Author: openjargon

CBA shares have picked up another sell rating, and this time the reasoning has a lot to do with the housing market in general.

Commonwealth Bank of Australia (ASX: CBA) are at $158.93 at the time of writing.

That values the country’s largest lender at roughly $265.7 billion.

The shares have fallen about 5% over the past twelve months.

Nowadays, three separate experts think there is further to go.

Why a broker is calling sell on CBA shares

Remo Greco of Sanlam Private Wealth has the bank rated as a sell.

He is not the only one.

Tony Locantro of Alto Capital and John Athanasiou of Red Leaf Securities both issued sell ratings in late August.

Greco was direct about what worries him.

Investors may want to consider cashing in some gains until a clearer picture emerges about the state of Australia’s housing market, the outlook for interest rates and the broader outlook for credit growth moving forward.

Athanasiou made a slightly altered version of the same argument.

Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth.

What the FY26 result actually showed

However, the financial numbers were not the problem.

CBA delivered cash net profit after tax of $10,982 million in FY26, an increase of 7%.

Revenue also rose 7% to $30,153 million, and the net interest margin held steady at 2.05%.

The fully-franked dividend reached $5.05 per share across the year.

Home loans more than 90 days in arrears stood at 0.73%, while the loan impairment expense rose 9% to $788 million.

That is a good result from a very well-run bank.

It is also mid-single-digit growth, which matters once you look at the price being asked for it.

The valuation problem

CBA trades on a price-to-earnings (P/E) ratio of around 24.3 and yields around 3.2%.

In contrast, ANZ Group Holdings Ltd (ASX: ANZ) trades on 19 times earnings and yields 4.45%.

An investor is paying nearly 30% more per dollar of earnings at CBA while receiving notably less income for the privilege.

The premium has been justified for years by better technology, a stronger deposit franchise, and lower funding costs.

The question is whether those advantages are worth quite this much when profit is growing at 7%.

What could go wrong for CBA shares?

The housing cycle is the immediate risk.

Home loan applications have fallen roughly 15% since the May Federal Budget.

National home values dropped 0.9% in August and now are 3.6% below their March peak.

Australia’s 10-year government bond yield has reached around 5.19%, its highest level in 15 years.

ANZ now expects the Reserve Bank to lift the cash rate by 25 basis points to 4.60% in November.

A higher cash rate widens deposit margins, but it also slows credit growth and pushes arrears higher.

The case for staying put

CBA remains the highest quality bank in the country by some distance.

The company’s deposit base is unmatched, its technology spending is years ahead of its peers, and its credit book has already absorbed one full rate cycle without trouble.

Arrears of 0.73% are elevated but not all that alarming.

Foolish takeaway

CBA shares are not expensive by accident.

The market pays a premium because the bank has consistently earned one.

The real question is whether 24 times earnings is sensible for a business growing profit at 7% a year in a slowing housing market.

On balance, I think the risk now sits with the buyer rather than the long-term holder.

Trimming an oversized position looks reasonable, though I would not sell CBA shares outright on the strength of a broker note alone.

The post A broker just put a sell rating on CBA shares. Is Australia’s biggest bank finally too expensive? appeared first on The Motley Fool Australia.

More reading

• Australia’s economy just grew faster than expected. What does this mean for ASX shares?
• Down 12% in a month: Is the rally finally over for CBA shares?
• How to earn $10,000 in passive income a month with these ASX dividend shares
• Sell alert! Why this expert is calling time on CBA shares and this top ASX 200 stock
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?

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.

ASX tech stocks have had a rough week.

To illustrate, on Wednesday, Xero Ltd (ASX: XRO) fell 5.2% to $98.90.

WiseTech Global Ltd (ASX: WTC) dropped 5.16% to $37.65.

These results occurred as the ASX 200 had its worst session in three months.

The question worth asking for investors is whether the selling has finally gone too far.

