Category: Stock Market

Whitehaven Coal Ltd (ASX: WHC) shares have been trading positively since the release of the company’s quarterly report this week, but what are they worth over the longer term?

I’ve had a look at two brokers reports issued following the quarterly results. Both have bullish share price targets on the stock, which we’ll get to shortly.

Solid quarterly results

Firstly, let’s have a look at what Whitehaven reported this week.

The coal producer said it had generated sales of 6.8 million tonnes of coal for the March quarter, broadly in line with the December quarter.

On the upside, coal prices were much stronger over the period, with metallurgical coal prices up 18% and thermal coal prices up 11% quarter on quarter.

The company also said it was on track to deliver $60-$80 million in annualised cost savings by the end of June.

Managing director Paul Flynn said regarding the quarterly results:

Production in the March quarter was broadly in line with plan reflecting strong outcomes from NSW open cut operations and solid results from Queensland operations in a weather impacted quarter. For the first nine months of the year we have produced 29.5Mt of ROM, and we are on track to be firmly in the upper half of guidance for FY26. “Equity sales of 6.8Mt for the quarter were also strong and are tracking at the upper end of guidance for the year. Revenue mix for the quarter was ~58% from metallurgical coal sales and ~42% from thermal coal sales.

Mr Flynn said Whitehaven’s financial position was strong, and the successful refinancing of the company’s debt facilities would deliver considerable cost savings in the order of $50-$55 million per annum.

The company said in its statement to the ASX that coal prices were given a boost by the war in the Middle East, caused by the tightening of gas supplies and the potential for end users to switch from gas to coal for energy production.

The company said it was expecting strong pricing across both metallurgical and thermal coal.

It said:

The expected structural shortfall in global metallurgical coal production, particularly the long-term depletion of hard coking coal from Australian producers combined with increased seaborne demand from India, is anticipated to drive higher metallurgical coal prices over the long-term. Whitehaven’s metallurgical coal portfolio is expected to benefit from these supply constrained market dynamics.

Shares looking like good value

The analyst team at Morgans had a look at the quarterly and said Whitehaven delivered exceptional results for saleable coal production and actual sales.

Morgans has an accumulate rating on the stock and a 12-month price target of $9.20, compared with $8.12 currently.

The analyst team at Macquarie said it was a strong result on the production front, and the company’s focus on costs was a positive.

Macquarie has a price target of $9.75 on Whitehaven shares.

Whitehaven Coal is valued at $6.6 billion.

The post What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Whitehaven, Deep Yellow and Beach Energy shares on Tuesday?
• Why Whitehaven Coal shares are rising today despite a rough month
• Whitehaven Coal shares: Q3 FY26 shows steady sales, improved pricing

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

The All Ordinaries Index (ASX: XAO) is down 0.4% in morning trade today, but that’s not holding back this ASX All Ords gold stock.

The outperforming gold miner in question is Brightstar Resources Ltd (ASX: BTR).

Brightstar shares closed yesterday trading for 39.5 cents. At the time of writing, shares are changing hands for 40 cents apiece, up 1.3%.

This sees the Brightstar Resources share price up an impressive 33.3% since closing at one-year lows of 30 cents on 23 March.

Investors have been bidding up the ASX All Ords gold stock amid recently completed new funding packages and some strong exploratory drilling results.

Here’s what’s happening today.

ASX All Ords gold stock lifts on restart progress

Brightstar Resources shares are marching higher following the release of the company’s March quarter update (Q3 FY 2026).

Over the three months to 31 March, the ASX All Ords gold stock reported total mining production of 58.7Kt at 3.31g/t Au for 6,250 ounces of gold from its Laverton underground mining operations.

The quarter also saw Brightstar release its Goldfields DFS 2.0, an updated definitive feasibility study for the Goldfields Hub in January.

In line with the DFS 2.0 mine plan, Brightstar’s Fish underground gold mine was transitioned to care and maintenance. Mining operations at Fish have ceased, with management expecting the mine will be ready to restart ore production in early calendar year 2027.

According to the miner, the updated Goldfields DFS 2.0 “delivered compelling economics and provides a strong platform for near-term development of 75koz p.a. of gold production with first gold targeted in JunQ’CY27”.

Brightstar Resources well-funded for the next phase

The March quarter also saw the ASX All Ords gold stock secure significant new funding.

That included the successful completion of a $193 million capital raise as well as the completion of a US$120 million Senior Secured Nordic Bond.

