Author: openjargon

When investors think about artificial intelligence (AI), they usually go straight to technology shares.

That makes sense. Software companies, chipmakers, data centres, and cloud platforms are the obvious beneficiaries.

But I think there is another group of companies worth watching: large businesses that already have customers, data, scale, and the ability to use AI to improve how they operate.

One ASX blue chip I think fits that description is Wesfarmers Ltd (ASX: WES).

A different kind of AI opportunity

Wesfarmers is not an AI stock in the usual sense.

It is best known for Bunnings, Kmart, Officeworks, Priceline, and its industrial and chemicals operations. That makes it look more like a retail and industrial conglomerate than a technology play.

But I think that is what makes the opportunity interesting.

Wesfarmers has millions of customer interactions across its businesses. It has large store networks, major supply chains, digital platforms, loyalty programs, pricing systems, and inventory decisions being made every day.

That gives it plenty of places where AI and data can potentially make a difference.

This is not about replacing the core business. It is about making strong businesses even better.

OpenAI deal

Late last year, Wesfarmers entered into a partnership with OpenAI to make ChatGPT Enterprise available across the group, along with customised training programs.

Wesfarmers’ Managing Director Rob Scott said:

We continue to increase the use of AI across the Group, in areas such as demand forecasting, product design, customer service and experience, marketing effectiveness and conversational commerce.

By working with OpenAI, we can continue leveraging technology to enable growth and support productivity. We believe Australian businesses should adopt AI-driven solutions to remain globally competitive and this collaboration provides our team members with another tool and further training to take advantage of this transformative technology.

Small improvements can matter

In a company like Wesfarmers, I do not think AI needs to create a brand-new business to be valuable.

Small improvements across a large base can add up.

If Bunnings can forecast demand more accurately, manage stock better, improve online search, or help team members answer customer questions faster, that can support sales and efficiency.

If Kmart can use data to improve ranging, pricing, supply chain planning, and product availability, that can reinforce its value proposition.

If Officeworks can make its digital experience more useful for households, students, and small businesses, that could help defend its market position.

None of these ideas sounds as exciting as a new AI chatbot or chip design. But in my opinion, they may be more practical and easier to monetise.

Why I would buy it

Wesfarmers shares are rarely the cheapest on the ASX.

But I think that is partly because the market understands the quality of the group.

For long-term investors, I believe the appeal is its ability to keep adapting. Wesfarmers has shown over many years that it can manage capital well, improve businesses, and invest in new opportunities when they make sense.

That is why I think it could be a quiet AI winner.

It has the data, scale, brands, and management discipline to use technology in ways that actually improve the business.

Foolish Takeaway

I would not buy Wesfarmers because it is suddenly an AI stock.

I would buy it because it is a high-quality ASX 200 blue-chip share that may have more technology upside than the market gives it credit for.

The best AI opportunities may not all come from companies selling the tools. Some may come from businesses that use those tools well.

The post Why this ASX 200 blue-chip share could be an AI winner appeared first on The Motley Fool Australia.

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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.

Shares in Asara Resources Ltd (ASX: AS1) have jumped more than 10% on Friday after the company announced it had raised $60 million to fast-track exploration drilling.

Cashed up to explore

While shares typically fall on news of a capital raise, Asara shares were 11.5% higher in early trade at 14.5 cents, despite the new raise being conducted at 12.5 cents.

It’s a substantial amount of new equity for the company, which is valued at $208.8 million.

Asara said in its statement to the ASX that the raise had enjoyed strong demand from existing and new tier-1 international and domestic institutional investors.

The money will be used for an accelerated exploration program at the company’s flagship Kada gold project in Guinea.

Asara Managing Director Matthew Sharples said:

We are delighted with the outstanding outcome of the Placement, which was supported by overwhelming demand and resulted in the introduction of a number of high-calibre institutional investors to our share register. This Placement significantly strengthens our shareholder base with long-term, supportive investors and provides a strong financial platform from which Asara can aggressively fast-track exploration at Kada toward development and production readiness. Importantly, the funding will also support expansion of our land position and broader exploration footprint as we work to grow the Kada project into a Tier 1 gold development asset.  

