Category: Stock Market

A new report from VanEck has highlighted that the share markets’ forgotten middle child – ASX mid-caps – could be poised for growth. 

Cameron McCormack, Senior Portfolio Manager at VanEck, said large caps like BHP Group (ASX: BHP) and Commonwealth Bank Of Australia (ASX: CBA) dominate headlines and exert the greatest influence on the returns of the whole Australian share market. 

Small caps, meanwhile, often attract attention for their higher-risk, higher-reward potential. Many of these companies are in their growth phase, still finding their feet.

Mid-cap companies rarely command the same attention when investors are focused on a small group of market heavyweights. But with developed-market bond yields at their highest levels in more than two decades, earnings expectations for some large-cap companies are becoming harder to sustain, and with mid-caps continuing to trade at a discount to the ASX 50, investors now have reason to take a closer look.

Why a broader market is emerging 

According to the report, markets do not tend to stay this concentrated for long. 

While mega-cap companies have dominated the ASX 200’s returns in recent years, history suggests periods where only a small number of stocks are driving the market tend to be the exception rather than the rule.

VanEck suggests that shifts have often emerged during periods of higher interest rates and slower economic growth, when investors become more selective about where earnings growth is likely to come from. 

In these environments, companies able to keep growing earnings even as conditions become more difficult tend to attract greater attention from investors focused on consistency rather than simply market size.

While sector performance has varied, periods of rising rates have often coincided with stronger returns from materials and strategies that spread investments more evenly across the market.

There are already signs that a shift may be emerging again. In the United States, a record share of S&P 500 companies has outperformed the index this year, reversing the unusually narrow leadership that defined much of the past two years.

What about in Australia?

VanEck reinforced that signs of that shift are already beginning to emerge in Australia. 

While large caps have outperformed since February reporting season, smaller companies delivered some of the market’s strongest earnings surprises and most positive analyst target revisions. That suggests investors and analysts alike are beginning to see more room for earnings growth and share price improvement.

Importantly, many companies outside the largest stocks are still trading at cheaper valuations than the S&P/ASX 50, even though their earnings outlook has improved.

This matters because markets that rely too heavily on a small group of large companies can become more vulnerable, especially amid rising inflation, higher bond yields and geopolitical uncertainty.

As a result, ASX mid-cap companies may become increasingly important. They often offer a balance of stability and growth potential, while giving investors broader exposure beyond just the market’s biggest names.

How to target ASX mid-caps 

For investors looking to target ASX mid-cap companies, one option to consider is the VanEck S&P/ASX MidCap ETF (ASX: MVE). 

It offers exposure to 50 established ASX-listed mid-cap companies across sectors, including industrials, healthcare, technology, resources and consumer businesses. 

According to VanEck, it provides investors with a diversified exposure to a segment of the market that has historically sat between the defensiveness of large caps and the growth potential of smaller companies.

The post Why ASX mid-cap shares are finally about to have their moment: Expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG) are two of the highest-quality financial shares on the ASX.

I would happily own both.

That is what makes this comparison interesting. I do not see this as a case of one good investment and one bad investment. I see it as a choice between two very different ways to invest in financial services.

CBA offers stability, scale, fully franked dividends, and a dominant position in Australian banking. Macquarie offers a more global, more varied, and potentially more flexible long-term growth story.

So, which one would I buy today?

The case for CBA shares

CBA is the easier business to understand.

It is Australia’s largest bank, with a huge base of household, business, and deposit customers. It has one of the strongest banking franchises in the country and, in my view, deserves its reputation as the highest-quality major bank.

CBA has scale, a trusted brand, strong digital banking capabilities, and deep customer relationships. Those advantages can help it defend margins, attract deposits, and keep customers engaged across home loans, transaction accounts, credit cards, business banking, and wealth-related services.

I also think CBA’s dividend profile remains a major attraction. Fully franked dividends can be very useful for Australian income investors, and CBA has long been one of the market’s most popular income shares.