Management noted:

Equity and bond capital raises together provide Brightstar with over $380 million of funding to finance Goldfields to gold production (targeted JunQ’CY27) while providing substantial capital to Sandstone to advance drilling and feasibility work streams targeting a Sandstone investment decision from early CY27.

Sandstone is one of Brightstar’s potentially large-scale developing gold projects.

The ASX All Ords gold stock said it is targeting two Mineral Resource upgrades for Sandstone in 2026, aiming to release a maiden Ore Reserve and PFS in the second half of the calendar year.

“Sandstone continues to demonstrate strong multi-million-ounce growth potential,” the miner noted.

As at 31 March, Brightstar Resources had total cash and working capital of $179.3 million.

The post Up 33% since March, why is this ASX All Ords gold stock outperforming again today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX gold shares to buy after the recent pullback
• Could this ASX-listed gold mine developer really increase six-fold?

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

G8 Education Ltd (ASX: GEM) shares are having a day to forget on Wednesday.

In morning trade, the ASX 300 share is down 31% to a multi-year low of 16.5 cents.

This follows the release of a trading update from the childcare centre operator ahead of its annual general meeting.

ASX 300 share crashes on trading update

This morning, G8 Education announced a program of proactive initiatives to respond to ongoing macro, cost of living, and socio-economic challenges that are affecting the early childhood education and care (ECEC) sector.

The ASX 300 share notes that the ECEC sector is experiencing unprecedented change and uncertainty, driven by a combination of socio and macro-economic factors.

Management highlights that occupancy across the ECEC sector is lower compared to 2024 and 2025 due to families experiencing sustained affordability pressures, falling birth rates, increased long-day care supply, and confidence being impacted by serious child safety incidents.

At the same time, it notes that ECEC operators are dealing with increased costs incurred due to inflationary pressures across the economy, persistent workforce challenges, changing regulation and compliance requirements, and a more complex operating environment.

Current occupancy for the ASX 300 share at 24 April 2026 is 56.4%, which is down 7% versus the prior corresponding period. Year-to-date occupancy is 56.1%. This is down 7.9% on the same period last year.

G8 Education’s CEO and managing director, Pejman Okhovat, said:

In this environment, G8 Education’s focus remains firmly on safety, high quality education and care, disciplined execution, as well as efficient and effective management of the areas within its control. While the operating environment means G8 Education does not expect a material recovery in occupancy relative to pcp this year, we will continue to review and adjust the operating model and cost base of the Group where appropriate.

Big changes

Pejman Okhovat has revealed that big changes are underway. He said:

In response, G8 Education has proactively assessed its network to ensure we remain sustainable, resilient and well positioned to continue delivering safe, high quality early education and care over the long term. We have carefully considered where our resources can be most effectively allocated to support quality early education and care outcomes.

The company has announced several initiatives that are planned to be delivered in FY 2026.

One is the suspension of the operation of approximately 40 challenged and underperforming centres. G8 Education will focus on supporting families to transition to one of its nearby centres and redeploying team members. The ASX 300 share will then consider longer term options for those centres, including lease surrender, divestment, or another alternative.

There are also procurement and cost saving initiatives that will be undertaken. However, it stresses that these will not impact safety, compliance, or the capacity of its centre-based team to deliver high quality education and care.

G8 Education shares are now down almost 90% over the past 12 months.

The post Why is this ASX 300 share crashing 31% today? appeared first on The Motley Fool Australia.

More reading

• A big milestone for this ASX biotech. Here’s why the share price is moving
• After 7 straight days in the red, where is the value for ASX 200 stocks?
• What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say
• Up 33% since March, why is this ASX All Ords gold stock outperforming again today?
• Nickel Industries reports March quarter earnings

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 Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company reported a record US$135.6 million adjusted EBITDA for the March 2026 quarter, boosted by a significant rebound at its Hengjaya Mine and higher quarterly margins across its operations.

What did Nickel Industries report?

• Adjusted EBITDA from operations up 264% quarter-on-quarter to US$135.6 million
• RKEF operations Adjusted EBITDA up 145% to US$85.8 million; RKEF margins increased 155%
• Mining segment Adjusted EBITDA turned positive, jumping from a loss of US$14.9 million to a profit of US$29.0 million
• Strong mine performance: ore sales up 222% on the prior quarter to 3,042,663 wet metric tonnes (wmt)
• Received 2026 RKAB licence at Hengjaya Mine (14.3 million wmt, up 60% year-on-year)
• Cash balance of US$211.8 million at 31 March 2026

What else do investors need to know?

