Category: Stock Market

With February reporting season fast approaching, investors face a familiar decision. Do you wait for results and risk paying a higher price, or do you act early and accept the uncertainty that comes with buying ahead of updates?

If I were putting money to work before reporting season begins, these are three S&P/ASX 200 Index (ASX: XJO) shares I would seriously consider buying. 

Each has clear near-term catalysts, but more importantly, each has a longer-term story that I think remains intact regardless of short-term volatility.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is approaching reporting season with far more momentum than it had a year ago. The merger with Chemist Warehouse has reshaped the business into a much larger and more strategically important healthcare retail and distribution group. That scale matters. It improves buying power, strengthens supplier relationships, and increases the resilience of earnings across the cycle.

When it next releases its results, the market will be looking for confirmation that the Chemist Warehouse integration is tracking to plan and that cost and revenue synergies are beginning to emerge. Even without aggressive assumptions, I think Sigma now sits in a structurally stronger position than it did pre-merger, which makes the risk-reward ahead of results more appealing.

REA Group Ltd (ASX: REA)

REA is one of those businesses where timing matters less than long-term ownership. Reporting season tends to remind the market why that is the case. The company dominates Australian property listings with its realestate.com.au platform, and its pricing power is closely tied to transaction volumes rather than house prices themselves.

With housing activity showing early signs of stabilisation, February results could reinforce the view that REA is positioned to benefit from any recovery in listings and developer activity. Even if conditions remain uneven, REA’s margin profile and competitive moat mean it does not need a booming property market to continue growing earnings over time. That is a quality I look for when making investments.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix remains one of the more interesting healthcare names heading into earnings season. The company has already commercialised key products, which sets it apart from many earlier-stage biotech peers, and it continues to expand its pipeline and geographic reach.

It has already released a sales update for FY25, so there will be no surprises in February during reporting season. Instead, investors can focus on more important factors such as progress across clinical programs and the path toward broader adoption of its radiopharmaceutical therapies. 

Speaking of which, I think 2026 could be an exciting year for this ASX 200 share with potential game-changing US FDA approvals for two key products.

Foolish Takeaway

Buying shares before reporting season is never about certainty. It is about deciding whether the long-term opportunity outweighs the risk of near-term disappointment.

If I were investing today, these are three ASX 200 shares I would feel comfortable owning through February, knowing that volatility may come, but believing the underlying businesses are worth backing beyond the next few weeks and long into the future.

The post 3 ASX 200 shares I would buy before February appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares this fund manager says are buys for 2026
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• Top broker tips 57% upside for beaten-down Telix shares
• 3 underappreciated ASX growth shares I would buy with $1,000
• Where to invest $5,000 in ASX 200 shares to try and beat the market

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

As 2026 approaches, many Australians are quietly asking the same question: Am I actually ready to retire?

It is a big decision, and for most people, it is not helped by complex calculators, conflicting headlines, or wildly different opinions.

The good news is that you do not need a perfect plan to get clarity. In fact, a simple two-minute sense check can tell you whether you are broadly on track — or whether it is worth spending more time refining the details.

Here are three simple rules of thumb to help you find out:

1. Start with what your lifestyle really costs

Retirement planning often starts with super balances. In reality, it should also start with spending.

A practical first step is to estimate how much you currently spend each year to live the life you enjoy. That includes housing costs, food, utilities, transport, healthcare, insurance, and lifestyle expenses such as travel or hobbies.

This does not need to be precise. The goal is to arrive at a reasonable annual figure that reflects your day-to-day life, not an idealised version of retirement.

Once you have that number, you can move on to the more important question: Can your assets support it?

2. Can your assets reasonably support that income?

A common rule of thumb used in retirement planning is to compare annual spending needs against total investable assets, including superannuation.

Rather than focusing on short-term market movements, this approach looks at whether your savings could support your lifestyle over time using a conservative withdrawal range. It is not a guarantee, but it is a useful stress test.

If your assets appear comfortably ahead of your spending needs, that is a positive sign. If the gap feels tight, it does not mean retirement is off the table — it simply means flexibility and structure matter more.

This is also where asset mix becomes important.

For many Australians, this is where ASX shares come into the picture. A diversified portfolio of dividend shares and/or ETFs can provide a combination of income and long-term growth, helping retirement savings keep pace with inflation. Unlike relying on a single asset, shares offer liquidity and flexibility, which can be valuable when spending needs change over time. Of course, share markets move around, which is why many retirees use them as part of a broader mix rather than a stand-alone solution.

