Author: openjargon

Like any ASX 200 bank stock, investors who buy Commonwealth Bank of Australia (ASX: CBA) shares with the expectation of receiving fat, and preferably fully franked, dividends.

CBA has been a source of reliable, regular and robust dividend payments for decades. But what kind of dividend yield could one expect from buying this ASX bank right now? That’s what we’ll be discussing today.

What dividends have CBA shares been paying?

CBA has certainly kept to its reputation as a reliable source of rising income for dividend investors in recent years. After the pandemic-induced drought of 2020, Commonwealth Bank has rebuilt its payouts steadily ever since, delivering a rising dividend each year since 2021. That year saw CBA fork out an annual total of $3.50 per share in dividends, fully franked. But by last year, that had risen to $4.85 per share. That was up from 2024’s total of $4.65 per share, and $4.50 in the prior year.

CBA’s first dividend of 2026 continued this trend. Back in late March, CBA paid out an interim dividend worth $2.35 per share (also fully franked). That represented a 4.44% hike over 2025’s interim dividend of $2.25 per share.

So what kind of yield can investors expect from CBA shares if they buy today? Well, adding that interim dividend of $2.35 to last year’s final dividend of $2.60, we get a 12-month total of $4.95. At the current (at the time of writing) CBA share price of $173.15, that works out to be worth a trailing dividend yield of 2.86%.

Only 2.86% from an ASX bank stock?

Some investors may be dismayed with that kind of yield, particularly from an ASX bank stock. and especially when considering that some of CBA’s banking peers, such as National Australia Bank Ltd (ASX: NAB), currently have fully franked trailing yields over 4.5% today. Unfortunately, this is the consequence of CBA’s popularity.

Most investors know that this bank stock has had an incredible run in recent years, leaping almost 40% higher in 2024 alone. Although CBA has only climbed about 3.3% over the past 12 months, its banking peers have fared far worse. NAB, for instance, has lost almost a quarter of its value since February, while CBA has treaded water.

This has had the effect of raising the dividend yields for CBA’s peers, whilst leaving CBA’s already low yield intact.

If you’re after an ASX bank share for an income portfolio today, you can either have CBA or a high-yielding investment. But sadly, you can’t have both.

The post Looking to buy CBA shares? Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

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• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• What could $10,000 invested in CBA shares become in 1 year?
• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on

Motley Fool contributor Sebastian Bowen 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.

It may be time to sell Metcash Ltd (ASX: MTS) and A2 Milk Co Ltd (ASX: A2M) shares.

That’s according to Catapult Wealth’s Blake Halligan (courtesy of The Bull).

As we head into the Monday lunch hour, A2 Milk shares are down 0.5%, trading for $6.51 each, outpacing the 0.8% losses posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

Longer-term, shares in the ASX 200 dairy company have tumbled 21.5% over the past year, underperforming the 5.3% 12-month gains delivered by the benchmark index.

Those losses will have only been modestly eased by A2 Milk’s 2.6% fully franked trailing dividend yield.

Turning to Metcash, shares in the ASX 200 wholesale food, liquor and hardware distributor are storming higher today, up 5.1% at $2.88 apiece.

Despite that strong performance, Metcash shares remain down 13.5% over 12 months. Metcash shares trade one a 6.3% fully franked trailing dividend yield.

Metcash is enjoying a strong runt today following the release of an unaudited first half trading update.

Metcash said it expects to achieve underlying profit after tax between $268 million and $270 million for the 12 months to 30 April. Management is forecasting revenue growth of 0.7%.

Which brings us back to…

Time to sell A2 Milk shares?

“A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand,” Catapult Wealth’s Halligan said.

He noted:

The company downgraded guidance in full year 2026, with revenue growth downgraded to low-to-mid double digits, with cash conversion falling to 50%. It expects lower infant milk formula sales, mostly related to Chinese labels.

Summarising his sell recommendation on A2 Milk shares, Halligan concluded:

The EBITDA percentage margin is forecast to decline from previous guidance of between 15.5% to 16% to between 14% to 14.5%. The shares have fallen from $9.24 on April 10 to trade at $6.67 on May 7. Better opportunities may exist elsewhere at this stage of the cycle.

Calling time on Metcash shares

Atop recommending selling A2 Milk shares, Halligan also issued a sell recommendation on Metcash shares.

“Metcash is a wholesale distributor across food, liquor and hardware,” he said. “It services independent retailers across Australia.”