Nickel Industries further strengthened its position with the acquisition of an extra 2% in the Excelsior Nickel Cobalt (ENC) project, lifting its stake to 46%. Pre-commissioning of major ENC assets was completed in the March quarter, with full ramp-up now targeted for late October 2026.

Safety remained a focus, with a company-wide lost time injury frequency rate (LTIFR) of zero for the quarter, though the period was marred by a fatal contractor incident. Investigations have concluded, and corrective actions are being implemented.

The company also made headway on sustainability initiatives, advancing a new 197-hectare biodiversity conservation area at Hengjaya Mine. Community investment programs, such as university scholarships, continued to grow.

What’s next for Nickel Industries?

The successful commissioning and ramp-up of the ENC HPAL and refinery facilities are the company’s immediate priorities for the June and September quarters. Management is monitoring changes to Indonesia’s nickel ore pricing regime, which may affect market dynamics and costs.

Nickel Industries is also progressing development at its Sampala and Siduarsi projects. Continued cost focus, stockpiling strategies, and recent refinancing through US$450 million of new unsecured loan facilities put the company in a strong position to manage ongoing industry cycles.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 85%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period. 

View Original Announcement

The post Nickel Industries reports March quarter earnings appeared first on The Motley Fool Australia.

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• Stanmore Resources: Coal output recovers in March quarter
• Zimplats shares: Production dips and costs rise
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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.

Knowing how to invest doesn’t require genius-level intelligence or insider connections. But it does demand discipline, patience, and a clear understanding of what not to do.

While many investors focus on picking winners, avoiding a few key mistakes can often matter more to long-term success. Here are three common pitfalls to steer clear of if you want to invest smarter.

Chasing short-term hype

It’s tempting to jump on the latest “hot stock” after seeing headlines about massive gains. Whether it’s a trending S&P/ASX 200 Index (ASX: XJO) tech company or a buzzworthy sector, hype can create the illusion of easy money. The problem? By the time most investors hear about it, the price often already reflects high expectations.

Buying based on momentum rather than fundamentals can leave you exposed when sentiment shifts. Instead, focus on businesses with strong earnings potential, durable competitive advantages, and a clear growth strategy. Smart investing is less about timing the market and more about time in the market.

Ignoring diversification

Putting all your money into a single stock—or even a single industry—might deliver big gains if you’re right. But it also dramatically increases your risk. Even great companies can face unexpected setbacks, from regulatory changes to shifts in consumer behaviour.

Diversification helps cushion your portfolio against these uncertainties. By spreading your investments across different sectors, asset classes, and geographies, you reduce the impact of any one underperformer. Think of diversification not as limiting upside, but as protecting your ability to stay invested over the long haul.

Letting emotions drive decisions

Fear and greed are powerful forces in investing. During market downturns, fear can push investors to sell at the worst possible time. During rallies, greed can encourage overconfidence and reckless buying.

Emotional decision-making often leads to buying high and selling low—the exact opposite of a successful strategy. To counter this, create a clear investment plan and stick to it.

This might include setting target allocations, regularly contributing to your portfolio, and rebalancing periodically. A disciplined approach helps you stay grounded when markets get volatile.

Foolish Takeaway

Smart investing isn’t about avoiding all mistakes. It’s about minimising the ones that can derail your progress. By resisting hype, diversifying your portfolio, and keeping emotions in check, you put yourself in a stronger position to build wealth over time.

Remember, consistency beats excitement. The investors who succeed aren’t the ones chasing every opportunity; they’re the ones who stay focused on a sound, long-term strategy.

The post How to invest smart: Avoid these 3 common pitfalls appeared first on The Motley Fool Australia.

More reading

• A big milestone for this ASX biotech. Here’s why the share price is moving
• After 7 straight days in the red, where is the value for ASX 200 stocks?
• What are Whitehaven Coal shares worth following their quarterly results? 2 Brokers have their say
• Up 33% since March, why is this ASX All Ords gold stock outperforming again today?
• Why is this ASX 300 share crashing 31% today?

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

Shares in oOh!Media Ltd (ASX: OML) have surged as much as 40% in early morning trade after the outdoor advertising company revealed it had received a takeover approach from private equity firm Pacific Equity Partners (PEP).

The sharp move caught the market’s attention and sparked a rally in a stock that, prior to the announcement, had been trading 34% lower than when it started the year.

