Category: Stock Market

Energy stocks have historically been seen as growth stocks, where shareholders aim to make good capital returns rather than relying on dividends.

That has changed in recent years, however, and some of the best dividend plays at current share price levels can be found in the energy sector.

Oil sector paying out handsomely

Take Santos Ltd (ASX: STO) for example. The oil and gas major, which was once again the subject of a takeover approach that was eventually withdrawn this year, has consistently increased its dividend over the past five years, from just US2.1 cents for the first half of 2020 to US13.4 cents for the first half of 2025.

The company is targeting a return of at least 40% of cash flow to shareholders, which will increase to 100% once the company reaches its target gearing level.

At the current share price, Santos is paying a 5.83% dividend yield, albeit only franked to 10%.

Fellow oil and gas major Woodside Energy Ltd (ASX: WDS) also has a generous dividend policy, aiming to pay out 50% of net profit excluding non-recurring items.

Woodside’s current dividend yield is an even healthier 6.73% fully franked.

Among the mid-tier oil and gas producers, Beach Energy Ltd (ASX: BPT) shares have been under pressure and are trading not far off their 12-month lows.

From a dividend perspective, however, it looks rosier, with the company paying out 7.82% fully franked.

The company has flagged that this generous payout might be up for review, however, with chair Ryan Stokes telling the company’s annual meeting in November that changes to capital management could be on the table.

As he said in October:

We want to invest to drive growth with a focus on maximising shareholder returns through disciplined capital allocation. This growth will be both organic and potentially inorganic, where it is accretive to shareholder value. We want to growth through accretive opportunities … and we will be disciplined in our approach. As a result, we will review the capital management policy in relation to dividends to ensure it enables growth and maximises total shareholder return.

Analysts, including the team at Jarden, have interpreted this as meaning the dividend could be trimmed, with Beach directing more funds to growth rather than back to shareholders.

Coal companies also pay out well

In the coal sector, the $6.9 billion Yancoal Australia Ltd (ASX: YAL) is paying an exceptional 11.1% dividend, fully franked.

Yancoal’s dividend policy aims to pay out the higher of 50% of either net profit or free cash flow, although this is subject to the discretion of the board, which can reduce this to a 25% payout of net profit should it decide this is needed for the sustainability of the business.

Fellow coal producer New Hope Corporation Ltd (ASX: NHC) is paying out a current dividend yield of 8.54%, fully franked, and the company also has a dividend reinvestment plan active, allowing shareholders to reinvest their dividends in new shares.

The post Looking for strong dividend yields? Look no further than these energy stocks. 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 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 Dexus (ASX: DXS) share price has been in focus after the company today announced the launch of its new Dexus Strategic Investment Trust (DSIT) series, highlighted by a 25% investment in Queensland’s Westfield Chermside for $683 million. Dexus also raised further equity for its opportunity fund DREP2, taking total commitments to approximately $870 million.

What did Dexus report?

• Launched the Dexus Strategic Investment Trust (DSIT) series, seeding it with a 25% stake in Westfield Chermside for $683 million at a 5.0% cap rate.
• Dexus’s platform stake in Westfield Chermside now stands at 50%, making it a key flagship investment.
• Dexus expects to co-invest approximately $170 million in DSIT1 initially, with plans to hold around $50 million long-term.
• DREP2 equity commitments raised by $390 million recently, bringing total commitments to approximately $870 million, eclipsing the original $600 million target.
• The Westfield Chermside transaction is expected to be broadly neutral to Dexus’s AFFO and lift gearing by about 1.3%.

What else do investors need to know?

The additional 25% stake in Westfield Chermside strengthens Dexus’s presence in Australia’s retail property space, locking in exposure to one of the country’s top-performing shopping centres in a high-growth catchment. The DSIT structure offers third-party investors new options for accessing quality local assets, expanding Dexus’s funds management reach.

On the opportunity fund side, DREP2 now stands as one of Australia’s largest diversified real estate opportunity funds, offering Dexus and its investors flexibility for future acquisitions. The $200 million co-investment from a new fund investor can be deployed alongside DREP2, highlighting strong ongoing demand for alternative real estate strategies.

What did Dexus management say?

Ross Du Vernet, Dexus Group CEO & Managing Director said:

Our Funds platform provides investors with access to high-quality assets across multiple strategies that align with their specific investment objectives. By working closely with our investment partners, we’re able to deliver compelling opportunities and continue to expand our platform offering.

