Category: Stock Market

ASX small-cap Aroa Biosurgery (ASX: ARX) is having a breakout year. 

Aroa is a commercial-stage medical device company operating in the complex wound care and soft tissue reconstruction sector. It provides biologic medical devices through its AROA-ECM (Extracellular Matrix) platform. 

The team at Bell Potter has been covering this ASX small-cap, and sees plenty of runway for growth thanks to strong FY26 results. 

What did the company report?

Yesterday, the ASX small-cap reported for FY 26: 

• NZ$104m in total revenue, exceeding guidance of NZ$92-$100m. It was 23% higher than FY25
• Normalised EBITDA of NZ$13m. This also exceeded guidance (NZ$5-$8m). 
• NZ$10.5m operating cash flow, which was up NZ$13.1m on FY25. 
• NZ$49.5 million in Myriad product revenue (54% growth on FY25).

Looking to FY27 guidance, the company expects total revenue of NZ$115-$125 million, representing 13-23% constant-currency growth. 

Direct sales are expected to grow 24-40%, led by continued Myriad momentum and supported by the launch of Symphony. 

Commenting on AROA’s outlook for FY27, Managing Director and CEO Brian Ward said: 

FY26 was a successful year for AROA. Revenue grew 23% to NZ$103.9 million, driven by 54% growth in the Myriad portfolio, which was achieved with the same number of salespeople as the previous year, demonstrating strong operating leverage in the business. 

We expect Myriad momentum to continue, supported by deeper account penetration and higher productivity across the US direct sales team. Symphony’s value proposition is well aligned with the changing reimbursement environment, and we believe it can become an important medium-term growth catalyst.

Bell Potter pleased with results 

Following these results, the team at Bell Potter provided updated guidance on this ASX small-cap. 

The broker said Aroa delivered a very strong FY26 result, mainly driven by rapid growth in Myriad sales, which they see as the core engine of the business. 

They believe this product can continue to grow at a solid double-digit rate because it is still at an early stage relative to a very large addressable market.

They also think the company is successfully shifting toward a more scalable business model by building out its direct sales force, which is reducing reliance on its US distribution partner and should support more consistent revenue growth going forward. 

In their view, this transition is likely to continue in FY27 as ARX expands sales capacity and re-launches its Symphony product.

However, Bell Potter also expects higher costs in the near term as the company invests more heavily in sales, marketing, and hiring to support growth. This leads them to slightly lower their profit (EBITDA) forecasts, even though they are not meaningfully changing their revenue expectations.

75% upside for this ASX small-cap 

Based on this guidance, the team at Bell Potter has placed an updated price target of $1.09 on this ASX small-cap. 

From yesterday’s closing price of 62 cents per share, this indicates an upside potential of over 75%. 

The post The exciting ASX small-cap with potential 75% upside that I think every investor should be watching appeared first on The Motley Fool Australia.

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

Life360 Inc (ASX: 360) shares have pulled back significantly from their highs this year.

While this is disappointing, it could have created a compelling buying opportunity for investors looking for some exposure to the tech sector.

Bell Potter certainly thinks that is the case. It believes the company’s shares could be materially undervalued at current levels.

What is the broker saying?

Bell Potter has been looking over the company’s first-quarter update.

It notes that while the market focused on one key negative, which was explainable, it thinks the attention should have been on the positives. It said:

The 1Q2026 result of Life360 was very good in our view but the market focused on the one key negative – relatively low global MAU growth. This was, however, largely explained (i.e. technical issues) and looks set to rebound strongly over the next three quarters. The market seemed to ignore most or all of the positives (e.g. guidance upgrade) and one in particular – very strong paying circle growth (201k vs BPe 99k).

The reason for the strong growth was perhaps not well explained but we believe was largely due to better quality MAUs and the company now using AI in A/B testing to help optimise marketing and subscription plans. Both of these helped drive much better conversion rates in Q1 and we believe this will continue in subsequent quarters though the rates may drop below Q1 as MAU growth rebounds and the quality drops. So, in short, we expect similarly strong paying circle growth in each of Q2, Q3 and Q4 and, given this is the key driver of revenue growth, we believe market focus will shift to this positive rather than the negative of any weakness in MAU growth.