Why ASX tech stocks fell so far

The drop is not linked to any news out of the companies themselves.

Bond yields have risen sharply, with the US 10-year Treasury reaching 4.79% and Australia’s long bond returning to levels last seen in 2011.

Technology businesses earn most of their profit years into the future, so a higher discount rate hits them harder than anything else on the market.

This has unfortunately been compounded by a 60% chance of a Reserve Bank rate rise this month.

Here are a few tech stocks hit particularly hard.

1. WiseTech Global

WiseTech is the most interesting name on this list.

The company’s shares have fallen from a 52-week high of $99.70 to $37.65, which is a decline of more than 60%.

In its latest results, FY26 revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition.

Underlying EBITDA climbed 56% to US$644.5 million and free cash flow increased 43% to US$410.7 million.

The problem lies in what the future holds for the company.

FY27 guidance is for revenue growth of just 6% to 10%, and an active ACCC investigation is adding doubts in the back of investors’ minds.

At 50 times earnings, WiseTech is trading at a significant multiple for a company only projected to grow revenue in the single digits.

2. Xero

Xero is the highest quality operator of the three and now is within 70 cents of its 52-week low.

FY26 operating revenue rose 31% to $2.75 billion and annualised monthly recurring revenue jumped 37% to $3.27 billion.

The company added 506,000 customers to reach 4.92 million globally, while average revenue per customer rose 23% to $55.44.

Adjusted EBITDA grew 18% to $757.4 million, though net profit fell 27% to $167.4 million on Melio acquisition costs.

Chief executive Sukhinder Singh Cassidy noted the strength of the platform:

We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing the Melio integration.

FY27 guidance points to revenue of $3.62 billion to $3.73 billion, which is another year of roughly 30% growth.

3. Life360

Life360 Inc (ASX: 360) is the highest risk of the three.

Shares have fallen nearly 40% year-to-date.

Despite this, second-quarter revenue rose 38% to US$159 million and adjusted EBITDA jumped 53% to US$31.1 million.

However, look a little deeper and the picture unravels.

Net income fell 17.8% to US$5.1 million, and the net income margin halved to 3% from 6%.

At such high multiples, margin reductions are very bad news for investors.

What could make ASX tech stocks work from here

Two things would give ASX stocks some form of relief.

The first is any sign that the Reserve Bank will not need to raise rates. That is because falling yields lift long-duration valuations, such as those belonging to tech stocks, immediately.

The second is evidence that these businesses can convert revenue growth into profit growth without having to rely on acquisitions.

Foolish takeaway

Xero looks best positioned in the short-term, because it is growing at 30% with a strong network effect and it trades near a 52-week low.

WiseTech is cheaper than it was but still carries an unresolved regulatory investigation.

In contrast, Life360 has the strongest growth and the weakest proof of profitability.

A year of falling prices has made ASX tech stocks far more interesting than they were in September 2025.

It has not yet made them safe, and anyone buying here should expect more volatility before the rate cycle settles.

The post Are these ASX tech stocks finally a buy again? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are turning red again. Is the rally over?
• Why I think Zip and WiseTech shares could be buys in September
• Top 3 beaten-down ASX 200 shares from August worth a second look
• WiseTech shares had their best month in a year. Is this a buying opportunity?
• The five worst-performing ASX 200 shares in August unmasked

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 Life360, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans have provided fresh commentary on several ASX shares. 

In good news for investors, the broker is optimistic about these three stocks. 

Here’s what the broker had to say. 

Collins Foods Ltd (ASX: CKF)

Collins Foods is a prominent quick-service restaurant operator, primarily known for managing KFC franchises across Australia and Europe.

Its share price is down almost 20% over the last year, however Morgans sees a rebound in sight following the recent AGM. 

The broker said Collins Foods AGM trading update was positive. 

Group sales rose 6.6% over the first 17 weeks of FY27, with Australia resilient and European SSS (same-store-sales) inflecting from the weak start over the last 4 weeks, which we view positively in a tough consumer environment. 