What’s next for Dexus?

Dexus is targeting the introduction of further third-party equity into DSIT1 during FY26, ultimately reducing its own stake in the trust while expanding its platform offering. The launch of new funds and the success of the DREP2 equity raise position Dexus for further growth in the fast-evolving Australian real estate market.

Looking ahead, investors should note the ongoing APAC Supreme Court proceedings have seen a rescheduling of mediation to March 2026, with the hearing set for April 2026. Dexus says it remains committed to resolving the matter in the best interest of all clients.

Dexus share price snapshot

Over the past 12 months, Dexus shares have risen 3%, matching the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post Dexus launches new fund and lifts DREP2 equity in latest earnings update appeared first on The Motley Fool Australia.

More reading

• Scentre Group introduces new joint venture partner for Westfield Chermside
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you are planning to put $10,000 to work in the share market ahead of 2026, exchange-traded funds (ETFs) remain one of the smartest and most convenient ways to build long-term wealth.

They offer instant diversification and exposure to sectors and themes that would otherwise be difficult to access with just a handful of individual shares.

Three ETFs that could be top picks for investors preparing their portfolio for the next decade and beyond are listed below. Here’s why they could be excellent options for a $10,000 investment today.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ASX ETF that could be a great long term option for investors with a high tolerance for risk is the BetaShares Crypto Innovators ETF.

It gives investors exposure to global stocks that are at the forefront of the digital asset ecosystem. This includes crypto exchanges, mining businesses, blockchain infrastructure providers, and companies enabling real-world applications for decentralised technology.

Some of the ETF’s major holdings include Coinbase Global (NASDAQ: COIN), MicroStrategy (NASDAQ: MSTR), and Riot Platforms (NASDAQ: RIOT). These are businesses whose earnings can scale rapidly if crypto adoption continues to accelerate or if blockchain technology becomes further embedded in banking, gaming, supply chains, and cloud computing.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The BetaShares Nasdaq 100 ETF is another ASX ETF that could be a good destination for a $10,000 investment.

This fund continues to be one of the most popular ways for Australians to tap into the world’s most innovative stocks. While the Magnificent 7, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOGL), and Tesla (NASDAQ: TSLA), dominate headlines, this ASX ETF also provides meaningful exposure to dozens of other high-quality businesses that are often overlooked.

For example, other large holdings include Costco Wholesale (NASDAQ: COST), Adobe (NASDAQ: ADBE), Starbucks (NASDAQ: SBUX), and PepsiCo (NASDAQ: PEP). These companies offer durable earnings, strong competitive advantages, and proven long-term growth records, adding balance to the BetaShares Nasdaq 100 ETF beyond its mega-cap tech exposure.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

Finally, the BetaShares Global Quality Leaders ETF is focused on stocks with exceptional balance sheets, superior profitability, and consistent earnings growth. This is a classic quality factor strategy, which has historically outperformed broader markets over long periods.

The ETF’s holdings are concentrated in world-class businesses such as payments giant Visa (NYSE: V), luxury goods retailer Hermes (FRA: HMI), and photolithography machines manufacturer ASML Holding (NASDAQ: ASML).

In uncertain economic environments, quality stocks have tended to be more resilient. For investors seeking a smoother journey, this fund could be a compelling addition. It was recently recommended by analysts at Betashares

The post Where to invest $10,000 in ASX ETFs for 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Adobe, Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, Starbucks, Tesla, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended ASML, Adobe, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Starbucks, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Iluka Resources Ltd (ASX: ILU) has hit a rough patch over the past month. The share price slid sharply after a strong run earlier in 2025.

The ASX 200 resources stock trades hands for $5.75 apiece at the time of writing, 37% down from its peak in mid-October.

However, Iluka shares are still 14% up in 2025 and 52% over the past 6 months. By comparison, the S&P/ASX 200 index (ASX: XJO) has risen 5.3% this year.

Oversupply and uncertain outlook

The drop of around 12% in the past month reflects a shift in sentiment as investors recalibrate expectations around demand, production, and project risk.

The sell-off began when Iluka withdrew sales guidance for its synthetic rutile operations. The company cited uncertainty among key customers. Markets reacted immediately, dumping the ASX 200 resources stock.  

