Category: Stock Market

The ASX share market is one of the best places to find good passive income, in my opinion. That’s because some opportunities have an exceptionally high dividend yield.

I wouldn’t buy just anything, though. I’d want to ensure I have a high degree of confidence that the business is going to continue delivering stable (and hopefully growing) payouts.

Let’s look at two of the highest-yielding ASX shares that I expect to continue to deliver good dividends.

Hearts and Minds Investments Ltd (ASX: HM1)

This is a listed investment company (LIC) that can give significant passive income and a compelling level of diversification.

LICs are companies that simply invest in other shares to help them generate returns. Dividends can then be funded from those investment profits.

Hearts & Minds is quite different to most other LICs. Firstly, there are no management fees or performance fees. Instead, 1.5% of net assets are donated to medical research organisations.

A minority of the portfolio is decided at an investment conference where several investment experts each pitch their best idea such as Brookedale Senior Living.

A majority of the portfolio is chosen by core portfolio managers, who have (currently) chosen names like Nvidia, Microsoft, Amazon and TSMC.

Its portfolio has performed adequately over the longer-term, with an average return per year of 12.8% after expenses.

The board of the ASX share have “resolved” to increase dividends by 0.5 cents per share every six months for the foreseeable future. That means the next two dividends should amount to 20.5 cents per share, equating to a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing. That’s a great starting yield, in my books.

Shaver Shop Group Ltd (ASX: SSG)

The other ASX share I really want to highlight is Shaver Shop, a leading retailer in the hair removal space. It sells things like electric shavers, clippers, trimmers, and wet shave items. The company also sells items like oral care, hair care, massage and beauty categories.

Shaver Shop has impressed me with its reliable dividend over the last several years. It started paying a dividend in 2017 and has increased it every financial year since, aside from FY24 when it maintained it at 10.2 cents per share.

The last two half-year dividend payments total 10.3 cents, which translates to a grossed-up dividend yield of 11.5%, including franking credits, at the time of writing.

If the business continues its reliable dividend record, then I’d expect the next 12 months to offer that level of passive income for shareholders.

I view hair removal as a fairly consistent sector considering how hair just keeps growing – it’s more defensive than I think some investors give it credit for.

Shaver Shop has a number of levers it can pull it grow earnings, including adding more stores to its ANZ network, selling more online, growing its private label brand (Transform-U), signing additional exclusive agreements with quality brands, and selling more products in other categories like oral care, hair and beauty.

According to the projection on CMC Invest, it’s valued at just 11x FY26’s estimated earnings.

The post 2 ASX shares with dividend yields above 10% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Amazon, Microsoft, Nvidia, and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every six weeks, a small group of people in Sydney makes a decision that ripples through every mortgage and every ASX share price in the country.

On Tuesday 17 June 2026, the Reserve Bank of Australia board will meet to decide on the official cash rate.

The RBA has already raised the cash rate three times in 2026, taking it to 4.35%, the highest level since late 2011.

Markets are currently pricing a hold at near-certainty.

But the language that accompanies that hold could move ASX shares as much as the decision itself.

Why this meeting is important for ASX shares

The three prior hikes each blindsided markets. This one is different.

The April CPI data showed headline inflation at 4.2%, below the 4.4% forecast, immediately pushing the probability of a June hike to near zero.

But the underlying story is more complex. Trimmed mean inflation rose to 3.4% in April, its highest reading since late 2024. This indicator is still well above the RBA’s 2% to 3% target band.

The Middle East conflict has also pushed oil prices back toward $92 per barrel this week, complicating the inflation picture further.

What the RBA says about the path ahead will determine how these ASX shares trade for the rest of the month.

What it means for Commonwealth Bank shares

Commonwealth Bank of Australia (ASX: CBA) finds itself in a bind heading into the meeting.

Higher rates support net interest margins, which is good for earnings.

But elevated rates also increase mortgage stress and weaken credit demand, both of which eventually weigh on earnings.