Trading strengthened through the last 4 weeks, with KFC SSS of +3.1% in AU, +3.1% in the Netherlands, driven by the new Halal-certified range, and -0.1% in Germany, a material improvement on the -7.8% (Netherlands) and -7.2% (Germany) start over the first 8 weeks.

The broker has a buy rating and A$10.60 target price on these ASX shares. 

From current levels, this indicates over 28% upside. 

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure owns and operates the metallurgical coal export facility at Dalrymple Bay,  located at the Port of Hay Point, south of Mackay in Queensland. 

It is the world’s largest coal export facility. 

It has risen 20% in the last 12 months, but share price weakness since June has led Morgans to upgrade its view on these ASX shares. 

We upgrade from HOLD to ACCUMULATE, given potential TSR at current prices of c.12% (including cash yield of 5.7%). 12 month target price +4 cps to $5.47/share due to refinements to tax modelling. Otherwise, no change in our fundamental outlook for the business over coming years.

These ASX shares closed trading yesterday at $5.27. 

Smartgroup Corporation Ltd (ASX: SIQ)

SmartGroup provides specialist employee management services to organisations throughout Australia. 

The company’s services include salary packaging, novated leasing, vehicle fleet management, payroll, employee share plan administration, and workforce optimisation.

Morgans is optimistic about the company’s next 12 months following its recent half-year results.

SIQ reported 1H26 NPATA of A$42.4m, up 11% yoy and broadly flat on 2H25. Strong revenue growth (+5.5% hoh) was absorbed by higher opex spend (+7.3% hoh), softening EBITDA margins to 41.1% (-100bps on 2H25). 

Given the meaningful share price pullback, we upgrade to an ACCUMULATE (previously HOLD). The 2H will benefit from the unwind of a substantial revenue pipeline, an ongoing supportive demand backdrop across novated leasing (policy led) and potential full-year capital management initiatives. A$12.15ps price target.

This indicates just over 7% upside from current levels. 

The post 3 ASX shares just got big upgrades and are tipped to rise almost 30% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Liontown, Collins Foods, and Goodman shares
• Here are the top 10 ASX 200 shares today
• Smartgroup posts record H1 2026 results: earnings jump, dividend up
• Dalrymple Bay Infrastructure posts stronger profit and higher distribution

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

There are certain ASX passive income shares that I’ll highlight in this article as excellent ideas for dividends to help generate good payments.

Some businesses have already provided guidance for the upcoming financial results that show a good dividend yield based on the appealing expectations.

Below are two of the higher-yielding ideas I like a lot.

Future Generation Global Ltd (ASX: FGG)

This idea is a listed investment company (LIC) which is an excellent source of passive income.

Future Generation Global aims to provide a reliable stream of income, which has regularly increased each year since FY19. For FY26, the business has provided guidance that it will increase its annual dividend per share by 5% to 8.4 cents per share.

That forecast translates into a forward grossed-up dividend yield of 7.3%, including franking credits, at the time of writing. I’m assuming no dividend growth from the ASX passive income share in FY27 for this article, but I do think there’s likely to be a dividend hike in 2027.

It pays for those dividends from the investment returns of its portfolio. It’s invested in a portfolio of 15 funds from fund managers focused on international shares. All of those fund managers work for free so that Future Generation Global can donate 1% of its net assets to charities focused on youth mental health.

There are more than 3,700 underlying shares across different markets and sectors, so it can offer Australians significant diversification.

Dexus Industria REIT (ASX: DXI)

This ASX passive income share is a leading real estate investment trust (REIT), in my view, due to the exposure that the portfolio provides.

It’s invested in a portfolio of industrial real estate across Australian cities. It has a diversified tenant base across the sectors of wholesale trade, construction, manufacturing, retail trade, logistics and more.  

