Author: openjargon

ASX mining shares finished strongly in August, driven by stronger commodity prices and robust FY26 earnings. Among some of the biggest names are South32 Ltd (ASX: S32), Mineral Resources Ltd (ASX: MIN) and BHP Group Ltd (ASX: BHP).

Let’s take a look at how the mining giants are tracking today. And what brokers tip for the next 12 months.

Buy South32 shares

The ASX miner announced a substantial jump in its ore reserve estimate at its Sierra Gorda mine in late-August. The increase comes after significant drilling to define the orebody, providing more certainty over future production. The update extends the mine’s reserve life by another five years, to 2045.

The company also posted a robust FY26 financial results last week. The miner posted a 1% increase in revenue from continuing operations, a 28% increase in EBITDA, and a 55% increase in underlying earnings.

At the time of writing, the shares are flat for the day at $5.16 a piece. South32 shares are now up around 45% for the year to date and are 89% higher than 12 months ago.

Going forward, brokers are positive about the outlook for the stock. Market Index data shows the majority have a buy rating but after a recent rally, the $5.09 average target price now implies a downside of around 1%.

Buy Mineral Resources shares

The lithium miner posted its strongest-ever annual results last week. Mineral Resources reported a 44% year-on-year increase in revenue, an 183% increase in underlying EBITDA, an 831% increase in underlying NPAT, and a 236% increase in reported NPAT for FY26.

Management also announced it would bring back shareholder dividends. For FY26, the miner will pay a fully-franked dividend of 83 cents per share.

Mineral Resources said its record performance was driven by growth in the company’s Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in its lithium operations.

At the time of writing, the lithium miner’s shares are up around 0.5% for the day and are changing hands at $64.79 a piece. For the year-to-date the shares are now 17% higher, and they’re a huge 76% above trading levels seen this time last year.

Going forward, it looks like analysts are positive about the shares. But after a strong rally this year we could be reaching around fair value. Market Index data shows the majority have a buy rating on Mineral Resources shares, and the $65.36 average target price implies a potential 1% upside ahead.

Hold BHP shares

BHP started trending higher in early August as the market grew more bullish on copper prices.

But the share price picked up pace after the miner reported its record FY26 earnings results on the 18th of August. The mining giant posted a strong operational performance across all its key segments. It also announced an impressive 27% increase in its underlying EBITDA. 

Investors were clearly thrilled with the update and many rushed to snap up a stake in the mining company.

At the time of writing, BHP shares are up largely flat for the day so far, and are changing hands for $66.20 a piece.

But it looks like the experts are now concerned that the ASX mining shares have now passed their peak. Market Index data shows the majority have a hold rating on BHP shares. The $61.78 average target price now implies a potential downside of around 7%, at the time of writing.

The post Buy, hold, sell: South32, Mineral Resources, BHP shares appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy in September 2026
• Want to bank the boosted BHP dividend? You’d better hurry!
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• BHP shares are pulling back from a record high. What now for ASX investors?
• Are these 3 top Betashares ETFs a buy in September?

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

Spring has arrived, which can be a good excuse to take another look at a portfolio and consider what might be worth adding.

If I had $20,000 ready to invest today, I would put it behind three businesses I think have plenty of room to grow over the years ahead.

Here’s what I would buy.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would probably receive the largest portion of my money.

Its Visage software is already used by some of the largest healthcare systems in the US, yet the company estimates it still has only around 11% of that market.

I think that is a powerful combination. Pro Medicus has proved its technology can handle the demands of major hospital networks, while most of the potential US market remains available.

The opportunity is also expanding beyond radiology. Cardiology and enterprise imaging could allow Visage to handle more of the medical images produced across a healthcare organisation. Artificial intelligence may create further opportunities as hospitals look for faster and better ways to work with growing volumes of imaging data.

Over a long timeframe, I think Pro Medicus can win many more customers while becoming increasingly valuable to those it already serves.

James Hardie Industries plc (ASX: JHX)

James Hardie gives me exposure to a very different type of long-term opportunity.

This ASX share is best known for fibre cement building products, particularly in North America, where its products are used across housing construction and renovation.

What interests me is the amount of existing housing that will need to be repaired, renovated, or upgraded over the coming decades.