Shareholder approval will be required for $10 million of the raise.

The company said in its statement that the funds would be used for resource definition drilling to increase the current 923,000-ounce gold resource at Kada.

Funds would also be used for regional drilling, mine design, geotechnical drilling, and reconnaissance exploration to identify satellite deposits.

Building on success

Asara also announced in recent days good drilling results from the Massan deposit within the Kada project.

Mr Sharples said re those results:

These initial results from drilling the newly interpreted Southern High-Grade Extension are extremely encouraging and confirm the potential of this zone as a significant high-grade extension of the Massan Core. Intercepts such as 5m @ 31g/t Au, including 1m @ 155g/t Au in MSRC26-041, and 6m @ 4.5g/t Au, including 2m @ 12.6g/t Au in MSRC26-045, highlight the strength and continuity of mineralisation across the extension. Importantly, this Southern High-Grade Extension links directly with the recently discovered Northeast High-Grade Extension, where we continue to see consistent high-grade results.

Aara shares have traded as low as 3.7 cents over the past year and as high as 16.5 cents.

The post Why are shares in this junior ASX gold explorer charging higher today? 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 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.

REA Group Ltd (ASX: REA) shares are pushing higher on Friday after the property listings giant released its third-quarter update.

At the time of writing, the REA share price is up 2.37% to $178.61.

The gain comes despite a weaker session for the broader market, with the S&P/ASX 200 Index (ASX: XJO) down 1.2% to 8,767 points. This follows reports of Iranian attacks on 3 US destroyers in the Strait of Hormuz overnight.

REA shares have now gained around 12% over the past month, although the stock is still down about 28% over the past year.

Let’s take a closer look at the release.

The numbers behind today’s move

In a statement to the ASX, REA reported revenue from core operations of $398 million for the 3 months ended 31 March, up 11% on the prior corresponding period. After adjusting for mergers and acquisitions, revenue was up 6%.

The earnings line also looked solid. EBITDA excluding associates rose 11% to $220 million, while operating expenses increased 5% to $178 million.

That is probably helping the share price today. The stock has been sold down hard over the past year, but the business is still growing revenue and earnings.

Across the first 9 months of FY26, REA reported revenue of $1.31 billion, up 5%. EBITDA excluding associates increased 7% to $789 million.

Australian property listings are doing the work

The Australian business did most of the heavy lifting during the quarter.

Australian revenue rose 12% in the quarter, helped by stronger yield growth and a small lift in national buy listings. Residential revenue also increased 12%, supported by higher prices, add-on products, subscriptions, and a better mix of listings.

National buy listings were up 1% for the quarter. Sydney rose 4%, while Melbourne was up 7%.

REA also pointed to record audiences across realestate.com.au. The platform reached an average of 12.9 million people a month during the quarter, including 6.3 million people who used it exclusively.

Costs and April listings help sentiment

Another reason investors may be feeling better is the cost outlook.

REA lowered its FY26 cost growth guidance, with group operating costs now expected to rise in the low to mid-single digits. Australian operating costs are expected to grow in the mid to high single digits.

The company still expects national residential buy listings to fall by 1% to 3% across FY26. But April was much stronger, with listings up 20% in Melbourne and 25% in Sydney.

Foolish Takeaway

After reporting a decent quarterly update, I can see why REA shares are finding buyers today.

The share price has had a rough year, but the company is still putting up growth in revenue, earnings, and audience numbers. The lower cost guidance also helps quite a bit.

I wouldn’t call the stock cheap after today’s bounce. But if listings keep improving, I’d be taking another look.

The post REA shares rise as investors look past a rough year appeared first on The Motley Fool Australia.