The pressure intensified when Iluka announced it would temporarily suspend production at its Cataby mine in Western Australia. The move was framed as a response to weak market conditions, instigated by an oversupply coming out of China. It also raised questions about how quickly demand might recover.

Rare earths ambitions

Iluka remains a heavyweight in Australia’s mineral sands sector. Its core business involves mining and processing zircon, rutile, and ilmenite, which are used in ceramics, pigments, and titanium metal.

Beyond its operations in Western Australia and South Australia, the ASX 200 resources stock also owns the Sierra Rutile business in West Africa. In addition, Iluka is building the Eneabba rare earths refinery in WA. This project is designed to make Australia a key supplier of critical minerals to global markets.

The company’s strengths are well defined. It controls some of the world’s highest-quality mineral sands deposits, enjoys deep technical expertise in processing, and benefits from strong government support for its rare earths ambitions.

Windmills and electric vehicles

A successful Eneabba refinery could transform Iluka from a pure mineral-sands producer into a vertically integrated supplier of rare earths oxides. This is an attractive market with long-term tailwinds tied to electric vehicles, wind turbines, and advanced electronics.

However, Iluka’s weaknesses have also been on display. Mineral-sands pricing is cyclical, sensitive to global manufacturing trends, and heavily influenced by Chinese supply. The recent production pauses highlight that Iluka isn’t immune to demand shocks.

Meanwhile, the Eneabba project, although promising, is capital-intensive and dependent on securing long-term offtake agreements. Any delays or cost pressures could weigh on sentiment and valuations.

What next for Iluka shares?

For now, Iluka’s recent pullback reflects short-term turbulence rather than a structural collapse. The long-term story remains intact. However, investors do want to receive clearer signals that demand is recovering, and major projects are progressing smoothly.

That’s why analysts remain cautiously optimistic. Most brokers see the ASX 200 resources stock as a buy with a consensus price target for the next 12 months at $7.23. This points to a 26% upside.

The post This ASX 200 resources stock rally stalls, but can it rebound? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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

The Scentre Group (ASX: SCG) share price is in focus after the company announced a new 25% joint venture partner for Westfield Chermside, Brisbane, at a transaction value of $683 million and confirmed that the deal matches its book value at 30 June 2025.

What did Scentre Group report?

• A new Dexus managed fund will purchase a further 25% interest in Westfield Chermside, Brisbane for $683 million.
• The sale price equals Scentre Group’s book value at 30 June 2025, reflecting a capitalisation rate of 5.00%.
• Scentre Group will retain a 50% direct ownership and continue as property, leasing and development manager.
• Scentre Group will invest $50 million in the new Dexus fund as a temporary foundation investor.
• Settlement is expected before the end of 2025.

What else do investors need to know?

This transaction follows the earlier deal in July 2025, when Dexus Wholesale Shopping Centre Fund also became a 25% joint venture partner in Westfield Chermside. After these transactions, Scentre Group will have introduced approximately $1.3 billion of new capital into the group.

The company says this added capital aligns with its long-term capital management strategy. Scentre Group remains focused on delivering sustainable growth and pursuing its ongoing strategic priorities. The $50 million investment in the Dexus fund is intended to be temporary.

What did Scentre Group management say?

Scentre Group Chief Executive Officer Elliott Rusanow said:

Following these transactions, approximately $1.3 billion of new capital will have been introduced into the Group.

This is consistent with our long-term capital management strategy and provides the Group with further capital to pursue our strategic objectives and deliver sustainable growth for our securityholders.

What’s next for Scentre Group?

Settlement for the sale is anticipated by the end of the year, and Scentre Group aims to use the new capital to support future strategic initiatives. The company continues to manage and develop Westfield destinations throughout Australia and New Zealand.

With the additional funding, Scentre Group plans to strengthen its balance sheet while focusing on growth and value creation for investors. Maintaining its role as property manager at Westfield Chermside, Scentre Group remains committed to long-term asset management and community development.

Scentre Group share price snapshot

Over the past 12 months, Scentre Group shares have risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Scentre Group introduces new joint venture partner for Westfield Chermside appeared first on The Motley Fool Australia.

More reading

• Dexus launches new fund and lifts DREP2 equity in latest earnings update
• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Mineral Resources Ltd (ASX: MIN) shares closed at $51.43 on Thursday, up 0.06% for the day and up 49% in 2025.

The ASX 200 miner produces iron ore and lithium, and offers mining services across Australia, Asia, and elsewhere.

