Category: Stock Market

Shares in counter-drone technology company Electro Optic Systems Holdings Ltd (ASX: EOS) were trading more than 10% higher on Friday morning after the company announced that two high-profile directors would join its board.

The company said in a statement to the ASX that Air Vice-Marshal (retired) Catherine Roberts and Major General (retired) Kathryn Toohey would join the board as Non-Executive Directors.

Depth of experience

EOS said Ms Roberts was a highly accomplished senior executive with “extensive experience at the highest levels of the Australian Defence Force and Government, applied across the Defence space and aviation sectors”.

The company added:

Catherine is recognised for her strong governance capability, innovation, strategic leadership, and extensive networks across Government, Defence, Industry, and Academia. She has worked extensively with Australia’s allies in North America, Europe and other countries. As the inaugural Commander of Defence Space Command in Australia, Catherine led the establishment and operational delivery of Australia’s military space capability. Her experience in space, aviation and weapons technology as an Aerospace Engineer spans 40 years. This has included Defence procurement, operations, complex project management and delivery of major programs valued at over $16 billion.

Ms Roberts’ other current board and advisory roles include Australia’s Economic Accelerator, Defence SA, Andy Thomas Space Foundation, and National Security and Resilience, Curtin University.

Ms Toohey, the company said, is an experienced Non-Executive Director with ASX and government experience.

The company added:

Kathryn brings deep expertise in sovereign defence capability, digital systems, infrastructure delivery, and governance of complex programs in highly regulated environments. Her experience includes oversight of major national capability programs as well as governance in national security environments.

Ms Toohey’s current board roles include: Austal Ltd (ASX: ASB), Australian Naval Infrastructure Pty Ltd, Defence Health Ltd, and the Australian Strategic Policy Institute Ltd.

EOS chair Garry Hounsell said the board had been very deliberate in selecting directors with the right mix of skills and experience.

He added:

I am delighted to welcome both Kathryn and Catherine to the Board of EOS. Their combined experience will be highly valuable as EOS continues to scale its global defence and space businesses and deliver on its strategic priorities.

Shares charging higher

EOS shares were 14.8% higher at $11 in early trade.

The shares have performed strongly in recent days, appreciating from levels below $9 just a week ago.

Bell Potter recently issued a price target of $10.60 on the shares, saying EOS was positioned as a market leader across a number of verticals and was leveraged to increased spending in the counter-unmanned aircraft systems sector.

The post Why are Electro Optic Systems shares up more than 10% today? appeared first on The Motley Fool Australia.

More reading

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• Up 400%+: Does Bell Potter think EOS shares can keep rising?
• The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom
• 3 ASX shares that have doubled in the last year and could keep climbing

Motley Fool contributor Cameron England has positions in Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Owning Westpac Banking Corp (ASX: WBC) shares could be an appealing move for investors wanting passive income.

Westpac typically trades on a relatively low price-earnings (P/E) ratio and has a fairly generous dividend payout ratio, translating into a pleasing dividend yield.

The ASX bank share is forecast to continue delivering consistent dividends for the foreseeable future, which is a compelling attribute as an ASX dividend share.

As long as borrowers continue to repay their loans and Westpac attracts new loans, its financials could continue to be pleasing.

Dividend forecast

The bank is projected to deliver a pleasing level of dividend income to investors in FY26.

According to the projection on CMC Invest, the company is forecast to pay an FY26 annual dividend per share of $1.55. That translates into a forward grossed-up dividend yield of 6.1%, including franking credits, at the time of writing.

Pleasingly, Westpac is projected to increase its payout to $1.595 per share in FY27. Growth of around 3% is not exactly shooting the lights out, but I think any decent growth is pleasing in a very competitive industry. Macquarie Group Ltd (ASX: MQG) is working very hard at muscling in on the space.

How many Westpac shares are needed for $10,000 of passive income?

To receive that level of dividend income, we do need quite a substantial number of Westpac shares.

It depends on whether we want to include the franking credits or not as part of the income total. I think it counts because it’s included as part of our taxable income and they’re refundable tax credits. But I’ll show both numbers.

Excluding franking credits, based on the projected FY26 Westpac annual dividend per share of $1.55, an investor would require 6,452 Westpac shares to unlock $10,000 of passive income.