3. How long might your money need to last?

One of the most common retirement planning mistakes is underestimating longevity.

Australians are living longer than previous generations, and many retirees now need their savings to last 25 to 30 years or more. Planning for a longer retirement is not pessimistic — it is prudent.

This matters because early retirement years are often the most financially sensitive. Poor market conditions combined with heavy withdrawals can have an outsized impact if they occur too soon.

A simple question to ask is whether your plan still works if you live longer than expected. If the answer is yes, you are building resilience into your retirement, not just optimism.

How much flexibility do you actually have?

Retirement today is rarely a clean switch from work to no work.

Some people reduce hours gradually. Others work casually for a few years. Many adjust spending depending on markets, health, or personal priorities.

Flexibility is one of the most powerful tools retirees have. Even modest adjustments — delaying travel, drawing slightly less in weak markets, or earning a small side income — can significantly improve long-term outcomes.

A simple 2-minute check

If you can broadly say “yes” to the following, you are likely closer to retirement readiness than you think:

• I understand my annual spending needs.
• My assets reasonably support that spending under conservative assumptions.
• I have planned for a long retirement.
• I have flexibility if markets or life surprise me.

Foolish Takeaway

This quick check is not a full retirement plan, and it is not designed to replace personalised advice. It does not account for tax structures, superannuation rules, or Age Pension eligibility.

What it does offer is clarity.

If the answer today is “not quite,” that is still useful information. Time, flexibility, and small adjustments often matter far more than perfect timing or precise forecasts.

And if the answer is “yes,” then retirement in 2026 may be less about whether you can afford it — and more about how you want to spend it.

The post Can you afford to retire in 2026? Find out in 2 minutes appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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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 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.

Are you hunting some new investment ideas? If you are, then let’s take a look at three popular ASX shares and see if Morgans rates them as buys, holds, or sells.

Here’s what the broker is saying about them:

Evolution Mining Ltd (ASX: EVN)

This gold miner delivered a strong second quarter update according to Morgans. It highlights that Evolution Mining reported production and costs that were better than expected, as well as record cash flow.

However, due to its current valuation, Morgans has retained its trim rating (between sell and hold) with an improved price target of $13.20. It said:

Strong 2Q26 with gold production and costs beating expectations. EVN generated record cash flow again. We expect EVN to reach net cash by the end of FY26. We maintain our TRIM rating as we view the stock as fully valued. However, we see merit in retaining some exposure given EVN’s significant leverage to gold and copper prices, which are currently at record levels.

Hub24 Ltd (ASX: HUB)

Morgans was impressed with this investment platform provider’s performance during the second quarter. It highlights that its platform net flows were the largest on record and comfortably ahead of expectations.

But due to its current valuation, the broker has held firm with its hold rating and $110.60 price target. It said:

HUB’s 2Q26 Platform net-flows of $5.6bn were the group’s largest on record, coming in ahead of consensus expectations of $4.6bn. On an underlying basis (excluding $1.5bn of flows from the EQT migration in 2Q25), core net inflows were up +42% yoy. This strong organic momentum was also supported by positive mark-to-markets during the quarter which saw HUB report Total FUA of $152.3bn, +26% yoy, and Platform FUA of ~A$127.9bn, +29% yoy.

We see the company as well positioned to deliver strong growth at its upcoming 1H26 result and on track to reach its FY27 Platform FUA targets. We upgrade our underlying NPAT forecasts by 1-2% and retain our Hold rating with an unchanged $110.60 price target.

Rio Tinto Ltd (ASX: RIO)

A final ASX share that Morgans has been looking at is Rio Tinto. It was pleased to see the mining giant achieve its shipments guidance in FY 2025 despite cyclone disruptions early in the year. It was also pleased with its copper production, which was ahead of expectations.

Once again, though, the broker thinks Rio Tinto’s shares are fully valued. As a result, it has retained its trim rating and $140.00 price target. It said:

Record 4Q Pilbara production and shipments enabled RIO to land at the lower end of CY25 guidance, recovering from cyclone disruptions back in 1Q. Copper beat estimates by 14% on Escondida and Oyu Tolgoi strength. Simandou achieved first shipment in December as guided. Making hay while the sun shines, with copper and iron ore beats, but a quarter that will be hard to repeat with Pilbara shipments to normalise and Escondida grades set to moderate in CY26. Valuation remains stretched at current levels. We maintain our TRIM rating with target price unchanged at A$140.

