Category: Stock Market

The IGO Ltd (ASX: IGO) share price is on watch today after the company returned to profitability in FY26, posting a net profit after tax (NPAT) of $145.3 million and announcing a fully franked final dividend of 5 cents per share.

What did IGO Ltd report?

• Total revenue of $462.9 million (down 12% from FY25)
• NPAT of $145.3 million (FY25: $954.6 million loss)
• Underlying EBITDA of $285.9 million (FY25: $43.0 million loss)
• Operating cash flow of $132.4 million (up 209%)
• Final fully franked dividend of 5 cents per share ($38 million total)
• Group cash at $386.5 million and undrawn $300 million corporate debt facility

What else do investors need to know?

IGO’s performance bounced back as profits from its Greenbushes and Nova operations, plus improved returns from the Tianqi Lithium Energy Australia joint venture, drove earnings higher. Cost and capital management also played a big part in the turnaround, with free cash flow jumping 176% to $134 million.

The company completed the sale of the Forrestania nickel operation to Medallion Metals and announced a deal to divest its Nova operation to Global Lithium Resources, further simplifying the business and re-aligning strategic priorities towards lithium and copper. Key leadership changes occurred, with Dr Vanessa Guthrie AO taking over as Chair and several other board appointments and departures.

What did IGO Ltd management say?

IGO’s CEO, Ivan Vella, said:

We are proud of what IGO delivered in FY26 – across safety, operational performance and financial returns. The Group returned to profitability, generated positive underlying free cash flow and ended the year with a strong balance sheet, reflecting the benefits of disciplined execution across the portfolio… Looking ahead, our priorities remain clear: safe and reliable operations at Nova, continued support for Greenbushes and Kwinana, and focused growth through exploration, BioHeap and selective inorganic opportunities where value creation and alignment with our strategy is clear.

What’s next for IGO Ltd?

In FY27, IGO expects to close the Nova divestment and focus on growth opportunities in copper and lithium. Guidance points to steady Greenbushes production, lower costs, and increased lithium hydroxide output at Kwinana, though some operational challenges remain.

The company maintains a strong financial position, with $386.5 million in cash and a significant undrawn debt facility, which should support disciplined growth and investment in its targeted commodity areas.

IGO Ltd share price snapshot

The IGO share price has been a strong performer over the past 12 months, beating the S&P/ASX 200 index (ASX: XJO) with a gain of over 50%.

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The post IGO Ltd swings to $145 million FY26 profit, pays 5c dividend 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 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.

The Mineral Resources Ltd (ASX: MIN) share price is in focus today after the company reported its strongest-ever financial result, with record revenue of $6.5 billion and underlying NPAT up 831% to $822 million.

What did Mineral Resources report?

• Revenue: $6.5 billion, up 44% on FY25
• Underlying EBITDA: $2.6 billion, up 183%
• Underlying NPAT: $822 million, up 831% year on year
• Reported NPAT: $1.2 billion, up 236%
• Free cash flow: $849 million, up 141%
• Fully franked final dividend: $0.83 per share, reinstated after nil in FY25

What else do investors need to know?

The record performance was driven by growth in the Mining Services division, the ramp-up of Onslow Iron to nameplate capacity, and improved results in lithium operations—helped by higher prices and volumes in the second half. The company’s net debt fell by $1.1 billion to $4.3 billion, with liquidity doubling to $2.4 billion.

Mineral Resources expects the proposed transaction with POSCO, once completed, to reduce net debt further and provide additional funds for growth initiatives. The company is guiding Mining Services volumes to increase by 9% to 14% in FY27, with growth supported by the Onslow Iron project and ramp-ups at other key assets.

What did Mineral Resources management say?

Chris Ellison, Managing Director, said:

The past 12 months stand among the most significant in MinRes’ history. Record operational and financial results reflect years of strategic investment, positioning the company to enter its third listed decade with a stronger foundation than at any point in our 20-year journey on the ASX.