The business says that it has ‘3%+’ embedded rental growth, with approximately 87% linked to fixed rental increases, with “strong inflation protection”. This can help protect and grow rental earnings amid higher interest rates.

With a 99% occupancy rate and a five-year weighted average lease expiry (WALE), the business has strong rental characteristics that can help fund good distributions.

It expects to pay a distribution per unit of 16.6 cents, which translates into a distribution yield of close to 6.9%.

$700 per month from ASX passive income shares

Neither of these ASX passive income shares pays dividends monthly, so we’re going to look at this as an annual goal, which can then be divided into monthly income. Receiving $700 per month is equivalent to $8,400 annually.

Between them, these two names have an average dividend yield of 7.1%. Receiving $8,400 per year at a dividend yield of 7.1% would require a total investment of approximately $118,300.

By investing in these two ASX passive income shares, along with other names for diversification, I think investors can build a solid level of income.

The post 2 ASX passive income ideas I’d use to generate $700 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields above 7%
• 3 ASX dividend shares raising dividends like clockwork
• How much is needed in superannuation to target a $2,500 monthly passive income?
• How much do I need to retire on $120,000 a year at 55?
• Future Generation Global earnings: Profit and revenue drop, dividend rises

Motley Fool contributor Tristan Harrison has positions in Future Generation Global. 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 Web Travel Group Ltd (ASX: WEB) have made a strong recovery in recent months but remain more than 10% down over the past 12 months.

The analysts at UBS believe the recovery is set to continue, however, and they have just upgraded their price target on the company, which I’ll get to shortly.

Trading update solidly positive

First, let’s have a look at the company’s recent announcements about how the business is travelling.

In late August, Web Travel Group upgraded its guidance, now expecting first-half FY27 revenue to be up 14% to 16%, compared to previous guidance of 11% to 15%.

The company said it also expected its margins to be at least 6.7%, up from 6.5% for the same period last year.

And on the earnings front, the company expected underlying EBITDA to be $85 to $89 million, up from previous guidance of $80 to $86 million.

Web Travel Group Chief Executive John Guscic said of the changes:

The decision to upgrade guidance is due to the increased velocity of bookings and improved margins in trading. The Americas continues to see extremely strong growth. The performance of Europe, MEA and APAC have improved in the second quarter. 1H27 is on track to be the third consecutive 6-month period where TTV margins have improved over the prior corresponding period. The demonstrable operating leverage is a direct result of the optimisation initiatives and investments we made in FY26 that are delivering earlier than expected.

Shares looking like a good buy at these levels

UBS said Web Travel Group’s new strategy appeared to be paying off.

They added:

In our view, the strategy to further build WEB’s directly contracted hotel inventory (higher margin) is allowing WEB to continue to take share – whilst maintaining healthy net margins. Should the normal seasonal skew unfold, we see a further 5% upside to eanrings per share in FY27. Given 70% of costs are fixed, our analysis suggests WEB has also potentially implemented some cost initiatives. If WEB once again proves it can hold or improve margins at 1H27, we believe this should warrant a re-rate.

UBS said it was only factoring in $60 million of a potential $90 million in share buybacks into its valuation of the company.

UBS upgraded its price target on Web Travel Group from $4.60 to $4.85, compared to $3.71 at the time of writing.

If achieved, this would constitute a 30.7% return.

Web Travel Group is valued at $1.4 billion. The company is expected to release its first-half results on November 25.

The post This buy-rated ASX travel stock could deliver a 30% return: Broker appeared first on The Motley Fool Australia.

More reading

• Is AI about to kill company moats?
• A broker just put a sell rating on CBA shares. Is Australia’s biggest bank finally too expensive?
• Are these ASX tech stocks finally a buy again?
• 3 ASX shares just got big upgrades and are tipped to rise almost 30%
• 2 ASX passive income ideas I’d use to generate $700 a month in 2027

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.

Now could be the time to buy the ASX 200 stock in this article.