Including franking credits, an investor would only need 4,517 Westpac shares to generate that level of dividends.

Of course, with the fact that Westpac’s dividend is expected to rise to almost $1.60 per share in FY27, investors wouldn’t need as many Westpac shares to receive $10,000 of annual passive income next year.

Of course, I’d suggest investors get their dividends from a variety of sources, rather than just Westpac.

Is this a good time to invest in Westpac shares?

According to CMC Invest, of nine recent analyst ratings on the business within the business, the average price target is $34.33. That implies a possible mid-single-digit decline. Of those nine ratings, three are holds, and six are sells.

In other words, professional investors are not excited by the valuation at the moment. Therefore, I’d focus on other ASX shares that could be better buys.

The post How many Westpac shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: ANZ, Macquarie, Westpac shares
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• Westpac shares sink after court calls conduct ‘grossly negligent’
• Forget Westpac, these ASX dividend shares could be better buys

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 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.

S&P/ASX 200 Index (ASX: XJO) gold stocks including Evolution Mining Ltd (ASX: EVN), Newmont Corp (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) shares have gotten walloped since the outbreak of the Middle East war.

Here’s what I mean.

Since the close of trade on 2 March – the first day of trading following the onset of the war – the ASX 200 has fallen 5.8%.

Here’s how these three top ASX 200 gold stocks have performed over this same period:

• Northern Star shares are down 40.3%
• Evolution Mining shares are down 31.5%
• Newmont shares are down 19.0%

Why have ASX 200 gold stocks been underperforming?

First, I should mention that Northern Star shares have taken a harder hit than most gold producers, primarily due to some recent full year production downgrades coupled with rising cost forecasts.

But all three ASX 200 gold stocks have been sold off amid a material retrace in the gold price.

Indeed, on 2 March gold was trading for US$5,322 per ounce. Three and a half weeks later, on 26 March, gold had plunged some 18% to US$4,376 per ounce.

The yellow metal has recovered some from those lows to be trading for US$4,519 today. But that’s still 15% below the levels it was trading at before the Iran war.

Why has the gold price plunged since the onset of the Iran war?

The declining gold price that’s pressured the likes of Northern Star, Evolution Mining and Newmont shares was puzzling to some investors, since gold is well known as a haven asset in times of uncertainty.

However, that haven status was overrun by the pressure gold faced as global energy prices rocketed, spurring inflation and investor concerns for higher interest rates ahead.

Gold, which pays no yield itself, tends to perform better in low or declining interest rate environments.

Emanuel Datt, founder of investment firm Datt Capital, noted that the gold price – and by connection ASX 200 gold stocks – also fell as some nations sold off part of their gold reserves.

“Gold is an asset class that has been sold off as countries such as Turkey have been liquidating gold reserves to be able to pay costs from higher energy prices,” Datt said (quoted by The Australian Financial Review).

But when, not if, a resolution is reached and the Strait of Hormuz reopens, oil prices should come down quickly. This in turn will ease global inflationary pressures, and central banks need to hike interest rates.

“The time pressure is weighing on both sides of the war, but I think that we’re getting closer to a deal,” Datt said.

Atop of Newmont and Northern Star shares, Datt also believes Vault Minerals Ltd (ASX: VAU) and Ramelius Resources Ltd (ASX: RMS) are well-placed to rebound.

ASX 200 gold stocks jumping on new truce hopes

This morning, investors learned that US and Iranian negotiators had agreed to a 60-day truce. A deal that’s still awaiting US President Donald Trump’s approval.

For some idea of the potential rebound on offer from ASX 200 gold stocks should the truce take hold and lead to a definitive end of the conflict, here’s how these top Aussie gold miners are tracking today on the mere hopes of a pause:

• Northern Star shares are up 4.5%
• Ramelius Resources shares are up 3.5%
• Vault Minerals shares are up 3.6%
• Evolution Mining shares are up 4.0%
• Newmont shares are up 4.0%

The post Why ASX 200 gold stocks like Northern Star, Evolution Mining and Newmont shares look like bargain buys now appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• 6 ASX 200 shares just upgraded by the experts
• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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.

4DMedical Ltd (ASX: 4DX) shares are rocketing on Friday after the medical imaging tech company announced a new US commercial agreement.

