Category: Stock Market

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are pushing higher on Thursday.

In morning trade, the ASX defence stock is up 2.5% to $8.12.

Why is this ASX defence stock rising today?

Investors have been buying the defence and space company’s shares this morning after it made a positive announcement.

According to the release, EOS has now completed the acquisition of the MARSS business for an upfront consideration of US$36 million (A$50.4 million).

There is also an earnout component, which has a maximum cap of EUR140 million (~A$227 million).

MARSS is a Europe-based provider of command and control (C2) systems, which are critical for effectively countering drones. Its proprietary C2 technology, NiDAR, provides advanced artificial intelligence (AI)-enabled decision making and sensor-effector orchestration to rapidly counter asymmetric drone threats.

EOS notes that by combining its own best-in-class effector and sensor capabilities with MARSS’ C2 technology, it is transforming from a component supplier to an integrated counter-drone systems provider, with strong software and AI capabilities.

Earlier this month, the company revealed that MARSS had secured new orders totalling EUR102 million (~A$165 million) from an existing customer in the Middle East to take its existing order book to EUR135 million (~A$217 million).

It notes that the addition of MARSS’ A$217 million order book to EOS’ existing A$509 million order book would illustratively increase EOS’ total order book to A$726 million. This bodes well for its near-term sales growth.

‘A significant addition’

Commenting on the transaction, the ASX defence stock’s CEO and managing director, Dr. Andreas Schwer, said:

We are pleased to have completed the MARSS acquisition – this is a significant addition to EOS’ capability. In recent months, the MARSS NiDAR platform has been protecting critical assets in the Middle East from drone attacks. We welcome the MARSS team to EOS and look forward to working together to secure and execute the commercial opportunities that lie ahead.

The CEO of the MARSS business, Johannes Pinl, added:

We are very proud of the MARSS team and the success of the NiDAR Counter-Drone Command and Control platform. With systems and personnel supporting operations across the Middle East, MARSS remains committed to protecting critical sites and advancing our capabilities. We are pleased to become part of EOS and look forward to growing our business together.

The post Here’s why this ASX defence stock is charging higher today 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 Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I still think ASX dividend shares are the best way to generate passive income, despite interest rates going higher. Yes, money in a savings account (or term deposit) is safer. However, if I’m not saving for a specific goal, I’d want to invest in the stock market with a good dividend yield for passive income.

Businesses can offer a good dividend yield, but it’s the potential for organic capital and dividend growth that puts them ahead of a term deposit, in my view.

There are plenty of great ASX dividend shares with yields below 8%, so we don’t necessarily need to choose only high-yielding ideas, but this article is about those with exceptionally high yields, like the two below.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the largest listed investment companies (LICs) on the ASX. Its goal is to actively invest in large, high-quality businesses on the ASX.

At the end of April, some of its largest positions were names like Wesfarmers Ltd (ASX: WES), Rio Tinto Ltd (ASX: RIO), REA Group Ltd (ASX: REA), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG), BHP Group Ltd (ASX: BHP), and Alcoa Corporation (ASX: AAI).

As a LIC, the business is able to turn profits from investment returns generated into paying dividends.

Its solid investment returns have enabled the business to steadily increase its dividend each year since FY17, a pleasing record of consistency.

Its investment returns, before fees, expenses, and taxes, have averaged 11.9% per year since inception in May 2016. That’s almost 3% per year better than its benchmark, though past outperformance is not a guarantee it will continue to deliver future outperformance.

It expects to pay an annual dividend per share of 9.6 cents in FY26, translating into a grossed-up dividend yield of 10.5%, including franking credits. It’s one of the few ASX dividend shares with a double-digit yield that I’d be willing to buy, and I expect it can continue to slightly increase the dividend each year.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an ASX retail share that sells a variety of hair removal products, including a number of exclusive products from high-quality brands. It also has its own brand called Transform-U.

Impressively, the business started paying a dividend in 2017 and hasn’t cut its payout since, despite various wider financial impacts during that period.

It has increased its dividend every year, except FY24, when it maintained the dividend. We’ll see what it pays in FY26.

The ASX dividend share’s latest two half-year dividends come to 10.3 cents per share. That translates into a grossed-up dividend yield of 11.3%, including franking credits.