However, the valuation is the key issue.

CBA shares often trade at a premium to the other major banks, and that premium can be justified when the business keeps executing well. But it also means investors are paying a lot for quality.

That does not make CBA a sell in my eyes. I still rate it as a buy for investors who want a dependable blue-chip financial share with income and resilience. I just think the upside case may be more measured from here.

The case for Macquarie shares

Macquarie is a very different financial stock.

It is not simply a bank. It is a global financial group with exposure to asset management, infrastructure, commodities, markets, advisory, capital flows, private markets, and the energy transition.

That makes the earnings profile lumpier than CBA’s. Some divisions can have strong years while others slow. Market conditions matter. Deal activity matters. Investor appetite matters.

But I think that flexibility is one of Macquarie’s greatest strengths.

Macquarie has shown over many years that it can move capital, people, and expertise into areas where it sees opportunity. It has built strong positions in infrastructure, green energy, commodities, and global asset management. These are not small themes. They are areas where large pools of capital may continue to move over the next decade.

That gives Macquarie a broader growth canvas than a domestic bank.

There is risk in that. Macquarie’s results can be harder to forecast, and investors need to accept more moving parts. But I like businesses that can adapt as the world changes, and Macquarie has a long record of doing exactly that.

Which would I buy?

If I could only buy one today, I would choose Macquarie shares.

But this is a close call because I think CBA remains a high-quality buy. But Macquarie offers the more interesting long-term opportunity in my view.

CBA is a brilliant domestic banking franchise, but it is still heavily tied to Australian credit growth, margins, deposits, housing, and the local economy.

Macquarie gives investors exposure to a wider set of global profit pools. Infrastructure investment, energy transition funding, commodities markets, private capital, and asset management all give it ways to grow that are not available to a traditional bank in the same way.

I also think Macquarie’s lumpiness can create opportunities. When conditions are softer, investors can become impatient. But for long-term shareholders, those quieter periods can sometimes be the price of owning a more adaptable business.

Foolish takeaway

I would not frame this as CBA losing. I think CBA remains one of the best blue-chip shares on the ASX and a stock I would be comfortable buying for income and quality.

But Macquarie is the one I would choose if I had to pick just one today.

The reason is not that it is safer or more predictable. It is that I think it has more ways to win over the next decade. For investors who can tolerate a less even earnings path, that global reach and adaptability could make it the more rewarding financial stock to own.

The post CBA shares vs Macquarie shares: Which ASX financial stock would I buy? appeared first on The Motley Fool Australia.

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• Why ASX mid-cap shares are finally about to have their moment: Expert
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• Historic: Here’s why CSL shares are looking very interesting right now
• Buy, hold, sell: ANZ, Macquarie, Westpac shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

Xero Ltd (ASX: XRO) shares have been smashed over the past year, with the share price crashing around 62% from an all-time high of $196.52 recorded in June last year.

The ASX tech stock has faced several major headwinds over the past 12 months. 

The falling share price is mostly the result of a sector-side sell off of technology stocks. This followed rising concerns that AI could disrupt traditional software models. 

In late-2025 and early-2026 many investors were spooked by the idea that smarter, cheaper tools could reduce the need for subscription platforms like Xero. Sentiment for tech shares quickly turned south. 

At the same time, a sharp increase in the value of some ASX tech shares in 2025, including Xero, also sparked concerns that tech companies were overvalued and overdue a price correction. 

Where are Xero shares trading now?

At the time of writing, Xero shares are trading at $74.16 a piece.

For the year to date, the shares are now around 34% lower and they’re 60% below the trading value in late May last year.

Are Xero shares now too cheap to pass up?

Analysts are incredibly bullish on Xero shares, with widespread anticipation that we’ll see some significant upside over the next 12 months.  

Market Index shows brokers have a strong buy rating on the shares. They tip a 87% upside to $141.56 over the next 12 months.