Governance issues and financial concerns have plagued this ASX 200 mining share in 2025.

A desire to strengthen the balance sheet contributed to the board’s decision not to pay dividends in FY25.

The last dividend Mineral Resources paid was for the first half of FY24.

At the annual general meeting on 20 November, independent non-executive chair Malcolm Bundey said:

We believe it was prudent not to pay dividends in FY25 and have kept capital expenditure to an absolute minimum this financial year, which has strengthened the balance sheet.

Will Mineral Resources resume dividends in 2026?

Bundey said the discretionary dividend policy of up to 50% of underlying net profit after tax (NPAT) would remain in place next year.

But there are new boundaries: net leverage and liquidity metrics must be met, or likely met, within 12 to 18 months.

Bundey said:

… dividends will now only be paid if our liquidity and leverage thresholds are met, or there’s a clear line of sight to meeting them within 12 months.

This ensures we retain a robust balance sheet before paying dividends.

The consensus expectation among analysts on CommSec is that Mineral Resources shares won’t pay dividends again until FY27.

The forecast is for a 63.5-cent payment that year.

Key dates for Mineral Resources shares in 2026

We’ll find out for sure whether Mineral Resources will resume dividends in FY26 on 20 February.

That’s when Mineral Resources will announced its 1H FY26 results. The full-year FY26 results will follow on 27 August.

We’ll get quarterly production reports on 29 January, 30 April, 29 July, and 23 October.

Mineral Resources will hold its annual general meeting on 18 November.

Should you buy Mineral Resources shares?

Among 15 traders on the CommSec trading platform, five give Mineral Resources shares a strong buy rating.

Two give the ASX mining share a moderate buy rating, four say hold, one says it’s a moderate sell, and three say it’s a strong sell.

In a note this week, Macquarie upgraded Mineral Resources shares from an underperform rating to neutral.

The broker raised its earnings per share (EPS) forecast for FY26 by 58% to 156.8 cents per share.

It increased the FY27 forecast by 15% to 158.6 cents per share, with no change for FY27 at 158.6 cents per share.

Macquarie commented:

MIN sees large EPS changes in FY26/27 as iron ore and lithium prices are material raised.

Longer term, EPS is relatively unchanged.

The broker raised its 12-month price target on Mineral Resources shares by 9% from $47 to $51.

Macquarie added:

Movements in spot iron-ore and spodumene prices present the most material risk to our earnings forecasts for MIN.

We make assumptions on the capital and operating costs for projects including Wodgina and Onslow (which is still in a rampup phase).

Variances in these costs vs our forecasts can have a material impact on our earnings forecasts and valuation.

The post Will Mineral Resources shares resume dividends in 2026? appeared first on The Motley Fool Australia.

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

Ampol Ltd (ASX: ALD) shares have been firing on all cylinders recently. Thursday the company finished the trading day on a 52-week high at $32.74, after rising 1.72%.

Ampol shares have gained 18% in the past 12 months and they’re a standout among ASX 200 energy stocks. To put it in context, the S&P/ASX 200 Energy Index (ASX: XEJ) only lifted by 2.5% over the same period.  

Bold strategy rewarded

The rally marks a turnaround from recent volatility. The surging Ampol share price reflects a growing belief that the fuel and convenience retailer is positioning itself for stronger earnings growth in an evolving energy landscape.

Investors have rewarded Ampol’s bold strategic moves, particularly its planned $1.1 billion acquisition of EG Group’s Australian operations. The deal clearly excited the market and sent Ampol shares surging by nearly 10% on the announcement.

National brand presence

The takeover would bring around 500 company-owned and operated fuel stations into Ampol’s network. This would increase scale and give the company greater control over retail operations and brand presence nationwide.

The company announced on Thursday that it launched a $500 million delayed-draw subordinated notes facility to support capital management and the EG Australia acquisition.

The Ampol-board says the deal is expected to boost both earnings and free cash flow, assuming it completes by mid-2026.

Offset cyclical weakness

The EG acquisition isn’t the only catalyst for the soaring Ampol shares. Markets have also been quick to price in improving refining margins and a resilient performance from Ampol’s convenience retail division.

Ampol’s core business spans fuel refining, marketing and distribution across Australia and New Zealand, complemented by an extensive network of service stations and convenience stores.