Private equity bid sparks the rally

The catalyst for the surge was an unsolicited, non-binding indicative offer from PEP to acquire 100% of oOh!Media at $1.40 per share via a scheme of arrangement.

That price represented a 65% premium to where the stock had been trading yesterday, triggering an immediate higher re-rating when trading commenced this morning.

Takeover offers often lead to this kind of step-change in share price as the market anchors to the bid price minus a discount reflecting uncertainty surrounding the deal.

Why is the share price trading below the offer?

Even after the rally, oOh!Media shares are trading around $1.20 (at the time of writing), well below the proposed $1.40 offer price.

That roughly 15% discount reflects market uncertainty about the likelihood of the deal progressing.

At this stage, the proposal is non-binding and subject to a number of conditions, including due diligence, board approval, regulatory clearances, and final investment committee sign-off from PEP.

There’s also no guarantee a binding agreement will be reached at all.

In situations like this, the market assigns a probability to the deal completing. If investors believed the takeover was certain, the share price would sit much closer to $1.40. The current discount suggests that the market is pricing in some execution risk.

What comes next?

From here, the situation becomes a waiting game for oOh!Media investors.

The key milestone will be whether PEP progresses from an indicative proposal to a binding offer. That typically follows due diligence and further negotiation with the board.

There’s also the possibility of competing bids emerging, particularly given oOh!Media’s position as a leading out-of-home advertising network across Australia and New Zealand.

However, until something more concrete is announced, the share price is likely to trade in a range that is pulled higher by the takeover price, but capped by uncertainty.

Foolish bottom line

oOh!Media’s 40% surge is welcome news for investors, but there is still some uncertainty about whether this deal will proceed. After all, the takeover price of $1.40 is well below where oOh!Media shares were trading less than a year ago (around $1.80 in August 2025). Investors will be hoping that this is just the start of a bidding war that pushes the price even higher.

The post oOh!Media shares rocket 40% higher on takeover offer appeared first on The Motley Fool Australia.

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• This is the ASX 300 share offering a 9% dividend yield!

Motley Fool contributor Kevin Gandiya has no positions 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.

Westgold Resources Ltd (ASX: WGX) shares are out of favour with investors on Wednesday.

In morning trade, the ASX 100 gold stock is down 1.5% to $5.99.

Why is this ASX 100 gold stock falling?

Investors have been selling the gold miner’s shares following the release of its third-quarter update.

For the three months ended 31 March, Westgold reported production of 93,145 ounces of gold. This was down 16.4% quarter-on-quarter from 111,418 ounces. This means that production now totals 288,500 ounces financial year to date.

Management advised that its weaker production in the third quarter was driven predominantly by lower head grades from the Starlight mine and the New Murchison ore purchase agreement (OPA) in the Murchison and from Beta Hunt in the Southern Goldfields.

Nevertheless, the ASX 100 gold stock has reaffirmed its production guidance for the full year. It continues to expect production of 345,000 ounces to 385,000 ounces for FY 2026.

Sales and costs

Westgold reported gold sales of 69,900 ounces at an average price of A$7,080 per ounce. This generated revenue of A$495 million.

Excluding gold production from ore purchased under the OPA, the ASX 100 gold stock’s all-in sustaining cost (AISC) was A$2,931 per ounce in the first quarter. This was in-line with the prior quarter.

The company’s AISC inclusive of the OPA was A$3,338 per ounce, down from A$3,466 per ounce. Management advised that this was driven by lower OPA costs quarter-on-quarter.

This underpinned an underlying cash build of A$285 million, before investments in growth (-A$81 million), share buybacks (-A$3 million), proceeds from asset sales (+A$14 million), and exploration (-A$13 million).

At the end of the quarter, the ASX 100 gold stock had a cash, bullion, and liquid investments balance of A$856 million. It remains 100% debt free and unhedged.

Management commentary

Westgold’s managing director and CEO, Wayne Bramwell, was pleased with the quarter but flagged that costs are now expected to be at the high-end of its guidance range in FY 2026. He said:

Westgold delivered another strong quarter in Q3 FY26, with cash generation lifting treasury to $856M. Underlying quarterly cash build of $285M underpins a business that is continually building strength to internally fund growth and return capital to shareholders.

FY26 production guidance has been maintained. While full year costs are expected to finish toward the top end of guidance, this reflects both broader industry inflationary pressures and deliberate operational decisions taken to maximise cashflow.

