Author: openjargon

A number of S&P/ASX 200 Index (ASX: XJO) shares could come under pressure on Wednesday.

A group of 12 ASX-listed companies are trading ex-dividend today, which means their share prices will no longer include the value of their latest payout.

That alone is expected to have a decent impact on the broader market.

According to The Australian, the combined ex-dividend moves could shave around 31 points from the ASX 200.

With futures already pointing lower, that could make market open look a little heavier than usual.

Here’s the shares investors will want to keep an eye on.

The ex-dividend moves to watch today

There are a few larger payouts sitting near the top of today’s list.

Sonic Healthcare Ltd (ASX: SHL) closed Tuesday at $19.64 and is trading ex-dividend for 63 cents per share. The payment is 60% franked and is due on 17 September.

Monadelphous Group Ltd (ASX: MND) is not far behind. Its shares closed at $28.78 before going ex-dividend for a 59-cent fully-franked payout.

Origin Energy Ltd (ASX: ORG) and Seek Ltd (ASX: SEK) also have decent-sized dividends dropping off today.

Origin’s 30-cent fully-franked dividend comes off an $11.70 closing share price, while Seek’s 25-cent fully-franked payment comes off a $14.32 close.

Furthermore, Newmont Corporation (ASX: NEM) closed at $176.04 and is trading without its 25.95-cent unfranked dividend.

More ASX shares joining the list

There are also several smaller payouts coming off the board as well.

Downer EDI Ltd (ASX: DOW) closed Tuesday at $6.55 and is trading ex-dividend for 16.3 cents per share. Steadfast Group Ltd (ASX: SDF) closed at $5.84 and is going ex-dividend for 12.75 cents.

Medibank Private Ltd (ASX: MPL) is also on the list. The shares closed at $4.81 on Tuesday, with a 10.9-cent dividend going ex today.

Among the miners, Yancoal Australia Ltd (ASX: YAL) is trading ex-dividend for 7 cents per share, and Whitehaven Coal Ltd (ASX: WHC) is doing the same for 6 cents.

PLS Group Ltd (ASX: PLS) is trading ex-dividend for 5 cents, with Karoon Energy Ltd (ASX: KAR) rounding out the group with a 1.2-cent payout.

All of the 7 dividends are fully franked.

Why today’s moves could be misleading

Keep in mind, trading ex-dividend does not automatically mean a stock will fall on the day. There’s still plenty happening in the broader market that can push shares either way.

Nonetheless, the ASX 200 futures are expected to open at a fall of around 0.9%.

The post Why these ASX shares are worth watching closely today appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares built for higher-for-longer rates
• Could this 7%-yielding ASX healthcare share be a growth winner?
• The average superannuation balance for 64 year olds in Australia in FY27
• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: Greatland Resources, PEXA Group, Origin shares

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

Most ASX shares are hurt by rising interest rates, which is why it’s important to look at the exceptions to this rule.

Australia’s 10-year government bond yield climbed to around 5.19% on Tuesday.

That is its highest level in 15 years.

ANZ Group Holdings Ltd (ASX: ANZ) now expects the Reserve Bank to lift the cash rate to 4.60% in November.

A handful of listed businesses would quietly welcome that outcome.

Why some ASX shares benefit from higher rates

The mechanism is simple and frequently overlooked.

Insurers and financial administrators hold enormous pools of other people’s money between the day it arrives and the day it is paid out.

That money lies in cash and short-dated bonds, earning whatever the prevailing rate happens to be.

When rates rise, the income on those balances rises with them, while almost none of the cost base moves in sympathy.

1. QBE Insurance Group Ltd (ASX: QBE)

QBE is the clearest example on the local market.

The company’s first-half result delivered adjusted net profit after tax of US$1,033 million, up 4%, with gross written premium rising 10% to US$15.1 billion.

The combined operating ratio held steady at 92.8% and return on equity reached 17.7%, comfortably above the company’s medium-term target of 15%.

Management specifically flagged that an improving outlook for interest rates is expected to support investment returns.

The shares closed Monday at $22.48, up 4.51% over twelve months, on a price-to-earnings (P/E) ratio of 11.08 and a 5.06% yield.

Franking is only 30%, which matters a great deal for Australian income investors.

The interim dividend rose 6% to 33 cents per share.

2. Computershare Ltd (ASX: CPU)

Computershare earns margin income on the client balances it administers, which is the same mechanism.

