Author: openjargon

With earnings season now over, brokers have updated their ratings on hundreds of S&P/ASX 200 Index (ASX: XJO) shares.

Let’s take a look at three new ratings from experts this week (courtesy The Bull).

Greatland Resources Ltd (ASX: GGP)

The Greatland Resources share price rose 19.1% over the August earnings season, and is up 94% over 12 months. 

Jonathan Tacadena from MPC Markets has a buy rating on this ASX 200 gold share. 

Tacadena said:

GGP is a gold and copper producer. The company produced 329,000 ounces of gold in full year 2026, comfortably beating guidance.

All in sustaining costs were also below guidance. It held cash of $1.289 billion at June 30 and had no debt.

It has full upside exposure to the gold price via put options.

A reserve upgrade at the Telfer mine in Western Australia is also encouraging. The company is enjoying favourable momentum.

The gold price has increased 9% over the past month and 3% in the calendar year to date.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price increased 8% during August, and is down 9% over 12 months. 

Remo Greco from Sanlam Private Wealth has a hold rating on this ASX 200 utilities share. 

Greco said: 

This major electricity retailer posted a statutory profit of $1.574 billion in full year 2026, up from $1.481 billion in the prior corresponding period.

Adjusted free cash flow increased by $867 million to $2.074 billion, driven by strong cash flow from energy markets and Australia Pacific LNG.

The company is supported by a strong balance sheet, enabling it to deliver consistent returns to share holders.

The company was recently trading on an appealing dividend yield above 5 per cent.

PEXA Group Ltd (ASX: PXA)

The PEXA share price fell 1.5% during earnings season, and is down 53% over 12 months. 

Tacadena has a sell call on this ASX 200 real estate share following PEXA’s FY26 report. 

He explained: 

PEXA operates a leading digital property platform and settles most transactions in Australia. It also operates in the UK.

A concern is a weaker housing market in Australia impacting PXA’s performance moving forward.

In Australia, a draft report proposes about a 20 per cent reduction in PXA’s regulated revenue requirement via reductions to certain transfer transaction fees over a year.

The independent Pricing and Regulatory Tribunal (IPART) in New South Wales is reviewing electronic lodgement network operator (ELNO) service fees. PEXA has submitted formal objections to the IPART draft proposal.

The shares have fallen significantly since March and still remain under pressure.

The post Buy, hold, sell: Greatland Resources, PEXA Group, Origin shares appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX dividend shares to buy before they go ex-dividend
• Here are the top 10 ASX 200 shares today
• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week
• PEXA Group jumps to FY26 profit as revenue and EBITDA lift
• 2 ASX dividend shares I’d buy right now for passive income

Motley Fool contributor Bronwyn Allen 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.

AI shares are among the hardest things to buy on the Australian market, because the obvious names are all listed somewhere else.

For example, there is no ASX-listed Nvidia Corp (NASDAQ: NVDA)

That does not mean Australian investors are locked out.

How to buy AI shares on the ASX

There are three sensible routes.

You can own the infrastructure that artificial intelligence runs on, you can own a business using the technology to widen its own moat, or you can buy a global fund listed here.

Each carries a different risk, and the mistake most investors make is treating them as interchangeable.

The infrastructure AI shares

NextDC Ltd (ASX: NXT) is the purest local play on computing demand.

The company’s FY26 result delivered net revenue of $405.0 million, up 16%, and underlying EBITDA of $248.8 million.

The number that really matters is contracted utilisation, which more than tripled to 740.1 megawatts against built capacity of just 288 megawatts.

Hyperscale and artificial intelligence workloads now account for 95% of contracted megawatts.

FY27 guidance is for revenue of $615 million to $640 million.

The risk is written into the same document.

Capital expenditure guidance for FY27 was between $5.25 billion to $5.75 billion, against a market capitalisation of $10.49 billion.

NextDC shares closed Monday at $13.23 and have fallen 19.66% over twelve months.

Goodman Group (ASX: GMG) is the larger and steadier version of the same theme.

Its FY26 operating profit rose 15.7% to $2,675 million, with operating earnings per security up 10.1% to 129.9 cents.

Data centres are now roughly $15.4 billion of work in progress, or 78% of the total.

The group controls a global power bank of 6.4 gigawatts across 16 cities, with management guiding to 9% operating earnings per security growth in FY27.