Should you buy Life360 shares?

According to the note, Bell Potter believes Life360 shares could deliver big returns for investors over the next 12 months.

After reviewing its results, the broker has retained its buy rating with an improved price target of $33.00 (from $32.50).

Based on its current share price of $18.81, this implies potential upside of 75% for investors over the next 12 months.

Speaking about its investment thesis, Bell Potter said:

There are no changes in the key assumptions we apply in the two valuations we use to determine our price target – a 30x multiple in the EV/EBITDA and a 9.6% WACC in the DCF. The modest upgrades to our forecasts, however, have driven a 2% increase in our TP to $33.00 and we retain the BUY recommendation. Key focus for us is the Q2/H1 result in August and, firstly, a strong rebound in MAU growth but secondly, and more importantly, another quarter of strong paying circle growth where anything approaching or up around 200k again would be bullish in our view.

The post Why Life360 shares could be cheap and heading 75% higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Endeavour Group Ltd (ASX: EDV) share price is in focus today after management unveiled a refreshed strategy aiming to unlock revenue growth and deliver $300 million in cost savings by FY29. The company will accelerate Hotel investments and reset retail brands Dan Murphy’s and BWS to sharpen customer focus.

What did Endeavour Group report?

• Targeting $300 million in cost savings by FY29 (including $100 million in FY27)
• Acceleration of capital investment in the Hotels network across renewals and refurbishments
• Resetting Dan Murphy’s and BWS strategies to drive revenue and strengthen price leadership
• Divestment of non-core assets, including most of its winery and vineyard portfolio
• Dividend payout ratio revised to a range of 50%–75% of group underlying NPAT

What else do investors need to know?

Endeavour Group’s strategy update follows a detailed review led by CEO Jayne Hrdlicka and the board. Management identified three main priorities: resetting the multi-brand retail approach, unlocking growth in its Hotels portfolio, and simplifying operations to reduce costs.

A sharper focus on digital, localised product range, and customer engagement is expected across both retail brands. In Hotels, the company will ramp up investments in venue renewals and use guest insights and data to elevate experiences and growth.

What’s next for Endeavour Group?

The group is entering an investment phase, with a clear plan to strengthen Dan Murphy’s price leadership, modernise BWS’s digital experience, and lift Hotel performance. Around $300 million in targeted cost-outs by FY29 and a disciplined capital allocation framework support these ambitions.

Management expects higher capital expenditure in the near term to fund Hotel upgrades and digital initiatives, balanced by active portfolio management and ongoing divestments of non-core assets.

Endeavour Group share price snapshot

Over the past 12 months, Endeavour Group shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Endeavour Group unveils strategy update and $300m cost savings drive appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Are you looking for outsized returns? Well, Bell Potter has just named one rapidly growing ASX tech stock as a buy with major upside potential.

In fact, it thinks this stock could double in value in a year.

Which ASX tech stock?

The stock that Bell Potter is recommending to investors with a high tolerance for risk is Adveritas Ltd (ASX: AV1).

Adveritas is a technology company that develops software solutions for enterprise customers to help maximise the return on digital ad spend.

Its key product is TrafficGuard, which is a SaaS platform that detects and intercepts fraudulent traffic in real time. This enables advertisers to reduce wasted ad spend and optimise their budgets.

Bell Potter was pleased with the company’s trading update, which revealed another increase in annualised recurring revenue (ARR). It said:

Adveritas released a trading update and the key points were: 1. ARR has reached US$16.3m which is up 8% in c.2 months since end of March; 2. Most of the new ARR has been outside the traditional sports and gaming market and has been both from US-based partnerships and customers in the agency, e-commerce and retail verticals; 3. SME self-serve platform is rapidly scaling through organic growth with 652 signups, 250 account connections and 54 billable accounts; and 4. Growing use of AI is increasing demand for Adveritas’ solutions as AI-driven bot fraud expands the scale of the problem and so the addressable market.