What’s next for Mineral Resources?

Looking to FY27, Mineral Resources expects growth across every operating division, particularly in Mining Services, which is underpinned by long-term contracts and recurring revenue. The company will focus on delivering new brownfield investments and further ramping up iron ore, lithium, and energy projects.

Completion of the POSCO deal is anticipated to unlock further balance sheet strength and disciplined growth. Governance improvements and leadership succession strategies are now embedded, with the company emphasising a disciplined approach to capital allocation for its next growth phase.

Mineral Resources share price snapshot

The Mineral Resources share price has been on fire over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of almost 80%.

View Original Announcement

The post Mineral Resources share price on watch as record earnings, dividend highlight FY26 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 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.

The RBA interest rate has jumped this year, allowing savers to achieve term deposit interest rates that start with a 5. However, I’d prefer to invest in certain ASX dividend shares for a couple of key reasons.

Firstly, I’d highlight that this is probably (close to) the peak interest rate for this cycle of rate rises. That means this could be the best interest rate that savers can get and term deposit rates in 12 months could be lower if there are RBA rate cuts next year.

Secondly, we can pick ASX dividend shares that already have a dividend yield similar to (or better than) the term deposit rate, as well as payout growth. Term deposits are stuck paying the same rate, though it is a guaranteed cash return.

As time goes on, I’d expect a good ASX dividend share to pay an increasingly better cash return than term deposits.

Let’s look at two ideas based on the above thought process, with dividend yields of more than 5%.

WCM Global Growth Ltd (ASX: WQG)

This business is a listed investment company (LIC). I really like the LIC structure because it allows for a diversified portfolio to generate investment profits, which can pay a steadily growing dividend.

WCM Global Growth owns a portfolio of between 20 to 40 quality global stocks that have expanding economic moats (strengthening competitive advantages) and business cultures that help unlock the improvement of the economic moat.

With its portfolio net return of an average of more than 15% per year since inception in June 2017, the ASX dividend has consistently increased its annual dividend per share every year since 2019.

It recently upgraded its quarterly dividend guidance to 9.85 cents per share over the next 12 months, which translates into a grossed-up dividend yield of 6.6%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is another LIC that focuses on ASX shares.

It’s invested in the funds of 16 different leading fund managers, providing significant diversification. Future Generation Australia is indirectly invested in more than 430 underlying shares, delivering strong diversification.

One of the reasons why I like this investment is that it has a much smaller allocation to the large ASX blue-chip shares than the overall ASX share market, so I believe the Future Generation Australia portfolio gives more exposure to ASX growth shares, which could perform more strongly over the long-term.

These fund managers are all working pro bono – for free – to enable Future Generation Australia to donate 1% of its net assets each year to youth-focused charities.

This ASX dividend share started paying shareholders dividends in 2015 and has increased its annual payout every year since then. Its guided FY26 payout of 7.6 cents per share translates into a grossed-up dividend yield of 8%, including franking credits, at the time of writing.

The post Forget term deposits! I’d buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Wcm Global Growth. 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.

WiseTech Global Ltd (ASX: WTC) shares were under pressure on Wednesday.

The logistics software company’s shares ended the session 10% lower at $40.89.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about the fallen star.

What is the broker saying?

Bell Potter notes that WiseTech delivered a result that was in line with its forecasts but slightly below consensus estimates. It said:

FY26 revenue and EBITDA of US$1,396m and US$558m were in line with our forecasts of US$1,394m and US$561m but slightly below VA consensus of US$1,406m and US$569m. NPAT of US$179m was 11% ahead of our forecast of US$160m and driven by a lower tax rate (19% vs BPe 25%). Cash flow was strong with underlying OCF up 46% and a conversion rate of 100%. The final dividend of US8.8c ff was ahead of our forecast of US8.0c and was driven by the beat in EPS.

