Author: openjargon

If you are looking for some big potential returns, then it could be worth checking out the two S&P/ASX 200 index (ASX: XJO) shares in this article.

That’s because the team at Bell Potter believes they are significantly undervalued and have the potential to deliver market-beating returns over the next 12 months.

Here’s what it is recommending to clients:

Liontown Ltd (ASX: LTR)

Bell Potter thinks that Liontown could be an ASX 200 share with strong potential returns over the next 12 months.

The broker recently put a buy rating and $1.90 price target on the lithium miner’s shares. Based on its current share price of $1.02, this implies potential upside of approximately 85% for investors.

Bell Potter believes the market is undervaluing Liontown’s shares, especially given the significant improvements it has made this year. This includes reducing its net debt and ramping up underground production at Kathleen Valley.

In light of this, the broker thinks now could be a good time to buy:

We still believe that LTR’s EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since this date. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t. 

While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction

Paladin Energy Ltd (ASX: PDN)

Bell Potter also sees major upside potential in this uranium producer. 

It recently retained its buy rating and $14.50 price target on the ASX 200 share. Based on its current share price of $9.52, this implies potential upside of 52%.

Bell Potter believes Paladin Energy is well-positioned to benefit from increasing demand for uranium thanks to a combination of electrification, energy security and artificial intelligence (AI)-related power requirements. It said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has ~56% exposure to market prices out to 2030.

Production at LH continues to improve with higher-grade mined ore feeding the processing plant. PDN continues to derisk its key growth project at Paterson Lake South in Canada’s Athabasca Basin.

The post These ASX 200 shares could return 50% to 85% appeared first on The Motley Fool Australia.

More reading

• Down 17% in a week: What has happened to Paladin Energy shares?
• Which ASX lithium miners does Macquarie prefer?
• These are the 10 most shorted ASX shares
• Energy shares rose while the ASX 200 slumped last week. Here’s why
• Brokers are confident in the outlook for this uranium stock tipping 34% upside

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.

Shares in both BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are up strongly over the past 12 months, with both racking up gains of more than 40%.

But while both remain major iron ore producers, they have diversified their other income streams to the point where a different investment case can be made for each.

Major miners both kicking goals

Canaccord Genuity has just released a new research report into the companies, and said when it came to iron ore, it is no longer the majority revenue generator for each company.

The broker commented:

Nearly 60% of each company’s EBITDA came from future-facing commodities over the six months to end-June 2026, with copper central to this transformation. This changes the investment case for BHP and RIO, which both increasingly provide upstream exposure to prominent structural growth thematics including electrification and the AI infrastructure build-out. In our view, their evolving earnings profiles also warrant a different valuation framework, with a greater contribution from copper supporting structurally higher earnings multiples.

Canaccord Genuity said BHP and Rio outperformed the S&P/ASX 200 Index (ASX: XJO) by about 50% over the past 12 months, despite iron ore tracking slightly lower.

The broking house said copper accounted for 57% of earnings at BHP and 36% at Rio, while aluminium accounted for 20% of Rio’s earnings.

Lithium was also emerging as an important commodity for Rio.

 Canaccord Genuity said:

The shifts in both companies’ earnings mixes reflect years of disciplined capital allocation through organic project development and selective M&A, including BHP’s acquisition of OZ Minerals in 2023 and RIO’s acquisition of Arcadium Lithium in 2025, alongside support from commodity price tailwinds.

Canaccord Genuity said copper was the central focus of BHP’s organic growth strategy, with projects under development in South Australia, Chile and Argentina.

The broker said Rio’s growth strategy was broader, “spanning copper, Simandou in iron ore, the Arcadium portfolio in lithium, and aluminium”.

Canaccord Genuity added:

BHP and RIO are targeting broadly comparable copper production growth of ~20–25% by 2030 relative to FY26 levels, supported by brownfield expansions, operational ramp-ups and the development of their respective copper portfolios.

Canaccord Genuity also noted that copper producers generally traded at higher multiples than iron ore companies, reflecting copper’s more attractive long-term fundamentals.

The broker said it preferred BHP to Rio, despite both being compelling propositions, because BHP was the highest-quality diversified miner, with a strong track record of operational delivery.

They also preferred BHP because of the central role of copper.