A hold removes the near-term risk of further stress.

However, as Morgan Stanley noted, a pause also removes the NIM expansion tailwind that has been partially offsetting deposit competition pressure.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, confirming the underlying business is strong.

At approximately 26 times forward earnings, however, the stock prices in little margin for error.

What it means for Westpac shares

Westpac Banking Corp (ASX: WBC) is the most mortgage-exposed of the big four banks, with approximately 69% of its loan book in residential mortgages.

Each additional rate hike puts further pressure on those borrowers. A clean hold on Tuesday, combined with dovish language, is the outcome Westpac shareholders most need.

Westpac declared a fully franked interim dividend of 77 cents per share, payable on 26 June. That payment will proceed regardless of what the RBA does on Tuesday.

But the outlook for Westpac shares next week depends heavily on how the RBA frames the path ahead.

What it means for Mirvac shares

For Mirvac Group (ASX: MGR), Tuesday’s decision could be the single most important catalyst the stock faces in the second half of 2026.

Property trusts are acutely sensitive to interest rates because higher rates simultaneously increase borrowing costs and compress asset valuations.

Mirvac shares have fallen approximately 27% over the past twelve months as the rate hiking cycle weighed on REIT valuations.

A definitive signal that the hiking cycle is over would remove the single biggest valuation headwind the stock faces.

In the first half of FY2026, Mirvac posted a 38% year-on-year lift in residential sales, confirming the underlying business is growing strongly.

Macquarie carries an outperform rating on Mirvac with a price target of $2.70.

A dovish RBA signal next Tuesday could accelerate that re-rating significantly.

Foolish takeaway

Three rate hikes in 2026 have already done significant damage to rate-sensitive ASX shares.

Next week’s decision may not necessarily resolve the uncertainty.

But the language accompanying it will tell investors a great deal about whether the worst is behind them.

For CBA, Westpac, and Mirvac shareholders, it is the most important date in the calendar right now.

The post Why the RBA’s decision next week could be the most important event for ASX shares in 2026 appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips as oil shock puts investors on edge
• Why I’d put $2,000 into CBA and these blue-chip ASX shares this month
• Sell alert! Why this expert is calling time on NAB and Westpac shares
• Hedge funds are shorting the big four bank shares. Should investors be worried?
• What are the big 4 banks worth as the housing market falters?

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

Successful income investing is not just about finding the biggest yield. A high dividend yield can quickly lose its shine if the payout is cut, earnings fall, or the business becomes too exposed to the wrong part of the cycle.

That is why investors may be better served by focusing on companies with essential assets, defensive demand, and the ability to keep generating cash through different conditions.

With that in mind, here are three safe ASX dividend shares that could be worth buying for income.

APA Group (ASX: APA)

The first safe ASX dividend share to look at is APA Group.

It owns and operates a major network of gas pipelines and energy infrastructure across Australia. These are not assets that can be easily rebuilt or replaced, which gives the company an important role in the country’s energy system.

As its assets are used to move energy from where it is produced to where it is needed, this can support relatively steady earnings compared with more cyclical businesses. This provides great earnings visibility, which supports consistent dividends.

Based on current forecasts, APA is expected to offer a dividend yield of approximately 5.5% in FY 2027.

Transurban Group (ASX: TCL)

Another ASX dividend share that could be a top pick for income investors is Transurban.

It owns toll roads in major cities across Australia and North America. These roads are used by commuters, freight operators, airport travellers, and businesses every day.

That makes the company different from many discretionary businesses. Traffic can move around with economic conditions, but major transport corridors remain important parts of city life. This is especially the case as populations grow and road congestion increases.

Its portfolio is also difficult to replicate, which gives the business a strong market position and supports its dividend.

Transurban is forecast to offer a dividend yield of approximately 4.4% in FY 2027.

Woolworths Group Ltd (ASX: WOW)

A third ASX dividend share to consider for income is Woolworths.