The company also supplies lubricants and specialty products, and its evolving portfolio includes growing exposure to electric vehicle charging infrastructure and low-carbon energy solutions.

These segments have helped offset cyclical weakness in global refining conditions. Recent quarterly updates have shown stronger refiners’ margins linked to broader crude and product crack improvements, giving traders another reason to pile into Ampol shares.

Crude price swings

But challenges remain. Ampol’s refining margins are highly cyclical and sensitive to global crude price swings, which have weighed on profitability in recent periods.

Ampol’s earnings growth outlook and sales forecasts have been downgraded by some analysts, with profitability margins under pressure and capital expenditure requirements still significant. Debt levels also remain a focus, making ongoing financial discipline crucial.

What next for Ampol shares?

Analyst sentiment on Ampol shares is broadly optimistic. Brokers seem to be supportive of Ampol’s blend of strategic growth initiatives, operational resilience and a diversified business model.  

TradingView data shows that most analysts recommend a strong buy. Some expect the ASX 200 energy stock to climb as high as $37.40, which implies a 15% upside at the time of writing.

However, the average Ampol shares price target for the next 12 months is $34.72. That still suggests a possible gain of almost 7%.   

The post Why Ampol shares zoomed to reach a 52-week high appeared first on The Motley Fool Australia.

More reading

• Ampol launches $500 million subordinated notes facility to back EG Australia acquisition
• Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth
• Macquarie upgrades 2 ASX 200 energy stocks; suggests strong upside

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

There are plenty of Australian dividend shares available on the ASX boards for income investors to choose from.

To narrow things down, let’s look at three excellent options for income investors that have $1,000 to put to work in the share market. They are as follows:

Macquarie Group Ltd (ASX: MQG)

The first Australian dividend share to consider buying with the $1,000 is Macquarie. It is Australia’s leading investment bank with a diversified business model that spans banking, asset management, commodities, and global infrastructure. This diversity gives it multiple earnings engines that fire at different points of the cycle.

This has allowed Macquarie to weather market downturns and rate shocks better than many financial peers. After all, when one division is struggling, there is another that is typically picking up the slack. In light of this, it could be a top pick for income investors that are looking for stable dividends.

At present, Macquarie’s shares trade with a trailing dividend yield of 3.5%.

Rural Funds Group (ASX: RFF)

Another Australian dividend share for income investors to look at is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land.

It leases these properties to high-quality tenants on long agreements with periodic rental increases built in. This means that Rural Funds has great visibility on its future earnings and has been able to grow its dividend at a consistent rate for many years.

Rural Funds is expecting to reward shareholders with an 11.73 cents per share dividend in FY 2026. Based on its current share price of $2.01, this would mean an attractive 5.8% dividend yield.

Telstra Group Ltd (ASX: TLS)

Telstra is one of Australia’s most reliable ASX dividend shares. As the country’s telco leader, it benefits from stable cash flow generated by mobile, broadband, and network services. These are the kinds of essential services that Australians rely on every day for connectivity.

Looking ahead, the company recently released its Connected Future 30 strategy, which aims to deliver strong and sustainable long-term earnings. If management delivers on its plans, it should be supportive of dividend growth over the remainder of the decade.

In FY 2025, Telstra paid shareholders a 19 cents per share fully franked dividend. Based on its current share price of $4.88, this represents a trailing dividend yield of 3.9%.

The post 3 excellent Australian dividend shares to buy with $1,000 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Rural Funds Group, and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Orica Ltd (ASX: ORI) is an ASX 200 materials stock. The company is the world’s largest provider of commercial explosives and innovative blasting systems to the mining, quarrying, oil and gas and construction markets. 

In 2025, it has seen its share price rise more than 40%. 

What’s behind the success of this ASX 200 stock?

This rise has been driven by the company’s strategic shift from being a pure explosives supplier to a broader, more diversified provider. 

The Motley Fool’s Marc Van Dinther reported earlier this month that acquisitions in specialty chemicals businesses and the roll-out of digital blasting platforms have helped generate higher-margin, repeatable revenue rather than one-off explosives sales.

In its most recent financial results, the company reported its highest profit in 13 years. 

It also reported an EBIT of $992 million and strong growth across all segments. 

The company also paid out a record full year dividend of 57 cents, an increase of  21% from last year’s 47 cents.

Macquarie’s updated view

The team at Macquarie released a new report yesterday with updated guidance on this ASX 200 stock. 