The AI shares that use the technology

Pro Medicus Ltd (ASX: PME) is not usually filed under artificial intelligence, but it probably should be.

Its Visage platform is where radiology algorithms have to run, and FY26 revenue grew 28.4% to $261.7 million on an underlying EBIT margin of 74.9%.

The company signed $407 million of new contracts across ten deals and retained 100% of renewals at higher fees.

Forward contracted revenue now stands at $1.34 billion over five years.

The stock’s valuation is the primary argument against it.

Pro Medicus trades on a price-to-earnings ratio of 72 at $176.42, and the shares have still fallen 40.99% over the past year.

That fall tells you how brutally the market punishes any wobble in a stock priced this way.

The simplest option of all

Global X Artificial Intelligence ETF (ASX: GXAI) solves the geography problem in a single trade, and is the fastest way to add AI shares exposure to an Australian portfolio.

The ETF tracks the Indxx Artificial Intelligence and Big Data Index across more than 100 companies, with Palantir Technologies Inc (NASDAQ: PLTR), Microsoft Corp (NASDAQ: MSFT) and Oracle Corporation (NYSE: ORCL) among its largest weights.

The ETF’s management fee is 0.57% a year, and the fund held roughly $271 million in assets as at 28 August 2026.

Foolish takeaway

I would not build a portfolio out of only one of these shares and ETFs.

NextDC gives you the cleanest exposure and carries the heaviest capital risk.

Goodman offers the same theme inside an ASX 200 business that actually pays a distribution.

Pro Medicus is the highest quality of the three and comfortably the most expensive.

For most investors, a global ETF alongside one or two local names is the best way to own AI shares while limiting downside risk.

The post Want to invest in AI shares? Here’s how to do it on the ASX appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $20,000 in ASX shares this spring
• The RBA could hike rates in September. Which ASX shares are most at risk?
• Buy, hold, sell: Boss Energy, Magellan, and NextDC shares
• Are these 3 top Betashares ETFs a buy in September?
• 5 ASX 200 shares with 33% to 61% upside post-results: experts

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 Goodman Group, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Goodman Group, Microsoft, Nvidia, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares have spent a decade winning the argument that they could yield more than cash. But that is no longer quite true.

Commonwealth Bank (ASX: CBA) is advertising a 12-month term deposit special of 5.15%, whilst Australia’s 10-year government bond yield reached around 5.19% on Tuesday, its highest level in 15 years.

The Reserve Bank has held the cash rate at 4.35% since May.

Suddenly, doing nothing pays something.

What cash actually pays right now

CommBank’s standard 12-month rate is 4.75%, with a 5.15% special offer available for a limited time.

Shorter terms pay considerably less, at 3.30% for three months and 3.45% for six.

In contrast, Betashares Australian High Interest Cash ETF (ASX: AAA) is the listed alternative.

The ETF holds nothing but deposits with banks, including National Australia Bank (ASX: NAB), Bank of Queensland (ASX: BOQ) and Rabobank, charges 0.18% a year, and currently offers a cash yield net of fees of 4.43%.

Income is paid monthly, and the fund holds roughly $4.9 billion.

The trade-off is a slightly lower rate in exchange for never locking your money away.

What ASX dividend shares pay after tax

This is where the comparison gets interesting.

Vanguard Australian Shares High Yield ETF (ASX: VHY) holds 92 companies led by the major banks and BHP.

Vanguard forecasts a yield of 4.2%, rising to 5.5% once franking credits are counted.

Units closed Monday at $85.61.

On the headline number, the term deposit wins comfortably.

A rate of 5.15% beats 4.2%, and it does so without any chance of losing your capital.

Franking is the thing that changes the maths.

Consider an investor on a 39% marginal rate including the Medicare levy.

The term deposit returns roughly 3.14% after tax.

VHY delivers about 3.36%, because franking credits offset most of the tax on the grossed-up income.

In pension phase, where those credits are fully refundable, VHY returns 5.5% against the term deposit’s 5.15%.

Why the margin is thinner than it looks

Two or three tenths of a percentage point is not much reward for taking equity risk.

A term deposit cannot fall in value, but VHY certainly can.

The fund is also heavily concentrated in banks and resources, which are the sectors most exposed to a rate rise.