It is one of the most defensive names on the ASX because its core business is tied to everyday household spending.

Australians may cut back on big-ticket purchases when money is tight. But groceries, household essentials, and fresh food remain regular purchases.

That does not make Woolworths immune from challenges. Competition, wage costs, regulation, and supply chain pressures can all affect profits. But the company’s scale, store network, digital capabilities, and trusted brand give it a strong foundation.

For income investors, Woolworths may not offer the highest yield on the market. But the quality of its earnings base could make it a useful lower-risk dividend option.

Woolworths is forecast to offer a dividend yield of approximately 3% in FY 2027.

The post 3 safe ASX dividend shares to buy for income appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• Why I’d put $2,000 into CBA and these blue-chip ASX shares this month
• How I’d aim to build $10,000 a year in passive income from ASX shares
• Transurban, Aurizon, Ampol shares hit fresh multi-year highs: Buy, sell or hold today?
• 5 ASX dividend stocks for passive income investors

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

Defensive shares like Telstra Group Ltd (ASX: TLS) are usually a great choice for investors who want to earn an easy and reliable passive income.

Telstra is a dominant Australian telecommunications company. It owns and operates the nation’s largest mobile network and is a major fixed-line internet provider. 

The business has a competitive advantage against other ASX shares. That’s because connectivity (including internet and phone services) has become essential infrastructure rather than a discretionary item. This is particularly the case as households and businesses continue increasing their data usage.

Telstra’s defensive nature is the key reason why it continues to be so popular with dividend investors. 

It also enables the business to record a stable revenue and earnings, regardless of the what stage of the economic cycle we’re in, or how the ASX is faring overall.

And this means it can pay shareholders a consistent, reliable passive income.

Take Telstra’s latest first-half FY26 update, for example. Earlier this year, the telco posted that group underlying EBITDA had risen across all major business lines. Its mobile services revenue was 5.6% higher and group cash EBIT was 14% higher, for the six-month period. Underlying operating expenses were also reduced by 2.4%. 

This meant the telco was able to hike its dividend by 5.25% for the first half of FY26, and pay a higher passive income to its shareholders.

But how much passive income would a $5,000 investment in Telstra actually generate?

Let’s find out.

How many Telstra shares can you get for $5,000 today?

At the time of writing, Telstra shares are trading for $5.21 a piece.

That means your $5,000 investment would buy around 959 Telstra shares.

What dividend does Telstra pay its shareholders?

The telco historically pays its shareholders two full- or partially-franked dividends every year, in March and September. 

Telstra most recently paid its shareholders an interim dividend of 10.5 cents per share, 90.48% franked, in March this year. 

Based on the latest forecasts, the telco is expected to pay a total dividend of 20 cents per share in FY26. It is expected to pay a higher 21 cents per share dividend in FY27.

Based on the current share price, that translates to a forward dividend yield of around 3.8% for FY26, and just over 4% for FY27.

So, what’s the estimated passive income for FY26 and FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in Telstra shares.

If the telco pays the expected 20 cents per share in FY26, then your 959 Telstra shares would generate a total of $191.80 in passive income.

Assuming the 21 cents dividend forecast for FY27 also comes to fruition, your 959 shares would generate an estimated $201.39 in passive income for the year.

The post If I invest $5,000 in Telstra shares today, how much passive income will I receive in FY26 and FY27? appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• How I’d aim to build $10,000 a year in passive income from ASX shares
• Why Telstra shares are a retiree’s dream for FY27
• 5 tips to navigate ASX share market volatility
• 6 ASX 200 shares downgraded by analysts this week

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ended the day in the red.  The benchmark index fell 0.25% to 8,633.2 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set for a very strong session on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 148 points or 1.7% higher this morning. On Wall Street, the Dow Jones was up 1.85%, the S&P 500 rose 1.75%, and the Nasdaq jumped 2.55%.