Shaver Shop is doing its best to continue growing profits and hiking its dividend. Its plans include opening more stores across Australia and New Zealand, expanding its Transform-U product range, selling more online, and perhaps working with additional shaver brands.

According to the forecast on CMC Invest, the Shaver Shop share price is valued at 11 times FY26’s estimated earnings.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares with dividend yields above 8%

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, Goodman Group, Shaver Shop Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Arafura Rare Earths Ltd (ASX: ARU) shares are catching the eye on Thursday.

In morning trade, the ASX rare earths stock is up 14% to 33.5 cents.

Why is this ASX rare earths stock in the spotlight?

This morning, Gina Rinehart-backed Arafura Rare Earths revealed that its board has made a final investment decision (FID) for the Nolans Rare Earths Project.

According to the release, the decision is to proceed with the development and follows a number of key recent developments under the company’s comprehensive, multi-year financing and offtake strategy.

This includes binding commitments from sovereign-backed institutions across four nations and binding offtake agreements with leading manufacturers across the globe.

The ASX rare earths stock will now turn its focus to construction of the Nolans Project, targeting commencement from September 2026.

Once operational, the company notes that the Nolans Project has the potential to be among the most consequential contributions to Australian industrial productivity in the Northern Territory’s modern history.

It highlights that independent economic analysis commissioned ahead of FID concludes that the project will deliver a forecast economic benefit of $25.2 billion to gross territory product over the planned initial 38-year life of mine.

‘A long-awaited milestone’

Commenting on the news, Arafura Rare Earths’ chair, Mark Southey, said:

The Board’s decision today marks the delivery of a long-awaited milestone for Arafura and its stakeholders. It is the culmination of a deliberate and patient strategy. We have always believed that the right partners would define the quality and durability of the Nolans supply chain. Together with our customers, investment partners and financiers across Europe, Korea, Canada, the United States and Australia, we are now ready to deliver our transformational Project.

This sentiment was echoed by the company’s CEO and managing director, Darryl Cuzzubbo. He said:

The achievement of FID reflects years of disciplined execution and partnership building. The offtake relationships we have established with Hyundai, Kia, Siemens Gamesa, Traxys and the various types of economic support provided by the Australian Government are not transactional arrangements. They reflect a shared recognition that the diversification of global rare earth supply chains is an imperative, not merely an opportunity.

The Australian Government has taken a decisive and proactive approach, developing an economic toolkit that supports the rare earths sector in the near term that will deliver independent and functional markets into the future. On behalf of the Board, I extend my thanks to all our stakeholders for your continued support and for entrusting us to build a company that will play a defining role in the world’s technology and energy transition for decades to come.

The post This ASX rare earths stock is rocketing 14% on big news appeared first on The Motley Fool Australia.

More reading

• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again today?

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.

Northern Star Resources Ltd (ASX: NST) shares are under pressure on Thursday morning.

At the time of writing, the ASX 200 gold stock is down 4% to $18.65.

This compares unfavourably to a 2% gain by the S&P/ASX All Ordinaries Gold index in early trade.

Why are Northern Star shares falling today?

Investors have been selling the gold miner’s shares today following news of a leadership change.

According to the release, Northern Star’s managing director, Stuart Tonkin, has advised the board of his intention to step down during the first quarter of FY 2027.

Tonkin will remain in the role until that time, which the company notes will see the conclusion of its current strategic plan and the commissioning of the KCGM Fimiston Mill Expansion.

Major leadership change

Tonkin has been with Northern Star for 13 years, serving as chief operating officer and chief executive officer.

The company notes that during his tenure, it grew from a small Western Australian gold miner into Australia’s largest ASX-listed gold producer, with three production centres and more than 10,000 staff and contractors across Western Australia and Alaska.

It also highlighted his role in major acquisitions and integrations, including Plutonic, Kanowna Belle, Kundana, Jundee, South Kalgoorlie, Pogo in Alaska, Kalgoorlie Consolidated Gold Mines, the merger with Saracen Minerals, and the takeover of De Grey Mining.

Commenting on his decision to leave, Tonkin said:

After 13 years leading Northern Star through significant growth, I’m proud to leave the Company in an exceptional position. The team, the assets and the outstanding growth outlook is unique and after many years of rewarding challenges, I have decided to step down.