At the time of writing, the 4DMedical share price is up more than 11% to $3.72.

The latest gain gives shareholders some relief after a rough few weeks. The stock is still down about 21% over the past month, but it remains one of the top performers across the ASX.

Over the past year, 4DMedical shares are up 960%.

Let’s take a closer look at the release.

A major US imaging deal

4DMedical announced that its CT:VQ technology has entered the US outpatient market through a commercial agreement with SimonMed Imaging.

SimonMed operates more than 170 outpatient imaging centres across the United States.

According to 4DMedical, the agreement allows immediate clinical deployment of CT:VQ and Lung Density Analysis (LDA) on commercial terms from day one.

SimonMed is one of the largest physician-led imaging providers in the US. It operates across 10 states and is supported by more than 300 radiologists.

4DMedical said the agreement gives it access to a large community-based imaging network beyond hospital and academic settings.

What CT:VQ actually does

CT:VQ is 4DMedical’s software-based lung imaging product.

It uses existing CT scans to help doctors assess how air and blood move through the lungs.

4DMedical says the technology can support clinical decisions in areas such as pulmonary embolism, lung disease, and treatment planning.

One of the attractions is that it works with standard CT imaging infrastructure. This means imaging providers don’t need to buy major new hardware before using the software.

The US reimbursement angle is also worth watching. 4DMedical said the SimonMed agreement will support the development of reimbursement evidence and data across its network.

This gives 4DMedical another way to build clinical use while also gathering the data needed to support payment pathways.

Foolish bottom line

4DMedical said the announcement is not immediately financially material.

But investors appear to be looking past the near-term revenue impact and focusing on what the agreement could mean for wider US adoption.

The agreement runs for 3 years, with pricing based on per-scan rates. Under that structure, 4DMedical is paid as the technology is used, instead of a one-off sale.

The size and type of customer are also doing some of the work here. SimonMed gives 4DMedical exposure to a large outpatient footprint, where scans are performed closer to everyday patient care.

The post 4DMedical shares jump 11% as investors cheer major US agreement appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Why did 4DMedical shares charge higher today, then drop?
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• Here are the top 10 ASX 200 shares today

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.

Shares in IDP Education Ltd (ASX: IEL) were getting hammered on Friday morning after Macquarie downgraded the company to an underperform rating.

IDP Education shares fell well below Macquarie’s own price target of $2.35, dropping 20.3% on heavier than usual volume to be changing hands for $2.12, after hitting a new 12-month low of $2.08. The shares have traded as high as $7.97 during the past 12 months.

Difficulties lie ahead

Macquarie said there were numerous headwinds for the company including a stronger Australian dollar, weaker visa volumes across Australia, the UK, and Canada, and soft demand signals for English education as evidenced by lower Google searches for the IELTS test across India and China.

IELTS is the dominant test used to evaluate English proficiency.

Macquarie added:

While the China IELTS rollout is progressing well, with test centres rising to 13 across 9 provinces, this is insufficient to offset broader weakness. Further, while we expect IEL could announce additional cost-out in response to topline pressures, we estimate IEL would be required to achieve additional $25m net cost reduction on top of the $25m already announced for FY26E to reach Consensus FY27 EBIT. We view this as challenging given lower-hanging cost-out opportunities (e.g., project spend) have already been captured.

Macquarie said there was a risk of further downside in FY26 and downgrades to the outlook for FY27.

They added:

While our FY26 EBIT of $120.0m is at the bottom-end of FY26 guidance of $120-130m, we see downside risk here due to foreign exchange headwinds and given our volume estimates are more optimistic than current indicators imply. We see significant downside risk to FY27.

The Macquarie price target was cut by more than half, down from $5.45 previously to $2.35.

They added:

While we view IEL’s long-term thesis to be intact, as both foreign student demand should return, and policy setting should improve given university and population growth reliance on students, we see near-term earnings headwinds.

Company outlook positive

IDP has not made any comment regarding its business outlook since the release of its first-half results in February, when it upgraded its full-year guidance from EBIT of $115 to $125 million to $120 to $130 million.

Managing Director Tennealle O’Shannessy said at the time the company was pleased with the first-half performance, “with the team executing well across the business whilst also progressing our transformation program at pace”.