Writing before the release of today’s trading update, Halligan noted:

Group sales revenue was up just 0.1% in the first half of 2026 when compared to the prior corresponding period. Group underlying profit after tax fell 5.9%, reflecting lower earnings in hardware and liquor and increased finance costs.

Summarising his sell recommendation on Metcash shares, Halligan concluded:

The company operates in fiercely competitive industries. Higher interest rates may pressure its discretionary product sales and full year 2026 earnings, suggesting a re-allocation of capital. The shares have fallen from $4.23 on September 1, 2025 to trade at $2.76 on May 7.

The post Sell alert! Why this expert is calling time on Metcash and A2 Milk shares appeared first on The Motley Fool Australia.

More reading

• This ASX 200 stock is rocketing 10% after a surprise profit update
• Metcash shares: FY26 earnings highlight portfolio resilience and cost discipline
• Here are the top 10 ASX 200 shares today
• Are A2 Milk shares a buy after the 10% selloff on Monday?
• Why are A2 Milk shares crashing 13% to fresh 52-week lows?

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.

Metcash Ltd (ASX: MTS) shares are racing higher on Monday after the wholesale distributor released a much stronger earnings update.

At the time of writing, the Metcash share price is up 10.22% to $3.02.

Today’s rally gives shareholders some relief after a weak stretch for the stock. Metcash shares remain down around 8% in 2026 and about 9% over the past year.

Here’s what the company said.

Profit guidance comes in stronger

According to the release, Metcash expects to deliver underlying net profit after tax (NPAT) of between $268 million and $270 million for FY26.

The company said the result was helped by a stronger second half and continued discipline in costs, capital spending, and working capital.

Revenue growth was positive, although fairly modest at the headline level. Metcash expects group revenue to rise 0.7%. Excluding tobacco, revenue is expected to increase 3.8%.

That gap is worth watching because tobacco continues to weigh on the Food division. Without tobacco, the rest of the business looks in better shape.

Food revenue is expected to come in at $10.5 billion, down 0.6%. But excluding tobacco, Food revenue is expected to rise 5.4%.

Liquor revenue is expected to increase 1% to $5.4 billion, while Hardware & Tools revenue is expected to rise 4.3% to $3.7 billion.

The numbers are still preliminary and unaudited, with Metcash due to release its full-year results on 22 June.

Hardware sales start to recover

Metcash said sales momentum improved in the second half, reflecting the pricing and range initiatives already in place.

Total Tools sales grew 6.7%, while Hardware sales rose 3.7%.

While trade market conditions remain soft, Metcash said the recovery has taken a little longer than first expected.

The company also said earnings in Hardware & Tools were affected by margin pressure, particularly in Victoria and Tasmania.

Cash flow gives investors another boost

Metcash also pointed to stronger cash flow and tighter spending across the business.

The company expects cash realisation to exceed its 80% to 90% 3-year target range. Debt leverage is expected to sit at the lower end of its 1 to 1.75 times target range.

Capital spending has also been reduced to about $170 million. That is around $30 million below guidance.

Management said this included active management of working capital and about $80 million of precautionary inventory related to supply chain uncertainty.

Metcash has also started additional cost initiatives. These are expected to deliver at least $25 million in annualised savings in FY27.

Foolish Takeaway

Metcash has given investors a better update than many were expecting.

Profit guidance looks solid, cash flow is strong, and its Hardware & Tools division is showing some improvement.

The full result in June will give a clearer picture, but today’s share price reaction shows the market is regaining confidence.

The post This ASX 200 stock is rocketing 10% after a surprise profit update appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• Metcash shares: FY26 earnings highlight portfolio resilience and cost discipline
• Here are the top 10 ASX 200 shares today
• These 4 ASX 200 shares have slumped to fresh 52-week lows: Buy, sell or hold?
• Nervous investors turn to ASX 200 defensives as global energy shock drags on

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.

Aldoro Resources Ltd (ASX: ARN) has confirmed its Kameelburg project as the world’s largest strontium resource, sending its shares higher on Monday.

Resource grows even larger

The company said in a statement to the ASX that it had a “globally significant” rare earth element resource of 597.07 million tonnes at a grade of 2.49%, which was a 15% increase in tonnage from its previous resource update in September last year.

The new resource was based on 29 new diamond drill holes at the project.