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

S&P/ASX 200 Index (ASX: XJO) uranium stock NexGen Energy Ltd (ASX: NXG) is sliding today.

NexGen shares closed yesterday trading for $17.66. In early morning trade on Friday, shares are swapping hands for $17.10 apiece, down 3.1%.

For some context, the ASX 200 is down 1.1% at this same time.

Taking a step back, shares in the ASX 200 uranium stock remain up an impressive 86.5% over the past 12 months, smashing the 7.3% one-year gains posted by the benchmark index.

Here’s what investors are tuning into today.

ASX 200 uranium stock slips despite strong drill intercepts

NexGen shares are slipping despite the company reporting on a promising final batch of assay results from its 2025 drill campaign.

The ASX 200 uranium stock said the results from its Patterson Corridor East (PCE) discovery near the proven Arrow Deposit and within NexGen’s broader Rook I project in Canada highlight the “expansion and continuity of the high-grade subdomain” at PCE.

Among the top results, one drill hole returned 13.0 metres at 5.2% uranium concentrate (U3O8), including 0.5 metres at 30.2% uranium concentrate at 400 metres below surface.

NexGen also highlighted a second drill hole, which returned 10.0 metres at 3.95% uranium concentrate, including 0.5 metres at 33.3% uranium concentrate at 670 metres below surface.

The company said the strong results indicate the potential extension of mineralisation at depth, where the system is open. The miner added that the assays have also now confirmed a new secondary high-grade subdomain at the project.

What did NexGen management say?

Commenting on the drill results that have yet to lift the ASX 200 uranium stock today, NexGen founder and CEO Leigh Curyer said, “These assay results from 2025 drilling confirm high-grade mineralisation and the expanding scale of PCE.”

Curyer added:

The combination of high-grades, continuity, scale and geotechnical characteristics continue to highlight the similarities between PCE and the mighty Arrow Deposit. The opening up of a new high-grade subdomain emphasises significant growth potential remains at PCE.

As for the broader uranium market, Curyer noted:

With the structural supply deficit in the market widening, and the impacts of the industry wide underinvestment in the uranium supply chain for a generation, the urgency of finding and bringing online new, reliable uranium supply has never been greater.

Looking to what’s ahead for NexGen, Curyer concluded:

As the Rook I Project enters into major construction this summer, we continue to advance PCE to ensure that NexGen optimises its unparalleled opportunity to become one of the world’s most important mining company in delivering energy fuel for the current and future generations.

The post Up 87% in a year, ASX 200 uranium stock drills into high-grade uranium appeared first on The Motley Fool Australia.

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

News Corporation (ASX: NWS) shares are looking like a good buy according to UBS, following a strong third-quarter result.

Revenues up across the board

The media company said in a statement to the ASX on Friday that revenues for the quarter were up 9% to US$2.19 billion, while net income was US$121 million, up 13%.

The company posted strong results across the board, however, a standout was News’ stake in realestate.com.au owner REA Group Ltd (ASX: REA), which grew revenues 20% to US$325 million.

News Corp Chief Executive Officer Robert Thomson said the company was on track for a strong full-year result.

News Corp has again delivered resounding results this quarter, and we remain on track for another year of record profitability given the strength seen thus far in the fourth quarter. The third quarter was compelling evidence of the transformation of our business, and demonstrated the robustness of our core growth engines, which we expect will propel us towards a strong fiscal finish. Given our firm belief that the current share price does not reflect the intrinsic value of the company or its prospects, we have continued to execute our enhanced buyback program at an accelerated rate.

Mr Thomson said the company was well-placed with regard to the challenge of artificial intelligence (AI), and had been proactive on that front.

He added:

We are an AI inputs company and that fact was reflected in our recent deal with Meta, which complements our partnership with OpenAI. We are in discussions with other companies who recognize the preciousness of provenance, and these potential deals should have a positive impact on our revenue and profitability. We are also tracking a number of dodgy digital firms scraping illicitly, illegally our precious content and shamelessly reselling this purloined property. We have these baleful bad-boy bots in our sights and intend to pursue them vigorously. And we believe companies that willingly buy this stolen content from these nefarious fences are also culpable.