TradingView data shows something similar. Out of 15 analysts, 14 have a buy or strong buy rating and one has a hold rating. They tip a potential average upside of up to 76% to $130.81 a piece over the next 12 months.

However, some analysts think the increase could be far steeper. The maximum $236.45 target price implies that Xero shares have the potential to soar 218% higher. It’s also an increase from a maximum $229.49 target price the analysts had a month ago.

What is expected to drive the tech shares higher?

I see Xero as an attractive long-term investment.

The company has a sticky subscription revenue, which means its customers are likely to keep paying for its services and products over a long time. Switching to an alternative accounting, invoicing, and payroll system would be time-consuming for businesses, so many customers could easily stay subscribed for years. 

This makes Xero’s revenue more predictable. 

At the same time, the company is still a relatively small market player. This means there is a huge amount of potential future growth globally. 

These growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. Xero is also actively expanding its presence and its product suite. 

The company’s latest FY26 result shows the company is growing, too. It posted a 31% hike in operating revenue in mid-May, and its adjusted EBITDA is up 18%.

The post Is it time to get greedy with Xero shares? 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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX shares that I think could make some of the best returns are ones that look like they could compound earnings at a strong pace over an extended period of time.

That’s why I think it’s a good idea for investors to look at businesses that have a long and impressive growth runway.

In my view, two of the ASX shares that could outperform the S&P/ASX 200 Index (ASX: XJO) over the next decade are the ones below.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a fast-growing affordable jewellery retailer that focuses on younger shoppers with appealing products.

The ASX retail share‘s main growth tactic is to add more stores to its global network. In the FY26 half-year result, the company reported that between the end of FY25 and the end of the FY26 half-year period, it added 65 more stores, a rise of 6.3%.

Of those 65 locations, some of the highlights included four more stores in Australia, four in South Africa, 14 more in the UK, nine more in Germany, eight more in the US and nine more in Canada.

In my view, those core markets offer significant growth potential for Lovisa over the next decade.

I’m optimistic about how many more global stores the company can add in the next decade, particularly in countries where it has a small presence at this stage for the population size of the market, such as China, Vietnam, Spain, Poland, Canada and even the US.

In the HY26 report, the company reported more than 20% growth for its core revenue and net profit, which is an excellent rate of progress. I’m also hopeful its new business (initially in the UK) called Jewells can become a meaningful contributor in future years.

According to the forecast on CMC Invest, the business is projected to generate earnings per share (EPS) of $1.23 in FY28. That puts the ASX share’s valuation at the time of writing at less than 19x FY28’s estimated earnings.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This exchange-traded fund (ETF) offers number of positives for investors.

For example, it invests in 250 global companies that have ‘growth at a reasonable price’ (GARP) characteristics.

The businesses in the portfolio need to have good growth with both strong sales and earnings growth.

They need to be good value, with an attractive price/earnings (P/E) ratio.

Finally, these businesses need to display quality, which is measured by the financial leverage and the return on equity (ROE).

By putting these elements together, that’s a powerful combination for potential returns.

Offering great businesses at appealing value could lead to market-beating returns in the long-term and outperform many other ASX shares.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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

I’d wager that most Australians would be quite familiar with most of the companies that make up the ‘Magnificent 7’, even though their home is half a world away.

Even if you have never invested in the likes of Microsoft Corporation (NASDAQ: MSFT) or Amazon.com Inc (NASDAQ: AMZN), chances are you have used their products or services, probably recently. Ditto with Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: META) and Apple Inc (NASDAQ: AAPL). Tesla Inc (NASDAQ: TSLA) and NVIDIA Corporation (NASDAQ: NVDA) are a little more niche. Even so, these last two of the seven are still household names, and possibly household presences.

Despite the ubiquity of the Magnificent 7 in Australian daily life, far fewer Australians would own shares of them directly. Saying that, international stock market investing has never been more popular in Australia. If an investor does own international stocks, there is a high chance that at least one of them will be a Mag 7 stock.

