Category: Stock Market

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price may be on watch today after the company delivered an 8% increase in revenue to $42.7 million for the half-year ended 30 June 2026, and announced its first ever dividend.

What did Neuren Pharmaceuticals report?

• Revenue rose 8% to $42.7 million (H1 2025: $39.7 million)
• Net profit after tax dropped 68% to $4.9 million (H1 2025: $15.0 million)
• Basic earnings per share was 3.83 cents (H1 2025: 11.88 cents)
• Fully franked interim dividend of 15 cents per share declared
• Royalty income from DAYBUE (trofinetide) up 29% in US dollars to US$23.3 million
• Research and development costs increased to $27.4 million, up $12.5 million

What else do investors need to know?

Neuren’s royalty income is primarily from DAYBUE sales by Acadia Pharmaceuticals, which posted US$226 million net sales in H1 2026, up 25% on last year. Growth was buoyed by the launch of DAYBUE STIX, a new powder formulation, in the US.

The company’s research spend climbed as it advanced its Phase 3 study of NNZ-2591 in Phelan-McDermid syndrome. Neuren also implemented an on-market share buy-back, repurchasing $3.9 million in shares.

Importantly for shareholders, Neuren’s new dividend policy has resulted in a fully franked interim dividend, to be paid in October. This marks the company’s first ever payout and reflects its confidence in ongoing royalty streams.

What did Neuren Pharmaceuticals management say?

Neuren’s CEO, Jonathan Pilcher, commented:

Neuren’s substantial income from trofinetide means that we are in the enviable position of being able to fund all development programs for NNZ-2591 aiming for significant capital appreciation, as well as optimise total shareholder return through ongoing fully franked dividends.

What’s next for Neuren Pharmaceuticals?

Looking ahead, Neuren expects continued growth in global DAYBUE sales, with Acadia guiding for 2026 net sales of US$480–510 million. The first commercial launch in Europe is targeted for Q4 2026, following a positive opinion from the European Medicines Agency.

Neuren will also focus on progressing its NNZ-2591 clinical programs, with key FDA meetings scheduled and trial sites ramping up for rare neurodevelopmental disorders. Management aims to leverage these investments into further royalty income and milestone payments.

Neuren Pharmaceuticals share price snapshot

The Neuren Pharmaceuticals share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of over 25%.

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The post Neuren Pharmaceuticals reports lower profit but launches first 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 COG Financial Services Ltd (ASX: COG) share price is in focus after reporting a 28% lift in EBITDA attributable to shareholders to $51.5 million for FY26, with earnings per share up 27% and a higher final dividend declared.

What did COG Financial Services report?

• EBITDA to shareholders of $51.5 million, up 28% on FY25
• Earnings per share (EPSA) of 15.63 cents, up 27% year on year
• Fully franked final dividend of 3.5 cents per share, up 17%
• Net Assets Financed lifted 8% to $9.0 billion
• Salary packaging customer numbers surged 31% to 68,510
• Novated lease customers up 98% to 22,281

What else do investors need to know?

COG made strategic moves in FY26, acquiring 100% of Easifleet Pty Ltd and lifting its stake in Fleet Network Pty Ltd through subsidiaries. These investments have supported strong customer growth, particularly across the salary packaging and novated leasing lines, with demand bolstered by government electric vehicle incentives.

The Group’s Broking & Aggregation business remained stable, and management noted continued focus on investing in digital platforms to enhance customer experience. COG also maintained its dividend reinvestment plan suspension for the final dividend.

What did COG Financial Services management say?

Chief Executive Officer Andrew Bennett said:

COG’s underlying EBITDA to shareholders grew 28% on the prior year, driven by strong organic growth and disciplined acquisitions. Salary Packaging led the way with 51% revenue growth, thanks to volume gains and a recent acquisition, while the rest of the Group performed solidly despite continued investment in people and systems. These results show the strength of our diversified business and our disciplined approach to growth.

What’s next for COG Financial Services?

Looking ahead, COG targets EBITDA growth of 10% or better in FY27, banking on continued strong results in salary packaging as electric vehicle adoption rises. Management is also backing technology and AI investments to further streamline operations and grow the business.

COG aims to expand its Broking & Aggregation services, reduce client churn, and pursue bolt-on acquisitions if the right opportunities arise. The company also expects further geographic expansion from its Equity-One unit.

COG Financial Services share price snapshot

Over the past 12 months, COG Financial Services shares have declined 18%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post COG Financial Services lifts profit 28% and grows dividend for FY26 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.

There are many ASX dividend shares on the market that pay investors a consistent, reliable passive income.

The majority of them distribute cash to their shareholders every 6 or 12 months. But did you know there are a handful of shares that pay out much more frequently?

Here are three of my favourite ASX shares that pay dividends every month.

BetaShares Dividend Harvester Active ETF (ASX: HVST) 

HVST is an ASX-listed exchange-traded fund (ETF) that provides investors with exposure to a portfolio of up to 60 dividend-paying shares. It doesn’t track an index; instead, it targets exposure to high-dividend stocks drawn from the 100 largest ASX-listed companies.

Its portfolio is mostly weighted into the financial sector, which accounts for 26.9% of its allocation at the time of writing. The materials sector is second, accounting for 10.1% of its allocation.

And the fund is structured so that it can own a share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next passive income-generating shares.