Breaking the result down by division, Dow Jones grew revenue 8%, digital real estate services 17%, book publishing 8%, and news media 5%.

Shares looking cheap

UBS said in a note to clients on Friday morning that overall, it was a strong third-quarter result, with the company beating expectations on revenue across all segments, “with Risk and Energy continuing to be the main drivers of growth and likely benefiting from recent geopolitical conflicts”.

UBS has a price target of $56 on News Corp shares compared with $42.90 currently, up 1.9% on the day.

The post What’s the UBS call on News Corp shares after a strong quarterly result? 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 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.

Macquarie Group Ltd (ASX: MQG) shares are edging lower on Friday morning.

In morning trade, the investment bank’s shares are down slightly to $241.29.

This follows the release of the company’s full-year results before the market open, with broad market weakness appearing to offset the strong result.

Macquarie shares slip on results day

Macquarie’s shares are slipping despite delivering a sizeable lift in profit and a record second-half performance.

According to the release, Macquarie reported net profit after tax attributable to ordinary shareholders of $4.85 billion for FY 2026. This is up 30% on FY 2025.

The second half was particularly strong, with net profit of $3.19 billion. This was a record half-year result and represented a 93% increase on the first half.

Earnings per share rose 30% to $12.77, while return on equity improved to 14%, compared with 11.2% in FY 2025.

Divisional performance

The standout division was Commodities and Global Markets, which delivered a net profit contribution of $4.22 billion. This is up 49% on FY 2025.

This reflected a much higher contribution from Asset Finance following the gain on sale from the OnStream meters platform, as well as stronger commodities income.

Macquarie Asset Management also performed well, with its net profit contribution rising 27% to $2.6 billion. This was driven by higher performance fees.

The Banking and Financial Services division delivered a 17% increase in net profit contribution to $1.61 billion. This was supported by growth in its loan portfolio and deposits.

Finally, the Macquarie Capital division recorded strong growth, with net profit contribution up 43% to $1.49 billion. This reflects higher income from equity investments, M&A fees, brokerage, and the private credit portfolio.

Commenting on the year, Macquarie’s managing director and CEO, Shemara Wikramanayake, said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.

Macquarie dividend

Income investors may also be pleased with the company’s dividend update.

Macquarie declared a final ordinary dividend of $4.20 per share, 35% franked.

This takes the total FY 2026 dividends to $7.00 per share, also 35% franked, representing a full-year payout ratio of 55%.

Outlook

Macquarie said it continues to maintain a cautious stance, with a conservative approach to capital, funding, and liquidity.

However, Wikramanayake believes the group remains well positioned over the medium term due to its diverse income streams, strong balance sheet, and exposure to structural growth opportunities. She said:

Macquarie remains well-positioned to deliver superior performance in the medium term with established, diverse income streams; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.

The post Macquarie shares slip despite FY26 profit jump appeared first on The Motley Fool Australia.

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

Block Inc (ASX: XYZ) shares are pushing higher on Friday morning.

At the time of writing, the Cash App and Square owner’s shares are up over 6% to $104.87.

What is lifting Block shares today?

Investors have been fighting to get hold of the payments company’s shares following the release of a strong quarterly result.

According to the release, Block delivered gross profit of US$2.91 billion for the first quarter of 2026. This was up 27% year on year.

This was driven by strong growth across Cash App and Square, with Cash App gross profit up 38% to US$1.91 billion and Square gross profit up 9% to US$982 million.

Growing at a strong rate was its reported adjusted operating income. It came in at US$728 million for the quarter, representing a margin of 25%. This was a record result for the company and up 56% on the prior corresponding period.

Adjusted EBITDA also reached a record US$1.01 billion, while adjusted diluted earnings per share increased 52% year on year to US$0.85.