The post Buy, hold, sell: Evolution Mining, Hub24, and Rio Tinto shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 DroneShield. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Premier Investments Ltd (ASX: PMV) are flashing a potential turning point after staging a sharp rebound from multi-year lows.

The Premier Investments share price is up 10.82% today to $14.14, following a broker upgrade that appears to have reignited investor interest. The rally comes after the stock recently hit a 5-year low of $12.76, capping off a painful 12 months for shareholders.

Despite today’s jump, Premier shares remain down roughly 30% over the past year.

While it may be a little too early to celebrate, the rebound suggests the worst of the sell-off may now be behind the company.

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

A broker upgrade sparks renewed interest

The catalyst for today’s rally appears to be a fresh broker note from Macquarie.

The broker upgraded Premier Investments to an outperform rating and set a $16.20 price target. Even after today’s surge, that still implies potential upside of around 15%.

Macquarie pointed to valuation support following the share price collapse, arguing the market may have become overly pessimistic about near-term retail conditions. The broker also highlighted the group’s balance sheet strength and exposure to higher margin brands as reasons sentiment could improve from here.

Breaking the downtrend

Premier shares have been locked in a clear downtrend for much of the past year, consistently making lower highs and lower lows. That pattern was only broken this week after the stock rebounded strongly off the $12.76 low.

The move back above short-term moving averages suggests selling pressure is easing. While this does not confirm a sustained uptrend, it does signal that bearish momentum has weakened.

Volume has also lifted on the rally, adding weight to the idea that new buyers are stepping in rather than just short covering.

A quality retailer facing tough conditions

Premier Investments owns well-known retail brands including Smiggle, Peter Alexander, and Just Jeans. These businesses have delivered strong returns over the long term, particularly during periods of robust consumer spending.

However, the past year has been difficult. Higher interest rates, cost-of-living pressures, and weaker discretionary demand have weighed heavily on apparel retailers. Premier has not been immune, with margins and sales growth coming under pressure.

While the share price collapse reflects those challenges, the rebound suggests investors may now be looking beyond the short-term headwinds.

What to watch next

For Premier Investments, the key question is whether operational performance can stabilise.

Upcoming trading updates, cost control progress, and any signs of demand improvement will be crucial. If earnings expectations stop falling, today’s technical break could mark the start of a broader re-rating.

For now, uncertainty remains. But after hitting a 5-year low, investors are starting to ask whether much of the bad news is already priced in.

The post Premier Investments shares surge 10% on broker upgrade. Has this ASX retailer finally turned the corner? appeared first on The Motley Fool Australia.

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

When markets are volatile and headlines change daily, it helps to own businesses you can rely on to keep executing regardless of conditions.

ASX blue chip shares earn that label not because they avoid setbacks, but because they have the scale, balance sheets, and business models to navigate them.

With that in mind, these are three ASX blue chip shares I would trust with my money over the long term.

CSL Ltd (ASX: CSL)

While 2025 was extremely disappointing, I believe it was just a blip and that CSL remains a business built for the long haul.

Its global plasma collection and manufacturing network underpins treatments used by patients around the world. That infrastructure is expensive, complex, and time-consuming to replicate, which gives CSL a powerful competitive advantage.

What makes CSL particularly trustworthy as an ASX blue chip investment is its approach to capital allocation. The company consistently reinvests in research and development, ensuring that it has the facilities and development pipeline to support its growth over the next decade and beyond.

For investors, CSL represents a rare mix of defensiveness and long-term growth potential.

The team at Morgans remains positive on the company and has a buy rating and $249.51 price target on its shares.

Macquarie Group Ltd (ASX: MQG)

Macquarie is another ASX blue chip share I would trust with my money. Unlike traditional banks, the company operates across asset management, infrastructure investment, commodities, and financial services, which allows it to pivot as conditions change. This diversified model has enabled Macquarie to perform successfully through very different market environments over the years.

Overall, I think Macquarie offers a winning combination of exposure to global markets and infrastructure while maintaining a disciplined approach to growth.