ANZ Group Holdings Ltd (ASX: ANZ) now expects the Reserve Bank to lift the cash rate to 4.60% in November, and a higher cash rate would push term deposit offers higher again.

The real case for ASX dividend shares

Yield is the wrong reason to own ASX dividend shares at these rates.

Instead, growth is the right reason.

A term deposit pays 5.15% this year and an unknown number next year, but it will never pay you more than the rate you agreed to on the day you signed.

A dividend from a growing business rises over time, and the capital behind it can rise with it.

APA Group (ASX: APA) has now raised its distribution for 22 consecutive years, which no deposit product on earth can match.

Foolish takeaway

If you need the money within two years, take the term deposit.

The certainty is worth more than two tenths of a percentage point.

If you are investing for a decade or more, ASX dividend shares still make more sense, though for reasons that have nothing to do with beating cash this year.

The underlying truth is that cash has become a genuine competitor again.

The post Term deposits are paying more than ever. Are ASX dividend shares still worth it? appeared first on The Motley Fool Australia.

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• When to sell your ASX shares? Warren Buffett has 3 answers
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• How Westpac, ANZ, NAB and CBA shares stacked up in August
• Buy, hold, sell: Challenger, APA Group, Mesoblast 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 positions in and has recommended Apa 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.

Finding ASX shares capable of producing market-beating returns isn’t easy, particularly when valuations remain elevated. But some brokers see significant upside in these two growth companies over the next year.

Both Mesoblast Ltd (ASX: MSB) and Zip Co Ltd (ASX: ZIP) have faced different challenges, but analysts believe their growth prospects could translate into substantial share price gains.

Mesoblast: strong sales growth and a well-funded outlook

The clinical-stage biotech has had a sluggish start to 2026. Mesoblast shares currently trade at $2.34, down 14% year to date but still 10% higher than they were 12 months ago.

The weakness appears to reflect greater investor caution around clinical timelines, alongside some profit-taking following last year’s strong rally.

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. Some of its products are already in use, while other cell therapies are progressing through late-stage clinical trials.

Its Ryoncil product is gaining traction, while the company remains well funded. Brokers are also optimistic that sales can continue growing strongly in FY27.

TradingView data shows all five analysts covering the ASX shares rate them a strong buy. Their average price target of $4.08 implies potential upside of approximately 75%.

Bell Potter recently said Mesoblast’s latest results were broadly in line with expectations. The broker sees continued double-digit growth from Ryoncil, alongside major potential catalysts from Rexlemestrocel in heart failure and chronic lower back pain.

Bell Potter has a buy rating and a $4.45 price target, implying around 90% potential upside.

Zip: US as main attraction

Zip is a fintech providing buy now, pay later and digital payment services to consumers and merchants. Its rapidly expanding US business is the key attraction.

The US accounted for around two-thirds of Zip’s revenue in FY26, with total revenue increasing 24.7%. US revenue surged 37.3% in Australian dollar terms and 44.3% in US dollar terms, compared with just 4.6% growth in ANZ.

The US is also driving customer growth. Active US customers rose 9.3% to 4.65 million, while ANZ customers fell 8% to 1.88 million. For FY27, Zip expects US total transaction value to increase by more than 30%.

Importantly, profitability is growing faster than revenue. Cash gross profit increased 26.2% to $642.3 million, while cash operating profit jumped 57.9% to $268.9 million.

Analysts are particularly bullish. TradingView data shows all 13 analysts rate Zip a buy or strong buy. The average $4.52 price target suggests around 72% upside, while the most bullish target of $6.03 implies potential gains of roughly 130%.

UBS recently maintained its buy rating and $4.70 target, implying around 79% upside. Macquarie also has a buy rating, although its $3.50 target is considerably more conservative.

For investors hunting for ASX growth shares, both companies have significant potential, but that potential comes with materially higher risk than established blue-chip stocks.

The post Experts tip these $3 billion ASX shares to deliver over 75% returns appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Challenger, APA Group, Mesoblast shares
• Is it time to get greedy with Zip shares?
• Short sellers are targeting these ASX shares. Should you worry?
• These are the 10 most shorted ASX shares
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside

Motley Fool contributor Marc Van Dinther has positions in Mesoblast. 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.

Home values have now fallen for five months in a row, and the ASX is already feeling the impact.