FY26 revenue rose 4.6% to US$3,257.5 million and net profit after tax edged up 1.9% to US$618.7 million.

Employee Share Plans revenue grew 18%, Corporate Trust rose 9.6%, and Issuer Services added 7.7%.

The interesting part is in the outlook statement.

Management warned that margin income may be constrained by prevailing lower interest rates.

That guidance assumed rates were heading downward.

If bond yields at 15-year highs are telling us anything, the assumption now looks conservative.

The shares closed at $39.72 and have gained 18.54% so far this calendar year.

3. Medibank Private Ltd (ASX: MPL)

Medibank is the most defensive of the three.

Health insurers hold reserves against future claims, and those reserves earn more as yields rise.

FY26 underlying net profit after tax rose 2.9% to $636.8 million on revenue of $9,115.2 million, up 5.9%.

The fully-franked dividend increased 6.7% to 19.2 cents per share.

Chief executive David Koczkar was direct about the environment his customers are living in:

We continued to deliver value for the 6 million people who trust us with their health and wellbeing, as household budgets remain under pressure. Despite this, people continue to prioritise their health.

The shares closed at $4.81, down 3.61% over the year, on a fully-franked yield of 3.87%.

The risks facing these ASX shares

None of the three is a risk-free bet on interest rates.

QBE is an insurer, and a bad catastrophe season would overwhelm any investment income benefit.

Computershare’s core revenue depends on corporate activity, which tends to slow when rates rise.

Medibank faces regulated premium increases and rising claims costs, and its FY27 guidance is only for margins broadly consistent with FY26.

In each case, higher rates help the investment line while pressuring the customer.

Foolish takeaway

The case for these three ASX shares is not that they escape higher rates.

It is that higher rates arrive on the revenue side of the income statement rather than the cost side.

QBE offers the most direct leverage and the highest yield.

Computershare has the most conservative guidance to beat.

Medibank is the steadiest and the slowest growing of the three.

If the Reserve Bank does move in November, these are the ASX shares I would look to own.

The post Top 3 ASX shares built for higher-for-longer rates appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $630,000 superannuation balance
• Why now is the time to buy MediBank Private shares: Expert
• 2 ASX blue-chip shares offering big dividend yields
• 37 ASX shares going ex-dividend next week
• 3 great dividend stocks with 6% yields to boost passive income in FY27

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.

The gold price is well down on the highs it hit earlier in the year, but according to the analysts at RBC Capital Markets, the trend from here will be up.

RBC has issued a new research report on the yellow metal and says they remain bullish on its outlook.

Gold in focus as uncertainty reigns supreme

Gold tends to benefit from uncertainty, and with the war in the Middle East dragging on, the war in Ukraine, and US President Donald Trump’s ongoing trade wars, there’s plenty of uncertainty around.

RBC said investors are coming back into the market in a new wave of the “debasement” trade, which refers to a flight to hard assets.

The broker said:

Recent months have seen investors come back in size, which should drive north of 200 tons of inflows this year. Central bank flows in particular, after a pause earlier this year, are back too. We think their reasoning and volume will remain consistent for now, leading to over 700 tons of inflows this year and next.

The broker said President Trump’s popularity, or lack thereof, could also be key.

As they said:

While the macro drivers still cannot explain gold’s current prices on their own, gold’s reputation as a perceived haven, store of value, and non-debaseable real asset are very well suited to the current environment, in our view. Trump’s second term has brought with it numerous gold-positive risks and uncertainties, and we’ve cited a notable negative correlation between gold prices and Trump’s approval rating. We eye the upcoming midterms with anticipation, but at the moment, are focused on gold’s growing contextual appeal.

RBC also said the US national debt is a cause for concern, which helps to drive gold demand.

As they said:

Perhaps the biggest sustainable driver is one that the gold bugs have been holding onto for some time — that a mountain of debt in the US and elsewhere should drive more interest in non-debaseable assets like gold. Likewise, the uncertainty of geopolitics, politics, and headline-driven volatility across assets increases the appeal of a perceived safe haven and preserver or value like gold. That’s why we have stuck with our forecasts from late last year, despite a pause in some of the flows that were key underlying drivers of gold prices, because we still thought that the context of gold was unchanged.