The post Why is this ASX 100 gold stock under pressure today? appeared first on The Motley Fool Australia.

More reading

• Westgold Resources posts $285M quarterly cash build
• Why this top ASX gold share could rise 50% from here
• ASX gold shares tumble as bull run faces its first big test in 1Q CY26

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.

S&P/ASX 300 Index (ASX: XKO) coal stock Stanmore Resources Ltd (ASX: SMR) is outperforming today.

Stanmore Resource shares closed yesterday trading for $2.24. In early morning trade on Wednesday, shares are changing hands for $2.27 apiece, up 1.3%.

For some context, the ASX 300 is down 0.4% at this same time.

This follows the release of Stanmore’s March quarter update (Q3 FY 2026).

Here’s what we know.

ASX 300 coal stock lifts on production recovery

Stanmore Resources shares are marching higher today despite the ASX 300 coal stock reporting a 33.3% quarter on quarter decline in run of mine (ROM) coal mined to 4.0 million tonnes.

Like many Aussie miners, Stanmore’s production was impacted by inclement weather conditions during the first months of the quarter. But investors will have noted that production picked back up in March amid record coal mined at Stanmore’s South Walker creek.

Stanmore reported saleable production of 3.2 million tonnes of coal, down 17.9% from Q2 FY 2023.

Total coal sales of 3.0 million tonnes were down 25%. And the ASX 300 coal stock received lower overall prices over the March quarter, pressured by a higher proportion of thermal coal in its sales mix.

Thermal coal, broadly used for power generation, sells for less than coking coal, which is mostly used for steel production.

Turning to the balance sheet, as at 31 March, Stanmore Resources reported consolidated cash of US$166 million, with net debt of US$79 million and total liquidity of US$436 million.

The miner reaffirmed its full-year FY 2026 saleable production guidance to be in the range of 12.8 million tonnes to 13.4 million tonnes of coal. Capital expenditure guidance was also maintained in the range of US$85 million to US$95 million.

What did Stanmore Resources management say?

Commenting on the results helping lift the ASX 300 coal stock today, Stanmore Resources CEO Marcelo Matos said, “The first quarter of 2026 reinforced the resilience of our business, with operations recovering strongly in the latter part of the period to deliver saleable production within the expected annual run rate of guidance.”

Matos continued:

This followed the arrival of ex-Tropical Cyclone Koji in early January, which caused widespread disruption across open-cut producers in Queensland. Strong opening inventories helped buffer the impact for Stanmore, supported by a proactive operational response to prioritise coal availability and record volumes at South Walker Creek in March.

As for the impact of the Middle East conflict, Matos noted:

Metallurgical coal prices improved quarter-on-quarter amid the weather-related supply constraints, although gains were moderated by ongoing macroeconomic uncertainty associated with the conflict in the Middle East.

The resulting impact on fuel markets has become increasingly evident in recent weeks, with industry participants managing both supply and price risk.

The post ASX 300 coal stock lifting off today on production rebound appeared first on The Motley Fool Australia.

More reading

• Stanmore Resources: Coal output recovers in March quarter
• Why this ASX coal stock is sinking 9% today

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

ASX stock Codan Ltd (ASX: CDA) is back in focus on Wednesday after releasing a trading update before the market opened.

The share price is up 13.39% to $41.25 at the time of writing, continuing a strong run that has been building for months.

It has gained roughly 25% in the past month and is now up more than 160% over the past year.

Let’s take a closer look at what’s driving the move.

Earnings outlook lifted on strong second-half

According to the release, Codan said it has been trading above expectations in the second-half of FY26.

This has prompted management to lift its full-year earnings outlook.

The company now expects earnings before interest and tax (EBIT) of about $235 million, with net profit after tax (NPAT) around $170 million.

That represents growth of more than 60% compared to FY25, which is well above what was previously expected.

Management noted that the upgrade is being driven by stronger performance in the communications division, where demand has remained solid.

Communications division doing the heavy lifting

Codan had previously guided to revenue growth of 15% to 20% for FY26, but now expects to land at the top end of that range.

Growth is being supported by ongoing demand from defence customers, particularly in areas linked to unmanned systems.

There is also continued demand for software-defined radios, which are being used across a wider range of applications.

At the same time, margins are starting to lift as more volume comes through.

Codan is now expecting communications segment margins to reach 30% in FY26, which is earlier than previously flagged.

That compares to a margin of around 26% in FY25, which shows how much it has improved.