Canaccord Genuity added:

As the world’s largest copper producer, BHP provides one of the largest and lower-risk ways to gain leverage to our preferred commodity

The post BHP vs Rio Tinto: What’s the better buy? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy and hold BHP shares for 10 years
• How much passive income could I earn from a $650,000 superannuation balance?
• ASX 200 drops again as selling continues
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• BHP shares keep falling. Is now the time to buy?

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

After surging a remarkable 30.5% from 18 May to close at $92.96 apiece on 20 July, Wesfarmers Ltd (ASX: WES) shares have come under heavy selling pressure.

On Wednesday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – were changing hands for $72.60 each.

That sees the Wesfarmers share price down 21.9% in four months.

Most of that selling looks to be driven by concerns over the impacts of high inflation and potential further interest rate hikes on consumer sentiment, as well as Wesfarmers’ own cost of doing business.

But with shares having come back to earth from their July highs, is the ASX 200 stock now a good buy for passive income?

What kind of dividend yield does Wesfarmers stock offer?

Wesfarmers paid a fully franked interim dividend of $1.02 a share on 31 March,

The ASX 200 stock will payout the final fully franked dividend of $1.20 a share on 7 October. It’s a bit too late to bank that passive income payout, as Wesfarmers shares traded ex-dividend on 1 September. That payout will go to investors who held the stock at market close on 31 August.

As for the dividend yield, at the recent share price of $72.60, Wesfarmers trades on a fully franked trailing dividend yield of 3.1%.

Which brings us back to our headline question.

Should I buy Wesfarmers shares for passive income?

Shaw and Partners’ James Bills recently analysed the outlook for the ASX 200 stock (courtesy of The Bull).

Wesfarmers remains one of Australia’s premier diversified companies,” he said. “It’s supported by market leading businesses, including Bunnings, Kmart and Officeworks.

Bills added:

The company’s strong balance sheet, disciplined capital allocation and resilient earnings profile continue to underpin shareholder value. While growth opportunities remain available across several divisions, recent share price levels appear to reflect much of this quality.

Connecting the dots, Bills issued a hold recommendation on Wesfarmers shares:

Holding Wesfarmers remains appropriate given the company’s strong market position, dependable cash generation and proven ability to create value over the long term.

What’s the latest from the ASX 200 conglomerate?

Wesfarmers released its FY 2026 results on 27 August.

Highlights included a 3.4% year-on-year increase in revenue to $47.25 billion, excluding significant items.

On the bottom line, Wesfarmers achieved a statutory NPAT of $2.87 billion, up 8.3% from FY 2025.

And with profits up, so too was the passive income on offer.

Wesfarmers managing director Rob Scott commented:

As a result of the increase in underlying profit, the Wesfarmers Board has determined to pay a fully-franked final dividend of $1.20 per share, bringing total fully franked ordinary dividends for the year to $2.22 per share, an increase of 7.8 per cent.

Wesfarmers shares closed down 4.6% on the day of the results release.

The post Down 22%: Are Wesfarmers shares now a good buy for passive income? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers vs Telstra: Which ASX dividend stock comes out on top?
• How much passive income could I earn from a $650,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• How much is needed in superannuation to target a $6,500 monthly passive income?

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

The Contact Energy Ltd (ASX: CEN) share price is in focus today after the company reported mass market electricity and gas sales of 550GWh, up from 454GWh in August 2025, and a stable mass market netback of $148.57/MWh.

What did Contact Energy report?

• Mass market electricity and gas sales: 550GWh (August 2025: 454GWh)
• Mass market netback: $148.57/MWh (August 2025: $148.36/MWh)
• Wholesale contracted electricity sales: 1,087GWh (August 2025: 1,090GWh)
• Electricity and steam net revenue: $164.59/MWh (August 2025: $164.24/MWh)
• Unit generation cost: $40.90/MWh (August 2025: $57.52/MWh)
• Geothermal generation: 457GWh; Hydro generation: 539GWh

What else do investors need to know?

Contact Energy continues to progress several renewable development projects, including Te Mihi Stage 2 geothermal (expected online Q3 CY27, $712m), Glenbrook-Ohurua Battery 2 (Q1 CY28, $235m), and Glorit Solar (Q4 CY28, $316m). The company reports strong controlled hydro storage, with the South Island at 166% and North Island at 84% of mean.