Gold price to grind higher from here

RBC said they believe that US$4500 to US$5000 is the “sweet spot” for gold in the medium term, while “we are beginning to favour our high scenario, grinding towards US$5000/oz before year-end and higher in 2027”.

This compares to the current gold price of US$4485.10.

The post How high will the gold price go this year, according to RBC Capital Markets? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares built for higher-for-longer rates
• Betashares just launched 3 new ETFs. Here’s whether you should buy
• How much is needed in superannuation for $1,500 in weekly passive income?
• Down 15%: Is it a good time to buy Wesfarmers shares?
• How to earn $10,000 in passive income a month with these ASX dividend 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.

New ETFs arrive on the ASX almost every week, and very few of them grab the attention of day-to-day ASX investors.

Betashares has just listed three that might.

They are diversified, multi-asset funds designed to be held entirely on their own.

Amazing, all three charge 0.19% a year.

What the new ETFs actually hold

The three funds are at different points on the risk spectrum.

Betashares Diversified High Growth ETF (ASX: DVHG) runs a 90% growth and 10% defensive allocation.

Betashares Diversified Growth ETF (ASX: DVGR) sits at 75% growth and 25% defensive.

Betashares Diversified Balanced ETF (ASX: DVBA) is the most conservative of the three, at 60% growth and 40% defensive.

Each fund provides exposure to roughly 2,500 Australian and global companies and 12,000 bonds.

DVGR, to take one example, holds 28.8% in Australian equities, 28.3% in United States equities, 10.5% in developed markets outside the US, and 4.5% in emerging markets, with the remaining quarter split between Australian and international bonds.

They join the existing Betashares Diversified All Growth ETF (ASX: DHHF), which holds equities only.

How the new ETFs compare on fees

This is where the launch gets interesting.

Vanguard Diversified High Growth Index ETF (ASX: VDHG) has been the default choice for Australians wanting one-trade diversification.

The fund charges 0.27% a year and runs a 90% growth and 10% income allocation.

DVHG offers effectively the same asset allocation for 0.19%.

That number may sound small. On a $100,000 balance, that is a saving of only $80 a year.

However, compounded inside the portfolio over thirty years, the difference becomes quite more meaningful.

Betashares describes the 0.19% figure as the lowest fee among all-in-one diversified funds currently available in Australia.

What the fee comparison does not tell you

Fees are the easiest thing to compare, yet are rarely the most important.

VDHG has a long track record, returning 10.42% over the year to 31 July 2026 and 8.72% a year across five years.

The Betashares funds have no performance history at all, because they only listed this week.

There are two other practical differences worth knowing.

VDHG holds an allocation to hedged international shares, which changes how the fund behaves when the Australian dollar moves.

Liquidity will also be thinner in a brand new fund, so bid-ask spreads may be wider until the funds build scale.

Should you switch?

Probably not, if you already hold VDHG in a taxable account.

Selling to save 0.08% a year would trigger a capital gains tax event that could take many years to recover.

The question is entirely different if you are looking at a new allocation.

If you are starting a portfolio or making your next contribution, the cheaper fund with the same allocation is the rational default.

Foolish takeaway

These new ETFs are an improvement on what was already available, though only marginally so.

The important decision is still which risk profile suits you.

DVHG suits an investor with decades still ahead of them, while DVBA suits someone who needs the ride to be smoother.

All in all, fee competition among diversified funds is unambiguously good news for Australian investors.

The post Betashares just launched 3 new ETFs. Here’s whether you should buy appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares built for higher-for-longer rates
• How high will the gold price go this year, according to RBC Capital Markets?
• How much is needed in superannuation for $1,500 in weekly passive income?
• Down 15%: Is it a good time to buy Wesfarmers shares?
• How to earn $10,000 in passive income a month with these ASX dividend shares

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.

Knowing with reasonable certainty how much income you can expect to draw from your superannuation in retirement makes it possible to approach this major life change with confidence.

Having a goal in mind and planning to hit that goal is essential, and the earlier you start, the better.

Aiming for $1,500 per week in retirement income will provide a comfortable retirement, at least as measured by the Association of Superannuation Funds of Australia, which estimates that singles will need $55,923 per year to fund a comfortable retirement.

This so-called retirement standard assumes you own your own home and will draw a part pension when you become eligible at age 67.

How much do you need in superannuation to hit the $1,500 target?