Looking ahead, management’s guidance for FY 2027 was better than it expected according to the broker. But once again, it was softer than consensus estimates. It adds:

WiseTech provided FY27 revenue guidance of US$1.48 – 1.54bn which was consistent with our forecast of US$1.53bn but slightly below VA consensus of US$1.55bn. The company shifted to providing EBITDA guidance on an underlying basis and gave a range of US$725 – 780m which was consistent with VA consensus of US$761m. This implied guidance for the underlying EBITDA margin of 49-51%.

In response, Bell Potter has made both upgrades and downgrades to its near-term estimates. The broker explains:

We have downgraded our FY27 and FY28 revenue forecasts by c.2% and now forecast FY27 revenue of US$1,507m which is around the middle of the guidance range. We have, however, upgraded our FY27 underlying EBITDA forecast by 3% but left our FY28 forecast close to unchanged. We now forecast FY27 underlying EBITDA of US$745m which is more towards the lower end of the guidance range. That is, we forecast a margin of 49.4% which is towards the low end of the range.

Should you buy WiseTech shares?

According to the note, Bell Potter has retained its buy rating on WiseTech shares with a trimmed price target of $65.00 (from $71.75).

Based on its current share price, this implies potential upside of almost 60% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

The post Why cheap WiseTech shares could rise almost 60% appeared first on The Motley Fool Australia.

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 9,127.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

It looks set to be a soft session for Australian investors on Thursday following a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points lower this morning. In the United States, the Dow Jones fell 0.2%, the S&P 500 was a fraction lower, and the Nasdaq edged 0.1% lower.

ASX 200 result releases

Earnings season continues on Thursday with another group of ASX 200 shares due to release their results. This includes Bunnings owner Wesfarmers Ltd (ASX: WES), airline operator Qantas Airways Ltd (ASX: QAN), mining and mining services company Mineral Resources Ltd (ASX: MIN), diversified miner South32 Ltd (ASX: S32), and fund manager Magellan Financial Group Ltd (ASX: MFG).

Oil prices fall

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$81.89 a barrel and the Brent crude oil price is down 1.3% to US$87.45 a barrel. This was driven by positive developments in the Middle East.

Buy DroneShield shares

DroneShield Ltd (ASX: DRO) shares are in the buy zone according to analysts at Bell Potter. This morning, in response to the counter-drone technology company’s half-year results, the broker has retained its buy rating with a trimmed price target of $2.40. It said: “We expect RFRecon and new high-moat next gen products to drive continued contract wins, particularly from Europe where DRO has a leading presence in the CUAS EW vertical. Top end of CY26 revenue guidance looks achievable. Retain Buy.”

Gold price falls

It could be a poor session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,647.8 an ounce. Traders were selling the precious metal following the release of US inflation data.

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

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

While the Rio Tinto Ltd (ASX: RIO) share price has bounced around over the last few years, the dividend yield has remained attractive.

Dividends aren’t guaranteed, but the company usually tries to pay investors a sizeable payout with a rewarding dividend payout ratio.

Rio Tinto’s earnings aren’t as volatile as they used to be thanks to its diversified commodities strategy. It has significantly increased its exposure to copper, built a presence in lithium and continued its strong performance with Australian iron ore. Plus, it’s part of a massive iron ore project in Africa called Simandou.

Let’s take a look at what the dividend yield is at the current Rio Tinto share price.

Potential dividend for FY26

The business is projected to deliver a larger dividend payout for shareholders for the 2026 financial year.

Rio Tinto’s FY26 half-year result included a number of impressive growth numbers. Revenue rose 15% to US$31 billion, 28% growth of underlying operating profit (EBITDA) to US$14.8 billion, underlying earnings growth of 43% to US$6.85 billion, net profit growth of 47% to US$6.7 billion and free cash flow growth of 75% to US$3.8 billion.

All of those growth numbers allowed the business to increase its interim payout by 43% to US$2.11 per share.