Personally, I directly own shares in five of the Magnificent 7. In fact, I have owned all seven of these ocmpaneis at various points (although never simultaneously).

Until quite recently, I thought of these positions as a small, although valuable portion of my overall portfolio. However, after a recent audit, I have discovered that I am far more invested in these seven stocks than I previously supposed.

The dominance of the Magnificent 7 stocks

It starts with an exchange-traded fund (ETF) that I own. As I have previously discussed, I recently sold my holdings in the BetaShares Nasdaq 100 ETF (AS:X NDQ) to buy a similar, but far cheaper ETF in the Schwab U.S. Large-Cap Growth ETF (NYSE: SCHG).

All seven of the Magnificent 7 are core holdings of this fund. As they are in almost every major US-based ETF listed on the ASX. That includes the iShares S&P 500 ETF (ASX: IVV) and the Vanguard MSCI Index International Shares ETF (ASX: VGS). Not to mention NDQ. Magnificent 7 stocks also sometimes pop up in the Schwab U.S. Dividend Equity ETF (NYSE: SCHD) and the iShares Core Dividend Growth ETF (NYSE: DGRO), which are also in my portfolio.

So that’s three.

Next, one of my largest investments is the listed investment company (LIC) MFF Capital Investments Ltd (ASX: MFF). This Buffett-esque LIC is a long-term holding of mine, and a favourite investment. As it happens, Alphabet, Amazon, Microsoft and Meta Platforms are all large positions in MFF’s portfolio. That’s four.

These components routinely pop up in yet another of my favourite, long-term holdings. That would be the VanEck Morningstar Wide Moat ETF (ASX: MOAT). That’s five major personal investments that are exposed to at least one Mag 7 stock. Outside my direct ownership of five of the Magnificent 7 stocks.

Don’t forget about your superannuation

The cherry on the cake comes in the form of my superannuation fund. Like most Australians, my super is partially invested in US stocks. And the Magnificent 7 are at the top of that list, too.

As it turns out, these seven US tech titans are far heavier in my portfolio and my overall wealth than I had previously thought.

I do view most of the Magnificent 7 as companies of the highest calibre. You don’t get to where they are now without being truly exceptional. As such, this high exposure doesn’t bother me.

However, there’s a big chance that other ASX investors out there are in the same boat. Thus, it may be worth checking out your own investments and seeing just how deep the Mag 7 goes. My exposure tolerance to these seven stocks may be higher than yours.

The post ASX investors: Are you overinvested in the Magnificent 7 without knowing it? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX growth shares are built around broad trends that sound exciting but are hard to turn into revenue.

DroneShield Ltd (ASX: DRO) is different.

The company is focused on a specific and growing problem: how governments, militaries, and organisations protect themselves from drones.

That makes it a higher-risk share, but I think the long-term opportunity is worth watching.

Drones are changing defence

The case for DroneShield starts with the way drones are changing security.

They are cheap, mobile, flexible, and increasingly capable. That makes them useful, but it also makes them a threat.

Recent conflicts have shown how important drones can be in military planning. They can be used for surveillance, targeting, disruption, and direct attacks. Outside the battlefield, drones can also create problems around airports, prisons, stadiums, critical infrastructure, public events, and borders.

This is why counter-drone systems are becoming more important.

DroneShield sells technology designed to detect and respond to these threats. I think that gives it exposure to a market that could remain a priority for years, especially as defence budgets adjust to new realities.

Hardware plus software

One thing I like about DroneShield is that it is not just a hardware story.

Hardware can win contracts and build presence in the field. But software can make the installed base more valuable over time.

Drone threats are constantly changing. New drone models, tactics, frequencies, and operating methods can emerge quickly. That means customers may need regular upgrades and software improvements to keep systems effective.

DroneShield has been investing heavily in hardware and artificial intelligence (AI)-enabled software to respond to these evolving threats.