But let’s assume for the sake of argument that you are aiming to generate $1500 per week, or $78,000 per year, in retirement income from dividends alone, without drawing down on your invested capital.

How much you’ll need invested to achieve this target depends on how much you can reliably expect to generate in terms of dividend yield.

If you are generating 10% a year – a lofty ambition and likely unsustainable – you’d need $780,000 in retirement savings.

If you were generating just 5% a year, you would need double this amount, or $1.56 million.

Considering that retirees get the benefit of franking credits on top of the base dividend yield from a share, as long as the share is franked, I’d argue that 5% is very much on the low side.

A goal of 7.5% is likely quite achievable and would require a superannuation savings amount of $1.04 million.

Which shares can generate sufficient returns?

There are a lot of shares you might consider that pay healthy dividends.

Infrastructure companies such as toll road owner Atlas Arteria Ltd (ASX: ALX) often pay strong dividends, with Atlas forecast by Macquarie to pay a yield of better than 8% out to FY28.

Rail freight operator Aurizon Holdings Ltd (ASX: AZJ) also pays a good dividend, currently running at 6.28%.

Real estate investment trusts also often have steady long-term businesses, with Waypoint REIT (ASX: WPR) paying a 7.19% dividend yield and HomeCo Daily Needs REIT (ASX: HDN) paying 7.78%.

And among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.45% fully franked, while Bank of Queensland Ltd (ASX: BOQ) is paying 6.12% also fully franked.

How to boost your superannuation balance

If you’re a bit low on your superannuation at the moment, consider either salary sacrificing into your super or making a concessional contribution.

This year, the concessional contributions cap has increased to $32,500, meaning you can contribute up to this amount and pay only 15% tax. However, keep in mind that the $32,500 level includes any contributions made by your employer and any salary sacrifice amounts.

The post How much is needed in superannuation for $1,500 in weekly passive income? appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX dividend shares with yields up to 7.7%
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?
• How Westpac, ANZ, NAB and CBA shares stacked up in August
• 3 top ASX dividend shares to target in September 
• 5 things to watch on the ASX 200 on Monday

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

Wesfarmers Ltd (ASX: WES) shares have fallen around 15% over the past month.

At roughly $77.08, they are now much closer to their 52-week low than their recent peak.

I think the pullback has created a better opportunity to buy one of the ASX’s highest-quality businesses.

The businesses are still the main attraction

Wesfarmers owns a collection of market-leading businesses, including Bunnings, Kmart, Officeworks, and Priceline through Wesfarmers Health.

For me, Bunnings remains the standout. Its scale, store network, brand recognition, and relationships with suppliers have taken decades to build. Home improvement spending can move around with economic conditions, but Australians will continue repairing, renovating, and maintaining their homes over the long term.

Kmart has also developed a strong position around affordable everyday products. Its ability to source and develop its own ranges gives consumers a clear reason to keep returning.

I like owning a company with several established businesses capable of producing cash while management continues looking for new areas to invest.

Wesfarmers shares have pulled back

Wesfarmers has rarely looked cheap, and it still does not today.

According to consensus estimates, earnings per share are forecast to rise from $2.72 in FY27 to $2.90 in FY28 and $3.11 in FY29.

At $77.08, that puts the shares on a PE ratio of roughly 28 times forecast FY27 earnings, falling to around 25 times FY29 earnings.

That is still a premium valuation. But consider where investors were only recently. At the 52-week high of $94.70, the same FY27 earnings forecast would have put Wesfarmers on almost 35 times earnings.

I find the current price much easier to justify. Quality businesses rarely spend much time trading at obviously cheap valuations. I am more interested in whether the price gives me a reasonable chance to benefit from years of earnings growth.

I think it does now.

There is income along the way

The dividend outlook also moves in the right direction.

Consensus forecasts point to dividends per share of $2.34 in FY27, $2.49 in FY28, and $2.71 in FY29.

At today’s price, that starts with a forecast dividend yield of around 3%, with the potential for income to rise if those estimates are achieved.

I would not buy Wesfarmers primarily for the dividend, but steadily increasing payments can add to the long-term return.

Foolish takeaway

The 15% fall has made Wesfarmers shares considerably more interesting to me.

I am still paying a premium, so this is not a bargain-hunting exercise. I am paying for strong businesses, capable management, and an earnings outlook that points higher over the next few years.

At around $77.08, I think the balance between quality and price has improved enough to make Wesfarmers a buy.