Aldoro said there were four distinct revenue streams from the project, located in Namibia, namely rare earth oxides, niobium pentoxide, strontium carbonate, and potentially magnetite-hosted iron by-product.

Aldoro Chair Quinn Li said regarding the new resource:

This updated Resource represents another transformational step-change for the Kameelburg Project and further confirms the emergence of one of the world’s most significant multi-critical minerals systems. Not only has the total resource tonnage continued to grow at consistent grade, but the high-grade core has more than doubled in scale. Importantly, we have now formally declared a maiden strontium resource and by-product credit, positioning Kameelburg as the largest known strontium resource globally. This is a major milestone for Aldoro and further highlights the unique strategic value of the project.

Ms Li said there had been “outstanding” metallurgical leach recoveries for strontium and rare earths, and, “together with the magnetite-rich domains currently being assessed as a potential iron by-product stream, Kameelburg is rapidly evolving into a genuinely world-class, multi-product critical minerals project with the potential to become a long-life global supplier of strategic minerals”.

Aldoro said Namibia was widely recognised as one of the most mining-friendly jurisdictions in Africa, with a well-established development framework.

The company added:

The country hosts a portfolio of globally significant operating mines (including Rössing, Husab, Langer Heinrich and Skorpion) and is home to substantial investment from major international mining groups. The Namibian mining sector contributed N$7.8 billion in corporate tax in the most recent fiscal year, underscoring the sector’s importance to the national economy and the corresponding strength of government support for mining investment.

Infrastructure in place

Aldoro said the Kameelburg project was well-situated, needing no greenfields rail, road, port, or power grid investment to bring it into production.

The project has bitumen highway access, and a heavy haul rail freight line is just 2km from the proposed mine site.

A major power line is also just 7km distant.

Aldoro shares were 7.9% higher on the news on Monday at 47.5 cents.

The company is valued at $103.8 million.

The post What world-leading news is driving shares in this junior ASX mining company higher today? appeared first on The Motley Fool Australia.

More reading

• Looking to buy CBA shares? Here’s the dividend yield you’ll get today
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• This ASX 200 stock is rocketing 10% after a surprise profit update
• Why is this ASX 300 food stock racing higher today?
• Buy, hold, sell: ANZ, Eagers, and Woolworths 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 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.

S&P/ASX 300 Index (ASX: XKO) food stock Inghams Group Ltd (ASX: ING) is charging higher 6.2% to $1.80 on Monday. The market reacted positively after the chicken and turkey producer reassured investors with a steady earnings outlook and signs of improving operational momentum.

Despite today’s rally, the ASX 300 stock remains heavily down over longer periods. Inghams shares have fallen 28% year to date and are down 53% over the past 12 months. By comparison, the S&P/ASX 300 Index (ASX: XKO) has gained around 5% over the same period.

So, what exactly did the ASX 300 stock report?

Poultry volumes and prices rise

The ASX 300 food stock reaffirmed FY26 underlying EBITDA guidance of between $180 million and $200 million before AASB 16 adjustments, giving investors confidence that trading conditions have stabilised despite ongoing cost pressures.

Inghams also revealed that group core poultry volumes rose 1.1% during the first nine months of FY26 compared with the prior corresponding period. At the same time, core poultry net selling prices also increased 1.1%.

Investors appeared particularly encouraged by the ASX 300 stock’s operational progress and cost-saving measures. Inghams said its annualised cost-saving initiatives are expected to deliver between $60 million and $80 million in benefits.

Inghams additionally revised FY26 capital expenditure guidance to approximately $80 million.

Commenting on the result, Chief Executive Officer and Managing Director Ed Alexander said:

We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.

Reduced frozen inventory

The ASX 300 food stock highlighted stronger operational execution across several areas, including yield improvements, labour productivity, and inventory management. Inghams also reduced frozen inventory by $25 million, helping improve system balance and strengthen cash flow generation.

However, the food producer still faces meaningful challenges. Management warned that cost pressures remain elevated across feed, diesel fuel, and packaging. Inghams expects higher fuel costs alone to create a net $7 million to $10 million impact during FY26, although pricing actions and operational efficiencies are expected to partially offset the pressure.

Inghams noted that feed costs are currently well covered for FY26, but higher costs are expected to emerge in FY27.

What next for Inghams?

Even so, Inghams said it remains focused on stabilising operations, improving asset utilisation and increasing value per bird. Management believes ongoing operational improvements and tighter cost controls should continue supporting earnings growth despite uncertain input costs.