Minelab still contributing in the background

While the communications division is leading the current upgrade, Codan’s Minelab business is also tracking well.

Revenue from Minelab is running ahead of the strong first-half, helped by a favourable gold price and recent product releases.

The ASX stock also highlighted solid demand across key markets, which has supported sales numbers in the second-half.

Foolish takeaway

Codan is doing a lot right at the moment.

Demand in communications is holding up, margins are improving, and earnings are moving higher as a result.

That has been enough to keep the share price trending in the right direction over the past year.

But after such a strong run, I would be a bit more patient from here.

The business still looks in good shape and the momentum could carry on, but I’d wait for a pullback before getting involved.

The post Up 13% today. Here’s why this $6.6 billion ASX stock is on the move again appeared first on The Motley Fool Australia.

More reading

• Codan FY26 earnings surge more than 60% on strong communications segment
• This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares I’d buy as the share market rebounds
• 3 of the best ASX 200 shares to buy this month with $6,000

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

Most people will never run a business. But that doesn’t mean they can’t own one — or several hundred.

The share market exists precisely for this purpose. It lets ordinary investors become silent owners of real businesses generating real cash flow, without needing to manage staff, chase invoices, or sit through board meetings.

Income-focused exchange-traded funds (ETFs) take this idea one step further. Rather than doing the homework on individual companies, the fund does it for you — bundling dozens of dividend-paying businesses into a single holding that pays out distributions at regular intervals.

The question most investors never quite get around to answering is: How do I actually build this kind of income stream if I don’t have a lump sum sitting ready to deploy?

That’s where dollar-cost averaging comes in.

The quiet power of regular contributions

Dollar-cost averaging — or DCA — is the practice of investing a fixed dollar amount at regular intervals, regardless of what the market is doing. When prices fall, your contribution buys more units. When prices rise, it buys fewer. Over time, this tends to smooth out the average cost of your investment.

It’s not a strategy designed to maximise returns. It’s designed to maximise discipline.

For most Australians building wealth around a salary, DCA reflects reality anyway. You earn, you save, you invest — consistently and repeatedly. The structure simply puts intention behind what would otherwise be an ad hoc process.

Applied to income-producing ETFs, dollar-cost averaging creates something compounding and structural over time: a growing portfolio that throws off increasing distributions each year, without requiring you to make active calls on markets or individual companies.

3 income ETFs worth considering

The Vanguard Australian Shares High Yield ETF (ASX: VHY) is the obvious starting point. With nearly $7 billion in funds under management, it is the largest dedicated income ETF in Australia. The VHY ETF tracks the FTSE Australia High Dividend Yield Index, holding 79 companies, including names such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS). Its approximate dividend yield sits at 4.3%, and its management fee of 0.25% keeps costs reasonable. For a regular investor building toward income, VHY is a sensible core holding.

For those seeking a global income layer, the SPDR S&P Global Dividend Fund (ASX: WDIV) offers exposure to 97 high-yielding companies across international markets, yielding approximately 5.2% and charging a fee of 0.35%. Adding WDIV alongside a domestic holding reduces concentration in Australian banks and resources, sectors that dominate the local income landscape.

Investors looking for a lower-cost domestic option might also consider the iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD), which carries a management fee of 0.23% and delivered a one-year total return (dividends and capital gains) of over 23%. IHD applies an ESG screen, meaning it excludes companies that don’t meet certain environmental, social, and governance criteria.

Foolish Takeaway

The goal of dollar-cost averaging into income ETFs is not to get rich overnight. It is to build a machine — slowly, methodically — that generates cash flow from businesses you own but never have to run.

In the early stages, reinvesting distributions accelerates the compounding. As the portfolio grows, those same distributions can become income you actually spend.

No strategy removes market risk entirely, and ETF distributions are not guaranteed to remain constant year to year. But for investors who want exposure to the income-generating capacity of Australian and global businesses without the active management burden, a regular contribution plan into a small basket of income ETFs is one of the most straightforward approaches available.

The best time to start is usually before you feel ready.

The post How to dollar-cost average your way to passive income with ETFs appeared first on The Motley Fool Australia.

More reading

• The best ASX ETFs to buy for passive income
• Almost ready to retire? I’d buy cheap ASX dividend shares for passive income
• The easy way to buy ASX dividend shares and build passive income
• How to build a second income from ASX shares without taking big risks
• Own ASX IOZ or other iShares ETFs? Here are the dividends you’ll get today

Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.