The post Down 15%: Is it a good time to buy Wesfarmers shares? appeared first on The Motley Fool Australia.

More reading

• Don’t panic if these 9 ASX 200 shares fall today
• 5 things to watch on the ASX 200 on Tuesday
• 3 top ASX dividend shares to target in September 
• Here’s the dividend forecast out to 2029 for Wesfarmers shares
• How to build an ASX portfolio you do not need to check every day

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

ASX dividend shares can absolutely produce $10,000 a month, but it does take quite a bit of capital to invest.

$10,000 per month, or $120,000 per year, is roughly double the median full-time Australian wage.

Getting there requires a large amount of capital, a reasonable yield, and the patience to leave both alone.

Here is the actual maths, using three holdings I would happily build that income around.

Three ASX dividend shares to build the income

Telstra Group Ltd (ASX: TLS) is the defensive anchor.

Telstra shares closed Monday at $4.63 and yielded 4.56%, with franking running at roughly 90%.

FY26 delivered EBITDAaL of $8.2 billion and a fresh $1 billion buyback, alongside a full-year dividend of 21 cents per share.

The shares have fallen 7.03% over twelve months and now sit close to their 52-week low of $4.56.

APA Group (ASX: APA) does the heavy lifting on yield.

The company closed at $10.83 with a 5.39% distribution yield and a market capitalisation of $14.42 billion.

FY26 underlying EBITDA rose 8.3% to $2,183 million and free cash flow increased 3.2% to $1,118 million.

The FY26 distribution was 58.0 cents per security, and management has guided to 59.0 cents in FY27.

The important caveat is that APA’s distributions are only partially franked, at around 31%.

Vanguard Australian Shares High Yield ETF (ASX: VHY) provides the diversification.

It holds 92 companies led by the major banks and BHP, and Vanguard forecasts a yield of 4.2%, or 5.5% once franking credits are counted.

Units closed Monday at $85.61.

The maths on $10,000 a month

Spread evenly across the three, the cash yield averages 4.72%.

To generate $120,000 a year at that rate, you need roughly $2.54 million invested.

Franking credits change the picture slightly.

With franking credits taken into account, Telstra’s payout grosses up to about 6.33% and APA’s to roughly 6.11%, while VHY reaches 5.5%.

The blended grossed-up yield is close to 5.98%, which brings the capital requirement down to about $2.01 million.

Whether you can actually use those credits depends on your marginal tax rate, and for many retirees in pension phase they are refundable in full.

Why these ASX dividend shares and not the banks

The instinct for most income investors is to buy the big four and stop thinking.

Commonwealth Bank of Australia (ASX: CBA) currently yields 3.21%.

At that rate, $120,000 a year would require $3.74 million.

Telstra and APA are not more exciting businesses than the banks, but they pay materially more per dollar invested.

APA in particular has now raised its distribution for 22 consecutive years, which matters more than any single year’s yield.

A payment growing at 1.7% a year, as guided for FY27, is not inflation-beating on its own.

Combined with reinvestment, though, it compounds into something serious across two decades.

What could go wrong

Yield is never a promise.

Telstra shares have fallen 7% over the year, so a stable dividend has still meant a weaker total return.

APA carries substantial debt, which is the standard trade-off in regulated infrastructure and becomes more expensive if the Reserve Bank raises the cash rate on 29 September.

Foolish takeaway

Nobody reaches $10,000 a month in a single step.

The realistic path is contributing consistently, reinvesting every distribution, and letting two decades do the work.

A $2 million portfolio sounds impossible until you model it as thirty years of steady contributions inside a growing market.

These three holdings would form a sensible core for that portfolio.

For anyone building toward that number, ASX dividend shares remain the most straightforward income engine on the local market.

The post How to earn $10,000 in passive income a month with these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Better buy: Telstra vs TPG Telecom shares
• Sell alert! Why this expert is calling time on CBA shares and this top ASX 200 stock
• 3 strong ASX dividend shares with yields up to 7.7%
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?
• Home values just fell for a fifth straight month. Which ASX shares are most exposed?

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 positions in and has recommended Apa Group and Telstra Group. The Motley Fool Australia has recommended 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.

Telstra Group Ltd (ASX: TLS) and TPG Telecom Ltd (ASX: TPG) both sit at the heart of Australia’s telecommunications market.