Based on the dividend projection on Commsec, the business could pay a dividend yield of 3.7% excluding franking credits and 5.3% including franking credits.

That’s certainly not the largest dividend yield the business has had in the last few years.

The Rio Tinto share price has risen by 55% over the past year, which has dramatically impacted the dividend yield on offer. When the share price rises by 10%, the dividend yield is reduced by a tenth, so the huge rise for the ASX mining share isn’t helpful for prospective investors.

Is the Rio Tinto share price a buy?

The company had a very strong period in the first six months of 2026, which may make it seem appealing.

However, mining companies can be very cyclical because of how significantly resource prices can change and how much that can affect earnings due to the operating leverage, both positively and negatively.

If I were choosing when the right time is to invest in Rio Tinto shares, I wouldn’t necessarily choose a period of strength to invest. The best buying price usually appears when commodity prices are beaten down.

But, its exposure to copper and lithium is certainly paying off for the business with strengthening prices for both of those commodities. I think Rio Tinto’s earnings are on a good trajectory for the long-term.

According to Commsec, there are currently 15 ratings on the business, with seven of those being a buy and eight being a hold. While it’s been a good run for existing shareholders, I think future investors are more likely to achieve market-beating returns by waiting for a lower valuation. I’d look at other ideas today.

The post Is the Rio Tinto share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

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

Xero Ltd (ASX: XRO) shares are having quite the year. The ASX tech stock is down 5% to $84.26 on Wednesday, but that’s after a stunning 33% gain over the past month. Over 12 months, however, Xero shares remain down 49%.

So, what’s behind the wild ride?

Xero shares stage a dramatic rebound

Xero shares suffered a major sell-off late last year that continued into early 2026. Like much of the technology sector, the company was caught up in a broad market sell-off after investors questioned whether some tech stocks had run too far following the sector-wide rally of late 2025.

The result was painful for Xero shareholders. The shares fell as low as $61.58 in late July — around a seven-year low. Since then, however, they’ve staged a remarkable recovery.

At the time of writing, Xero shares have rebounded around 38% from that low. They’re also up 33% over the past month, although they remain down 26% year to date.

That volatility raises an obvious question: has the market become too pessimistic about Xero’s long-term growth prospects?

Xero has a huge global opportunity

Australia and New Zealand provided Xero shares with its foundation, while the UK has developed into another substantial market.

The company finished FY26 with 4.92 million customers globally.

That’s an impressive customer base for a company that began in New Zealand less than two decades ago. Yet Xero estimates its total addressable market at around 100 million small and medium-sized businesses worldwide.

The United States could therefore be crucial to Xero’s next phase of growth. The company had approximately 424,000 US customers at the end of FY26, giving it plenty of room to expand in one of management’s three most important markets.

AI could add another growth engine

Xero’s proposition has also expanded significantly. The combination of accounting, payments and payroll gives customers more reasons to stay within the Xero ecosystem.

Accounting software can also be highly sticky because businesses may find it increasingly inconvenient to move their financial information, invoicing and payroll processes elsewhere. That stickiness can support recurring revenue, retention and opportunities to increase customer spending over time.

Xero is also developing JAX, its artificial intelligence platform, to automate more financial tasks and help customers make better decisions using the data already sitting inside the platform.

There are risks linked to Xero shares, of course. Xero faces formidable competition in the US, while successfully integrating Melio, a US bill pay platform, will be crucial.

Are Xero shares a buy?

TradingView data shows five of seven analysts currently have a buy or strong buy rating on Xero shares.

The average $113.33 price target implies potential upside of around 34% from $84.56. The most bullish target sits at $149.44, suggesting potential upside of approximately 77%.

After such a dramatic rebound, Xero shares clearly aren’t without risk. But with millions of customers, a huge global addressable market and an expanding AI-powered product ecosystem, the recent volatility may be giving investors another look at the long-term opportunity.