Cotality’s national index dropped 0.9% in August, which leaves values 3.6% below their March peak.

REA Group Ltd (ASX: REA) shares fell 4.21% on Monday as the data landed, whereas Stockland Corp Ltd (ASX: SGP) climbed 2.29% on the same day.

Understanding that divergence will be key in determining how ASX investors should position themselves.

Why falling home values matter for ASX investors

The downturn has stopped being a Sydney story.

Ninety-three per cent of capital city suburbs recorded a decline over winter, and every capital except Darwin went backwards across the three months.

Sydney led the falls with a 1.4% drop in August and now lies 7.1% below its February peak.

Melbourne and Canberra each fell 1.1%, while Adelaide and Perth were down 0.8%.

Sales volumes are tracking 15.5% below the same period last year.

Cotality research director Tim Lawless summed up the change:

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

For investors, the core question is whether a company earns its money from prices, from volumes, or from the loans behind them.

REA Group has the most direct exposure

REA Group is paid by agents to list properties.

When sales volumes fall 15.5%, that quickly becomes a revenue problems.

REA shares closed Monday at $169.78 and are down 30.19% over the past twelve months.

FY26 was still a strong year for the business.

Revenue rose 7% to $1,793 million and net profit after tax climbed 15% to $650 million, with the operating EBITDA margin expanding three percentage points to 61%.

The company lifted its dividend 20% to $2.97 per share.

The catch is the outlook, where management expects national buy listings to be flat to down low single digits in FY27.

Stockland is building into weaker home values

Stockland sells new houses and land, which is a different business entirely.

The company’s FY26 result delivered funds from operations of $892 million, up 10.4%, with FFO per security rising 9.1% to 36.9 cents.

Masterplanned community settlements jumped 30% to 8,902 lots and land lease settlements rose 48% to 777 homes.

Gearing improved to 22.7% from 25.2%.

FY27 guidance is for FFO per security of 38.0 to 39.0 cents.

At around $4.46 the shares trade on a price-to-earnings ratio of 10.51 and yield 5.85%, having fallen 28.64% across the year.

Affordability improves as prices fall, which is precisely why a residential developer can rally on a weak housing print.

Commonwealth Bank owns the mortgages

Commonwealth Bank of Australia (ASX: CBA) is the largest mortgage lender in the country.

The company’s FY26 result produced cash net profit after tax of $10,982 million, up 7%, on a net interest margin of 2.05%.

Home loan arrears at 90 days or more were at 0.73%, and the loan impairment expense rose 9% to $788 million.

Chief executive Matt Comyn noted that housing activity had softened from a high base while application volumes appeared to have stabilised in recent weeks.

Falling home values do not create losses on their own. But they matter when borrowers cannot pay and the security is worth less than the loan.

Arrears of 0.73% are elevated and alarming, yet CBA still managed to return $5.05 per share fully franked to shareholders.

Foolish takeaway

The three companies are at very different points of the same cycle.

REA Group looks the most exposed, because listing volumes are already falling and the multiple still assumes growth.

Stockland arguably benefits, since cheaper land and better affordability feed straight into its development pipeline.

CBA sits somewhere in between, with a slower loan book but no real credit problem yet.

If home values keep sliding through spring, I would expect the gap between the three stocks to widen.

The post Home values just fell for a fifth straight month. Which ASX shares are most exposed? appeared first on The Motley Fool Australia.

More reading

• When to sell your ASX shares? Warren Buffett has 3 answers
• How Westpac, ANZ, NAB and CBA shares stacked up in August
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• The RBA could hike rates in September. Which ASX shares are most at risk?
• Are these 3 top Betashares ETFs a 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 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.

WiseTech shares delivered their best month in more than a year in August, with the stock closing Monday at $40.38.

That capped an 11% monthly gain.

It also leaves WiseTech Global Ltd (ASX: WTC) down 41% for the calendar year and 60% over twelve months.

A rebound of that size, after a fall of that size, deserves a careful look.

What actually happened to WiseTech shares in August

The month came in two distinct halves.

Across the first three weeks the shares surged 25%, reaching $45.47 on 25 August.

Then the FY26 result landed, and the rally lost its momentum, with the stock giving back around 11%.