I am very proud of what we have achieved at Northern Star and I want to especially thank my executive team and all our staff and contractors for the role they’ve played in building such a great company over the years, there is an exciting future ahead.

Northern Star’s chair, Michael Chaney, thanked Tonkin for his contribution, noting that he would leave a legacy of assets and growth opportunities for the company. He commented:

On behalf of the Board and our shareholders, I want to thank Stu for his phenomenal efforts over the last 13 years. He can be rightly proud of his achievements, and he will leave a legacy in the form of assets and growth opportunities that will deliver benefits for all stakeholders for decades to come. Along with my fellow Directors, I look forward to working with Stu to achieve a smooth transition to a new leader in the coming months.

Succession process underway

Northern Star said the board has started a formal process to facilitate an orderly transition to a new managing director.

A leading global search firm will be appointed shortly, with the board to consider both internal and external candidates.

2026 has been very turbulent for Northern Star shares and this latest news certainly adds to it. So much so, following today’s move, the gold miner’s shares are down almost 25% year to date.

The post What’s going on with Northern Star shares today? 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.

Copper is already trading near record highs, but according to a new report from Pitt Street Research there could be more good news to come for investors will an “extreme” copper crunch on the way.

Pitt Street has this week sent a research note to its clients arguing that copper could be the best performing metal in the 2020s, and has named two producers which it says are well placed to benefit.

Let’s have a look at what they’re saying about copper supply first.

Deficits to grow

Pitt Street Research argues that copper has the potential to mirror gold’s stellar performance, as “the emerging supply/demand gap … is only going to continue to grow”.

They added:

Global copper consumption is ~26.5Mt today, and the deficit is a modest ~200,000tpa. But consumption is forecast to rise sharply as EVs (~80kg copper vs ~25kg for ICE cars), renewable energy, grid infrastructure and data centres scale simultaneously. Bloomberg has estimated that demand will reach ~35Mt by 2035 and ~50Mt by 2050.  

Pitt Street said no major new world-class copper deposit had entered production at scale in more than a decade, and existing mines are ageing and ore grades are declining.

New discoveries also take 7-10 years to come into production, they said.

They added:

The crunch will mean significantly higher copper prices. We are already seeing an impact with LME copper prices up >50% in 18 months and believe more growth is to come. ASX will gain exposure to the upside in the copper price. However, not all copper companies are created equal. The companies that will do the best will be the companies that have high-quality projects in favourable jurisdictions with persistent operational performance.

Miners worth a look

In terms of ASX-listed copper producers, Pitt Street Research likes Evolution Mining Ltd (ASX: EVN) and Sandfire Resources Ltd (ASX: SFR).

While Evolution is mainly thought of as a gold producer, Pitt Street said they have good copper exposure embedded within their high-quality assets.

Pitt Street said:

Ernest Henry is a large-scale iron oxide copper-gold (IOCG) deposit with a long mine life to at least 2040 and significant resource depth. The operation contains approximately 1.4Mt of copper and 2.8Moz of gold in resources, supporting long-term production of around 50kt copper per annum. Beyond Ernest Henry, Evolution also has exposure through Northparkes, creating a broader copper portfolio. Copper contributes approximately 25% of group revenue, with a strategic target of increasing this to 40% over time. This indicates a deliberate shift towards greater copper leverage.

And finally, to Sandfire, Pitt Street said they had diversified from a single asset producer into a diversified global copper company with producing assets in Europe and Africa.

Pitt Street said:

All things considered, we believe Sandfire represents a direct, scalable and relatively low-cost copper exposure, with both operational stability and growth. In the context of the copper price scenarios, it offers strong leverage in the base and bull cases, while remaining resilient in downside environments due to its cost position.

The post With an “extreme” copper crunch coming, here are 2 shares to buy appeared first on The Motley Fool Australia.

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• Why are Sandfire, Capstone and BHP shares jumping in Wednesday’s sinking market?

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 IperionX Ltd (ASX: IPX) share price is in focus after the company announced it has successfully commissioned a cutting-edge six-axis powder metallurgy press at its Titanium Manufacturing Campus in Virginia, with production capacity now tripling across high-value titanium components.

What did IperionX report?