IDP Education is valued at $740.4 million.

The post After a 20% drop to a 12-month low, is it time to buy IDP Education shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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.

Web Travel Group Ltd (ASX: WEB) earlier this week delivered a strong set of full-year numbers, giving its shares a healthy boost as investors digested the news.

Brokers have also run the ruler over the company’s figures and have come up with quite divergent views on how the stock will perform. We’ll have a look at what they’re saying shortly.

First, let’s have a look at what Web Travel Group reported.

Volumes looking good

In a statement to the ASX, the company said that total transaction volume (TTV) was up 20% compared with FY25 to $5.8 billion, driven by “significant organic growth in the Americas and Europe”, while TTV margins improved 0.1% to 6.8%.

Revenue increased 20% to $394.1 million while net profit was up from $11.1 million in FY25 to $35.5 million.

Web Travel Group Managing Director John Guscic said:

FY26 was a terrific year for the WebBeds business. We continue to win share, TTV margins continue to improve, and our scalable business model is delivering higher operating leverage. WebBeds’ EBITDA margin remains world class. We have been able to maintain our market-leading TTV growth rate with no margin pressure. WebBeds delivered $1 billion incremental TTV1 this year at an improved margin compared with last year, demonstrating disciplined growth and margin resilience. This impressive result was delivered in an environment where the conflict in the Middle East placed downward pressure on Bookings and TTV in March 2026. The key driver of our FY26 result was the outstanding performance of our Americas business which saw Bookings 41% higher than the previous year. Europe also performed well with Bookings up 19%.

Mr Guscic said while APAC and MEA were both impacted by the Middle East conflict, they both increased bookings during the period.

On the outlook, for the first eight weeks of FY27, bookings were up 6%.

Brokers divided on the outlook

The analyst team at Macquarie had a look at these results and they like what they see.

They said while TTV was in line with consensus estimates, TTV margins were better than expected.

They did say that margins could come under pressure as the Middle East conflict drags on, but they said the company’s ongoing investment should position them well for any recovery in travel activity.

Macquarie has a price target of $4.05 on Web Travel Group shares compared with $2.69 currently.

Morgans is also bullish on the stock, saying the share price weakness has made it a buy.

They added:

The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.

Morgans has a price target of $3.75 on the shares.

And lastly Morgan Stanley, which believes the shares are fully priced at the moment, has a price target of just $2.60 on the shares.

They noted that the company has a larger share of the market in the Middle East region than its peers, and said margins would come under pressure as the company invested to maintain growth.

Web Travel Group is valued at $919.3 million.

The post How high could Web Travel Group shares go? 3 brokers weigh in appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• Here are the top 10 ASX 200 shares today
• Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall
• Morgans says these ASX 200 shares are buys
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today

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 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.

It has been another busy week for many of Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Mineral Resources Ltd (ASX: MIN)

According to a note out of Bell Potter, its analysts have retained their buy rating on this mining and mining services company’s shares with an improved price target of $81.00. The broker was pleased to see the Mt Marion expansion has been approved and the Bald Hill operation will restart. It expects this to support a meaningful increase in lithium spodumene production in the coming years. In addition, given the rapid balance sheet deleveraging, paired with cash flows from persistent iron ore and lithium market prices, the broker believes that Mineral Resources will start to pay dividends again in the near future. The Mineral Resources share price is trading at $72.32 on Friday.

Tabcorp Holdings Ltd (ASX: TAH)

A note out of Morgans reveals that its analysts have upgraded this gambling company’s shares to a buy rating with a trimmed price target of $1.07. The broker made the move on valuation grounds following a sharp pullback this year. And while Morgans concedes that an investigation by AUSTRAC is likely to weigh on sentiment in the near term, it still believes its shares are being seriously undervalued by the market. This is even after factoring in additional costs that are likely for compliance activities. The Tabcorp share price is fetching 77 cents at the time of writing.