Electricity demand in New Zealand for August 2026 was down 0.3% compared to August 2025, but up 5.3% on August 2024. The average temperature across the country hit 9.7ºC, continuing a warmer-than-normal trend.

What’s next for Contact Energy?

Looking ahead, Contact Energy is focused on delivering its renewable development pipeline, aiming to bring more geothermal, battery, and solar capacity online over the coming years. The company’s next 12 months are supported by contracted gas volumes of 8.2PJ and an ongoing commitment to strong operational performance.

Contact’s ESG initiatives, including reduced greenhouse gas emissions intensity and increased community support, remain a key part of its long-term strategy, providing further confidence for socially responsible investors.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Contact Energy reports higher sales and renewable project progress in August appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could generate $10,000 per year in passive income

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.

The ASX dividend stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the most appealing way for retirees to receive income. I’d rank it above receiving the Age Pension.

The business is one of the oldest on the ASX, it has already displayed excellent longevity characteristics to succeed through world wars, global pandemics, global recessions and so on.

It started life as a pharmacy business and has evolved into a diversified investment house, which is one of the reasons why I think it’s such an effective choice for dividend income. Let’s get into the reasons why it’s so compelling, in my view.

Regularly growing dividend income

I think one of the main reasons to prefer Soul Patts shares over the Age Pension is that its dividend income has been very reliable and grown faster than inflation.

The business has increased its regular annual dividend per share every year since 1998. This shows it has been incredibly reliable for shareholders over the last three decades.

Over the last five years, the ASX dividend stock has increased its payout at a compound annual growth rate (CAGR) of 11.9%. The company increased its FY27 interim dividend by 9.1% to 48 cents per share.

Dividend growth isn’t guaranteed, of course, but the business has a strong track record of rising payouts, and it’s one of its key goals.

The current forecast on Commsec suggests the business could increase its FY26 annual payout by more than 11% to approximately $1.15. If that happens, the grossed-up dividend yield would be 3.7%, including franking credits, at the time of writing.

Impressively diversified portfolio

The investment house has spread its money across a variety of areas including listed companies, ’emerging companies’, credit, private companies and ‘real’ assets (such as real estate, agriculture and data centres).

By spreading investments across a range of areas, the company can lower its risk and give investors exposure to a portfolio of compelling assets, rather than just one or two sectors like many S&P/ASX 200 Index (ASX: XJO) shares.

This diversification strategy also allows the business to look across industries and geographic markets for the best opportunities. I think the flexible mandate helps generate the best returns over the long-term.

Capital growth

Another reason to prefer owning Soul Patts shares is that its portfolio has steadily increased in value over time as its existing investments have grown and it has made additional purchases.

This reflects growth in the net asset value (NAV), which is also strongly correlated with growth in the Soul Patts share price.

Over the last four years, Soul Patts’ share price has risen by roughly 70% (at the time of writing). I’m not expecting the same performance over the next four years, but it shows the kind of return Soul Patts can deliver.

Match the Age Pension

The Age Pension will soon increase, but at the time of writing, the maximum a single Australian can receive is approximately $31,200 per year on an annualised basis.

If the business does pay $1.15 per Soul Patts share in FY26, that would require 27,131 shares based on the FY26 payout. However, I expect the FY27 payout will be larger, so we won’t need as many shares in FY27 to achieve $31,200 in annual dividends.

The post 27,131 shares of this ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• Soul Patts vs PM Capital Global Opportunities Fund: Which is better?
• How much is needed in superannuation to target a $6,500 monthly passive income?
• $2,000 buys 45 shares in an impressively reliable ASX dividend stock
• How much is needed in superannuation to target a $70,000 annual passive income?
• How much do I need to retire on $80,000 a year at 50?

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

$1,000 a week could make retirement look very different.

That is $52,000 a year arriving without having to go to work for it.

But how much superannuation would I actually need?

It depends on the income your portfolio produces

The answer comes down to the income yield you expect from your investments.

If the goal is to generate $52,000 a year without regularly selling down the portfolio, I am going to need a substantial superannuation balance.