For me, though, the choice is fairly clear.

If I were buying one today with a medium to long-term view, I would choose Telstra.

Telstra shares

The main reason I prefer Telstra is the strength of its core mobile business.

Australians rely heavily on mobile and internet connectivity, and Telstra has spent years investing in the network, spectrum, and infrastructure needed to maintain a leading position.

I like that combination of essential demand and an established competitive advantage.

Telstra also does not need rapid growth to produce a worthwhile result for shareholders. If it can keep customers, gradually increase earnings, and continue lifting its dividend, I think the investment case works well.

The current forecasts support that view. Consensus estimates point to earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

Fully franked dividends are forecast at 22 cents and 22.5 cents per share, respectively. That equates to a forward dividend yield of around 4.8% in FY27 and 4.9% in FY28, before considering franking credits.

For me, Telstra shares offer a fairly easy investment case to understand: strong mobile positioning, recurring demand, and attractive income.

TPG Telecom shares

TPG also has plenty going for it. The company owns established telecommunications brands and serves a large base of Australian mobile and broadband customers.

There is also the possibility of stronger earnings ahead. Consensus forecasts put earnings per share at 1.8 cents in FY26 before increasing to 4.4 cents in FY27.

The income forecasts initially look even more eye-catching. TPG is expected to pay dividends of 20 cents per share in FY26 and 22 cents per share in FY27.

At a share price of around $3.79, that represents forecast dividend yields of around 5.3% in FY26 and 5.8% in FY27.

But I would be cautious about reading too much into those numbers. The gap between forecast earnings and dividends makes the income story less straightforward than Telstra’s. I would want greater confidence in the sustainability of those payments before choosing TPG primarily for passive income.

TPG may still reward investors from here, particularly if earnings recover strongly. I simply think Telstra shares give me a clearer long-term proposition today.

Foolish takeaway

This comparison comes down to which business I would feel more comfortable owning through the next several years.

For me, that is Telstra. Its leading mobile position, resilient demand, forecast earnings growth, and fully franked dividends give me more confidence in both the business and the income outlook.

TPG could still perform well, but I would put my money behind Telstra shares first.

The post Better buy: Telstra vs TPG Telecom shares appeared first on The Motley Fool Australia.

More reading

• How to earn $10,000 in passive income a month with these ASX dividend shares
• How much passive income can I earn off a $630,000 superannuation balance
• How much superannuation do I need to earn $90,000 per year in passive income?
• Why Liontown, Northern Star and Telstra shares are turning heads on Monday
• How much passive income can I earn from $500,000 in superannuation?

Motley Fool contributor Grace Alvino 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.

There are not many ASX shares I’d describe as one of Australia’s top shares, but Pinnacle Investment Management Group Ltd (ASX: PNI) is one of them.

It’s not often that one of the best businesses on the ASX trades a lot cheaper, but that’s what has happened with Pinnacle.

What does Pinnacle do?

Pinnacle is involved in the investment sector – it takes stakes in investment managers and helps them grow.

It has an expanding portfolio of investment managers, with a recent focus on growth in the northern hemisphere.

Its portfolio includes Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, LongWave, Riparian, Coolabah Capital, Aikya, Five V Capital, Langon, Life Cycle, Pacific Asset Management, VSS and Advantage Partners.

Aside from a track record of success, a key reason why independent fund managers would agree to a minority investment is that Pinnacle can take over certain services, allowing the fund manager to focus on investing rather than behind-the-scenes work.

Some of those services include seed funds under management (FUM), working capital, distribution and client services, fund administration, compliance, finance, legal, technology and so on.

In my view, this is the right time to invest in one of Australia’s top shares amid a 40% decline since January 2025.

Strong underlying performance

With such a large decline, you’d think the business would not be reporting good growth numbers. However, it is still delivering solid underlying performance.

In its FY26 result, Pinnacle reported that aggregate affiliate FUM rose 13.3% to $229.4 billion, with net inflows of $33.4 billion for the year. Pleasingly, international FUM rose 45.6% year-over-year to $74.9 billion.

It also reported underlying net profit after tax (NPAT) rose 21% to $138 million and underlying earnings per share (EPS) grew 15% to 61 cents. The company’s share of affiliate net profit rose by 5% to $136 million.

I think most of Australia’s top shares would be happy with EPS growth of 15%, considering FY26 was a challenging year.