The team at UBS upgraded Macquarie’s shares to a buy rating with a $235.00 price target this week.

ResMed Inc. (ASX: RMD)

Finally, ResMed could be one of the best ASX blue chip shares to trust with your hard-earned money

It is a medical device company operating in sleep and respiratory care. These are areas supported by long-term health trends rather than economic cycles. Its devices, masks, and software platforms are deeply embedded in patient care, creating recurring revenue and strong customer relationships.

And with a total addressable market estimated to be 1 billion sleep apnoea suffers worldwide, it has a significant growth runway over the next decade and beyond.

Macquarie is bullish on this one and has an outperform rating and $49.20 price target on its shares.

The post The ASX blue chip shares I’d trust with my money appeared first on The Motley Fool Australia.

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

One of the advantages of exchange traded funds (ETFs) is flexibility.

Rather than trying to predict which individual company or country will perform best next, investors can position their portfolios around regions, themes, and long-term trends. Right now, a mix of global technology, emerging markets, and non-US exposure could make sense for investors looking to stay diversified.

With that in mind, here are five ASX ETFs that look worth considering today.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF provides exposure to some of the most influential companies in the global economy.

The ETF tracks the Nasdaq 100 Index, which includes large technology and innovation-driven businesses such as Apple (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), and NVIDIA Corp (NASDAQ: NVDA). These companies tend to dominate their markets and reinvest heavily to maintain leadership.

For investors, the Betashares Nasdaq 100 ETF offers access to global growth through established businesses rather than early-stage speculation, making it a popular long-term holding.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF focuses on technology leaders across Asia.

Its holdings include companies such as Tencent Holdings (SEHK: 700), PDD Holdings (NASDAQ: PDD), and Baidu (NASDAQ: BIDU). These businesses sit at the centre of ecommerce, digital payments, gaming, and communication across the region.

The appeal of the Betashares Asia Technology Tigers ETF lies in its exposure to large populations, rising digital adoption, and technology ecosystems that operate differently from those in the United States.

Betashares India Quality ETF (ASX: IIND)

The Betashares India Quality ETF offers a more targeted way to invest in India’s long-term growth story.

The ETF invests in high-quality Indian companies with strong balance sheets and consistent earnings. Examples of holdings include Reliance Industries, Infosys (NYSE: INFY) and HDFC Bank.

India’s expanding middle class, increasing digital infrastructure, and ongoing economic reform provide a structural backdrop that could support growth over many years.

Betashares Global Shares ex‑US ETF (ASX: EXUS)

The Betashares Global Shares ex US ETF gives investors exposure to global share markets outside the United States.

The ETF includes companies across Europe, Japan, and other developed markets, with holdings such as Nestle, Toyota Motor Corp, and ASML Holding (NASDAQ: ASML).

There is currently some discussion around a so-called “sell America” trade, partly linked to geopolitical uncertainty and comments from Donald Trump, including threats related to Greenland. While no outcome is certain, this fund offers an option for investors who want to reduce reliance on Wall Street and increase exposure to other developed markets.

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

The Betashares MSCI Emerging Markets Complex ETF provides broad exposure to emerging markets.

The ETF invests across countries such as China, Taiwan, India, and Brazil, with major holdings including SK Hynix, Alibaba (NYSE: BABA), and Hon Hai Precision Industry (Foxconn).

Emerging markets can be volatile, but they also offer access to faster-growing economies and expanding consumer bases. For long-term investors, the Betashares MSCI Emerging Markets Complex ETF can add a different growth engine to a diversified portfolio.

The post 5 excellent ASX ETFs to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Apple, Baidu, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and HDFC Bank and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended ASML, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 mining share Alcoa Corporation CDI (ASX: AAI) is up 1.3% to $93.82 per share on Thursday.

This aluminium stock has had an outstanding run over the past six months.

As the chart below shows, Alcoa shares have streaked 93% higher over that short period.

Alcoa produces and sells bauxite, alumina, and aluminium products in the United States, Australia, Spain, Canada, and elsewhere.

The US-based company mines the bauxite, processes it into alumina, and then sells the alumina to smelters and industrial manufacturers.

The company also sells alloy ingot or value-add ingot to producers in the transport, construction, packaging, and wiring segments.

Alcoa also owns hydro power plants that generate electricity, which it sells in the wholesale market to traders, large industrial consumers, and others.