Oil prices sink

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.1% to US$86.35 a barrel and the Brent crude oil price is down 4.45% to US$88.98 a barrel. Traders were selling oil amid reports the US President Donald Trump wants to seize Iran’s Kharg Island, which is home to its oil exports.

Buy Nick Scali shares

Morgans has initiated coverage on Nick Scali Limited (ASX: NCK) shares with a buy rating and $17.84 price target. This implies potential upside of 18.5% from current levels. The broker said: “We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet.”

Gold price rebounds

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rebounded from a six-month lower overnight. According to CNBC, the gold futures price is up 2.5% to US$4,236.4 an ounce. Falling oil prices gave the precious metal a boost.

Buy Select Harvests shares

Select Harvests Ltd (ASX: SHV) shares are undervalued according to Bell Potter. This morning, the broker retained its buy rating and $5.30 price target on the almond producer’s shares. This implies potential upside of almost 40%. It said: “The implementation of the Sustainable Groundwater Management Act (SGMA) in California has the potential to result in a multi-year reduction in Californian almond supply, kickstarting an upward price cycle that would be materially beneficial for SHV.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

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

Today is the day for the SpaceX IPO.

SpaceX begins trading on the Nasdaq under the ticker SPCX, priced at US$135 per share implying a valuation of approximately US$1.75 trillion.

That surpasses Saudi Aramco’s 2019 listing as the largest IPO in stock market history.

Australian investors cannot buy SPCX directly on the ASX.

But two ASX-listed stocks are already moving in direct response to today’s listing, and both deserve consideration from ASX investors.

Why the SpaceX IPO matters for ASX investors

SpaceX is not just a rocket company.

It’s Starlink connectivity segment generated US$11.4 billion in revenue in 2025, delivering US$4.4 billion in operating income. This represents year-on-year growth of 49.8% and 120.4% respectively.

Starlink serves 10.3 million subscribers across 164 countries as at 31 March 2026, up from just 2.3 million in 2023.

The IPO validates the commercial space economy for ASX investors.

Near-term index mechanics add a further dimension to the story. SpaceX is expected to be fast-tracked into the Nasdaq-100 as early as 15 trading days post-listing.

This would force index-tracking funds to buy SpaceX mechanically and generate an estimated US$22 billion to US$27 billion in additional buying pressure across index trackers.

That wave of forced buying will keep the space economy in the spotlight for weeks.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is the most direct ASX play on today’s listing.

Betashares Space Industry ETF tracks the Solactive Space Industry Index, holding 28 companies across the global space economy with Rocket Lab and AST SpaceMobile as its two largest positions.

Betashares Space Industry ETF launched on the ASX on 12 May 2026 at $14 per unit and has had a wild ride as SpaceX IPO anticipation built throughout May and June.

SpaceX will need to meet index inclusion criteria before Betashares Space Industry ETF can formally hold SpaceX, a process that typically takes several months.

In the meantime, Betashares Space Industry ETF remains the most liquid and accessible ASX way to participate in today’s historic event.

The underlying Solactive Space Industry Index returned 249% over the twelve months to 31 May 2026.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems offers a different and more direct angle on the SpaceX story.

The company operates a dedicated Space Systems division that provides laser tracking and communications technology for satellite operators globally.

SpaceX has filed applications to deploy up to 42,000 Starlink satellites in total. This means that the constellation will require increasingly sophisticated ground-based tracking and communications infrastructure as the satellite count grows.

Electro Optic Systems is one of the very few companies in the world capable of providing that precision ground infrastructure.

Electro Optic Systems chair Garry Hounsell confirmed at the AGM that 60% to 80% of its $726 million order book is expected to convert to revenue in 2026 and 2027. This has removed the execution uncertainty that had previously weighed on the stock.

The index inclusion wildcard

One of the most underappreciated dimensions of today’s SpaceX listing is its potential impact on the Nasdaq-100.

