 shares sinking 8% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For years, the easy answer for Australian investors has been to back the home team. The Vanguard Australian Shares Index ETF (ASX: VAS) has delivered an average annual total return of close to 9% over multiple decades. That is hard to argue with.

However, the ASX has always been thin on technology. 

And right now, the absence of the AI supply chain in our local index is starting to bite.

That gap is exactly what some investors have been quietly closing.

A 12-month run that nobody expected

The iShares MSCI South Korea ETF (ASX: IKO) has rallied more than 196% over the past 12 months. The pace has not slowed either – the share price continues to push to fresh record highs as the South Korean share market rips through milestone after milestone.

On Monday, the South Korean benchmark KOSPI surged 4.32% to close at a record 7,822.24 points, its fifth consecutive record high. The broader Korean share market capitalisation crossed 7,000 trillion won (around US$4.75 trillion) for the first time. Five months earlier, that figure sat at 4,000 trillion won.

This is not a small repricing. It is a total rerating of an entire share market.

Memory chips are doing the heavy lifting

Look under the hood and the story becomes obvious. The IKO ETF is heavily concentrated in two companies. SK Hynix accounts for roughly 26% of the fund. Samsung Electronics is another 24%. Together, they are nearly half the portfolio.

Both are memory chip giants. SK Hynix and Samsung control more than 70% of the global DRAM market between them, and Samsung leads the world in NAND flash production. These are the building blocks behind every AI server, every data centre, every cloud platform being constructed at speed right now.

Korean chip exports surged nearly 150% year over year in the first 10 days of May to a record US$8.54 billion.

Another large holding within IKO is Hanwha Aerospace, which makes turbine engines, defence systems, and the surface mount equipment that puts chips onto circuit boards. Industrials, financials, and Hyundai-linked auto stocks make up most of the rest.

In other words – IKO is, in disguise, a leveraged play on the AI build-out and Korea’s broader industrial revival.

Valuations were the spark

The other reason capital has poured in is straightforward. Korean tech was relatively “cheap”.

While US mega-cap tech has commanded premium multiples through 2024 and 2025, Samsung and SK Hynix traded at single-digit and low-double-digit forward earnings multiples even after this run began. That valuation gap drew global investors searching for cheaper exposure to the same AI thematic that has powered Wall Street to new highs.

Japan has seen a similar phenomenon with the Nikkei. The pattern is consistent. Investors are looking for AI exposure without paying Silicon Valley prices.

A weaker Korean won has also lifted the competitiveness of Korean exporters. That helps earnings, even if it slightly mutes the AUD-denominated returns for Australian holders of IKO.

Foolish takeaway

The risks here are not invisible. The IKO ETF is concentrated. Around half of it sits in semiconductors, and the chart has gone close to parabolic. A pullback in memory pricing, a tariff shock, or a broader AI investment slowdown could hit this fund harder than most.

But step back from this one fund and the bigger point becomes clear. The ASX is a wonderful starting point for any Australian portfolio – the dividends, the franking credits, the familiar names. It also happens to be light on the structural growth themes shaping the next decade. Semiconductors. AI infrastructure. Advanced manufacturing. Defence technology. Very little of it is investable through local shares alone.

Looking offshore is one way to bridge that gap. Korea is one option. Japan is another. The US and parts of Europe each offer their own slice of growth that simply does not exist in our own backyard.

Predicting whether IKO continues its run from here or reverses would be folly. The more durable takeaway is that the themes driving global markets are not always available at home – and the investors willing to look further afield often find the returns that prove it.

The post After surging nearly 200%, is this the best ASX ETF in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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.

Shares in BHP Group Ltd (ASX: BHP) are once again showing investors why the mining heavyweight remains one of the ASX’s most closely watched companies.

After a volatile start to the year, BHP shares have roared higher. The mining business is up 6% over the past five trading days, 28% year to date, and an impressive 55% over the past 12 months. To put it in perspective, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6% over the same period.

So, what keeps driving the BHP share price higher and is there more to come?

Multiple divisions firing strongly

One major reason for the rising BHP shares is diversification.

Despite ongoing swings in global commodity prices, BHP continues delivering strong operational performance across multiple divisions. Its Western Australian iron ore business recently achieved record production levels, while copper production remains robust and is expected to finish in the upper half of FY26 guidance.

That operational consistency matters. When several business segments are performing well simultaneously, it helps support earnings stability and stronger cash flow generation. BHP is no longer simply an iron ore miner with a collection of smaller assets attached.