The post What on earth’s going on with Xero shares? appeared first on The Motley Fool Australia.

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

Construction and related services company Acrow Ltd (ASX: ACF) delivered record revenue for the full year, with broker Shaw and Partners convinced the company is set up for strong share price growth.

This will be good news for shareholders who have weathered a 4.4% fall in the value of their shares over the past year.

Before we get to the broker’s share price forecast, let’s have a look at the company’s recently-released full year results.

Revenue strong but profits lower

Acrow reported revenue of $336 million, up 27% on the previous year, while underlying net profit fell 20% to $27.6 million.

The company also paid a lower final dividend, reducing it from 2.95 cents per share to 1.42 cents.

In terms of the outlook for FY27, the company is expecting revenue to grow 30% and EBITDA to be 37% higher.

Towards the end of the financial year the company announced the proposed acquisitions of Preston’s SuperDeck platform system business and AGIS, with the acquisitions funded by a $70 million capital raise and a $16 million share purchase plan.

One of the main drivers for the company going forward will be the Queensland Olympics, with the company saying:

[It] presents a substantial multi-year pipeline for Acrow, with major venue projects progressing toward builder awards in Jul-Dec 2026 and construction ramp-up from Jan-Mar 2027. Acrow is well positioned across all Olympic venues, athletes’ villages and associated infrastructure, with strong alignment to its formwork, falsework, Jumpforms, screens and industrial access systems. The scale and duration of the program – from initial works through peak delivery between 2027 and 2031 offers a significant long-term growth opportunity in Queensland.  

Acrow Chief Executive Officer Steven Boland said regarding the results:

The Company has experienced a period over the past two to three years of stagnated profits, primarily due to the downturn in construction activity across the Queensland construction market. During this period, we have invested strategically to expand our national Jumpform, Screens and, most notably, our Industrial Access businesses. Today, Industrial Access generates more than $200m in revenue and has significantly enhanced the quality, stability and resilience of our earnings base. Our Construction Services division has now turned the corner with the second half revenue reaching a record level for any half yearly period, with most of the growth experienced in Q4. This momentum has continued into FY27. Looking ahead, we see significant opportunities across both our Industrial Access and Construction Services businesses.

Shares are looking cheap, broker says

In a note to clients, Shaw and Partners said that Acrow had finished the year strongly and was well-positioned heading into FY27.

The broker has a price target of $1.35 on Acrow shares, which is materially above the current share price of 97 cents.

The company is also expected to pay a dividend yield of 4% this year.

The post This ASX builder is well positioned for 40% share price growth: Broker 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.

Superannuation is more than just a savings pot to fund your retirement. 

Your super offers the bonus of concessional tax rates, and you can grow your balance through compounding.

But that’s not all.

Did you know that you can also earn a passive income off your balance once you transition to retirement?

But how much superannuation do you need to accumulate to target the passive income amount that you want to receive?

Here’s a breakdown, using a target of $50,000 per year in passive income as an example.

How much do I need in my superannuation to get $50,000 per year in passive income?

The calculation is straightforward. 

You need to divide your annual passive income by the dividend yield of your overall portfolio and it’ll tell you how much you need to invest.

For example, $50,000 ÷ 3% = $1.66 million (that’s the superannuation portfolio size you’d need).

The catch is that the answer varies significantly depending on what yield you pick.

But the good news is that as your portfolio’s dividend yield increases, the superannuation balance needed to earn the same passive income decreases. 

That means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Break it down for me by yield

We already know what portfolio size you’d need to earn $50,000 per year off a 3% yielding account.

But if your overall portfolio has a slightly higher dividend yield of around 4%, you’ll need a balance of around $1.25 million to earn the same $50,000 per year in passive income.

If the yield of your portfolio is higher still, at around 5% for example, your balance would need to be closer to $1 million to earn the same dividend income.

For a 6% yielding portfolio, you’d need a balance of closer to $834,000 to earn the same amount again.