Web Travel Group Ltd (ASX: WEB)

Another note out of Morgans reveals that its analysts have upgraded this travel technology company’s shares to a buy rating with a reduced price target of $3.75. This follows the release of the WebBeds owner’s FY 2026 results this week. Morgans highlights that the company delivered a resilient result that was ahead of consensus expectations. Looking ahead, the broker wasn’t surprised to see that the Middle East conflict is impacting its performance early in FY 2027. Morgans is expecting the conflict to lead to a soft first half but expects a recovery in the second half. Furthermore, the broker points out that after past economic and geopolitical events, travel demand rebounds. So, with its shares down heavily, it thinks now is a great time to snap them up. The Web Travel share price is trading at $2.68 on Friday.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Up 200%! Can the Mineral Resources share price bull run continue?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall
• Morgans says these ASX 200 shares are buys

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. 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 up 0.8% today, with plenty of help from this rocketing ASX All Ords gold stock.

The outperforming stock in question is Gorilla Gold Mines Ltd (ASX: GG8).

Gorilla Gold shares closed yesterday trading for 36.5 cents. In late morning trade on Friday, shares are swapping hands for 40.5 cents apiece, up 11%.

Here’s what’s stoking investor interest.

ASX All Ords gold stock rockets on drill results

Gorilla Gold shares are ripping higher today after the miner announced another batch of promising drilling results from its flagship Comet Vale Gold Project, located in Western Australia.

Comet Vale Project is part of the ASX All Ords gold stock’s North Kalgoorlie Hub. The North Kalgoorlie Hub has a current Mineral Resources of 1.2 million ounces, at 3.7 grams of gold per tonne (1.2Moz at 3.7g/t Au).

Gorilla has been actively expanding the project, revealing that its ongoing drilling campaign has returned further high-grade gold intercepts from the Sovereign Deposit within Comet Vale.

Among the top three drill hole results, the miner reported:

• 8 metres at 21.0g/t Au from 374.3 metres
• 1 metres at 24.8g/t Au from 328.8 metres
• 5 metres at 36.9g/t Au from 266.8 metres

The miner said another reverse circulation rig has now commenced drilling at Comet Vale, bringing the total number of rigs it has operating at the North Kalgoorlie Hub to five.

What did Gorilla Gold management say?

Commenting on the high-grade results lifting the ASX All Ords gold stock today, Gorilla Gold CEO Charles Hughes said, “Our 2026 exploration campaign is now really moving up a gear as the flow of assay results begins to accelerate.”

He added, “These latest results from the cornerstone Sovereign Deposit continue to reinforce the scale and endowment of the key gold systems across the Comet Vale Project.”

Highlighting the significant potential of the deposit, Hughes said:

Sovereign is the largest and highest-grade individual deposit at Comet Vale, with a current resource of 410,000 ounces @ 4.3g/t Au over a strike length of 1.3 kilometres and clear potential to extend this resource well beyond 2.5 kilometres in length.

Importantly, we’re seeing multiple parallel lodes developing at Sovereign around the contact of two major lithological units, with no real indication yet of how much further these lodes may extend as we get further into the footwall of this contact. That means there is plenty of growth upside!

Looking at what could impact the ASX All Ords gold stock in the months ahead, Hughes concluded:

We are firmly on track to deliver further significant resource growth in 2026, with five rigs turning across the North Kalgoorlie Hub and one rig turning at the Vivien Project.

Outside of the discovery and resource definition work at Sovereign, we are also drilling a number of exciting greenfield targets at Comet Vale, plus drilling is also ongoing at Mulwarrie with more assay results imminent.

The post Why is this ASX All Ords gold stock leaping 11% today? appeared first on The Motley Fool Australia.

More reading

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• This ASX gold explorer could more than double on the back of three recent discoveries: broker

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.

Judo Capital Holdings Ltd (ASX: JDO) shares are catching the eye on Friday.

In morning trade, the ASX 200 bank stock is up 12% to $1.56.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.75% at the time of writing.

Why is this ASX 200 bank stock jumping 12%?

Investors have been buying the small business lender’s shares after responding positively to the release of an announcement before the market open.

According to the release, the ASX 200 bank stock has successfully priced a $750 million capital-relief securitisation transaction backed by small and medium enterprise (SME) business loans.

It notes that the transaction attracted strong investor support, enabling Judo Capital to upsize the transaction from an initial launch amount of $500 million to $750 million.

Management advised that the notes are priced at a weighted average of 171 basis points over one-month BBSW. This represents an improvement of 102 basis points compared with Judo Capital’s inaugural transaction completed in September 2023 at 273 basis points over the one-month BBSW.