Solid dividend yield

Following the large decline of the Pinnacle share price, its dividend yield is now quite sizeable.

In FY26, it paid an annual dividend per share of 60 cents. That translates into a grossed-up dividend yield of around 5%, including franking credits. That’s not the biggest dividend yield on the ASX, but it’s a pleasing and consistent dividend.

I believe the payout can grow in the coming years as earnings increase.

Very appealing valuation as one of Australia’s top shares

Following the significant decline of the Pinnacle share price, its valuation now looks very appealing to me considering its potential earnings growth outlook.

According to the projection on Commsec, the business could generate EPS of 87 cents in FY27. That means the business is trading at 17x FY27’s estimated earnings. It’s currently projected to see EPS growth of 20% in FY28 and 21% in FY29.

I think the business looks significantly undervalued, given its valuation and potential profit expansion.

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

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

The S&P/ASX 200 Index (ASX: XJO) had a strange August, setting a record closing high on 6 August before finishing the month up just 1.1%.

Underneath that flat number, some large companies were taken apart.

Five ASX 200 shares fell between 17% and 23%.

What makes three of these companies interesting is that they were still able to grow revenue.

The market was not punishing failure so much as repricing expectations.

Why these ASX 200 shares fell so hard

All three stocks reported in August and all three fell heavily on the day.

None of them missed on revenue.

Each was marked down on what came next, whether that was a cautious start to FY27, a margin moving the wrong way, or costs growing faster than the top line.

That is a very different problem from a broken business, which is why they are worth a second look.

1. JB Hi-Fi (ASX: JBH)

JB Hi-Fi closed Monday at $66.57, down 42.58% over twelve months and within a few cents of its 52-week low of $66.02.

The FY26 result delivered record revenue of $11.06 billion, up 4.8%, with net profit after tax rising 6% to $489.9 million.

The shares then suffered their worst day on record, falling 12.3%, and ended August down 18.3%.

The damage came from a single line in the trading update.

Comparable sales for JB Hi-Fi Australia fell 1.4% in July.

That is the first real sign the consumer is cracking, and with home values falling and a rate rise possibly ahead, it is a fair thing to worry about.

The offset is the valuation, with the shares now on a price-to-earnings ratio of 15.02 and a fully franked yield of 5.02%.

2. Life360 Inc (ASX: 360)

Life360 fell 21% across August and closed Monday at $20.17.

The twelve-month decline is 55.77%, which is brutal for a company still growing this quickly.

Second-quarter revenue rose 38% to US$159 million and adjusted EBITDA jumped 53% to US$31.1 million.

The catch sat below those numbers.

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

Investors had been paying for a business that was supposed to scale into profitability, and the margin went backwards instead.

At $20.17 against a 52-week high of $55.87, a great deal of optimism has already been stripped out of the price.

3. Generation Development Group Ltd (ASX: GDG)

Generation Development Group was August’s worst performer, falling 22.6%, and it continued to decline on Monday, closing at $3.06.

That is a fresh 52-week low and a decline of 51.43% across the year.

FY26 revenue rose 23% to $178.7 million and funds under management jumped 37% to $46.5 billion.

Underlying net profit after tax climbed 21% to $40.7 million.

Statutory net profit fell 10% to $31.9 million, because operating expenses grew 26% and comfortably outpaced revenue.

The risk in buying beaten-down ASX 200 shares

Cheap shares can get cheaper, and all three have proven this fact repeatedly.

Investors sometimes falling into the value trap, buying cheap businesses without assessing the reasons why they are cheap.

Foolish takeaway

Of the three, JB Hi-Fi has the clearest valuation support and the most obvious risk sitting right in front of it.

Life360 has the strongest growth and the least proven path to profitability.

Generation Development owns the best asset in a $46.5 billion funds book but has the worst cost discipline.

I would want to see one more result from each before committing capital.

For patient investors, August produced a list of beaten-down ASX 200 shares that are cheaper than they were. The question remains whether they can recover.

The post Top 3 beaten-down ASX 200 shares from August worth a second look appeared first on The Motley Fool Australia.

More reading

• The five worst-performing ASX 200 shares in August unmasked
• 2 ASX shares highly recommended to buy: Experts
• 1 ASX dividend stock down 42% I’d buy right now
• 4 ASX shares I’d buy with $5,000 in September
• 3 ASX growth shares to buy in September

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