That’s because the team at Bell Potter has just reaffirmed its buy rating on the stock.

Which ASX 200 stock?

The stock that is getting attention from Bell Potter is agricultural chemicals company Nufarm Ltd (ASX: NUF).

Bell Potter points out that recent peer reporting highlights continued margin recovery and trade flows suggesting a solid level of inventory rebuild ahead of major selling windows. It said: 

Key highlights from reporting season include: (1) Average reported selling prices were down -2% YoY and volumes were down -2% YoY; and (2) Gross margins (where reported) were up +180bp YoY. Like recent quarters, peer results continue to imply FY26e is a year of margin recover (as lower inventory moves through COGS) more so than top line growth.

Sector trade flows demonstrated -were down -3% YoY in volume terms and were down -18% YoY in value terms in 3Q26. The YoY change in sell through was stronger than the refill in value terms, implying formulators have not restocked with expensive stock, noting the volatility in China actives in the quarter

It also highlights that omega-3 oil pricing indicators have been firm. The broker adds:

Pricing indicators for omega-3 oil have remained firm and at levels consistent with previous peak pricing levels. South American fishoil prices are up +70-180% from Mar’26 levels, with bulk fishoil (the product most comparable to NUF Omega-3 products) last trading at US$4,650-8,250/t.

Time to buy

According to the note, Bell Potter has retained its buy rating on the ASX 200 stock with an improved price target of $3.75 (from $3.60).

Based on its current share price of $3.29, this implies potential upside of 14% for investors over the next 12 months. A 1% dividend yield is also expected over the period.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. Trading trends continue to infer FY26e is a year where improved gross margin (on lower COGS) and cost out are the main driver of profit growth. The[re] is the potential for surprise is omega-3, where Peruvian fishoil stock is in short supply and pricing indicators are reaching levels consistent with previous peaks.

There are modest EBITDA changes (<-1%) largely reflecting FX mark-to market. Our target price lifts to $3.75ps (prev. $3.60ps) on model roll forward.

The post Bell Potter says this ASX 200 stock is a buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday

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.

Pro Medicus Ltd (ASX: PME) shares may be the single best thing an ordinary Australian investor could have owned over the past decade.

The medical imaging software company was a modest small-cap in 2016.

It is now a business worth close to $18 billion.

The share price has fallen 39% over the past twelve months, however, this hasn’t seemed to have impacted the long-term picture much.

Here is exactly what $10,000 would have become.

The maths on Pro Medicus shares over a decade

Pro Medicus shares traded at roughly $5.00 a share through the second half of 2016.

A $10,000 investment would have bought around 2,000 shares.

Those shares closed on Tuesday at $173.15.

The initial investment is now worth approximately $346,000. That is a gain of close to 3,360% before dividends.

Speaking of, dividends improve the number again.

Pro Medicus has paid a fully franked dividend across the entire period.

To illustrate, the FY26 payout alone came to 69 cents per share.

Measured against the original $5.00 purchase price, that single year of income represents almost 14% of what the investor paid back in 2016.

What actually drove the returns

The business did the work, not the market.

Visage is the platform radiologists use to view, store and share medical images.

The platform wins long contracts with large North American hospital networks, and it keeps them.

Revenue has compounded relentlessly while margins widened as the company scaled.

That combination is rare anywhere on the ASX and close to non-existent in healthcare.

Inside the FY26 result

FY26 was another strong year by almost any measure.

Revenue rose 22.9% to $261.7 million and underlying EBIT climbed 24.4% to $196.1 million.

Underlying net profit after tax increased 24.1% to $144.7 million.

Reported net profit jumped 130.3% to $265.3 million.

The company signed ten new contracts worth more than $407 million, including a ten-year agreement with UC Health Colorado.

Six existing contracts were renewed on five-year terms at higher fees.

Cash and financial assets grew 19.7% to $252.3 million, and the balance sheet still carries no debt at all.