The company confirms that the transaction qualifies for regulatory capital relief. As a result, following completion of the transaction, Judo’s Common Equity Tier 1 (CET1) ratio (at 31 March) will increase to 13.2% on a pro forma basis. This is up from its reported CET1 ratio of 12.6%.

In addition, the transaction does not impact the reporting of loans in Judo Capital’s accounts. The underlying business loans will continue to be reported as gross loans and advances and generate interest income.

Return on equity boost

The ASX 200 bank stock revealed that the transaction is highly accretive to its return on equity (ROE).

Following the transaction, Judo Capital will generate a significant net interest margin on the underlying business loans without needing to hold capital for these assets.

Assuming a normalised level of capital, the transaction is estimated to deliver a 25 to 30 basis points pro-forma benefit to FY 2027 ROE.

Commenting on the transaction, Judo Capital’s CEO, Chris Bayliss, said:

We are very pleased with the strong support received for this transaction from a broad range of domestic and international investors. The transaction strengthens Judo’s CET1 position and increases our flexibility to support continued lending growth, while also improving ROE.

The transaction also demonstrates that we have multiple levers to actively manage capital, providing increased optionality, including the potential to consider capital management initiatives in due course.

The post Which ASX 200 bank stock is jumping 12% on big news? appeared first on The Motley Fool Australia.

More reading

• Judo upsizes $750m securitisation to boost capital and ROE
• Why this ASX bank stock could quietly outperform the big four in FY2027
• Here are the top 10 ASX 200 shares today
• 2 ASX shares highly recommended to buy: Experts
• Which Australian banks will benefit the most from rising interest rates?

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.

If an investor wants passive income, then I think it’s important to invest in ASX dividend shares that are very likely to actually deliver on providing a payment.

Dividend growth isn’t guaranteed of course, but there are some names that are clearly more likely to grow their dividends than others. Just looking at the history of payments this decade can give a great indication of how reliable certain businesses could be.

I think it’s important to acknowledge that certain business names are unlikely to be ultra-reliable in all conditions because they’re linked to, for example, the economy (like discretionary retailers) or commodity prices (like miners).

Below are three of the ASX dividend shares that are on the longest streaks of annual dividend growth.  

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

This business is by far the leader in Australia when it comes to consistent dividend growth.

The investment house has increased its annual dividend per share every year since 1998, which is an incredible record.

Soul Patts is invested across numerous sectors like resources, telecommunications, energy, swimming schools, agriculture, industrial properties, electrification, and plenty more.

Every year, the ASX dividend share makes new investments that help improve the portfolio and could let it generate better returns in the long term, as well as improving its diversification.

Based on its last two payouts, it has a grossed-up dividend yield of 3.6%, including franking credits, at the time of writing.

APA Group (ASX: APA)

APA is one of the largest energy infrastructure businesses on the ASX. Its crown jewel is its national gas pipeline that transports half of Australia’s usage. Its diverse portfolio also includes electricity transmission assets, wind farms, solar farms, batteries, gas power stations, gas processing facilities, and gas storage.

It funds its distribution from the steady growth of its cash flow from its portfolio. That cash flow is growing through regular additions to its portfolio (both organic construction and acquisitions), as well as the fact that its revenue is largely inflation-linked.

APA has grown its annual distribution every year since 2004, which means the ASX dividend share has provided more than two decades of continuous payment growth.

It expects to pay a distribution of 58 cents per security, equating to a distribution yield of 5.75%, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The final ASX dividend share I want to tell you about is the listed investment company (LIC) Future Generation Australia.

LICs are a great structure for providing dividend payouts because of how they can decide on the level of the dividends they provide. They can also use profit reserves generated from previous years to continue paying a reliable dividend during economic downturns.

Future Generation Australia has increased its annual dividend every year for the past decade, which is an excellent and improving track record.

The ASX dividend share is invested in a number of funds of fund managers who work for free to enable the ASX dividend share to donate 1% of its net assets each year to youth charities.

For me, the most appealing factor is how large its dividend yield is. Its 2025 payout translates into a grossed-up dividend yield of 7.8%, including franking credits, at the time of writing.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

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• 53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.