The ASX 300 food stock is also pursuing growth opportunities beyond its traditional poultry operations. Inghams is expanding its ingredients and higher-value product divisions while leveraging recent investments and scaling new initiatives, including the launch of the Bostocks brand in Australia.

For investors, today’s strong rally suggests the market was relieved to see the consumer staples share maintain guidance and demonstrate improving execution after a difficult 12 months.

The post Why is this ASX 300 food stock racing higher today? appeared first on The Motley Fool Australia.

More reading

• Inghams Group boosts FY26 guidance as poultry volumes and prices rise
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Motley Fool contributor Marc Van Dinther 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 you are on the lookout for some new portfolio additions, then it could be worth hearing what analysts are saying about the ASX shares named below, courtesy of The Bull.

Are they bullish, bearish, or something in between? Let’s find out.

ANZ Group Holdings Ltd (ASX: ANZ)

Sanlam Private Wealth has named ANZ shares as a sell this week.

Although the big four bank has been performing well, it is concerned that higher interest rates could lead to mortgage and credit card holders struggling to keep up with repayments. It said:

The bank delivered a cash profit of $3.780 billion in the first half of 2026, up 14 per cent, excluding significant items, on the second half of 2025. Return on equity was up 149 basis points. The company posted an interim dividend of 83 cents a share, with franking increased to 75 per cent. The company’s share price has performed well in the past 12 months. 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.

Eagers Automotive Ltd (ASX: APE)

The team at Capital Wealth has named this auto retailer as an ASX share to buy this week.

It believes the company is well-placed to benefit from growing electric vehicle demand. It explains:

Eagers is Australia’s largest automotive retailer. In recent months, APE has benefited from a sharp uplift in electric vehicle demand, with EV sales across Australia booming in March. APE posted revenue of $13 billion in full year 2025, up 16.5 per cent on the prior corresponding period. The company grew its share in the new vehicle market to 13.9 per cent, up from 11.5 per cent in full year 2024. Elevated fuel prices and ongoing dealership acquisitions support increased exposure to APE.

Woolworths Group Ltd (ASX: WOW)

Capital Wealth is feeling less positive on this supermarket giant. It has named Woolworths shares as a hold this week.

Although it sees positives in Woolworths, it has concerns with the tough consumer backdrop. Capital Wealth said:

Food retail sales were up 5.9 per cent in the third quarter of 2026 when compared to the prior corresponding period. However, food earnings before interest and tax growth guidance is expected to be in the mid-to-high single digit range, but no longer at the upper end of the range. While scale and defensive earnings remain strengths, possible margin pressure and cautious consumer sentiment temper near‑term upside, supporting a hold for now.

The post Buy, hold, sell: ANZ, Eagers, and Woolworths shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX retail shares exposed to a drop in consumer spending
• 5 things to watch on the ASX 200 on Monday
• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• 7 ASX 200 shares just upgraded this week

Motley Fool contributor James Mickleboro has positions in Woolworths 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 Woolworths Group. The Motley Fool Australia has recommended Eagers Automotive Ltd. 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 down 0.9% today despite the best lifting efforts of this resurgent ASX All Ords gold stock.

The rapidly rebounding stock in question is Gorilla Gold Mines Ltd (ASX: GG8).

After getting hammered in March, Gorilla Gold shares are enjoying a strong rebound in May. This follows a series of promising exploration updates from its Comet Vale Gold Project, located in Western Australia.

Gorilla Gold shares closed on Friday trading for 43.0 cents. In morning trade on Monday, shares are swapping hands for 44.5 cents apiece, up 3.5%.

With today’s intraday gains factored in, shares in the ASX All Ords gold stock are now up 32.8% since the closing bell on 30 April.

Here’s what’s piquing investor interest again today.

ASX All Ords gold stock lifts on shallow gold discovery

Gorilla Gold shares are outperforming today after the company reported making its fourth gold discovery in three weeks at Comet Vale.

First-pass drilling at the new shallow gold discovery at the Diddy Kong Prospect (located within Comet Vale) was said to have successfully followed up a historical intercept.

Top results included 4.0 metres at 2.1 grams of gold per tonne from 91.0 metres from one hole, and 4.0 metres @ 5.2g/t Au from 111.0 metres.