Standing behind all of this was the Australian Competition and Consumer Commission executing a search warrant on the company on 19 August, which knocked roughly 10% off the shares in a single session.

The FY26 result was not the problem

The numbers themselves were quite good.

Total revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition, which contributed US$541.2 million on its own.

Underlying EBITDA climbed 56% to US$644.5 million and underlying net profit after tax rose 29% to US$313.5 million.

Free cash flow increased 43% to US$410.7 million, and the final fully franked dividend rose 14% to 8.8 US cents per share.

Reported EBITDA of US$558.4 million landed inside guidance but slightly below the US$569.5 million consensus, which is the immediate reason the shares fell.

Chief Executive Zubin Appoo framed the year around WiseTech’s ongoing transformation:

This was a transformational year for WiseTech. We acquired e2open to expand our offerings into adjacent markets, launched our new commercial model with more than 95% of CargoWise customers now on CargoWise Value Packs, and adopted AI across our own operations.

FY27 guidance is for revenue growth of 6% to 10%, reaching US$1.48 billion to US$1.54 billion.

Underlying EBITDA is forecast to grow 12% to 21%, with margins improving to between 49% and 51%.

That is a sharp deceleration from 79% revenue growth, and it is the reason the market hesitated.

What the brokers make of WiseTech shares

The spread of price targets is extraordinary.

Morgan Stanley has a buy rating and a $70 target, implying 73% upside from Monday’s close.

Morgans retained buy with $62.50, Bell Potter cut its target to $65, UBS trimmed to $56 while keeping a buy, and Citi lifted to $58.75.

Macquarie sits at $48.20, also with a buy.

At the other end, Jefferies downgraded to hold with a $45 target and JPMorgan has a hold rating with a $40 target.

The bull case and the bear case

The bull case is straightforward enough.

CargoWise remains the operating system for global freight forwarding and is used by the world’s largest forwarders, including Toll and DHL.

Cost programs delivered around US$115 million in annualised savings, and margins are guided higher again in FY27.

The bear case is equally clear.

An active ACCC investigation has no defined end date, the company has cycled through leadership and board changes, and the shares have fallen 60% in a year.

Foolish takeaway

WiseTech shares look cheap against almost every analyst target.

However, one good month does not resolve a regulatory investigation and all the ongoing risks surrounding the company.

I would want the ACCC matter clarified, or two consecutive results that meet guidance, before calling this a true turnaround.

Investors who already hold have a reasonable argument in the FY26 numbers to stay put.

For everyone else, the August rebound in WiseTech shares should be treated with a bit more caution.

The post WiseTech shares had their best month in a year. Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 5 things reporting season taught ASX investors about FY27
• WiseTech shares enjoy best month in over a year. More to come?
• 5 ASX 200 shares with 33% to 61% upside post-results: experts
• Morgans names 3 ASX tech stocks to buy
• Why I think Xero and WiseTech shares are strong buys

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

With earnings season in the rear view mirror, brokers are adjusting their outlooks for multiple ASX shares. 

This week, the team at Morgans have placed fresh buy ratings on three ASX shares. 

Here is what the broker had to say. 

Echo IQ Ltd (ASX: EIQ)

EchoIQ develops, markets and commercialises software, products and services. 

Its share price has rocketed over 500% in the last 12 months. 

Morgans said the FY26 annual report already reported its important FY26 figures during the year in its quarterly updates. The annual report didn’t contain a major surprise.

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

From current levels, this target indicates 40% upside. 

Qualitas Ltd (ASX: QAL)

Qualitas provides real estate management services.

Commenting on its recent results, Morgans said FY26 normalised NPBT was up 20% (vs pcp), 1% above Morgans’ forecast and in line with consensus.

More importantly, FY27 guidance for NPBT of $74m to $80m was above MorgansF and bracketing consensus – a modest beat. The FY26 result leant on performance fees while the recurring base management fee line was broadly in line. 

Operationally, QAL keeps benefiting from the retreat of retail and wholesale lenders (better terms and deal flow) and strong institutional demand for underlying funds, with a record $6.5bn deployed at a post-IPO high of 45.4% gross operating margin.

Based on this guidance, Morgans retained its buy recommendation and $3.90 price target. 

From current levels, this indicates over 32% upside. 

Peoplein Ltd (ASX: PPE)

Peoplein is a workforce solutions company operating in Australia and New Zealand.