Homeowners do not need a housing boom for that spending to happen. Ageing properties eventually need work, and James Hardie’s products can benefit when owners replace siding or invest in improving their homes.

The company’s acquisition of AZEK also expands its presence across outdoor living products such as decking and railing. I think that gives James Hardie more ways to participate when homeowners spend money improving the outside of their properties.

Sigma Healthcare Ltd (ASX: SIG)

My final investment would go into Sigma Healthcare.

Following its merger with Chemist Warehouse, investors now have exposure to one of Australia’s best-known pharmacy and retail businesses.

I think the next stage of the story could increasingly happen overseas. Chemist Warehouse already has a growing presence in New Zealand and has started testing the UK market. If its value-focused retail model travels successfully, the addressable opportunity becomes far larger than Australia alone.

There is still room to grow domestically through stores, online sales, pharmacy services, and the wider distribution business.

I think Sigma now has several avenues to become a much larger healthcare and retail company over time.

Foolish takeaway

With $20,000 to invest this spring, I would be comfortable putting the entire amount to work across these three ASX shares.

Most importantly, I would be buying with several years in mind and giving each business time to pursue the opportunities already in front of it.

The post Where I’d invest $20,000 in ASX shares this spring appeared first on The Motley Fool Australia.

More reading

• How much could the Pro Medicus share price rise in the next year?
• Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60%
• Top brokers name 3 ASX shares to buy next week
• ASX 200 mining shares outperform in final week of earnings season
• 4 ASX shares scoring upgrades in the final week of earnings season

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

Gold shares delivered the standout month of the Australian reporting season.

Morgan Stanley calculates that the sector rose 34% across August.

The gold price then fell 2.9% on Friday night to US$4,529.90 an ounce.

Traders were reacting to rising expectations of United States interest rate hikes, so the question that remains is whether September can continue August’s good momentum.

Why gold shares ran so hard

Gold spent most of August trading around US$4,500 an ounce.

At that level, the economics of an Australian gold mine look extraordinary.

My colleagues noted that the conversation has shifted away from the gold price itself and toward cash flow, balance sheets and dividends.

That is what a maturing sector looks like, however, any future gains may be harder to come by.

Northern Star: a record year with a warning attached

Northern Star Resources Ltd (ASX: NST) is the largest of the ASX gold shares and the clearest illustration of the problem at hand.

The company’s FY26 result delivered revenue of $7.6 billion, underlying EBITDA of $4.3 billion and underlying net profit after tax of $1.8 billion.

The company sold 1.54 million ounces at an all-in sustaining cost of $2,698 an ounce.

Lastly, the full-year dividend rose to 55 cents per share.

Then you reach the cash flow statement.

Underlying free cash flow was just $190 million, because capital spending at KCGM has hit its peak.

FY27 guidance sharpens the point further, with production of 1.5 million to 1.65 million ounces expected at an all-in sustaining cost of $3,050 to $3,450 an ounce.

That is a rise of several hundred dollars an ounce in a single year.

There is a leadership change to absorb as well.

Stuart Tonkin stepped down as managing director on 28 August, with Ryan Gurner serving as interim chief executive until Suresh Vadnagra takes over on 5 October.

Capricorn Metals: the low-cost alternative

Capricorn Metals Ltd (ASX: CMM) is a fraction of Northern Star’s size. The company produced a record 123,589 ounces in FY26 at an all-in sustaining cost of $1,629 an ounce.

Cash costs before royalties were only $1,251 an ounce.

Cash and gold holdings stood at $507 million, and the company declared a fully franked final dividend of 5 cents per share in late August.

FY27 should be bigger.

Capricorn is guiding to 137,000 to 147,000 ounces as the Karlawinda expansion is commissioned, heading toward a 150,000 ounce annual run rate.

Costs are expected to rise to between $1,900 and $2,100 an ounce, which is still well below Northern Star’s guidance.

Behind that is Mt Gibson, where reserves now stand at 5.2 million ounces and federal environmental approval has been granted.

What could end the run in gold shares

Two things would do it.

The first is a sustained fall in the gold price, and the rate hike expectations driving Friday’s move are a genuine risk.

Higher real interest rates make a non-yielding asset less attractive, and gold has always been sensitive to that.

The second is cost inflation, which the FY27 guidance from both companies already flags clearly.