Cash App continues to grow

Cash App was a major driver of the result.

Its gross profit increased 38% year on year, supported by strong growth in Cash App Borrow, Afterpay buy now pay later products, and Cash App Card.

Cash App consumer lending origination volume surged 82% year on year to US$17.6 billion, while Primary Banking Actives increased 18% to 9.7 million in March.

Square momentum improves

The Square business also delivered an improved performance.

Square gross payment volume (GPV) increased 13% year on year to US$61.2 billion, with international GPV up 35%.

Management said growth was supported by strong new seller acquisition, field sales investments, and momentum among larger merchants.

Outlook

Commenting on the quarter and its outlook, Block’s CEO, Jack Dorsey, said:

We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers. We exceeded our guidance across gross profit, Adjusted Operating Income, and Adjusted EPS. We are raising our full year outlook and now expect gross profit growth of 19% in 2026, along with margin expansion and Adjusted Diluted EPS growth of 62%.

Speaking about the use of AI at Block, Dorsey adds:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers. We are building tools that absorb complexity for people rather than just helping them manage it. That is the shift we believe few companies are ready to deliver. We are.

The post Afterpay and Square owner Block shares jump 6% on strong results appeared first on The Motley Fool Australia.

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

Light & Wonder Inc. (ASX: LNW) shares have been having a tough time recently.

So much so, the ASX 200 share is down almost 35% since the start of the year.

Is this a buying opportunity? Let’s see what analysts at Bell Potter are saying about the gaming technology company.

What is the broker saying?

Bell Potter highlights that the ASX 200 share released its first-quarter update, which was a touch weaker than expected. This was due to soft international shipments and SciPlay revenue. It said:

LNW reported AEBITDA -1% and -3% below BPe and VA consensus, respectively. Profit & loss: LNW reported +2% YoY revenue growth (incl. inorganic) to US$790m below BPe of US$811m and consensus of US$827m, driven by +3% YoY growth in Gaming (BPe +9%), -7% YoY decline in SciPlay (BPe -7%) and +18% YoY growth in iGaming (BPe +8%).

The AEBITDA miss to consensus was driven primarily by weaker than expected International shipments and SciPlay revenue.

In response, the broker has trimmed its earnings estimates for the near term. It adds:

EPS changes: -2%/-1%/0% over CY26/27/28e primarily reflecting: lower international shipments, SciPlay revenue, Nth. Am. non-premium install base growth partially offset by higher Fee per Day (FPD), Gaming margins and buybacks.

Should you buy this ASX 200 share?

While Bell Potter acknowledges that Light & Wonder delivered a disappointing update, it remains positive on the investment opportunity here.

According to the note, the broker has retained its buy rating on its shares with a reduced price target of $190.00 (from $220.00).

Based on its current share price of $102.66, this implies potential upside of 85% for investors over the next 12 months.

As mentioned above, Bell Potter thinks Light & Wonder has had a poor start to the year. But it believes this is largely a one-off and expects a stronger performance in the coming quarters. It said:

1Q26 represents a poor start to the year, however, we note that International shipments, the primary driver for the miss, is typically lumpy QoQ. We believe the decline in GO base install reflects a one-off occurrence that should benefit future quarters.

Notwithstanding the continued disappointment in SciPlay revenue growth, which we now forecast flat YoY for FY26, we continue to believe improving game performance will support BPe and consensus forecasts across CY26-28e. We lower TP on higher RFR and retain Buy. LNW trades on a compelling 9x CY26 EBITA.

The post Down 35%: Is this ASX 200 share a strong buy now? appeared first on The Motley Fool Australia.

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

Smartgroup Corporation Ltd (ASX: SIQ) could be an ASX 300 share to buy.

That’s the view of analysts at Bell Potter, who are recommending the salary packaging company’s shares to clients this week.

What is the broker saying?