In response to the update, the broker has upgraded its estimates for FY 2026. It explains:

We were forecasting ARR of $16.5m at the end of FY26 so the company is already almost at that mark and there is still just over a month to go in the financial year. We have, therefore, upgraded our ARR forecast by 3% to $17.0m at year end though still see potential for this to be exceeded.

Shares tipped to double

According to the note, the broker has retained its buy rating and 18 cents price target on the ASX tech stock.

Based on its current share price of 8.4 cents, this implies potential upside of approximately 115% for investors over the next 12 months.

Bell Potter thinks concerns that a capital raising will be needed are unnecessary given that the company is on the cusp of being cash flow positive. It concludes:

The next potential catalyst is the release of the Quarterly Activities Report in late July where we expect the year end ARR to be provided. Another potential catalyst is confirmation by the company that it expects to be EBITDA and/or cash flow in FY27. Admittedly there is perhaps some perception that the company is cum raise with cash of only $6m at the end of March but a cash flow positive outlook will potentially dispel or at least dilute that thinking.

The post Meet the rapidly growing ASX tech stock Bell Potter says can double in a year appeared first on The Motley Fool Australia.

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• Bell Potter names more of the best ASX shares to buy in May

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 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 superannuation system is a wonderful way for Australians to build wealth because of how returns are taxed much lower compared to normal individual tax rates.

Passive income received in superannuation during the retirement phase has a good chance of being tax-free. How great is that?

So, the question is, how much would it take to receive a sizeable amount of dividends each year? Let’s take a look.

$3,000 of passive income each month from superannuation

Receiving $3,000 equates to $36,000 per year. That’s not a gigantic amount, but it could be enough to be an essential part of a retiree’s finances.

How large the nest egg needs to be to receive $36,000 per year is largely related to what the portfolio yield is.

For example, if someone’s portfolio had an average dividend yield of 3.6%, then they’d need a $1 million portfolio to receive $36,000.

But, if the portfolio average dividend yield was actually 7.2%, then an investor would only need a $500,000 portfolio.

If the portfolio had a 4.8% dividend yield then an invest would need a portfolio value of $750,000.

There are plenty of options when it comes to aiming for these sorts of yields, so I’ll highlight a few names below. For my own portfolio, I have invested in a mix of names to create a strong dividend portfolio.

Which ASX dividend shares I’d buy

If an investor is targeting a relatively low (3.6%) passive income yield in superannuation, or outside of superannuation, then I’d consider names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES), global jewellery business Lovisa Holdings Ltd (ASX: LOV) and funeral provider Propel Funeral Partners Ltd (ASX: PFP).

Among the mid-range yield (around 5%) names, I appreciate listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), industrial property owner Centuria Industrial REIT (ASX: CIP), farmland landlord Rural Funds Group (ASX: RFF), telco Telstra Group Ltd (ASX: TLS) and quality global shares-focused exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

Some of the higher-yield (more than 7%) names that I like include LICs WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), WAM Microcap Ltd (ASX: WMI), and diversified property landlord Charter Hall Long WALE REIT (ASX: CLW).  

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, Propel Funeral Partners, Rural Funds Group, Wam Microcap, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa, Mff Capital Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Codan Ltd (ASX: CDA) has not been resting on its laurels.

The Adelaide-based electronics and communications company, which most Australians still associate with metal detectors, has transformed itself into one of the most interesting defence technology stories on the ASX.

Up almost 140% over the past twelve months and 40% in 2026 alone, Codan announced this week that its wholly owned US subsidiary, DTC Communications, has entered a binding agreement to acquire the intellectual property of Adaptive Dynamics.

Adaptive Dynamics is a US-based engineering company specialising in anti-jamming and electronic warfare resilience for mission-critical communications.

What Adaptive Dynamics actually does

Adaptive Dynamics has spent more than two decades developing algorithms and radio frequency technologies capable of handling intentional and unintentional interference, signal enhancement, and adaptive filtering across defence systems operating in land, maritime, and airborne environments.

In practical terms, this means Adaptive Dynamics’ technology enables military communications systems to keep functioning even when an adversary is actively jamming, spoofing, or disrupting them.