Foolish takeaway

A 34% month is most likely not repeatable, and I would not buy this sector expecting one.

What has changed is that the better operators are now generating real cash and paying real dividends.

Capricorn looks like the more disciplined business on cost, while Northern Star offers scale and a much larger production base.

Both need the gold price to hold somewhere near current levels to justify their FY27 spending plans.

For investors who want exposure, gold shares are worth owning as a portfolio hedge.

The post ASX gold shares soared 34% in August. Is the run over? appeared first on The Motley Fool Australia.

More reading

• 5 things reporting season taught ASX investors about FY27
• 5 things to watch on the ASX 200 on Tuesday
• Northern Star shares slide 5% as investors digest another surprise
• Why Liontown, Northern Star and Telstra shares are turning heads on Monday
• 5 things to watch on the ASX 200 on Monday

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 ANZ Group Holdings Ltd (ASX: ANZ) share price is trading around $37.20 on Tuesday.

At that level, I would not describe the big four bank as obviously cheap.

But I think there is enough on offer to make the shares attractive, particularly for investors looking for income.

A fair price for a major bank

According to CommSec, consensus estimates put ANZ’s earnings per share at $2.57 in FY26 and $2.55 in FY27.

That means the shares are trading on a PE ratio of around 14.5 times forecast earnings.

For me, that sits closer to fair value than bargain territory.

The earnings forecasts are also essentially flat, so I would not buy ANZ expecting rapid profit growth over the next couple of years.

But that does not make the investment unattractive.

ANZ remains one of Australia’s largest banks, with substantial operations across retail, business, and institutional banking. Its scale gives it access to a large customer and deposit base, while its business mix provides several sources of earnings.

I think paying a reasonable multiple for that kind of established banking franchise can still produce a worthwhile result over time.

Income is a bigger part of the case

The dividend is where ANZ becomes more interesting to me.

Consensus forecasts are for dividends of $1.66 per share in both FY26 and FY27.

At the current ANZ share price, that equates to a forward dividend yield of around 4.5%.

These payments are expected to be partially franked, rather than fully franked, so investors should keep that in mind when comparing ANZ with other Australian banks.

Still, I think the cash yield itself is attractive.

Further, the expected payment is comfortably below projected earnings per share. That gives me more confidence in the sustainability of its dividend than I would have if the bank were distributing nearly everything it earned.

Risks

There are risks to consider, of course. Competition remains intense in the banking sector, credit losses can rise if economic conditions deteriorate, and bank margins can move as interest rates and funding costs change.

Those considerations are another reason I would not call ANZ shares cheap at $37.20.

Foolish takeaway

I think the current ANZ share price offers fair value rather than an obvious bargain.

That is still enough for me to consider the shares a buy.

The near-term earnings outlook is subdued, but investors are getting exposure to a large banking franchise alongside a forecast dividend yield of around 4.5%.

For income-focused investors who are comfortable with relatively modest growth expectations, I think ANZ looks like a worthwhile option in September.

The post Is the ANZ share price good value in September? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to target in September 
• How much must I invest in ANZ shares to earn $1,000 in passive income in 2027?
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How much passive income can I earn off a $1 million superannuation balance?

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 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the ASX exchange-traded funds (ETFs) I would be comfortable owning for a very long time.

It gives investors access to a huge collection of global businesses through one investment, while keeping the strategy simple.

For me, that makes the VGS ETF a strong buy and hold option.

Global exposure in one investment

The VGS ETF invests across major developed markets outside Australia.

That gives investors exposure to the US as well as countries across Europe and Asia, spreading the investment across a much larger part of the global economy.

I think that is particularly valuable for Australian investors.

The ASX has some excellent companies, but many major global industries are better represented overseas. Software, semiconductors, global consumer brands, healthcare, industrial technology, and digital services are all areas where international markets offer far more choice.

The VGS ETF opens the door to those opportunities without requiring investors to research companies across dozens of countries.

It does not depend on one winner

Another reason I like the VGS ETF is that the long-term result does not rest on getting a handful of stock picks right.

The fund owns a large collection of companies, and their importance within the portfolio can change as markets evolve.

Some of today’s biggest businesses may continue growing for decades. Others could eventually lose ground to companies that are much smaller today.

With the VGS ETF, investors do not need to know in advance which ones will come out on top.