If SpaceX is included, every fund tracking the Nasdaq-100, including the Betashares Nasdaq 100 ETF (ASX: NDQ), would need to buy SpaceX shares mechanically.

Nsdaq 100 ETF is one of the most widely held ASX ETFs among Australian retail investors, meaning holders of Nasdaq 100 could gain indirect SpaceX exposure without doing anything at all.

Foolish takeaway

The SpaceX IPO will be live today.

However, Australian investors cannot buy SpaceX on the ASX today. Yet Betashares Space Industry ETF and Electro Optic Systems each offer a distinct way to participate in the moment that commercial space investing went mainstream.

For long-term investors who believe the space economy has decades of growth ahead, both deserve serious attention.

The post SpaceX starts trading today. Here’s what ASX investors need to know appeared first on The Motley Fool Australia.

More reading

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• The SpaceX and Anthropic IPOs will massively impact ASX AI shares

Motley Fool contributor Mark Verhoeven has positions in the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF and Electro Optic Systems. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX materials stock Waratah Minerals Ltd (ASX: WTM) is making headlines this week after the company announced positive results from its drilling program in New South Wales. 

Company overview 

Waratah Minerals is a NSW based, gold-copper exploration and development company. 

Its flagship project is its 100%-owned Spur gold-copper project, an advanced stage, pre-resource exploration project in the Lachlan Fold Belt of NSW, located 33km southwest of Orange and 5km from Newmont’s Cadia gold-copper operations.

Its share price has increased 70% in the last 12 months, attracting plenty of positive broker attention.

New analysis from the team at Bell Potter indicates it could continue to rise after positive results at its Spur Gold Project in New South Wales. 

What did the company report?

According to the announcement earlier this week, drilling results from its Spur Gold Project in New South Wales continue to show that Spur could become a large-scale gold deposit in one of Australia’s major gold and copper mining regions.

High-grade gold has now been found 100 metres deeper than previously identified at the eastern edge of the drilled area.

This suggests the gold system may be larger than currently known and remains open for further expansion.

Commenting on the results, Waratah Managing Director Peter Duerden said: 

Ongoing drill results from the Spur and Consols Gold Zones continue to deliver strong intercepts highlighting major growth of the gold endowment and a system which remains open in multiple directions. 

This systematic drill program is delivering a strong pipeline of news flow as we report the results which unlock the full potential at Spur and create further value for shareholders.

What is Bell Potter saying about this ASX materials stock?

Following the results, the team at Bell Potter released updated guidance on this ASX materials stock. 

The broker said Waratah Minerals’ program now comprises 10 active drill rigs and continues to extend known mineralisation, infill existing zones and discover new high-grade shoots. 

The latest results have confirmed material mineralisation extensions both up dip and down dip of previously reported major intersections, plus identified new high-grade mineralisation at surface.

The Spur project is showing strong indications of delivering a gold-copper deposit of substantial scale and grade in a strategic setting.

The broker has subsequently retained its buy recommendation on this ASX materials stock, along with a price target of $1.05. 

From yesterday’s closing price of 62 cents per share, this indicates upside potential of more than 70%. 

The post Top broker tips 70%+ upside for this ASX materials stock after exceptional results appeared first on The Motley Fool Australia.

More reading

• Forget Newmont, this ASX gold stock could rise 50%

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

The rise of ASX ETF investing has seen numerous new funds hit the market. 

Many of these funds now focus on niche themes or sectors, aiming to capture gains in fast growing industries. 

The SpaceX IPO has made plenty of headlines, and also influenced the creation of two new space themed ASX ETFs. 

The pros and cons of thematic ASX ETFs

While this provides an exciting opportunity, the challenge for investors is identifying which themes and funds are targeting sectors poised for long term growth, rather than a short-lived burst of investor interest.  

There have been plenty of examples of themes seemingly poised for growth, fizzling out quickly. 

Examples include 3D printing companies in the 2010s, legalised cannabis in certain countries and more recently buy-now-pay-later stocks. 