This is one of the most pressing operational challenges facing Western defence forces in modern contested environments.

The acquisition is valued at approximately $21 million in upfront and contingent consideration, plus a tiered royalty structure over five years following completion.

Completion is expected in the first half of FY2027.

Codan has indicated that the deal will be earnings neutral in its first year, with the focus on integration rather than immediate profit contribution.

Why this acquisition is bigger than its price tag suggests

At $21 million, the Adaptive Dynamics deal is small relative to Codan’s current market capitalisation of approximately $7.5 billion.

But what it adds to DTC Communications is disproportionately valuable.

As Western defence forces increasingly compete in what military planners call contested electromagnetic environments, the ability to communicate reliably under active jamming conditions has become a non-negotiable procurement requirement.

DTC’s existing customers are already demanding electronic warfare resilience and AI-enabled integration capabilities as standard features in new contracts.

This means that Adaptive Dynamics’ technology directly expands the set of US and allied defence programs Codan can compete for.

The broader Codan story

This acquisition does not happen in isolation.

Codan earlier in 2026 lifted its full-year EBIT and NPAT guidance by more than 60%, driven by outperformance in both its communications and metal detection divisions.

The communications business, anchored by DTC and Codan’s broader defence electronics portfolio, is growing at a materially faster pace than the metal detection business, and management has deliberately allocated capital to expand that capability through acquisitions like this one.

Codan’s FY2026 EBIT is now expected to land near $235 million.

This is a significant step up from prior years and demonstrates the premium valuation the market is now placing on the stock.

The company designs its own core products and maintains manufacturing facilities in Adelaide, Penang, and multiple other locations globally.

As a result, this gives it control over its supply chain in a way that many pure defence contractors cannot match.

The valuation question

After a 140% gain in twelve months, Codan is no longer cheap.

The stock trades on a meaningful premium to the broader ASX 200 on most valuation metrics.

Any disappointment with earnings delivery or contract wins would likely be met with a sharp market reaction.

Foolish takeaway

Codan’s acquisition of Adaptive Dynamics is a strategically astute move that adds genuine capability to its fastest-growing division at a price that will barely register on the balance sheet.

For long-term investors already holding Codan, the direction of travel looks as clear as ever.

For those yet to invest, the entry point is harder to justify after a 140% run, but the quality of the underlying business and the depth of the defence spending tailwind make it a stock that deserves to stay on any serious investor’s watchlist.

The post Codan just acquired a US defence specialist. What does this mean for investors? appeared first on The Motley Fool Australia.

More reading

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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 iShares S&P 500 ETF (ASX: IVV) has been one of the best exchange-traded funds (ETFs) to own over the last 10 to 15 years. For several reasons, it’s been a very effective investment for Aussie investors.

It provides exposure to a portfolio of 500 of the largest and most profitable businesses listed in Australia. You probably recognise some of the IVV ETF’s largest positions, like Nvidia, Apple, Microsoft, Amazon.com, Alphabet, Broadcom, Meta Platforms, Tesla and Berkshire Hathaway.

Thankfully, these have been among the best blue-chip performers over the past several years. The ETF has heavily benefited from those gains, too, because an ETF simply passes along the returns of its holdings. It’s great to get that investment exposure through the IVV ETF.

Let’s take a look at how much the IVV ETF unit price has risen.

Strong returns by the IVV ETF

Over the last five years, the IVV ETF unit price has increased by more than 90%.

In terms of total returns, the IVV ETF returned an average of 14.5% per year between April 2021 and April 2026.

If an investor had put $10,000 into the ASX ETF five years ago, it would now be worth approximately $19,200. It could have been worth even more if the Australian dollar hadn’t strengthened against the US dollar by around 10% over the last 12 months.

Of course, the dividend returns aren’t captured in these numbers, though the yield isn’t exactly huge, so it wouldn’t make a gigantic difference.

If someone had invested $10,000 in IVV ETF units five years ago, they’d have been able to buy 274 units, with a bit of money left over (adjusted for the 15-to-1 split in December 2022).