Among the multiple shallow gold intercepts returned from initial drilling, the ASX All Ords gold stock highlighted one hole which returned 8.0 metres @ 3.2g/t Au from 14.0 metres.

Gorilla Gold said it is mobilising a reverse circulation (RC) drill rig to Comet Vale in May to “aggressively follow up” the shallow Diddy Kong, Magilla and Donkey Kong discoveries at the project.

The miner noted that drilling continues across all three of its gold projects, with six drill rigs operating during May, targeting high-grade resource growth and new discoveries.

What did Gorilla Gold management say?

Commenting on the latest results helping boost the ASX All Ords gold stock today, Gorilla Gold CEO Charles Hughes said, “Our discovery drilling at Comet Vale continues to deliver exceptional results this year, with Diddy Kong marking our fourth new gold discovery in just three weeks.”

Hughes added:

Diddy Kong is a shallow gold system with very similar characteristics to the nearby Magilla and Donkey Kong discoveries and the 350,000-ounce Lakeview deposit. Importantly, the associated soil anomaly extends for around 1 kilometre, highlighting the significant upside here…

With established infrastructure, advanced permitting and proximity to multiple processing options, we are well positioned to rapidly unlock value from these exciting new discoveries at Comet Vale.

The post Up 33% in May, guess which ASX All Ords gold stock is lifting off again today appeared first on The Motley Fool Australia.

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• This ASX gold explorer could more than double on the back of three recent discoveries: broker

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.

CSL Ltd (ASX: CSL) shares are being hammered on Monday after the healthcare giant released another painful update to the market.

At the time of writing, the CSL share price is down 20.60% to $95.19.

That marks the company’s biggest one-day loss on record and adds to what has already been a brutal fall for shareholders. CSL shares are now down 45% in 2026 and more than 60% over the past year.

Here’s why investors are rushing for the exits.

Guidance gets cut again

According to the release, CSL has lowered its FY26 outlook after interim CEO Gordon Naylor completed his 90-day review.

The company now expects FY26 revenue of about US$15.2 billion on a constant currency basis. It also expects NPATA of about US$3.1 billion, excluding restructuring costs and impairments.

That is a step down from FY25, when CSL reported revenue of US$15.6 billion and profit of US$3.3 billion on a constant currency basis.

The update follows a difficult first half and another reset in expectations. CSL said its growth initiatives are working, but the financial benefits will take longer than previously expected.

What has gone wrong?

There are a few moving parts behind the downgrade.

In US immunoglobulin, CSL said demand is still growing at mid to high single digits. However, the normalisation of channel inventory is expected to hit revenue by about US$300 million.

In China, albumin volumes have stabilised, and CSL’s market share has expanded. But market value has declined, creating an expected revenue impact of about US$200 million.

Other pressures include the Middle East conflict, slower Hemgenix growth, and competition in iron. Together, these are expected to have a revenue impact of about US$150 million.

The better news is that CSL Behring is still expected to grow revenue in the second half. CSL Seqirus is also expected to perform moderately better than previously expected.

More impairments to come

The other big number in today’s release is the impairment charge.

CSL expects to recognise about US$5 billion of additional non-cash, pre-tax impairments across FY26 and FY27. That comes on top of the US$1.5 billion already recognised in its first-half result.

The impairments include CSL Vifor’s intangible assets, including its product portfolio. They also include selected property, plant, and equipment.

Foolish Takeaway

CSL remains a global healthcare heavyweight, but the market has lost patience with repeated downgrades, write-downs, and execution issues.

The company is working on portfolio growth, operational savings, and capital discipline. Management is targeting transformation savings of US$500 million to US$550 million a year by FY28.

But after such a large share price fall, investors will want proof in the numbers. Until earnings stabilise, CSL shares may struggle to win back confidence.

The post CSL shares suffer their biggest one-day crash ever! What just went wrong? appeared first on The Motley Fool Australia.

More reading

• CSL cuts FY26 guidance, flags $5bn in impairments
• Why I’d buy CSL shares at their 52-week low
• Is this ASX healthcare share a buy for its 6.2% dividend yield?
• 3 compelling reasons to buy CSL shares today
• Money to invest? I’d follow Warren Buffett to get rich

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Owning Telstra Group Ltd (ASX: TLS) shares usually means receiving a pleasing dividend from the ASX telecommunications share.

The business has steadily grown its annual dividend payment since 2022, which is a longer growth streak than plenty of the ASX’s blue-chips.