Tomorrow, Alcoa will release its full-year FY25 results.

Before we get a look at the books, let’s consider what’s driving this ASX 200 mining share higher.

What’s powering this ASX 200 mining share’s remarkable surge?

In an article on Forbes.com, investment data analysts at Trefis say Alcoa shares have ripped for three main reasons.

The first is the rising aluminium price.

Aluminium futures are currently trading at three-and-a-half-year highs.

Today, the aluminium price is US$3,119 per tonne, up 6% in a month and 18% year over year.

A number of factors are supporting aluminium futures, including strong demand for renewable energy infrastructure and electric vehicles; aluminium production caps in China, which is the world’s largest producer; and a 50% tariff on imports into the US (with some exceptions).

Trefis commented:

Aluminum is omnipresent in the contemporary economy. It’s an essential material in everything from lightweight automotive structures to aircraft components and green energy infrastructure.

The soaring demand from industries like electric vehicles and data centers — which require large quantities of aluminum for cooling systems and structural elements — has bestowed this metal with a newfound strategic significance not observed since the early 2000’s.

Amid this higher demand, temporary suspensions at key smelters in Iceland, Mozambique, and Australia have lowered global supply.

This has also supported the aluminium price.

Remember Alumina shares?

Alcoa is listed on the New York Stock Exchange as Alcoa Corp (NYSE: AA).

Alcoa Corporation CDIs began trading on the ASX after Alcoa acquired the ASX-listed company, Alumina Limited, in August 2024.

Alumina was a 40% joint venture partner in Alcoa World Alumina and Chemicals (AWAC).

AWAC operates bauxite mines and alumina refineries in Australia and other countries.

As part of the deal, Alumina shareholders received Alcoa CDIs.

Trefis said the second reason this ASX 200 mining share has ripped is strategic company decisions, including buying out Alumina.

They said:

Alcoa is not merely benefiting from a commodity upturn — the company’s financials have exhibited substantial progress.

In the third quarter of 2025, Alcoa disclosed revenues of nearly $3.0 billion and a net income of $232 million, more than double that of the same timeframe a year prior.

This strong performance was bolstered not only by increased aluminum realizations but also by strategic portfolio decisions.

Another strategic decision was Alcoa’s divestment of its stake in the Ma’aden joint venture in July last year.

The analysts said this generated considerable capital gains and strengthened Alcoa’s balance sheet.

These cash inflows have offered flexibility for debt repayment, investments in efficiency upgrades, and support for shareholder returns.

Capital flows out of high-tech and into hard assets

A third factor driving this ASX 200 mining share’s price is more institutional money flowing out of technology and into materials producers.

Alcoa’s surge aligns with a larger trend emerging in 2025–2026: institutional capital is shifting away from high-flying tech stocks and towards hard asset producers — material companies that provide the essential building blocks of the global economy.

Aluminum, copper, and steel manufacturers have all experienced renewed interest as investors reassess inflation, infrastructure spending, and commodity restrictions.

There are other factors driving this redirection of capital.

Trefis said:

This transition … encompasses geopolitical developments, trade regulations, and supply chain adjustments.

Recent tariffs on aluminum and steel, capacity limitations in Asia, and infrastructure reconstructions in certain areas of South America have contributed to a narrative that industrial metals are back in demand.

While the Alcoa share price surge is certainly impressive, with clear tailwinds behind it, Trefis warns of potential risks.

The stock could be susceptible to an increase in global supply, especially from Indonesia, which may add over 1.5 million tons of annual capacity in the coming years.

Concerns about valuations also persist. Current P/E and price-to-book ratios are at elevated levels compared to historical averages, implying that investor enthusiasm might already be factored into stock prices.

The post Why is this ASX 200 mining share up 93% in six months? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bronwyn Allen has positions in Alcoa. 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 PLS Group Ltd (ASX: PLS) share price is trading in the green at the time of writing on Thursday afternoon. The shares are up 1.41% to $5.02 in what is the first time the stock has broken the $5 barrier since August 2023.

The Australian lithium miner’s shares have had an incredible run throughout the first few weeks of the year. For the year to date, the shares are up 16.47% and the stock is currently trading 109.3% higher than this time last year.

What caused the PLS share price surge?

The PLS share price has been steadily rising over the past six months, and at a pretty fast pace. 