I think that is a strong feature when your investment holding period could stretch across 10, 20, or even 30 years.

It can complement Australian shares

I would also consider the VGS ETF alongside Australian investments rather than viewing it as a replacement for them.

Many ASX portfolios naturally end up with significant exposure to banks, resources, and domestic businesses.

Adding the VGS ETF can introduce companies operating in industries and markets that are less prominent locally.

It also means the portfolio is not relying entirely on the Australian economy.

For investors who already pick individual ASX shares, I think this can be an easy way to add international diversification without building a separate overseas portfolio one company at a time.

Foolish takeaway

The VGS ETF gives me access to opportunities around the world without requiring constant decisions.

I could buy it today, add more money over time, and let the underlying portfolio change as global markets develop.

For investors looking for a simple international investment they can potentially hold for decades, I think the VGS ETF is a strong choice.

The post Why I think the VGS ETF is a strong buy and hold pick appeared first on The Motley Fool Australia.

More reading

• Are these 2 top Vanguard ETFs still worth buying today?
• How to build an ASX portfolio you do not need to check every day
• 3 ASX ETFs to buy for simple investing
• VGS vs VHY: Which Vanguard ETF comes out on top?
• Why every Aussie investor should own one of these ASX ETFs

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 recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Choosing ASX shares in September 2026 is always a tough proposition.

Reporting season finished yesterday.

During the past month, hundreds of companies updated guidance, brokers rewrote their models, and plenty of share prices moved a long way in a very short time.

The S&P/ASX 200 Index (ASX: XJO) is up 4% for the calendar year.

In that broader context, here are three names I would look at now.

Why these ASX shares stand out after reporting season

The market has become far more selective.

Results that beat guidance were rewarded, and anything short of that was sold hard almost instantly.

That has left expensive winners and heavily punished losers sitting side by side.

The three companies below are all at different places on that spectrum, which is exactly why I would own them together rather than individually.

1. CSL: a reset year, priced as though nothing improves

CSL Ltd (ASX: CSL) delivered the ugliest headline result of the season and one of the better share price reactions.

FY26 revenue slipped 1% to US$15.8 billion, and impairments of US$7.1 billion drove a statutory loss of US$2.6 billion.

Underlying net profit after tax and amortisation still came in at US$3.1 billion.

Investors focused instead on FY27 guidance of roughly 5% underlying profit growth, comfortably ahead of the 2% consensus.

The shares finished last week at $172.32 and are up just 0.2% for the year.

Morgans analyst Damien Nguyen believes the downgrade cycle has finally ended.

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

Plasma collection remains a key moat, because a rival donor network takes years and huge quantities of capital to build.

A US$1 billion buyback suggests management shares that view.

2. BHP: the copper story is finally showing up

BHP Group Ltd (ASX: BHP) is the momentum name of the three, and the most expensive.

FY26 attributable profit rose 9% to US$9.8 billion on revenue of US$58.8 billion.

Copper delivered US$18.2 billion of underlying EBITDA, up 48%, and accounted for 54% of group earnings for the first time.

Net debt finished the year below US$9 billion.

The catch is the price.

Shares hit a record $68.77 last week and have since eased to about $66, still well above the average broker target of $58.68.

Income softens that somewhat.

BHP’s final fully franked dividend of 99 US cents per share goes ex on 3 September and is paid on 23 September.

3. Temple & Webster: the contrarian option

Temple & Webster Group Ltd (ASX: TPW) is, admittedly, the uncomfortable one to own.

The online furniture retailer’s shares are near $4.81 and are down roughly 80% over twelve months.

Yet FY26 revenue reached a record $664.6 million, up 10.6%, with EBITDA of $21.9 million.

Active customers grew 5% to 1.33 million, and cash stood at $123 million at 30 June.

Management is guiding to FY27 EBITDA of $33 million to $40 million, implying growth of 50% to 80%.

A soft start to FY27 explains much of the de-rating.

Canaccord Genuity is unconvinced by the sell-off and has a buy rating with a $9 price target, implying 89% upside.

This is comfortably the highest-risk idea on the list, and as a result it should be sized accordingly.

The risks with these ASX shares

Free money on the market doesn’t exist.

CSL still has to prove its FY27 guidance holds after several years of downgrades.