That could be important for the quality of the business over time. If the company can grow recurring software revenue alongside hardware sales, the market may eventually view DroneShield as more than a defence equipment supplier.

A stronger platform to chase growth

DroneShield’s recent quarterly update shows the business is entering this growth phase with more resources than it had in the past.

It reported a strong cash balance, positive operating cash flow, and a large potential sales pipeline. It also has staff across multiple countries and a distributor network in key allied markets.

That is important for a company trying to win defence and government work globally.

These customers often need trust, support, local relationships, and the confidence that a supplier can deliver at scale. Having cash on the balance sheet also gives DroneShield more room to invest in people, technology, production capacity, and potential strategic opportunities.

But investors still need to be careful. A pipeline is not the same as revenue. Defence sales can be slow, uneven, and unpredictable. The company still needs to keep converting interest into firm orders and cash.

Foolish takeaway

DroneShield is not a traditional defensive investment, even though it operates in the defence sector.

It is a fast-growing technology company in a market that is still developing. That means the share price can move sharply in both directions.

But I think the long-term setup is compelling. Drones are becoming a bigger security challenge, and organisations will need better tools to deal with them.

If DroneShield can keep converting its technology, customer relationships, and pipeline into durable revenue, it could become a much larger business over time. 

I would treat it as higher risk, but it is the kind of ASX growth share I would want in my portfolio.

The post Why I think DroneShield could be an ASX growth share to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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 ASX dividend share Shaver Shop Group Ltd (ASX: SSG) may not be one of the most famous passive income stocks. But, in my view, it offers investors a significant number of positives.

Shaver Shop is one of the leading shaving product retailers in Australia and New Zealand, with its physical store network of well over 100 locations, its website and a presence on third-party marketplaces.

You may not think of a retailer as a strong ASX dividend share candidate for passive income, but I’m about to outline why it’s a compelling option.

Dividend yield

The first thing I want to highlight is, of course, the huge dividend yield of the business.

We can’t know what the FY26 annual dividend per share will be – that’s up to the Shaver Shop board of directors to decide in the coming weeks.

However, I do expect the annual dividend will be very similar – perhaps exactly the same – compared to the FY25 payout. The FY25 payout was 10.3 cents per share.

Therefore, at the time of writing, the business has a trailing grossed-up dividend yield of 11.1%, including franking credits. I believe the FY26 dividend will be very close to that level.

Payout stability

One of the main reasons why I’m confident that the business will deliver a stable (or higher) payout for investors is because the business has already demonstrated a track record of providing stability to investors.

Shaver Shop has not given shareholders a dividend payout reduction. The ASX dividend share started paying a dividend in 2017, increased its annual payout each year to FY23, maintained the payout in FY24 and hiked the dividend again in FY25.

We’ll see what happens in FY26, but there is breathing room with the dividend payout ratio. In FY25 it generated 11.5 cents of earnings per share (EPS) and cash EPS of 12.1 cents.

Earnings growth potential

The business is trading at a low price/earnings (P/E) ratio, even before taking into account the fact that it can grow earnings from its FY25 level.

According to the projection on CMC Invest, the business could generate EPS of 11.6 in FY26, 12.8 cents in FY27 and 14.1 cents in FY28.

Therefore, the ASX dividend share is trading at under 12x FY26’s estimated earnings and it’s projected to grow EPS by 21% between FY26 to FY28.

I think the business can grow its earnings through initiatives like store network expansion, gross profit margin improvement, online sales growth, more exclusive products from brands, expansion of its own brand Transform-U and potential product range growth in areas like oral health, hair care and beauty categories.

The post Is this ASX dividend share a buy for its 11% dividend yield? appeared first on The Motley Fool Australia.

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

Accent Group Ltd (ASX: AX1) has been smashed.

The footwear and apparel retailer is trading at 55 cents at the time of writing, down around 70% from its 52-week high.