• Commissioned a 300-ton, six-axis SACMI powder metallurgy press, tripling existing titanium component manufacturing capacity
• Platform enables production rates of up to 11 million parts annually using single-cavity tooling
• Press supports more complex titanium components for defence, aerospace and industrial markets
• Designed to integrate with new HSPT furnace capacity slated for arrival in June
• Manufacturing pathway aimed at reducing production costs, waste, and lead times

What else do investors need to know?

The newly commissioned SACMI press vastly expands the range of titanium products IperionX can manufacture in the United States, including fasteners, gears and brackets, supporting defence and aerospace supply chains.

With the addition of the SACMI press, IperionX can now deliver enhanced product flexibility, complex geometries, and more consistent production, allowing the company to serve larger and more demanding customer programs. The press uses titanium powder made from U.S.-sourced feedstocks through IperionX’s patented processes, bypassing traditional supply chains.

Installation and commissioning of new HSPT furnaces will begin after their arrival in June, helping to accelerate customer qualification and high-volume manufacturing.

What did IperionX management say?

CEO Anastasios (Taso) Arima said:

Commissioning this advanced SACMI press is an important milestone for IperionX. It gives us greater titanium manufacturing capacity and more flexibility to manufacture a wider range of titanium components for customers in defense, aerospace and industrial markets.

Titanium is a critical material, but its use has often been limited by cost and supply chain challenges. By combining our U.S.-sourced titanium powder, patented HAMR process, powder metallurgy pressing and HSPT sintering and forging, IperionX is building a more scalable platform for domestic titanium manufacturing.

This new press, together with our upcoming furnace expansion, is designed to help move customer programs from prototypes toward repeatable, higher-volume production.

What’s next for IperionX?

IperionX plans to further integrate the SACMI press with new furnace operations to fast-track customer qualification, low-rate initial production and large-scale titanium component manufacturing. Management aims to support U.S. industry with more reliable, cost-effective domestic titanium supply, particularly for defence, aerospace, automotive and electronics markets.

The company’s continued innovation in titanium metal technologies supports strategic expansion and new partnerships as manufacturing capacity grows in the coming months.

IperionX share price snapshot

Over the past 12 months, IpeirionX shares have increased 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post IperionX expands U.S. titanium manufacturing with new six-axis press appeared first on The Motley Fool Australia.

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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.

Westpac Banking Corp (ASX: WBC) shares have delivered solid returns over the last several years since COVID-19, and investors have also received plenty of passive income in that time.

The ASX bank share has focused on residential lending, and this has served it well over the years, with largely stable bad debts and pleasing demand.

At the time of writing, the Westpac share price has risen 38% over the past five years, as the chart below shows.

If an investor had invested $10,000 into the ASX bank share five years ago, they would have been able to buy 389 Westpac shares.

How many Westpac shares could we buy now?

Following that pleasing rise of the ASX bank share, investors can’t buy as much of the business as they could a few years ago.

Investing $10,000 in the ASX bank share now would mean investors could get 281 Westpac shares.

What’s the likelihood of further gains from here?

One of the best drivers for a rising Westpac share price is growing earnings.

The latest we’ve heard from the ASX bank share is the FY26 half-year result, which didn’t have strong growth.

It generated $3.5 billion in net profit (excluding notable items), down 1%. It also reported $3.4 billion in statutory net profit, down 3% year over year and 5% half over half.

The business actually reported a solid level of underlying growth, with both lending and deposit growth of 7%.

One of the main positives was the 7% growth in Australian housing loans, with the proportion of new loans originated through the proprietary channel rising during the year. That means the business was less reliant on brokers for growth, enabling it to capture more of the lending margin.

Even more impressively, Australian business lending increased by 16% – it reported solid growth in its target sectors of agriculture, health, and professional services. Over time, that could be a larger driver of growth.

Two of the most important measures of the ASX bank share’s success over the rest of the decade are its costs and profitability compared to its peers.

By the end of FY29, it’s targeting a cost-to-income ratio below its peer average and a return on tangible equity (ROTE) above the peer average.

If Westpac can achieve those targets, its shareholder returns could be pleasing.

But analysts are not exactly positive on the business right now. According to CommSec’s collation of analyst opinions, there are currently seven hold ratings and nine sell ratings.

It looks like there are better opportunities out there than Westpac shares.

The post 5 years ago, $10,000 bought 389 Westpac shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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• Which big four ASX bank stock is the best buy right now?