Most of the increase is due to a rally in lithium prices and sentiment, primarily driven by a surge in interest in electric vehicles (EV) and battery energy storage. Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also rocketing.

As owner and operator of one of the world’s largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has scooped up a lot of the benefit. 

As a business, PLS has also gone from strength to strength over the past 6 months. In its September quarter update, the company revealed a 2% increase in spodumene production and a 20% increase in realised pricing. This gave PLS a huge 30% increase in its revenue to $251 million.

What’s next for the miner?

In 2026, PLS will continue to focus on its production growth and cost reduction plans to make the business more efficient and boost investor confidence.

Meanwhile, recent upgrades for the lithium market could also drive the PLS share price higher in 2026. 

UBS recently said that an 11% increase in lithium demand could push the market into a deficit from 2026 onwards. Based on that, the broker has lifted its lithium (SC6 CFR China) forecast by 64% in 2026 to US$1,800 per tonne. The broker anticipates lithium prices could jump up to US$2,625 per tonne in 2028. 

This is great news for PLS as it positions itself to pick up more demand, but after such a strong price rally over the past few months, I’m concerned we could see some share price volatility ahead. 

Some brokers have moved quickly to upgrade their price targets on the shares but many still expect the price to cool in coming months.

This week, Bell Potter upgraded its rating to hold and lifted its price target to $4.55, from $2.65. Macquarie has a hold rating but has lifted its price target to $4.50, from $3.80.

TradingView data shows that the majority of analysts have a hold rating on PLS shares. The average target price is $4.12, which implies an 18.09% downside at the time of writing. But the maximum target price is $6.50, which suggests a potential 28.97% upside over the next 12 months.

The post So the PLS share price made it past $5. Big deal. What’s next? 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 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.

ASX blue-chip shares are typically among the most stable and resilient businesses on the stock exchange, capable of providing a good dividend yield.

Having a great market position has usually come about because the business has (one of) the best offerings for customers, great brand power, and appealing economics (compared to peers).

Businesses in the blue-chip space can usually provide investors with a good dividend yield because of two key factors.

Firstly, they are not priced for a lot of growth – they are already very large companies – so the price-earnings (P/E) ratio is lower than a faster-growing business.

Secondly, they’re not investing significantly for growth, so they can be generous with the dividend payout ratio.

While they’re not 10% dividend yields, the below businesses have solid dividend yields themselves.

Telstra Group Ltd (ASX: TLS)

Telstra’s leading position in the Australian mobile space is not new, but the company’s focus on growing dividends is a relatively new development.

I’d rather have a good yield with growing payments than a huge yield and no growth (with a higher risk of dividend reductions).

Telstra is in a much better position now that the NBN transition has finished and there’s ongoing adoption of 5G by the nation. It has the widest network coverage and seemingly a very reliable connection.

The ASX blue-chip share’s outlook is positive – user numbers on the network continue to grow and Telstra is capitalising on its market position with price increases, which is driving mobile earnings higher.

Analyst projections on CommSec suggest the business could pay an annual dividend per share of 20 cents in FY26. That would be a grossed-up dividend yield of around 6%, including franking credits.

I’m optimistic that the business can claim a larger market share in home and small business broadband that is powered by 5G. For each connection, Telstra captures the margin that’s currently going to the NBN. This could help increase its profitability, which would be helpful for the dividend.

Coles Group Ltd (ASX: COL)

Coles is a leading supermarket business which is currently delivering faster growth than Woolworths Group Ltd (ASX: WOW) thanks to its product offerings and value. The business also operates a number of liquor companies including Coles Liquor and Liquorland.

The ASX blue-chip share has invested heavily in new automated distribution centres (ADCs) from Witron as well as customer fulfilment centres (CFCs). This is helping improve the company’s efficiencies and stock management, as well as driving e-commerce capabilities.

In the first quarter of FY26, supermarket sales excluding tobacco grew 7%, while e-commerce sales soared 27.9%.

The boost to cash flow after the completion of the distribution centres will help fund larger dividend payouts in the next few years. Its base earnings are very defensive thanks to the integral nature of what it sells.

The forecast on CommSec suggests the business could pay an annual dividend per share of around 79 cents in FY26, translating into a grossed-up dividend yield of 5.3%, including franking credits.

The post 2 ASX blue-chip shares offering big dividend yields 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 positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.