BHP trades above where most analysts think it belongs, and iron ore prices remain entirely outside its control.

Meanwhile, Temple & Webster is a discretionary retailer facing a stretched consumer and a possible interest rate rise on 29 September.

Foolish takeaway

These three ASX shares are deliberately different from one another.

CSL is a quality business emerging from a bad patch.

BHP is a cash machine at a full price.

Temple & Webster is a turnaround bet with a wide range of possible outcomes.

Owning all three would give you defensiveness, income and optionality in roughly equal measure.

For investors adding money this month, that mix of ASX shares strikes me as more sensible than backing a single theme.

The post Top 3 ASX shares to buy in September 2026 appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: South32, Mineral Resources, BHP shares
• CSL shares are up more than 40% in a month. What just happened in the US?
• 5 things reporting season taught ASX investors about FY27
• Want to bank the boosted BHP dividend? You’d better hurry!
• BHP shares are pulling back from a record high. What now for ASX investors?

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 CSL and Temple & Webster Group. The Motley Fool Australia has recommended BHP Group, CSL, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a remarkable month for CSL Ltd (ASX: CSL) shareholders, and the stock is pushing higher again on Tuesday.

The CSL share price is up 2.09% to $175.15 at the time of writing, extending a rally that has driven the stock up more than 40% over the past month.

That recovery has wiped out most of its losses from earlier in the year, leaving CSL shares roughly flat in 2026.

So, what has investors looking at the stock again today?

CSL reaches deal with the US government

According to the release, CSL has reached two agreements with the Trump administration covering drug pricing and its manufacturing plans in the United States.

The first is with the US Department of Health and Human Services.

Under the deal, CSL will give the Medicaid program access to its medicines at prices comparable with those available in other developed countries.

It has also agreed to take a similar approach with any newly launched therapies across US payers.

The second agreement is with the US Department of Commerce and relates to CSL’s US$1.5 billion expansion in Kankakee, Illinois.

That project was first announced in April and is designed to increase the company’s capacity to produce plasma-derived therapies in the US.

CSL said the agreements give it “greater certainty regarding exposure to U.S. drug pricing and certain Section 232 tariffs”.

Despite the new arrangements, the company does not expect them to have any material financial impact in FY27.

Why this could be a relief for investors

US drug pricing has been one of the issues hanging over global pharmaceutical companies this year.

The agreement gives investors more clarity around how CSL will operate in its biggest market, while also tying in with its existing plan to increase US manufacturing.

And this announcement comes just after a difficult period for the company.

CSL reported a statutory net loss of US$2.58 billion in FY26 after recording major impairments, although underlying profit came in at US$3.1 billion.

Revenue increased 1% to US$15.8 billion, while management is targeting around 5% underlying profit growth in FY27.

The company has also been dealing with weaker US vaccination rates and softer sales in parts of its plasma business.

Has the rally gone too far?

After a move of more than 40% in just over a month, CSL shares have already come a long way from their July lows.

The stock was trading below $125 in late July and is now back above $175, which changes the conversation a little.

Yes, the latest US deal is another positive step, but a lot of the easy recovery has already happened.

From here, I think investors will be looking more closely at whether earnings can start doing some of the heavy lifting.

The post CSL shares are up more than 40% in a month. What just happened in the US? appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy in September 2026
• 5 things reporting season taught ASX investors about FY27
• Where will CSL shares be in 12 months? Brokers weigh in
• Up 88%! Why CSL shares remain an ‘appealing’ buy today
• Experts name 2 ASX 200 blue chip shares to buy this week

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

Reporting season ended on Monday, and the FY26 numbers are no longer the accountants’ problem.

Hundreds of ASX companies reported through August.

Guidance was revised, brokers rebuilt their models, and volatility impacted many ASX stocks.

Once the noise settles, a handful of lessons are worth carrying into FY27.

Here are the five that struck me most.

1. The outlook mattered more than the result

CSL Ltd (ASX: CSL) posted the ugliest headline of the month and one of the best share price reactions.

FY26 revenue slipped 1% to US$15.8 billion and impairments of US$7.1 billion drove a statutory loss of US$2.6 billion, yet the shares rose 17.9% on the day anyway.