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.

Not all dividend stories are created equal.

Some companies pay generous yields but struggle to grow them.

Others offer modest starting yields but compound their payouts reliably over time.

The three stocks fall into the second category, and all three are forecast to increase their dividends in FY 2026.

Commonwealth Bank of Australia

Commonwealth Bank of Australia (ASX: CBA) has rebuilt its dividend every year since the pandemic-induced cut in 2020, and FY 2026 looks set to extend that streak.

In the first half of FY 2026, CBA declared a fully-franked interim dividend of $2.35 per share, a 4.4% increase on the prior year, backed by a 5% lift in statutory net profit to $5.41 billion.

Looking ahead to the full year, CMC Invest projects that CBA could pay an annual dividend of $5.05 per share in FY 2026, representing approximately 4% year-on-year growth.

At current share prices, that implies a grossed-up dividend yield of approximately 4.5%, including the value of franking credits.

CBA’s appeal as a dividend stock is not primarily about yield size.

It also appeals to its 800,000 individual shareholders due to a dominant market position and a track record of growing its payout in each of the past five consecutive years.

Wesfarmers

Wesfarmers Ltd (ASX: WES) is one of the most consistent dividend growers on the ASX, having lifted its annual payout in every year since divesting Coles in 2020.

In the first half of FY 2026, Wesfarmers declared a fully-franked interim dividend of $1.02 per share, up 7.4% on the prior year, funded by a 9.3% lift in underlying net profit to $1.6 billion.

Bunnings and Kmart both delivered strong first-half contributions, while the Covalent Lithium joint venture’s refinery completed below cost estimates.

The latter produces high-quality lithium hydroxide, adding a new earnings stream to an already diversified business.

CMC Invest forecasts Wesfarmers to pay an annual dividend of $2.20 per share in FY 2026.

Furthermore, Wesfarmers management has stated clearly that the company seeks to grow dividends over time in line with earnings and cash flow growth, a policy that provides long-term income investors with confidence in the trajectory of the payout.

For investors seeking a reliable, growing income stream from one of Australia’s most resilient retail businesses, Wesfarmers should be of particular interest.

Telstra

Telstra Group Ltd (ASX: TLS) is one of the most consistent dividend growers among Australia’s large-cap stocks, having lifted its annual payout in each of the past four years.

In the first half of FY 2026, Telstra delivered a 10.5% increase in its interim dividend to 10.5 cents per share, backed by group cash EBIT growth of 14% and mobile services revenue growth of 5.6%.

Telstra’s mobile division, which continues to grow revenue through a combination of price increases and customer additions, is a key reason for these numbers.

Analysts forecast Telstra’s full-year FY 2026 dividend at 21 cents per share, representing a more than 10% increase on FY 2025’s 19-cent payout.

In addition, Macquarie has an outperform rating on Telstra with a price target of $5.04, and UBS forecasts annual dividend increases continuing through to FY 2030, underpinned by sustained mobile earnings growth and the company’s disciplined cost-reduction program.

It is worth noting that Telstra’s interim dividend for FY 2026 was 90.5% franked rather than fully franked, a slight reduction from prior years that investors should factor into their after-tax yield calculations.

Foolish Takeaway

CBA, Wesfarmers, and Telstra represent three very different businesses, but all three share a common characteristic: a management team committed to growing the dividend over time and the earnings power to back that commitment up.

In a market where income is increasingly hard to find without taking on excessive risk, these three ASX dividend stocks deserve a place on every income investor’s watchlist.

The post 3 ASX stocks expected to increase their dividends in 2026 appeared first on The Motley Fool Australia.

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• 3 strong ASX 200 shares for retirees to buy and hold
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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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. 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.

In a letter to shareholders released this morning, the L1 Long Short Fund Ltd (ASX: LSF) noted that it has rewarded shareholders with a net return of 44.7% over the last 12 months and delivered a fully franked quarterly dividend of 3.7 cents per share.

What did L1 Long Short Fund report?

• Net portfolio return of 44.7% for the 12 months to 31 March 2026 (versus ASX 200 AI’s 11.7%)
• Three-year annualised return of 15.9% p.a. (ASX 200 AI 9.5% p.a.)
• Five-year annualised return of 16.1% p.a. (ASX 200 AI 8.6% p.a.)
• Dividend increased to 3.7 cents per share for Q3 FY26, fully franked
• Total dividends paid since IPO have increased every year

What else do investors need to know?