How much an investor can buy now

Thanks to the significant capital growth over the past 12 months, investors can’t buy as many iShares S&P 500 ETF units now as they could then.

With a $10,000 investment, an Australian investor could buy 142 IVV ETF units today.

Is it a good buy today?

We can’t know for sure what the long-term returns will be. But the returns so far demonstrate the portfolio’s quality.

The fund is invested in great businesses, many of which are investing heavily in developing new/better products and services that could unlock additional earnings growth. But remember this is a major bet on the US share market.

With an annual management fee very close to 0%, it’s a very low-cost option for investors and an excellent index-investing option.

The post 5 years ago, $10,000 bought 274 iShares S&P 500 ETF (IVV) units. But how many would it buy now? 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 Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) remains one of the most popular ASX dividend shares on the market.

It isn’t hard to see why. The bank has a long history of paying fully franked dividends and remains a household name with a large customer base.

But popularity is not the same as value. After a strong run in the banking sector, Westpac shares may not offer the same margin of safety they once did.

There are also concerns about tough trading conditions across the sector, particularly with the economic outlook still uncertain.

If credit growth slows, bad debts rise, or margins come under pressure, bank earnings could face headwinds.

With that in mind, income investors may want to look beyond the major banks. Here are two ASX dividend shares that could be better options.

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share that could be worth considering is the Charter Hall Long WALE REIT.

It is a real estate investment trust that owns a diversified portfolio of properties leased to corporate and government tenants. Its focus is on long weighted average lease expiries (WALEs), which can provide greater visibility over future rental income.

While many property stocks are sensitive to interest rates and asset values, long leases can help support a more predictable distribution profile.

The trust has exposure to assets across sectors such as office, industrial, logistics, and social infrastructure. This gives it a different income base from the major banks, whose earnings are tied closely to lending conditions and the economic cycle.

It is guiding to a 25.5 cents per share dividend in FY 2026. Based on its current share price of $3.50, this represents a 7.3% dividend yield.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive is another ASX dividend share that could be a buy.

It operates in the digital lotteries market, providing online lottery retailing and software services. This gives it exposure to a sector that can be relatively resilient compared with many discretionary categories.

Jumbo has also built a strong digital platform, which is important as lottery participation continues to move online. Its software and managed services operations provide additional growth avenues beyond its retail lottery business.

Lottery ticket sales can move around, and jackpot activity can influence performance. But Jumbo offers something different from bank dividends: a capital-light digital business with income potential and room to grow.

Analysts at Bell Potter are expecting Jumbo to pay fully franked dividends per share of 44 cents in FY 2026 and then 52 cents in FY 2027. Based on its current share price of $7.50, this would mean dividend yields of 5.9% and 6.9%, respectively.

The post Forget Westpac, these ASX dividend shares could be better buys appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
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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 Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. 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 closed 0.39% lower at 8,657.8 points on Tuesday.

Let’s take a look at the latest expert ratings on three ASX shares.

Symal Group Ltd (ASX: SYL)

The Symal share price finished yesterday’s session 0.78% higher at $2.60.

In a new note, Morgans maintained its buy rating on this ASX industrial share with a 12-month target of $3.35.

The broker commented:

SYL’s recent investor day left us with the impression that the pipeline of potential work is immense, as the business progresses its $7.5bn of recently tendered work, along with a further $1.4bn of projects in early contractor involvement (‘ECI’).

Across the key verticals of infrastructure, digital, energy and defence, the total addressable market continues to grow, which along with M&A, could see the business delivering early on its FY30 aspirational EBITDA target of $200m.

Given SYL’s history of winning approximately one out of four tenders and no sign of Government investment budgets abating, the investment thesis for SYL as the ‘picks and shovels’ of the infrastructure build out remains intact.

Vicinity Centres (ASX: VCX)

The Vicinity Centres share price closed 0.78% lower at $2.55 on Tuesday.

Vicinity Centres is a major retail property group with $24 billion in assets under management.

It has interests in 51 shopping centres and manages 26 assets for Strategic Partners.