For example, with a 4% dividend yield across the portfolio, I would require a balance of approximately $1.30 million. 

However, with a 5% dividend yield, the balance would fall to around $1.04 million, while a 6% yield would reduce the figure to about $867,000. 

All examples are before considering any potential benefit from franking credits.

Why I wouldn’t simply chase a big yield

It would be tempting to decide that $867,000 is all I need and just aim for a 6% dividend yield in retirement.

But I would be careful with that.

A very high dividend yield can sometimes be a warning sign. A company may be struggling, its dividend may be unsustainable, or the share price may have fallen because investors expect earnings to deteriorate.

For retirement income, I would prefer a portfolio built around businesses and funds capable of supporting their payments over many years.

That could include infrastructure shares such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), property investments such as Charter Hall Long WALE REIT (ASX: CLW), and established companies such as Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

Dividend-focused ASX exchange traded funds (ETFs) could also help spread the income across a larger collection of businesses.

Growth still has a role

Even in retirement, I would not necessarily turn the entire superannuation balance into income investments.

Inflation does not stop when you retire. If the portfolio can continue growing over time, that can help the income stream grow as well.

A mix of ASX dividend shares, quality growth companies, ETFs, and defensive assets could therefore make more sense than simply trying to maximise the starting yield.

Foolish takeaway

I think targeting around $1.04 million would be a sensible starting target for someone hoping to generate $1,000 per week from a portfolio yielding approximately 5%.

The important part is building an income stream that has a good chance of still being there many years into retirement.

The post How much do I need in superannuation to receive $1,000 passive income per week? appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $650,000 superannuation balance?
• Why this ASX share is a retiree’s dream for FY27
• How to make $26,000 of passive income from ASX shares
• 3 excellent ASX dividend shares with 5.5% to 7.7% yields
• Sell alert! Why this expert is calling time on Woolworths and CBA shares

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

I’m going to outline why the ASX share Collins Foods Ltd (ASX: CKF) is one of Australia’s top shares and has an appealing future for investors.

Collins Foods is a large KFC franchisee operator with sizeable outlet networks in both Australia and Europe.

In my view, there are not many ASX shares we can point to that are successfully growing in Europe, which is a large market with more growth potential than Australia due to its larger population.

I’ll outline three reasons this is such a compelling long-term idea.

Growing locally and internationally

The company regularly expands its KFC outlet count in Australia and Europe, enabling it to reach more customers and deliver greater scale benefits.

During FY26, it opened a net of seven stores in Australia (taking its count to 295 nationally), it grew by a net of one in the Netherlands and it opened one new restaurant in Germany.

The company is currently focusing on ensuring that new restaurants will be profitable during this economically challenging period for consumers. But it expects growth in the growth of new stores to accelerate.

In the four weeks before its AGM update, the company reported total KFC sales growth of 5% for Australia, 4.9% for the Netherlands and 58.8% for Germany. In my view, the company is making pleasing progress and this is helping revenue as well as its other financial figures.

Improving financials

I think one of the best signs of being one of Australia’s top shares is seeing profit margins increase as the company grows. Investors usually judge a business based on its net profit generation, and it’s the profit that pays for the dividend.

Everything that helps a company grow earnings sustainably is an excellent sign.

FY26 was a great example of the company’s ability to deliver rising profits.

During the 2026 financial year, revenue grew by 8.6% to $1.59 billion, underlying operating profit (EBIT) climbed by 10.1% to $130.7 million and underlying net profit after tax (NPAT) jumped 13% to $61.4 million.

As long as the company can continue delivering positive same-store sales growth, I’m optimistic about its ability to grow margins in the future.

The result helped the business fund a 7.7% increase of its annual dividend per share to 28 cents per share.

The valuation is appealing for one of Australia’s top shares

At the time of writing, the Collins Foods share price has fallen 23% in 2026 to date, making the business much cheaper for potential investors.

According to the projection on CMC Invest, the ASX share is now valued at 15x FY27’s estimated earnings and under 13x FY28’s estimated earnings. It could also pay a grossed-up dividend yield of 5.1%, including franking credits, for FY27.