Copper major growth driver

Copper is becoming an increasingly important part of the business.

In the first half of FY26, BHP reported that copper accounted for more than half of its underlying earnings for the first time ever. The company is also targeting copper production of between 1.9 million and 2 million tonnes this financial year.

That could prove important for long-term investors in BHP shares because copper demand is closely tied to global electrification trends.

Copper is essential for renewable energy infrastructure, electric vehicles, power grids, data centres and digital infrastructure. As electricity demand rises and technology systems become more complex, many analysts expect copper demand to remain strong for decades.

BHP’s own forecasts point to global copper demand increasing from around 34 million tonnes annually today to more than 50 million tonnes by 2050. The company also believes copper demand from data centres alone could rise six-fold to almost 3 million tonnes annually by 2050.

Strategic asset sales

Importantly, copper is not the only attraction of BHP shares. The company still generates enormous cash flow from iron ore while maintaining exposure to steelmaking coal and future potash production.

That diversification helps support cash flow across commodity cycles and gives management flexibility to continue investing in growth projects.

BHP’s balance sheet strength is another key advantage. The miner has improved its financial position through strategic asset sales and portfolio reshaping, allowing it to maintain significant financial flexibility while continuing to reward shareholders through dividends.

This is not a speculative mining company relying on one commodity boom. BHP remains a global resources powerhouse with operational scale, diversified earnings streams and multiple long-term growth opportunities.

What next for BHP shares?

Still, analyst sentiment remains mixed following the strong rally.

According to TradingView data, 14 of 21 analysts currently rate BHP shares as a hold. Five analysts have buy or strong buy recommendations, while two suggest selling.

The average 12-month price target sits at $54.30, which is roughly 7% below the current BHP share price of $58.33.

The most bullish analyst forecasts imply around 18% upside ahead, while the most bearish suggest the stock could fall another 33%.

For investors, BHP’s growing copper exposure may ultimately become the biggest factor shaping the miner’s long-term future.

The post Up 55% in a year, are BHP shares still a buy today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Shares in FleetPartners Group Ltd (ASX: FPR) have been on the up since the company released its first-half results recently, but the analysts at Macquarie believe there are still two good reasons to buy the stock.

Those reasons are the potential for more capital gains, along with very healthy dividends, now and into the future.

We’ll go into more detail about where Macquarie sees both heading shortly.

Firstly, let’s have a look at what FleetPartners reported last week.

Solid operating result

The vehicle leasing and fleet management company said in its statement to the ASX that its first half statutory net profit for the six months ending March 31 was up 7% on the previous corresponding period to $37.1 million.

The group delivered new business writings of $367 million for the half, down 1%, however the company said momentum was strong towards the end of the half, while the April figures were 27% higher than the monthly average for the first half.

FleetPartners said it had $4.5 million in net cash at the end of the half and no debt maturing until October 2028.

The company said it remained focused on its three main target markets:

In Large Fleets, the Group’s value proposition and go-to-market strategy continue to resonate, underpinned by a customer partnership model that combines deep relationships, market-leading service and specialist expertise. In Small Fleets, our strategy remains centred around omni-channel distribution, with strong success in digital direct channels validating the scale of the addressable opportunity. In Novated, recent strategic initiatives, in conjunction with market demand for BEVs, have supported increased enquiry and order volumes in 2Q26. This has been complemented by the acquisition of Remunerator, which is performing in line with expectations. The Group is focused on increasing employer engagement and eligible employee penetration.

FleetPartners announced a $20 million share buyback on March 26, with just $900,000 worth of shares repurchased to date.

It also declared a fully-franked interim dividend of 11.9 cents per share payable on June 1, which represented a grossed-up yield of 13% at the time of publication.

On the outlook, the company said market conditions were challenging, and it expected “marginal growth” in new business writings.

Shares looking cheap

The analyst team at Macquarie ran the ruler over the FleetPartners result, and they liked what they saw.

They said the company was trading at an “undemanding multiple”, and they have a price target of $3.41 on the company’s shares compared with $2.87 currently.

On the dividend front, Macquarie is forecasting a dividend yield of 8.3% this financial year, followed by 8% and 7.5% the following years.

FleetPartners is valued at $601.5 million.

The post Macquarie has flagged this big ASX dividend payer to increase in value too appeared first on The Motley Fool Australia.

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