Investors ignored the write-downs entirely and focused on FY27 guidance of roughly 5% underlying profit growth, against a 2% consensus.

The lesson is simple enough: the market is pricing next year, not last year.

2. Costs are now the swing factor for miners

Northern Star Resources Ltd (ASX: NST) reported a record FY26 profit and still disappointed.

Underlying net profit after tax reached $1.8 billion on revenue of $7.6 billion.

The problem sat in FY27 guidance, which put all-in sustaining costs at $3,050 to $3,450 an ounce against $2,698 in FY26.

For a decade, the commodity price was the only variable that mattered for Australian miners.

That is no longer true, and cost guidance now moves share prices as much as spot prices do.

3. Cash flow separated reporting season’s winners from the headlines

Northern Star makes this point too.

A $1.8 billion underlying profit produced only $190 million of underlying free cash flow, because capital spending at the KCGM mine peaked during the year.

Plenty of companies reported record profits this reporting season while funding enormous capital programs.

For investors, the cash flow statement has become more and more important.

That is a healthy development, and I expect it to continue through FY27.

4. The income came from resources, not the banks

FY26 flipped the usual assumption about where dividends live.

Utilities shares paid an average yield of 5.98% across the year, with energy at 5.14% and materials at 4.63%, against an S&P/ASX 200 Index (ASX: XJO) average of 4.23%.

Final dividends declared in August have followed the same pattern, and the largest payments this month are coming from energy and mining companies rather than financials.

Anyone building an income portfolio around the big four banks may want to reconsider their strategy in the short to medium term.

5. Growth was repriced, not abandoned

The harshest treatment this reporting season went to companies that grew but missed expectations.

WiseTech Global Ltd (ASX: WTC) is down 58% over twelve months, and Objective Corporation Ltd (ASX: OCL) has fallen 69% to five-year lows.

Yet brokers still see upside of 52% and 33% respectively.

The market has not stopped believing in growth, but it has stopped paying extreme multiples for that growth, and that discipline is likely to persist.

What reporting season means heading into FY27

Two macro threads run underneath all five points.

The economy is slowing, which showed up in softer credit growth and weaker consumer spending across the results.

Inflation also remains stubborn, and Morgan Stanley now expects the Reserve Bank to raise the cash rate when it meets on 29 September.

Neither is fatal, but both argue for owning businesses with strong pricing power and real cash generation.

Foolish takeaway

Reporting season is useful because it forces companies to be specific about what is driving their business.

Guidance, costs and cash flow are all much harder to spin than a headline profit number.

CSL showed that a terrible statutory result can still be a good investment case.

On the other hand, Northern Star showed that a record profit can still be a warning.

All in all, the investors who did best out of this reporting season were the ones reading the outlook statement rather than the press release.

The post 5 things reporting season taught ASX investors about FY27 appeared first on The Motley Fool Australia.

More reading

• ASX gold shares soared 34% in August. Is the run over?
• Top 3 ASX shares to buy in September 2026
• CSL shares are up more than 40% in a month. What just happened in the US?
• WiseTech shares enjoy best month in over a year. More to come?
• Where will CSL shares be in 12 months? Brokers weigh in

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

The clock is ticking for passive income investors who want to bank – or reinvest – the upcoming BHP Group Ltd (ASX: BHP) dividend.

In morning trade today, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant are trading for $66.23 apiece.

That sees the BHP share price up 55.1% since this time last year. And it doesn’t include the two fully franked BHP dividends the miner has paid (or shortly will pay) for FY 2026.

BHP currently trades on a 3.7% fully franked trailing dividend yield, or 5.2% grossed up if we factor in those franking credits.

How do I get the BHP dividend?

When BHP released its full year results on 18 August, the miner reported a 15% year-on-year increase in revenue to US$58.8 billion. And on the bottom line, BHP achieved a 30% increase in underlying profit to US$13.2 billion.

This saw management boost the final dividend to 99 US cents per share. The company said it won’t determine the precise Aussie dollar equivalent until “on or around 7 September”. But CommSec currently has it listed at AU$1.392 per share. That’s up more than 51% from last year’s final dividend.