Ord Minnett reiterated its hold rating after the real estate investment trust (REIT) announced a $400 million purchase.

The broker said: 

Vicinity Centres has acquired a shopping centre in Eastern Creek in Sydney’s west for $400 million, implying a 5.7% yield after costs and a capitalisation rate of 6%.

The asset was recently developed and is almost fully leased (~99.5%), which underscores its quality and income stability.

The broker added:

At the portfolio level, Vicinity remains well positioned, supported by low gearing and relatively stable earnings growth.

The stock is trading broadly in line with fair value, around our $2.50 price target, so we maintain a Hold recommendation.

National Australia Bank Ltd (ASX: NAB) 

The NAB share price closed 0.76% lower at $37.99 yesterday.

As we’ve reported, the ASX 200 bank shares are facing many headwinds today.

Consumer confidence is at a five-year low; higher inflation and interest rates are expected; and the jobs market weakened last month.

On top of that, we are yet to see the full impact of the global oil shock, and capital gains tax changes ahead may impact lending growth.

Morgan Stanley reiterated its sell rating on NAB shares this week.

Analyst Richard Wiles gives NAB shares a 12-month target of $37.20.

The post Buy, hold, sell: Symal, Vicinity Centres, NAB shares appeared first on The Motley Fool Australia.

More reading

• How do ASX dividend shares compare to savings deposit rates today?
• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• If I invest $8,000 in NAB shares, how much passive income will I receive in 2027?
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• Here’s a 9% ASX dividend stock to consider for a monthly passive income

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

I’d say Wesfarmers Ltd (ASX: WES) shares could be one of the best ASX blue-chip options for retiree investors.

The name ‘Wesfarmers’ may not be as famous as Commonwealth Bank of Australia (ASX: CBA) or BHP Group Ltd (ASX: BHP). But, I’m going to explain why I think Wesfarmers could be the strongest blue-chip that retirees could want to buy right now.

Let’s run through my thoughts.

Diversification

Wesfarmers is the parent company behind a number of Australian businesses including Kmart, Bunnings, Officeworks, Target, Priceline, Clear Skincare Clinics, Blackwoods, Workwear and WesCEF (chemicals, energy and fertilisers).

I think this is a great strategy for the company because it means it’s not stuck in any particular industry. It can invest where it sees opportunities and divest businesses when it no longer wants to own them.

For example, it used to own coal mines and Coles Group Ltd (ASX: COL), and both were divested several years ago.

I like that the company can adjust its portfolio, allowing it to future-proof the overall business and re-direct capital towards growth industries.

For example, in recent years, some of its investment dollars have gone towards healthcare, lithium mining and modular home construction.

Plenty of ASX businesses are stuck in their core industry, so their success will be partially down to how profitable their sector is in the coming years.

Rising dividend

One of the main things that retirees may be looking for is dividend income.

Wesfarmers has a great dividend record, in my view. Following its split from Coles, it has increased its annual passive income each year since 2020.

I believe it’s likely the business will continue to hike its annual dividend for a couple of key reasons.

Firstly, the company has stated it wants to grow its dividend over time alongside its earnings growth.

The projection on Commsec suggests the business could pay an annual dividend per share of $2.16 in FY26.

 At the time of writing and the current Wesfarmers share price, it could provide a FY26 grossed-up dividend yield of around 4%, including franking credits. I’d say that’s a solid starting dividend yield for retirees.

I’ll explain my other reason for expecting dividend growth below.

Well-positioned for the current conditions

Both Kmart and Bunnings are national leaders at providing good value products for households. Wesfarmers succeeded during the last period of inflation and I think it’s primed to do well again and perhaps gain market share.

Both Kmart and Bunnings achieve excellent returns on capital (ROC), helping it normally achieve a return on equity (ROE) of more than 30%, meaning shareholder money is working very hard.

I think Bunnings and Kmart can both grow their earnings in the coming period, perhaps gaining market share, and this can fund larger dividends in FY27 and beyond. The current forecast on Commsec suggests the FY27 annual dividend per share could increase by around 8%.

The post Why Wesfarmers shares are a retiree’s dream for FY27 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 Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.