Chief executive Dr Sam Hupert was satisfied with how the year finished.

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis.

Why Pro Medicus shares have fallen 40% anyway

None of that stopped the share price falling hard.

Pro Medicus shares have dropped from a 52-week high of $321.57 to $173.15. The stock still trades on a price-to-earnings ratio of roughly 67.

That is a high multiple, and it leaves no room for a slower quarter of contract announcements.

Anyone who bought at the high is down more than 45%, which shows how important timing can be.

The valuation question facing new buyers

Buying a wonderful business at any price is not a strategy.

Pro Medicus needs to keep growing near 25% a year to justify what the market pays for it.

The addressable market in North American radiology is large, though it is not infinite.

Competition from larger imaging vendors is there, and contract timing is lumpy by nature.

Foolish takeaway

A $10,000 parcel bought a decade ago is worth around $346,000 today, not including dividends, which is a life-changing outcome from a very ordinary sum of money.

The lesson is not that Pro Medicus shares were an obvious buy in 2016, because they were nothing of the sort.

I would not chase the stock at 67 times earnings today.

But I would also not sell away a decade of compounding simply because the share price has had a difficult twelve months.

The post How much would $10,000 invested 10 years ago in Pro Medicus shares be worth today? appeared first on The Motley Fool Australia.

More reading

• Want to invest in AI shares? Here’s how to do it on the ASX
• Where I’d invest $20,000 in ASX shares this spring
• How much could the Pro Medicus share price rise in the next year?
• Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60%
• 3 ASX shares I’d buy for the next 15 years

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 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.

The good news for investors is that passive income does not have to come only from picking individual dividend shares.

ASX exchange traded funds (ETFs) can also be used to build an income stream, while spreading money across a portfolio of different holdings.

That can make them a handy option for investors who want dividends, but do not want to rely on one or two companies doing all the work.

With that in mind, here are three excellent ASX ETFs that could be worth considering for passive income.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a simple option for investors wanting passive income from Australian shares.

This fund focuses on shares listed on the local market that are expected to provide higher dividend yields than the broader Australian share market.

That naturally gives it exposure to some of the ASX’s more mature, cash-generating businesses. These may include companies from sectors such as financials, resources, telecommunications, consumer staples, and infrastructure.

Among its holdings are giants such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF offers a very different type of income exposure.

Rather than focusing on traditional dividend shares, this fund invests in companies that earn royalty income.

That can include royalties linked to areas such as music, intellectual property, pharmaceuticals, mining, energy, and other assets.

Royalty companies can earn a share of revenue from an asset without always carrying the same operating burden as the company producing, selling, or managing that asset directly.

This does not make them risk-free, but it can create attractive cash flow characteristics.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF to consider for passive income in September is the Betashares S&P 500 Yield Maximiser Complex ETF.

This fund gives investors exposure to a portfolio of US shares based on the S&P 500, while using an income-focused options strategy. This means it is able to produce more income than the underlying share portfolio would normally pay on its own.

That could be attractive for investors who want exposure to the US market but would also like regular distributions.

The trade-off is that this strategy can limit some of the upside when US shares rise strongly.

But for income-focused investors, UMAX could still be a useful option. It provides exposure to leading US companies while aiming to turn that portfolio into a stronger income generator.

The post 3 excellent ASX ETFs for passive income appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs that are a perfect compliment to your superannuation
• How to earn $10,000 in passive income a month with these ASX dividend shares
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?
• Could a September rate hike hurt your superannuation returns?
• VGS vs VHY: Which Vanguard ETF comes out on top?

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 positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Corporate Travel Management Ltd (ASX: CTD) share price is back in focus after ASX lifted its trading suspension, with the company lodging its Preliminary Final Report for the year ended 30 June 2026.

What did Corporate Travel Management report?

• Resumption of trading on the ASX after suspension
• Lodgement of Preliminary Final Report for FY26
• Effective date of reinstatement: Thursday, 3 September 2026
• No financial result figures disclosed in this announcement

What else do investors need to know?