That sort of fall tells us the market has become deeply cautious about the outlook. I can understand why. Consumer spending has been under pressure, retail conditions have been difficult, and investors have not had much patience for discretionary shares.

But after such a large sell-off, I think Accent Group is worth a closer look.

A big fully-franked yield

The first thing that stands out is the potential income.

According to CommSec, the consensus estimate is for Accent Group to pay dividends per share of 4.2 cents in FY26, 6.2 cents in FY27, and 6.6 cents in FY28.

Based on a 55 cents share price, that would imply forward dividend yields of around 7.6%, 11.3%, and 12%, respectively.

Those dividends are expected to be fully franked.

That is a large potential income stream if the forecasts prove accurate. Of course, dividend estimates can change, especially for a retailer exposed to consumer demand. But the market appears to be pricing Accent as though a lot has already gone wrong.

If earnings stabilise and the dividend outlook holds up, the income case could look very attractive.

The valuation looks low

Accent Group also screens cheaply on earnings estimates.

CommSec’s consensus forecasts point to earnings per share of 6 cents in FY26, 8.8 cents in FY27, and 9.4 cents in FY28.

At 55 cents per share, that puts Accent on around 9 times FY26 earnings, just over 6 times FY27 earnings, and less than 6 times FY28 earnings.

That is not the valuation of a market favourite. It reflects genuine uncertainty. Investors are worried about consumer spending, margins, store performance, competition, and whether management can deliver on its improvement plans.

But I think that is where the opportunity may sit. A retailer does not need conditions to become perfect for a low valuation to start looking too harsh. It needs evidence that trading can improve, costs can be controlled, and earnings can recover.

A recovery plan is in motion

The third reason I am interested is that Accent Group is not standing still.

The company owns and operates a large portfolio of footwear and lifestyle banners, including The Athlete’s Foot, Platypus, Hype DC, Skechers, and Stylerunner. It also has exposure to global brands, owned brands, wholesale channels, and a large store network across Australia and New Zealand.

That gives Accent scale, customer data, landlord relationships, and brand access that many smaller retailers cannot match.

Its recent strategic update pointed to a plan built around efficiency, brand evolution, and expansion. That includes cost savings, store portfolio optimisation, The Athlete’s Foot franchise reacquisitions, and the rollout of Sports Direct across Australia and New Zealand.

There is execution risk here. Retail turnarounds can take time, and weak consumer conditions could keep pressure on the business for longer than expected.

But I like that Accent has several levers to pull. It can close weaker stores, improve costs, push stronger brands, expand promising formats, and benefit if shoppers become more confident again.

Foolish Takeaway

Accent Group will not suit investors who only want defensive earnings. This is a consumer-facing retailer, and the share price fall shows how quickly sentiment can turn when the market loses confidence.

But I think the current valuation and dividend forecasts are hard to ignore.

A fully-franked yield that could move into double digits, combined with a low earnings multiple and a credible recovery plan, makes this ASX dividend share look interesting to me.

The market is clearly worried. But if Accent Group can execute even reasonably well from here, today’s share price may end up looking too pessimistic.

The post Could this fully-franked ASX dividend share be too cheap to ignore? appeared first on The Motley Fool Australia.

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

Owning Fortescue Ltd (ASX: FMG) shares has been a really good call for dividend income over the last several years.

The iron ore price is prone to quite sizeable swings, which can have a big impact on the size of Fortescue’s net profit and dividend.

In my view, the iron ore price has performed stronger than expected, with it sitting at around US$109 per tonne, according to Trading Economics, allowing the business to generate strong earnings in this financial year.

Let’s look at the dividend forecasts for the next few financial years.

FY26

The ASX mining share saw a solid performance in the first six months of the 2026 financial year. Revenue grew 10% to US$8.4 billion, net profit rose 23% to $1.9 billion and the dividend per share was hiked by 24% to 62 Australian cents.

Fortescue benefited from a 7% rise in the realised price for its hematite, while the production costs (C1 unit costs) fell by 3% – a powerful combination for profit growth.