The fund commenced paying dividends on a quarterly basis in FY26, aiming to provide more regular income to shareholders. The company expects total dividends to continue increasing, supported by ongoing strong investment performance.

L1 Long Short Fund’s Dividend Reinvestment Plan (DRP) remains open, offering shareholders the option to reinvest dividends flexibly without brokerage or extra fees. The upcoming dividend payment will be made on 22 June 2026, and investors can elect to participate in the DRP until 3 June 2026.

What’s next for L1 Long Short Fund?

The company expects the dividend stream to continue rising, reflecting the portfolio’s performance and earnings capacity. Management underscores their focus on delivering strong risk-adjusted returns and ongoing communication with shareholders.

Investors are encouraged to keep up to date via company updates, reports, and events, with further info available on the L1 Long Short Fund website.

L1 Long Short Fund share price snapshot

Over the last 12 months, L1 Long Short Fund shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post L1 Long Short Fund boosts dividend as returns eclipse market appeared first on The Motley Fool Australia.

More reading

• IperionX expands U.S. titanium manufacturing with new six-axis press
• Contact Energy shares resume trading after 5% stake sale
• Northern Star Resources announces CEO succession plan
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• Here are the top 10 ASX 200 shares today

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.

Coal was supposed to be in terminal decline.

Instead, it has become one of the best performing commodities of 2026, and New Hope Corporation Ltd (ASX: NHC) shareholders have been among the biggest beneficiaries.

The company’s third-quarter FY 2026 update, released this week, tells investors a great deal not just about New Hope itself but about the state of the broader coal market right now.

What the quarterly update showed

New Hope reported a 5% quarter-on-quarter increase in group run-of-mine coal production to 4.3 million tonnes for the April quarter.

Group coal sales rose 10.4% to 3.2 million tonnes, while the average realised sales price improved 1.2% to $140.7 per tonne.

Together, those improvements lifted underlying EBITDA 21.7% to $130.1 million compared to the prior quarter.

At its key operating asset, Bengalla Mine in the Hunter Valley, saleable coal production rose 13.5% to 2.1 million tonnes and Free On Board (FOB) cash cost fell 12.4% to $74 per tonne, tracking well below the company’s FY 2026 guidance range of $81 to $89 per tonne.

That cost performance gives New Hope some protection against any near-term softening in coal prices.

What this tells us about the coal market

The quarterly update is also a useful window into the broader thermal coal market, and the picture it paints is more constructive than many investors might expect.

The Newcastle thermal coal benchmark averaged US$127.6 per tonne during the April quarter, up 16.5% on the prior quarter, driven by a combination of factors.

Middle East tensions have pushed natural gas prices higher, causing power stations across Asia to switch back to cheaper coal as a substitute fuel.

Moreover, cold weather across North Asia simultaneously lifted heating demand, while Japan and South Korea continued to prioritise grid stability through reliable coal-fired baseload generation.

Meanwhile, a longer-term supply squeeze is developing in the background.

Years of reduced investment in new coal mine development, driven by ESG pressures on banks and institutional investors, also has led to global supply gradually tightening as demand falls more slowly than anticipated.

That mismatch benefits low-cost producers like New Hope, who is now selling into a progressively tighter market.

The balance sheet and shareholder returns

Beyond the operational numbers, New Hope also took meaningful balance sheet action during the quarter.

The company successfully issued $300 million in new convertible notes due 2032 while repurchasing $293.3 million of notes due 2029, extending its debt maturity profile and reducing near-term refinancing risk.

The cash balance at quarter end stood at $571 million.

Shareholders also received a fully-franked interim dividend of 10 cents per share during the quarter, totalling $84.3 million.

Foolish Takeaway

New Hope’s quarterly update confirms that the coal price recovery is real.

For investors comfortable with the ESG considerations that come with owning a thermal coal stock, New Hope offers a cash-generative, low-cost producer with a strong balance sheet and a track record of returning capital to shareholders.

For those who are not, the update at least provides a useful read on what is driving energy markets in 2026.

The post Here is what this ASX stock’s quarterly update tells investors about the coal market in 2026 appeared first on The Motley Fool Australia.

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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.