These niche themes captured plenty of attention for a short period of time alongside real financial investment. 

However time has shown that these were short term crazes rather than long term opportunities. 

On the other hand, themes such as the internet, cloud computing and smartphones all grew from emerging trends into long-term, vital industries. 

What investors should consider

For investors considering emerging themes, some key considerations include: 

• If the theme addresses or solves a problem
• How large could the end market could realistically become
• If the theme will still matter in 10-20 years
• If the underlying companies are already priced for perfection. 

With these considerations in mind, let’s look at the new theme generating excitement – space. 

Space ASX ETFs

The SpaceX IPO has generated extensive coverage all over the world. 

Interest in this sector has resulted in two new space themed ASX ETFs to hit the market: 

• Betashares Space Industry ETF (ASX: RCKT)
• Global X Space Tech ETF (ASX: MOON). 

RCKT ETF focuses on companies whose core businesses are directly tied to the space economy. This includes rocket launches, satellite operators, space infrastructure and space-related data services. 

It is designed to give investors concentrated exposure to the commercialisation of space. It also includes a fast-track mechanism for adding new space IPOs. 

MOON ETF on the other hand, invests across the wider space technology ecosystem, including launch systems, satellite infrastructure, communications networks and geospatial data businesses. 

This may result in exposure to a broader range of technology companies that benefit from space-related growth, rather than only pure-play space operators

Are they worth investing in?

Space-themed ETFs such as RCKT and MOON offer investors exposure to what could become one of the world’s next major growth industries. 

As satellite networks, space-based communications, Earth observation technologies and commercial space exploration continue to develop, companies operating in these areas could benefit from decades of investment and innovation. 

However, the sector also carries significant risks. 

Many space-related businesses are still in the early stages of commercialisation, meaning profitability can be uncertain and valuations can be heavily influenced by investor sentiment. 

The industry’s growth also depends on technological breakthroughs, government spending and regulatory support, which can create periods of volatility. 

As a result, space ETFs have the potential to deliver strong long-term returns if the industry fulfils its promise, but investors should be prepared for a potentially bumpy ride along the way.

The post Are space ASX ETFs the next big growth opportunity or overhyped? appeared first on The Motley Fool Australia.

More reading

• SpaceX starts trading today. Here’s what ASX investors need to know
• The SpaceX and Anthropic IPOs will massively impact ASX AI shares
• The SpaceX IPO is coming. Here’s how ASX investors can benefit from the excitement
• What are the best performing thematic ASX ETFs right now?
• This ASX ETF has soared because of the upcoming SpaceX IPO

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

Artificial intelligence has been undergoing a boom, sending the valuations of companies such as Nvidia Corp (NASDAQ: NVDA) and Micron Technology Inc (NASDAQ: MU) through the roof.

Closer to home the data centre builders and operators such as Goodman Group (ASX: GMG) have been doing well.

But what if you want to invest more broadly across the sector, and also into private companies?

Opportunity to invest at the ground level

That possibility is coming soon, with investment firm Pengana’s AI Private Opportunities Trust (ASX: AIX) looking to raise $350 million in new funds ahead of a listing on the ASX.

The fund’s prospectus says the focus is to give investors access to companies they otherwise could not invest in.

As they say:

We are pleased to announce the launch of the AI Private Opportunities Trust, which will offer you an opportunity to access a fund investing in the securities of private, non-publicly traded companies at all stages of development – from early-stage ventures through to late-stage, pre-IPO businesses – that are developing, enabling, or contributing to the adoption of artificial intelligence (“AI”) and related technologies (which includes companies where AI is a key component to the value creation thesis for such companies).

The prospectus says the fund’s proponents believe AI is increasingly proving its worth as a foundational technology, “with the potential to drive significant productivity gains, disrupt existing industries, and create new markets over the coming decades; and that it can present both an opportunity and a challenge for investors”.