The company released full-year results earlier this week. 

Morgans said FY26 saw the completion of its portfolio simplification, with two subscale divisions divested (c.35% of the business) and the ongoing operations returned to growth. 

Group Normalised EBITDA of $19.0m (+1.6% pcp) was in line with Morgans.

Debt continues to decline, with capital management centred on dividends/buybacks, along with incremental M&A. Second-half momentum was the feature, with 2H26 Normalised EBITDA up 19.0% on 2H25 and Engineering, Trades and Labour up 122.7%, as the Queensland infrastructure ramp began to convert. We retain our Speculative BUY with a revised A$1.00 target price.

This target indicates over 52% upside from current levels. 

The post 3 ASX shares with fresh buy ratings and big upside from Morgans appeared first on The Motley Fool Australia.

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

Mineral Resources Ltd (ASX: MIN) shares are back on the radar for passive-income investors.

The lithium miner declared a surprise return of shareholder dividends as part of its FY26 earnings announcement last month. The company last paid shareholders an interim payment back in March 2024.

Mineral Resources posted its strongest financial results in its 20-year history in August. The company said the improvement was driven by Mining Services growth, the ramp-up of its Onslow Iron, and improved lithium performance and prices.

The miner’s annual performance saw its finances return to profit after a difficult FY25, helped by stronger operating performance across the business in FY26. Mineral Resources revenue jumped 44% and underlying EBITDA surged 183%. Meanwhile, underlying NPAT came in at $822 million, versus a $112 million loss a year earlier.

The news puts the miner’s shares firmly back in the spotlight.

But what exactly would it take to earn the passive income you want from Mineral Resources shares?

Let’s investigate, using a $500 monthly passive income as an example.

What passive income does Mineral Resources pay its shareholders?

Mineral Resources has declared a fully-franked final dividend of 83 cents per share for FY26. This represents a 20% payout of underlying NPAT and was much higher than the market expected.

At the Mineral Resources share price of $64.20 at the time of writing, the dividend translates to a yield of around 1.3% before franking credits.

Mineral Resources shares are scheduled to trade ex-dividend on 8 September, with the record date falling on 9 September.

The company will then pay the dividend on 30 September.

So, how many Mineral Resources shares do I need to own to generate $500 per month of passive income?

Using the FY26 total dividend payment of 83 cents per share, investors would need to own around 7,229 Mineral Resources shares in order to earn $500 per month (equivalent to $6,000 per year) in passive income.

What would that cost me?

Using the $64.20 share price at the time of writing, investors would need to invest roughly $464,101 into Mineral Resources shares in order to earn $500 per month in passive income in FY26.

It’s not a small amount, but it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

Could the Mineral Resources dividend payout keep climbing higher in FY27 and beyond?

Mineral Resources said the reinstated dividend reflects the company’s confidence that its balance sheet is healthy and that it is generating cash to sustain returns through the cycle.

Management expects volumes to continue growing across its mining services business, as well as iron ore, lithium, and other commodities in FY27.

If that growth comes to fruition and the company’s debt continues to fall, management could be in a strong position to reward shareholders with higher dividends going forward.

The post How many Mineral Resources shares do I need to buy for $500 per month of passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

These two very different companies have brokers excited, with Macquarie and Morgans recently releasing research notes with bullish share prices on each.

Let’s see who they like

Alpha HPA Ltd (ASX: A4N)

Alpha HPA is commercialising a process to manufacture ultra-high purity aluminium for use in high-tech applications.

Stage one of the company’s operations has been operational since late 2022, with the output being used for customer qualification, product validation and process optimisation.

A second stage is under construction, with first production expected for late 2027, and annual production targeted at 10,000 tonnes per year.

The company said in its recent annual report:

Using its proprietary Smart SX Technology, Alpha HPA has pioneered the world’s first application of solvent extraction to aluminium purification, enabling the production of a growing portfolio of ultra-high purity alumina, aluminium nitrate, aluminium hydroxide and synthetic sapphire material. The Company’s products are supplied to global markets including advanced semiconductors, Direct Lithium Extraction (DLE), lithium-ion batteries, pharmaceutical, LED lighting and synthetic sapphire, where exceptional purity and performance are critical.