Increase that to a 7%, 8%, or 9% dividend yield, and you’re looking at closer to $714,000, $625,000 or $556,000, respectively. 

And so on…

You’d still earn $50,000 per year in passive income from each of these superannuation balance sizes.

What ASX shares can I buy with my superannuation around a 3-4% yield?

There are plenty of options, but here are some good options to get you started.

Lovisa Holdings Ltd (ASX: LOV), Lottery Corporation Ltd (ASX: TLC), Eagers Automotive Ltd (ASX: APE), Telstra Group Ltd (ASX: TLS), and National Australia Bank Ltd (ASX: NAB) all yield around 3% to 4% at the time of writing.

What about the middle ground, closer to a 5-6% yield?

If you’re looking for a higher yield, something like long-standing ASX dividend stock APA Group (ASX: APA) is a good option, as is Sonic Healthcare Ltd (ASX: SHL) and Metcash Ltd (ASX: MTS). These ASX shares all yield between 5% and 6% at the time of writing.

And what are my options for high-yielding shares?

There are also some higher-yielding shares around the 8% level, or even higher. However, it’s worth noting that these come with more risk. For high-yielding options, I’d stick with something like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), or a defensive ASX share like IPH Ltd (ASX: IPH).

The post How much superannuation is needed to target a $50,000 annual passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, IPH Ltd , Lovisa, Sonic Healthcare, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the big earnings results winners this season was ASX financials stock HMC Capital Ltd (ASX: HMC). 

Investors were gobbling up this stock following its full-year results. 

During FY26, HMC Capital expanded across all major verticals. 

Included in the results yesterday:

• Operating EPS (pre-tax) of 40.4 cents per share, in line with FY26 guidance
• Underlying EPS (pre-tax) of 30.2 cents, excluding discontinued operations
• Fee-generating AUM grew 15% to $16.9 billion
• Recurring funds management revenue up 22% to $165.5 million
• FY26 dividend declared at 12.0 cents per share
• Tangible assets and undrawn debt capacity of $1.9 billion. 

Investors were seemingly pleased with this ASX financials stock as its share price rose over 11% on the back of the announcement. 

Despite the rise, HMC shares still sit well below yearly highs. In good news for prospective investors, the team at Bell Potter see yesterday’s gain of a sign of what’s to come in the next 12 months. 

Great results 

Bell Potter’s view is very positive, essentially arguing that the FY26 result sets up a stronger FY27 and that there is further upside beyond current guidance.

This ASX financials stock delivered FY26 pre-tax EPS of 40.4c, slightly ahead of Bell Potter’s expectations and well above consensus. 

More importantly, management guided to FY27 underlying EPS of at least 35c, versus 30.2c in FY26, implying roughly 16% underlying earnings growth.

The broker also highlighted that the balance sheet provides another potential upside lever. 

HMC has around $500m of undrawn debt capacity, while its FY27 guidance does not assume any further capital recycling. 

Given HMC has previously generated significant earnings from recycling its investments, Bell Potter believes there could be another $25–50m of underlying earnings upside if capital is deployed or recycled effectively.

As a result, Bell Potter has increased its FY27-FY29 post-tax EPS estimates by 25-30%.

Buy rating retained for this ASX financials stock

Based on this guidance, Bell Potter has retained its buy recommendation for this ASX financials stock. 

The broker has also upgraded its price target $4.20 (previously $3.85), which indicates an upside potential of approximately 29%. 

We recently upgraded HMC to Buy, with today’s result giving us confidence that HMC is turning the corner from an earnings momentum perspective, and indeed HMC has articulated a clear message that earnings upside to items not included in guidance (eg capital recycling) exist. As headwinds turn to tailwinds, HMC screens inexpensively trading at just 9.3x 1yr forward underlying earnings.

The post This ASX financials stock just soared 11% on results and is tipped to keep rising 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.