Bell Potter notes that a trading update reveals that new vehicle order trends have improved, which bodes well for the ASX 300 share. It said:

New vehicle order growth has accelerated for the first time since the introduction of the Electric Car Discount Policy. SIQ reaffirmed mid-40s EBITDA margin guidance, delivering 1Q26 settlements which grew +7% on the pcp and orders +22%. This follows gradual convergence. While the revenue run-rate was unchanged, backlogs are re-emerging to support future periods. We see good potential as delivery times improve further. We had been cautious about the impact from sunsetting exemptions (plug-in electric hybrids). However, SIQ absorbed this, and we upgrade settlements.

In light of this, the broker believes that Smartgroup’s outlook is now in better shape. It adds:

The trading update featured firmer outlook language. Last year the run-rates had modest improvement and management were cautious but optimistic. Looking ahead, operating conditions remain favourable, with positive demand drivers. SIQ highlighted that 80% of battery electric vehicle orders are less than $75k; 88% below $80k. Under proposed policy changes (effective 1 April 2027), the full tax exemption would remain available for battery electric vehicles priced under $75k.

We view this de-risking the outlook of further dampening demand. Supply timeframes on average reduced from 31-24 days. This marks normalisation back to pre-covid conversion rates. Most of the improvement has been driven by internal combustion engines. Turnaround times for both traditional and battery electric vehicles now stands at around 24 days. Required expenses are unchanged with guidance for $11-13m intangible purchases.

ASX 300 share upgraded

According to the note, Bell Potter has upgraded Smartgroup’s shares to a buy rating with an $11.50 price target (from $9.30).

Based on its current share price of $10.19, this implies potential upside of 13% for investors over the next 12 months.

In addition, the broker is expecting the company to provide a generous dividend yield of 5.8%. This lifts the total potential return to almost 19%.

Commenting on its upgrade, Bell Potter said:

We upgrade our recommendation to Buy, reflecting +8%/+9%/+10% EPS upgrades. SIQ has performed well, lifting install base growth, with modest penetration. Renewed vehicle orders and pipeline revenue turn us positive. Our revised target price equates to 15x blended earnings, similar to the environment in which leasing demand took off.

The post Upgrade! Which ASX 300 share is Bell Potter recommending to clients this week? appeared first on The Motley Fool Australia.

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

The Alcoa Corporation CDI (ASX: AAI) share price is in focus after the company declared a quarterly unfranked dividend of US$0.10 per CHESS Depositary Interest (CDI) for the period ended 31 March 2026.

What did Alcoa report?

• Quarterly dividend of US$0.10 per CDI declared
• Dividend is 100% unfranked
• Ex-dividend date: 18 May 2026
• Record date: 19 May 2026
• Payment due on 5 June 2026
• Default non-resident withholding tax rate: 30%

What else do investors need to know?

Alcoa CDI holders can receive their dividend payment in Australian dollars as the default, or elect to receive payment in US dollars, New Zealand dollars, or British pounds by providing up-to-date banking details. Holders have until 5pm AEST on 19 May 2026 to update or confirm their preferred payment method.

For CDI holders who don’t register valid payment instructions or don’t reside in Australia, New Zealand, the UK, or the US, the payment may be withheld (without interest) until those details are provided, or paid by cheque in Australian dollars for overseas holders. Non-residents should be aware that a 30% US withholding tax applies by default, unless eligible for tax treaty benefits and the correct forms are submitted before the record date.

What’s next for Alcoa?

Alcoa’s consistent dividend payments highlight its ongoing focus on shareholder returns. Investors should watch for any currency conversion updates on 1 June 2026, as well as consider updating tax and banking details to ensure timely payment.

Looking ahead, the company’s next scheduled dividend update will likely reflect any operational or commodity market changes impacting Alcoa’s ongoing capital management strategy.

Alcoa share price snapshot

Over the past 12 months, Alcoa shares have risen 125%, strongly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Alcoa announces June 2026 dividend appeared first on The Motley Fool Australia.

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