Macquarie said in its research note that the company’s net loss of $42.7 million for FY26 was ahead of their estimates due to better stage one operating performance and higher grant income.

The broker said data centre construction was driving HPA demand in the semiconductor sector, and Alpha HPA was well-placed to take advantage of this.

Macquarie added:

Alpha is a compelling opportunity for long-term investors giving exposure to the AI theme along with attractive financial metrics at full ramp-up.

The broker has a share price target of $1 on Alpha HPA shares compared to 59.5 cents currently.

ReadyTech Holdings Ltd (ASX: RDY)

This company is a software as a service provider of cloud and AI software used in the education, workforce, government and justice sectors.

The company reported full year revenue of $125 million, at the lower end of revised guidance of $125-$127 million, with underlying EBITDA coming in at $35 million.

The company’s Chief Executive Officer Marc Washbourne said of the result:

FY26 was a year in which we strengthened the foundations for growth, transformed for an AI world and took decisive action on cost and capital allocation. Our result finished within revised guidance, with cash margin reaching what we believe is a low point. Our flagship products continue to compound. That was offset by elevated churn in parts of the mature portfolio, and enterprise customers where contracts are signed but subscription revenue is yet to commence as implementations progress.

The company is guiding to improved revenue of $128-$132 million this financial year.

Broker Morgans said the company was well-placed with its investment cycle having largely peaked.

They added:

Despite having seen more protracted implementation/sales cycles and churn in recent times, we still see RDY in a solid position to deliver growth over coming years as customers seek to modernise their enterprise software and convert from legacy systems. We have a speculative buy rating on the stock.

Morgans has a price target of $2.25 on ReadyTech compared to $1.51 currently.

The post 2 ASX shares tipped by brokers to return 49% to 68% appeared first on The Motley Fool Australia.

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

Warren Buffett is famous for buying great businesses and holding them for years, sometimes decades. But “buy and hold” doesn’t mean “buy and never sell” your ASX shares.

Buffett has demonstrated that investors should be prepared to change their minds when the facts change. For ASX investors, there are three particularly important reasons to consider selling.

Something better comes along

One of Buffett’s most useful ideas is opportunity cost.

You don’t necessarily need to think a company is bad to sell it. If you own a decent business but another high-quality blue chip offers substantially better growth prospects, stronger economics or a much more attractive valuation, switching can make sense.

Buffett has done exactly this over the years, exiting businesses when he concluded his capital could be deployed more effectively elsewhere.

The same principle applies to ASX shares. If you own a mature company growing earnings at 4% a year on an expensive valuation, while another excellent business offers significantly better prospects at a similar price, it may be time to reconsider where your money is working hardest.

The economics or business proposition changes

This is arguably the most important reason to sell one of your ASX shares. Buffett doesn’t fall in love with a stock ticker. He focuses on the underlying business.

If the competitive advantage disappears, management changes direction, industry economics deteriorate or the company’s prospects are fundamentally different from when you bought it, the original investment thesis may no longer apply.

ASX investors have plenty to consider right now. Banks, for example, remain some of Australia’s most important companies, but changing mortgage demand, competition and interest-rate expectations can alter the earnings outlook of say Commonwealth Bank of Australia (ASX: CBA).

Energy companies like Woodside Energy Group Ltd (ASX: WDS) provide another example. A company can dramatically change its strategy as commodity prices, capital requirements or the global energy landscape shifts.

The lesson is simple: don’t hold a share just because you once loved the story.

When your position size becomes too big

Sometimes the company hasn’t done anything wrong — you’ve simply won too much.

Imagine buying an ASX share that doubles or triples and suddenly represents 35% of your portfolio. The business may still be fantastic, but your portfolio is now heavily dependent on one company.

Buffett has allowed Berkshire Hathaway’s biggest investments to become enormous, but individual investors don’t have Berkshire’s capital base, diversification or financial resources.

Taking some profits from a runaway winner can therefore be sensible risk management. Remember, you can sell a portion without abandoning the investment altogether.

Foolish Takeaway

The Buffett approach isn’t really “never sell”. It’s “know why you own something”.

If a better opportunity emerges, the business proposition changes, or one holding becomes too dominant, selling your ASX shares can be just as rational as buying them in the first place.

The post When to sell your ASX shares? Warren Buffett has 3 answers appeared first on The Motley Fool Australia.

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