Overall, I think this could be a great time to invest in Collins Foods shares for the long-term.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• 3 ASX shares just got big upgrades and are tipped to rise almost 30%
• Buy, hold, sell: Liontown, Collins Foods, and Goodman shares

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 8,696.5 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to drop

It looks set to be a tough session for Australian investors on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.7% lower this morning. In the United States, the Dow Jones fell 1.2%, the S&P 500 dropped 0.45%, and the Nasdaq was a fraction lower.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes A2 Milk Company Ltd (ASX: A2M), Flight Centre Travel Group Ltd (ASX: FLT), South32 Ltd (ASX: S32), and West African Resources Ltd (ASX: WAF). Flight Centre is rewarding its shareholders with a 30 cents per share fully franked dividend next month on 16 October.

Oil prices tumble

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$102.07 a barrel and the Brent crude oil price is down 3% to US$105.62 a barrel. This follows reports that Saudi Arabia’s damaged pipeline will restart in the coming days.

Dyno Nobel on watch

Dyno Nobel Ltd (ASX: DNL) shares will be on watch today after the explosives company released an investor update. The company revealed that it is performing positively in FY 2026 and is on track to achieve its group guidance for a net profit after tax (before one-offs) of $325 million to $340 million. It also believes it is on track to deliver on its $600 million EBIT ambition in FY 2028. 

Gold price falls

It could be a subdued day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.7% to US$4,302.2 an ounce. Traders were selling gold after the US Federal Reserve lifted interest rates.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• How much superannuation is enough to retire with a $50,000 income?
• Want the age pension? Here’s the new asset limit you can’t exceed
• Here are the top 10 ASX 200 shares today
• Santos, Ramsay Health Care, and AMP shares reach new 52-week highs: Can they keep climbing?
• The ASX 200 is finally rising. Is the sell-off running out of steam?

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation provides a strong foundation for retirement. However pairing it with high yield ASX dividend stocks is a great way to diversify your income streams, generate additional passive income and potentially build greater financial security over the long term. 

By investing in established companies with a history of paying dividends, investors can potentially benefit from both regular income and long-term capital growth.

The average dividend yield for ASX 300 shares sits at approximately 3.5%. 

This acts as a solid benchmark for dividend investors and retirees to match or beat through ASX dividend stocks. 

Here are three options right now that can help provide passive income alongside superannuation. 

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT is a real estate investment trust that owns around four billion dollars of industrial properties. These include manufacturing facilities, distribution warehouses, and data centres.

As Australia’s largest pure-play industrial property investment vehicle, it has gained a reputation as a high yielding stock. 

It may appeal to income-focused investors because it provides exposure to Australia’s industrial property sector while generating regular rental income from its portfolio. 

It also offers quarterly distributions, providing a more consistent income flow than other stocks. 

The trust also benefits from a portfolio of industrial properties leased to tenants across Australia, with high occupancy and relatively long lease terms supporting the underlying rental income.

At the time of writing it offers a dividend yield of approximately 6%. 

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria is another option for income investors to consider.

The company provides exposure to a portfolio of long-term infrastructure assets, including major toll roads in France, Germany and the United States. 

The group’s toll-road concessions generate recurring revenue from motorists using these assets, providing a foundation for distributions to investors. 

It is expected to maintain its distribution at 40 cents per share, in line with current-year guidance, which equates to a yield of over 8%. 

BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX)

An alternative to individual ASX dividend stocks is an ASX ETF focused on generating high yields. 

One option is this Betashares fund.

It aims to generate attractive monthly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of the 20 largest blue-chip shares listed on the ASX. 

This monthly distribution is a great vehicle for passive income for retirees. 

It currently has a 12-month gross distribution yield of over 9%, making it one of the highest-yielding funds available right now. 

The post 3 ASX dividend stocks to provide passive income through retirement  appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $70,000 per year in passive income?
• 2 ASX blue-chip shares offering big dividend yields
• How much is needed in superannuation to target a $6,500 monthly passive income?
• 3 ASX shares with dividend yields of between 6% and 11%
• How much superannuation do I need to earn $80,000 per year in passive income?

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

Nextdc vs Megaport shares: Which ASX tech growth share looks better?

If you’re exploring fast-growing tech stocks on the ASX, there’s a fair chance that Nextdc Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1) are on your radar. Both are data and connectivity specialists, but their businesses, growth profiles, and market appeal have some key differences. Here’s how I see Nextdc vs Megaport shares stacking up for investors looking for high-growth exposure to digital infrastructure.