Commenting on the dividend payout on the day, BHP CEO Brandon Craig said:

Alongside unlocking of capital from undervalued assets and investing in growth, net debt fell to below US$9 bn, while returning substantial cash to shareholders through a final dividend of 99 US cents per share…

This brings total cash returns to shareholders announced for the year to US$8.7 billion, which is US$1.72 per share fully franked, the highest in four years. Including this dividend, we will have returned more than US$115 billion to shareholders since the introduction of the CAF [capital allocation framework] in 2016.

If you want to bank the boosted dividend, you’ll need to own BHP shares at market close tomorrow, 2 September. The ASX 200 miner trades ex-dividend on Thursday. You can then expect to see that passive income hit your bank account on 23 September.

You can also make use of the company’s dividend reinvestment plan (DRP) to receive the payout as new BHP shares instead of cash.

Are BHP shares a good buy today?

Morgans’ Damien Nguyen recently issued a buy recommendation for BHP shares (courtesy of The Bull).

According to Nguyen:

BHP offers exposure to a portfolio of high-quality mining assets and remains well positioned to benefit from long term demand for copper and other critical minerals. A strong operating performance, healthy cash generation and a disciplined approach to capital allocation continue to support the investment case. While iron ore remains important, increasing copper exposure provides leverage to electrification and decarbonisation trends.

BHP appeals for potential capital growth, income and for diversified resources exposure. The company posted an attributable profit of US$9.8 billion in full year 2026, up 9% on the prior corresponding period. Revenue of US$58.8 billion was up 15%.

Nguyen also pointed to the boosted BHP dividend.

“BHP recently declared a final fully franked dividend of US 99 cents a share,” he noted.

The post Want to bank the boosted BHP dividend? You’d better hurry! appeared first on The Motley Fool Australia.

More reading

• BHP shares are pulling back from a record high. What now for ASX investors?
• Are these 3 top Betashares ETFs a buy in September?
• After another big month, can BHP shares break through $70?
• BHP shares are pulling back from their record high. Is it time to sell?
• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week

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 recommended BHP Group. 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) shares are down 0.3% to 9,051.6 points on Tuesday.

Let’s check out some new ratings for ASX 200 shares this week.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $64.27, down 0.6% today and up 74% over 12 months. 

Bell Potter has a buy rating on this ASX 200 mining share. 

Analyst James Williamson said: 

MIN reported record FY26 underlying EBITDA of $2.6b (BPe $2.5b; VA cons. $2.5b) and underlying NPAT of $822m (BPe $774m; VA consensus $765m). Statutory NPAT was $1.2b (BPe $1.1b; VA cons. $966m) with $393m non-recurring items.

Completion of the US$765m MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations.

MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth.

The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

Ansell Ltd (ASX: ANN)

The Ansell share price is $40.52, down 0.6% today and up 17% over 12 months. 

Morgans has a hold rating on this ASX 200 healthcare share. 

The broker said: 

FY26 result was strong, with adjusted EPS of US148.6c (+18%) at the top end of guidance, with adjusted EBIT of US$322m (+15% organic cc) above our forecast.

Importantly, 2H adjusted sales growth accelerated to 9.2%, with volumes improving providing some evidence that volume recovery is emerging.

While FY27 EPS guidance of US158-170c (6-14%) looks solid, the majority of gains comes from FX and buybacks rather than operating earnings, with sustainability of Healthcare growth and Industrial margins yet to be proven.

We increase FY27-28 EPS forecasts up to 5.9%, with our DCF/SOTP price target increasing to A$37.85.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $160.25, up 0.2% today and down 5% over 12 months. 

Remo Greco from Sanlam Private Wealth has a sell rating on this ASX 200 bank share. 

On The Bull this week, Greco said:   

This leading Australian bank posted cash net profit after tax of $10.982 billion in full year 2026, up 7 per cent on the prior corresponding period.

Revenue from ordinary activities of $30.153 billion was up 7 per cent. Investors are concerned about slowing housing credit growth.

Home loan applications fell about 15 per cent since the federal budget in May and the company’s full year result in August.

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

The post Buy, hold, sell: Mineral Resources, Ansell, CBA shares appeared first on The Motley Fool Australia.

More reading

• The RBA could hike rates in September. Which ASX shares are most at risk?
• Are these 3 top Betashares ETFs a buy in September?
• 5 things to watch on the ASX 200 on Monday
• Are these 2 top Vanguard ETFs still worth buying today?
• Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares

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