How big could the FY26 annual dividend be?

The current forecast on Commsec suggests the business could deliver an annual dividend per Fortescue share of $1.03. That translates into a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

FY27

However, while the 2026 financial year payout would be a solid dividend, experts are not certain that the dividend will continue to be as good.

In the 2027 financial year, the company is projected to pay an annual dividend per Fortescue share of 79.3 cents, according to the forecast on Commsec. That would represent a year over year reduction of 23% compared to the forecast for FY26.

The prediction for FY27 translates into a forecast grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.

FY28

The 2028 financial year could be an even les rewarding year than FY27, with analysts pessimistic about the long-term direction of the iron ore price with increasing supply, particularly from Africa.

According to the projection on Commsec, the business is forecast to pay an annual dividend per Fortescue share of 66.8 cents. That would be a decline of 16% year over year. At the time of writing, the estimated payout translates into a grossed-up dividend yield of 4.3%, including franking credits.

Overall, this doesn’t seem like a great time to invest in Fortescue shares, in my opinion. The Commsec collation of 17 analyst ratings on the business says there’s currently eight sells, eight holds and just one buy.

There are better opportunities out there, in my view.

The post Here’s the dividend forecast out to 2028 for Fortescue shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Brokers were as busy as ever this week updating their ratings and valuations for a good number of ASX shares.

Ten that were given the equivalent of buy ratings are listed below. Here’s what is being recommended:

Dicker Data Ltd (ASX: DDR)

In response to this computer hardware and software distributor’s trading update, Morgan Stanley has upgraded Dicker Data’s shares to an overweight rating with an improved price target of $11.00.

Eagers Automotive Ltd (ASX: APE)

This auto retailer released a trading update at its annual general meeting this week. In response, Macquarie retained its outperform rating on the ASX share with a trimmed price target of $27.10.

Goodman Group (ASX: GMG)

The team at Morgans was relatively pleased with this industrial property giant’s third-quarter update. In response to the update, the broker reiterated its buy rating with a $36.00 price target.

Guzman Y Gomez Ltd (ASX: GYG)

Ord Minnett is positive on this quick service restaurant operator’s decision to exit the US market. It responded to the news by retaining its buy rating with a $31.00 price target.

Life360 Inc. (ASX: 360)

Bell Potter was busy reviewing this location technology company’s quarterly update this week. It thinks the post-results selloff was an overreaction and has created a buying opportunity. This is especially the case given its strong growth in paying circles (paid subscribers). Bell Potter put a buy rating and $33.00 price target on Life360’s shares.

Liontown Ltd (ASX: LTR)

Over at UBS, its analysts are bullish on this lithium miner. This week, the broker retained its buy rating on Liontown’s shares with a $2.70 price target.

Mineral Resources Ltd (ASX: MIN)

This mining and mining services company announced the expansion of its Mt Marion lithium operation last week. Bell Potter was pleased with the plan and has retained its buy rating with an improved price target of $80.50.

Nufarm Ltd (ASX: NUF)

Morgans was pleased with this agricultural chemicals company’s half-year results and believes it is “on track to deliver strong underlying EBITDA growth in FY26.” As a result, the broker believes Nufarm shares are “materially undervalued” at current levels. It has put a buy rating and $4.15 price target on them.

Paladin Energy Ltd (ASX: PDN)

Macquarie has turned bullish on this uranium producer. This week, the broker upgraded the ASX uranium share to an outperform rating with a $13.25 price target.

Web Travel Group Ltd (ASX: WEB)

UBS responded to this travel technology company’s FY 2026 results by retaining its buy rating with a trimmed price target of $4.60. It felt the company delivered a solid result given the challenging finish to the year.

The post 10 ASX shares given buy ratings this week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, Life360, and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Life360. The Motley Fool Australia has positions in and has recommended Dicker Data and Life360. The Motley Fool Australia has recommended Eagers Automotive Ltd and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.