One key takeaway from the report is the company’s preparation for a strategy refresh (details expected in March) following positive early FY26 momentum.

Macquarie said Vik Bansal commences as Chairman post Dec 16 AGM who has a strong track record of cost out from his time as CEO of Boral (ASX: BLD).

Macquarie also highlighted that Orica could close the gap between itself and competitor Dyno Nobel (ASX: DNL). 

It said Dyno Nobel is in midst of its $300m transformation program; this is lifting margins with full benefits targeted in FY28. 

Dyno Nobel’s EBIT margins are above Orica’s at 13.4% (12.9% explosives) vs ORI’s 12.0% in FY25a. 

In our view, an opportunity exists for ORI to close the margin gap to DNL through cost-out and mix benefit as higher margin Digital & SMC grows faster than Blasting. As a scenario, narrowing the gap by half over next 3-4 years would = c$100m of EBIT & a ~10% benefit to our FY28e/FY29e EPS.

Valuation

Macquarie said Orica shares are currently trading at 17.2× FY27 PE, a ~5% discount to the ASX100. 

It also said it is trading at a slight discount to competitor Dyno Nobel’s 17.6x and it sees a positive earnings outlook for the ASX 200 stock coupled with a strong balance sheet.

Based on this guidance, Macquarie has an outperform rating on this ASX 200 stock. 

It also has a price target of $25.95. 

This indicates an upside of 10.85%. 

The post Macquarie tips double digit upside for this ASX 200 stock 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.

The S&P/ASX 200 Index (ASX: XJO) closed 0.15% higher on Thursday afternoon. Over the past month the index has fallen 2.57%, although it’s still 4.77% higher for the year-to-date.

The latest index decline is partly due to the Reserve Bank’s decision to keep interest rates on hold for another month. In fact it even hinted that further rate cuts are unlikely, even implied at the possibility of a rate increase in early 2026. And it didn’t sit well with investors.

But during times like this, it’s more important than ever to take note of the strong stock performers and the ones to stay clear of. Here are three ASX 200 shares I’m avoiding this week.

Fletcher Building Ltd (ASX: FBU)

Fletcher Building’s shares ended 0.94% higher at the close of the ASX on Thursday, at $3.22 a piece. Over the past month the New Zealand-based building and materials company’s shares have risen 5.92% meaning they’re now trading 25.29% higher than in January.

The dual-listed New Zealand-based building and materials company’s shares also closed 1.68% higher on the NZE on Thursday, at NZ$3.64 per share. 

The company recently reported ongoing declines in trading volumes for the first quarter of FY26 and expects challenging conditions to continue for the remainder of the period. It’s enough for me to steer clear.

Analysts at Macquarie have an underperform rating on the stock and a NZ$1.59 target price. Using Fletcher Building’s NZ$3.64 share price at the time of writing, this implies a massive 56.3% downside ahead.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares closed 0.7% lower again on Thursday afternoon, at $152.74. This means the ASX 200 company’s shares have now fallen 20.2% from its all-time high in June, and are now 3.03% lower than this time last year.

I still think the bank stock’s premium share price is far too expensive right now, and could correct even further. The majority of analysts have a sell rating on the banking giant’s stock, with a target price as low as $96.07 each. 

This implies a potential 37.1% downside over the next 12 months, based on the share price at the time of writing. The team at Medallion Financial Group urges investors to be cautious about buying the stock.

National Australia Bank Limited (ASX: NAB)

NAB is another bank stock which I think is set to drop over the next 12 months, and I’m staying clear of.

At the close of the ASX on Thursday the ASX 200 shares closed 1.03% higher. Although over the month the shares dropped 3.09%. For the year-to-date, the NAB share price is 11.12% higher.

The bank missed consensus expectations of flat earnings in the second half of FY25 and I’m concerned that this is a sign of things to come in FY26.

The team at Morgans have a sell rating and $31.46 target price on the stock. However some analysts are even more bearish, expecting NAB shares to drop as low as $28.79 a piece. At the time of writing this implies a downside of 30.43% over the next 12 months.

The post 3 ASX 200 shares I’m avoiding this week appeared first on The Motley Fool Australia.

More reading

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• The CBA share price has fallen 19% since June, is it a buy?
• 10 most-traded ASX shares last week
• Up 22% in a year! The red-hot ANZ share price is smashing CBA, Westpac and NAB shares

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 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.