They add:

The challenge is that a substantial portion of innovation and value creation in AI is occurring within private markets, where many companies are able to scale, iterate, and establish competitive advantages prior to seeking public listings. As a result, the Responsible Entity believes that public market investors are often left with only indirect exposure to AI, usually through large technology companies where AI represents only one part of a much broader business.

The trust will invest in private companies, the prospectus says, and also may selectively take part in initial public offers.

Strike while the iron is hot

They add that the timing of the trust’s launch is fortuitous.

The Responsible Entity believes that it is a compelling point in the technological cycle to access these opportunities as many unlisted AI companies are maturing rapidly, and that over the medium term a number of these businesses are expected to transition into public markets via IPOs, be acquired, merge with other strategic players, or otherwise realise value for investors. While the Responsible Entity does not expect every Portfolio Company to pursue an IPO, the next five to seven years may provide an important window to access these companies before they become more broadly available to public market investors.

The initial portfolio on listing will include stakes in Bytedance and Handshake.

The Trust is offering units at $10 apiece with the general offer of units to close on 19 June, before trading starts, expected to be on 2 July.

The post Interested in investing in AI? Check out this new $350 million trust appeared first on The Motley Fool Australia.

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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 Goodman Group, Micron Technology, and Nvidia. The Motley Fool Australia has recommended Goodman Group and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There could be a rebound incoming for ASX small-cap stock AMA Group Ltd (ASX: AMA). 

For those unfamiliar with the company, AMA Group operates in the wholesale vehicle aftercare and accessories market in Australia and New Zealand. Its operations include smash repair shops, automotive and electrical components, vehicle protection equipment, and servicing workshops for brakes and transmissions.

AMA’s Vehicle Collision Repairs segment is a major revenue driver for the company. It serves major insurance companies through more than 130 vehicle repair sites in all Australian states and the ACT.

Shaking off the rust 

It has been a tough year for the ASX industrials stock.

The ASX small-cap stock has fallen 42% year to date. 

However a new report from the team at Bell Potter indicates that the back half of 2026 could see the company rebound. 

The broker has retained a buy recommendation on the stock along with a target price indicating more than 117% upside. 

Reaffirmed guidance

AMA reaffirmed its FY26 EBITDA guidance of $70-75 million in April, even though experts were concerned that high fuel prices could reduce driving and lead to fewer accident repairs.

Since then, traffic volumes across Australia have remained fairly normal despite high fuel costs. 

Combined with normal rainfall levels, this suggests repair volumes have likely been close to expectations.

The company has not released any negative trading updates, which is generally a positive sign that performance remains on track. AMA also started its share buyback this week, which suggests management is comfortable with current trading conditions.

A positive outlook

Bell Potter believes that AMA is positioned for a strong fourth quarter, with trading expected to remain stable and repair volumes tracking close to expectations.

The fourth quarter is also typically the company’s best quarter for cash generation. 

Bell Potter expects operating cash flow of about $37.5 million, which would help keep net debt below $20 million and leave the balance sheet in a healthy position.

While there is some risk to management’s EBITDA guidance, there are currently no signs that the business has materially deteriorated.

The broker noted:

Indeed, the lack of any trading update suggests the guidance is still on track and the commencement of the buy-back this week also suggests there is no need at this stage for the company to “cleanse” the market. 

Our normalised FY26 EBITDA forecast of $68.4m is admittedly below the guidance range of $70-75m so we still see some downside risk to the guidance but we are also not changing our forecast and see it as reasonable if not slightly conservative.

Big upside in tact for this ASX small-cap 

Based on this guidance, the team at Bell Potter has retained their buy recommendation on this ASX small-cap. 

The broker currently has a $1.00 price tag on AMA shares. 

From yesterday’s closing price of 46 cents per share, this indicates an upside potential of 117%. 

The post This ASX small-cap is expected to double in the next 12 months appeared first on The Motley Fool Australia.

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