The case for Nextdc

Nextdc is a leader in building and operating data centres across Australia, New Zealand, and Southeast Asia. Its business focuses on co-location services—providing secure spaces, power, cooling, and connectivity for clients to house their servers. Customers can interconnect with each other, as well as global cloud companies and telcos. With more than 1,700 customers as of December 2022, Nextdc enables enterprises of all sizes to boost data security and transfer speeds, all while providing extra options for technical and project support.

A couple of key things jump out at me here:

• Market leadership and scale: With a market cap of $8.54 billion and a huge customer base, Nextdc is a giant in its field domestically.
• Consistent revenue base: While revenue figures aren’t quoted, the physical infrastructure and ‘sticky’ customer relationships suggest recurring income, which I like for business stability.
• Profitability: Nextdc is profitable, posting positive earnings per share of $0.122 and a (lofty) P/E of 95.98.

But, it’s important to point out that the company doesn’t pay a dividend and has actually delivered a negative year-to-date (YTD) return of -5.05%.

The case for Megaport

Megaport is a different kind of tech play. Instead of owning data centres, Megaport is a global network-as-a-service provider, connecting clients to over 1,100 data centres across 31 countries. Its tech lets customers connect to Amazon Web Services, Azure, Google Cloud, and dozens of other cloud platforms quickly, flexibly, and with no long-term lock-ins. Megaport expanded in late 2025 by acquiring Latitude.sh, pushing into on-demand cloud compute and AI GPU infrastructure. Its operations now span the Americas, Asia-Pacific, and EMEA, with a dedicated Compute arm.

Here’s what stands out to me about Megaport:

• Rapid global growth: The company’s reach and ability to provide on-demand, flexible cloud connections is unique among local peers.
• Not (yet) profitable: Megaport still has negative earnings per share (-$0.218).
• Impressive share price momentum: MP1’s year-to-date return is a massive 39.09%—a big contrast with Nextdc.

Dividends are again off the table, with both companies focused squarely on growth.

Valuation comparison

There’s a clear difference in how the market values these two, reflecting their place on the growth–profitability spectrum:

Metric	Nextdc	Megaport
Market Cap	$8.54b	$4.00b
P/E Ratio	95.98	–
EPS	0.122	-0.218
Dividend Yield	0.00%	0.00%
Year-to-Date Return	-5.05%	39.09%

Nextdc is much larger, is profitable (albeit with rich pricing), and trades at a lower P/E. Megaport is far more expensive on a P/E basis, unprofitable, but clearly has the market excited about its expansion and growth prospects.

Recent share price performance

Looking at closing prices as of 15 September 2026 (not live data), there’s a stark difference:

• Nextdc has fallen from $13.81 at the end of August to $11.24—as much as a 4% drop in a single day, and a clear downtrend over these weeks.
• Megaport has shown some volatility, but after a big dip mid-month, quickly bounced and sits at $16.79, up from $16.54 at end of August and up a whopping 39% for the year-to-date. The recent days included an 8.3% one-day fall, but this was swiftly offset by a 2.7% bounce.

I can see investors have recently flocked to Megaport much more enthusiastically than Nextdc.

Which is the better buy?

Comparing Nextdc vs Megaport shares, I’d lean toward Megaport right now if I had to pick just one. Here’s why: its revenue growth and commercial momentum look stronger, even though it’s not yet profitable. Nextdc is solid and profitable but losing momentum, and its negative YTD return is a worry for a growth stock. That said, paying up for Megaport means accepting a lot of future risk—it’s priced for exceptional growth and any slip could hurt. But purely on growth and market momentum, my pick would be Megaport, with the caveat that it’s not for those wanting value or stability.

The post Nextdc vs Megaport: Which ASX tech growth share comes out on top? appeared first on The Motley Fool Australia.

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• Down 32%: 3 reasons to buy the BIG dip in NextDC shares today
• Experts name 3 top ASX shares to buy this week
• 5 things to watch on the ASX 200 on Monday

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 Amazon, Megaport, and Microsoft. The Motley Fool Australia has recommended Amazon and Microsoft. 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 draft. 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.