The suspension in Corporate Travel Management shares was lifted after the company submitted its FY26 report, allowing investors to once again trade its securities on the ASX. This marks the end of a trading halt and provides an opportunity for shareholders to re-engage with the company’s share price performance.

Trading will resume from market open on 3 September 2026. Investors should review the full annual report for financial details, as this announcement did not include headline revenue, profit, or dividend numbers.

What’s next for Corporate Travel Management?

With trading resumed, investors’ attention will turn to Corporate Travel Management’s full-year figures and any guidance offered in the Preliminary Final Report. Future updates may include insights into strategy, market conditions, or business performance in FY27.

The company’s results and subsequent market performance may provide a clearer outlook on how Corporate Travel Management is positioned in the travel and corporate services sector.

View Original Announcement

The post Corporate Travel Management shares resume trading after FY26 report 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 positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. 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.

APA Group (ASX: APA) is one of the most impressive ASX dividend stocks in Australia, in my view.

There are very few businesses in Australia like APA. It owns a portfolio of energy assets that are worth tens of billions of dollars, which are key for Australia’s economy.

It transports approximately half of Australia’s gas usage with a huge gas pipeline network that spans a lot of the country. It takes gas from sources of supply to where the demand is.

APA also owns a number of other assets including gas-powered energy generation, gas processing, gas storage, solar farms, wind farms, batteries and electricity transmission.

That diversified portfolio has helped APA deliver reliable and comforting payouts. Let’s take a look at what makes it so appealing.

Incredibly reliable payout

Only one other ASX dividend stock has a better payout record than APA Group when it comes to consecutive years of growing payments to shareholders.

When APA announced its FY26 result, the annual dividend represented the 22^nd consecutive year of distribution increases. That’s more than two decades of non-stop growth!

Dividends are not guaranteed of course, but the sector that the business operates in means that it has defensive earnings.

It has managed to grow its payout through the GFC, COVID-19 and the last few years of inflation. Not only is the consistency of the payout appealing but the payment also comes at a good dividend yield.

Good dividend yield

A big dividend yield isn’t everything, but it certainly helps with the level of cash flow that’s paid out by the business.

There’s no ‘right’ dividend yield investors should necessarily target, but I think APA’s yield strikes the right balance between generosity and maintaining enough cash to invest in the business over time.

The business expects to slightly increase its annual payout per security in FY27 to 59 cents. That translates into a forward distribution yield of 5.4%. That’s a very competitive starting yield compared to what’s on offer from term deposits.

Growing earnings

This ASX dividend stock is not a fast-growing technology business, but it is seeing long-term earnings growth over time.

In FY26, it reported underlying operating profit (EBITDA) growth of 8.3% to $2.18 billion and free cash flow growth of 3.2% to $1.1 billion.

There are two main ways the business grows its financials. Firstly, it’s steadily expanding its portfolio of energy assets with gas pipelines, energy generation and electricity-related investments through both construction and acquisitions.

For example, on 20 August 2026, it announced it will construct, own and operate the 72MW Sybella Creek Solar Farm and 52MW 104MWh battery in Mount Isa, Queensland.

The other way APA’s financials are growing is that a vast majority of the revenue is inflation-linked. This can help provide a steady drumbeat of progress in revenue, underlying EBITDA, and cash flow.

What a $1,000 investment in the ASX dividend stock could do

With $1,000 an investor could buy 91 APA shares at the time of writing. That could mean generating $53.69 of passive income in the 2027 financial year from the ASX dividend stock, which is a solid starting point and I believe could lead to further growth in the coming years.

Given that APA shares have risen more than 20% in the past year (at the time of writing), this may not be the best value stock on the market today for investors seeking to beat the market. Therefore, other opportunities could be even more compelling.

The post $1,000 buys 91 shares in an impressively reliable ASX dividend stock 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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.