For me, past dividends are no longer important – it’s the future that passive income investors should focus on.

Telstra’s key mobile division has steadily driven the company’s payout higher thanks to higher revenue and earnings. Let’s look at what experts think could happen with the dividend payment by the 2028 financial year.

Potential Telstra FY26 dividend

The analyst projection on CMC Invest suggests the business could hike its annual dividend per share at a steady pace over the next few financial years.

The Telstra dividend per share is forecast to rise to 21 cents per share in FY26, which would be a very pleasing payout considering it would represent a year-over-year increase of more than 10%. Not many large ASX blue-chip shares are growing their dividend at that pace.

At the time of writing, that translates into a potential grossed-up dividend yield of 5.6%, including franking credits.

FY27 and FY28 payouts

The good times are expected to continue as the financial years go by.

Of course, we can’t know for sure what Telstra’s board of directors will to do. But, analysts seem optimistic that the business can continue to hike its payments, with an increase to 22 cents per share in FY27 and then reach 23 cents per share in FY28.

In other words, analysts are forecasting that the ASX telecommunication share could rise by close to 10% between FY26 and FY28.

At the time of writing and the current Telstra share price, that projected dividend for FY28 translates into a possible grossed-up dividend yield of 6.2%, including franking credits.

Long-term earnings growth

I expect Telstra’s revenue to continue to grow in the years ahead. It can use both subscriber growth and price increases to drive its financials.

Australia’s population continues to grow and more devices are connected to the internet, giving the business an excellent tailwind. I think the internet is going to become even more important as time goes on.

The FY26 half-year result was a great example of its ability to perform. Mobile handheld users increased by 135,000 and it sustained average revenue per user (ARPU) growth across all categories and brands.

HY26 operating profit (EBIT) grew 9.2% to $2 billion and net profit grew 9.4% to $1.1 billion.

If net profit continues to rise, Telstra shares could remain a very appealing investment.

The post Here’s the dividend forecast out to 2028 for Telstra shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: TechnologyOne, Telstra, and Woodside shares
• How to build a $1,000 a month passive income from the ASX
• Why the ASX 200 is charging higher today
• I’m worried about the ASX 200 falling further. Here’s why
• My 3 favourite ASX 200 dividend shares for 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 positions in and has recommended Telstra 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 searching for ASX dividend shares for your income portfolio, then it could be worth hearing what one expert is recommending this week, courtesy of The Bull.

Here’s what Sanlam Private Wealth has named as buys on Monday:

BWP Trust (ASX: BWP)

This Bunnings-focused property company could be an ASX dividend share to buy according to Sanlam Private Wealth.

It likes the company due to its defensive qualities and reliable cash flows. It explains:

BWP is a real estate investment trust. It’s the biggest owner of Bunnings Warehouse sites in Australia, with a portfolio of 66 stores. The group’s income profile is characterised by high occupancy, long lease terms and strong tenant quality. Long-dated leases provide income visibility and steady rental growth. BWP presents as a defensive property investment entering a more proactive phase and recently trading on an annual yield of almost 5 per cent. BWP appeals to investors in uncertain times as it offers low tenant risk and reliable cash flow.

Consensus estimates are for dividends per share of 19.4 cents in FY 2026 and then 19.8 cents in FY 2027. Based on its current share price of $3.84, this would mean dividend yields of 5% and 5.15%, respectively.

IVE Group Ltd (ASX: IGL)

Another ASX dividend share that Sanlam Private Wealth is tipping as a buy this week is diversified marketing company IVE Group.

It highlights its generous dividend yield and share buy-back as reasons to be positive on the stock. It said:

IVE is a diversified marketing company. The company has generated growth via an acquisition strategy. Management has largely integrated these businesses smoothly, delivering synergies and cost reductions. Management execution is an under-rated strength. The company has initiated a share buy-back and the stock was recently trading on a fully franked dividend yield of almost 7 per cent, enhancing its income appeal. The stock is trading at a discount, in our view.

IVE isn’t widely covered in the broker community, so there is no consensus estimate for dividends.

However, over at Bell Potter, its analysts are expecting the company to pay fully franked dividends of 18 cents per share in FY 2026 and then 20 cents per share in FY 2027. Based on its current share price of $2.63, this would mean dividend yields of 6.8% and 7.6%, respectively.

Bell Potter has a buy rating and $3.25 price target on its shares.

The post Expert names 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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