HVST pays its shareholders a franked dividend income every single month.  As of the 31st of July, its 12-month gross distribution (dividend) yield is 7.1%, and the net yield is 5.6%. The franking level is 63.3%. The fund’s annual management fee and costs are 0.72%.

The fund paid out $0.06 per share to investors earlier this month. In fact, the fund has paid around $0.06 per share each month since January 2024.

At the time of writing, HVST shares are up around 1% year to date and trading at $13.65 per share.

Metrics Income Opportunities Trust (ASX: MOT)

The MOT is a listed investment trust  (LIT) with a portfolio of private credit and related opportunities. Its portfolio can give investors direct exposure to private credit investments, which have become an increasingly popular asset class.

The Trust said its investment objective is to provide monthly cash income, preserve investor capital, and manage investment risks. It also seeks to provide upside potential through investments in private credit and other assets. These “other assets” include warrants, options, preference shares, and equity.

The Trust targets a cash yield of 7% per year, paid monthly. It has a total target return of 8% to 10% per year, net of fees and expenses. 

The Trust also has a distribution reinvestment plan (DRP), which allows its shareholders to reinvest their monthly income distributions.

The ASX dividend share’s most recent payout to shareholders was an unfranked 1.11-cent dividend paid earlier this month. The Trust paid out 2.62 cents in July, 1.16 cents in June, and 1.22 cents in April. This translates to a dividend yield of around 9.5%, at the time of writing.

At the time of writing, MOT shares are down around 14% year to date and trading at $1.62 per share.

Plato Income Maximiser Ltd (ASX: PL8)

Plato is another LIC, but one that specifically targets income-focused investors, such as retirees and SMSF investors, who need a dependable income stream. 

The ASX dividend stock holds a portfolio of mature ASX-listed equities, cash, and listed futures. It mostly focuses on Australian companies with strong dividend payouts, such as major banks, mining giants, and energy firms. 

Its goal is to generate a high, franked income stream for investors and to consistently deliver above-market dividends and total returns, including franking credits. 

Plato has consistently paid fully-franked dividends of 0.55 cents per share every month since April 2022. That equates to an annual running total of 6.6 cents per share in fully-franked passive income, yielding around 4.6%.

At the time of writing, Plato shares are trading at $1.40 each, down around 4% for the year to date.

The post 3 ASX dividend shares that pay their investors every single month 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 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is in focus today after the company reported FY26 results highlighted by revenue down 11.2% to $2,046.1 million and a statutory net loss after tax of $134.2 million.

What did Domino’s Pizza Enterprises report?

• Revenue: $2,046.1 million, down 11.2% year on year
• Statutory NPAT: Loss of $134.2 million (impacted by significant non-cash items)
• Underlying NPAT: $121.6 million, up 4.0%
• EBITDA: $325.4 million (underlying, down 6.1%)
• Final dividend: 32.5 cents per share, unfranked (total FY26 dividend 57.5 cents, down 25.3%)
• Net tangible assets per share: $(5.04) (FY25: $(6.41))

What else do investors need to know?

Domino’s statutory loss included $255.7 million in non-cash write-downs and impairments, mainly for its France and Taiwan businesses, along with technology assets and some underperforming corporate stores. Underlying profit increased, reflecting efforts to boost franchisee profitability, cut costs, and reset pricing strategies.

Same store sales fell 4.1% globally, with Australia and New Zealand down 4.7%, Europe down 2.2%, and Asia down 6.7%. The company will close up to 60 stores across regions to sharpen the network’s overall health, with anticipated $11 million in annual EBIT benefit. Meanwhile, franchisee profitability improved, and net leverage improved to 1.86x following cost reductions and reduced net debt.

What’s next for Domino’s Pizza Enterprises?

The company is aiming to return to profitable growth in FY27 after a period of resetting its store network and business model. Building on positive trials in Western Australia, Domino’s plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting.

Domino’s remains committed to improving operational efficiency and supply chain resilience, preparing to meet ongoing consumer and regulatory changes. New CEO Andrew Gregory has taken the reins, signalling a focus on both network expansion and disciplined execution.

Domino’s Pizza Enterprises share price snapshot

The Domino’s share price has modestly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 4%.

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The post Domino’s Pizza Enterprises posts FY26 loss but boosts franchise profitability appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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.

Australia’s property market has spent years making homeowners feel wealthier. Now, that powerful tailwind may be starting to reverse.

National home values fell 0.7% in July, according to Cotality, marking the sharpest monthly decline since December 2022. Sydney and Melbourne led the falls, but the downturn also spread to Brisbane and Adelaide.

More importantly for retailers, values across the most expensive quarter of the housing market dropped 3.2% over the three months to July.

That could have consequences well beyond the property sector.

How the wealth effect works

The wealth effect describes the tendency for households to spend more when their assets rise in value.

Homeowners do not need to sell their property or withdraw equity to feel richer. A rising valuation can provide the psychological permission to upgrade the television, replace the lounge, renovate the kitchen, or book an overseas holiday.

Research from the Reserve Bank of Australia found a positive and persistent relationship between household wealth and consumption. The effect was strongest across motor vehicles, durable goods, and other discretionary purchases.

The RBA estimated that a permanent 1% increase in housing wealth lifted the long-term level of consumption by around 0.16%.

However, the relationship can work in reverse.

Falling property prices do not necessarily create an immediate financial problem for homeowners. But they can weaken confidence and encourage households to defer purchases that are not essential.

That puts furniture, electronics, appliances, and other big-ticket categories near the front line.

Two quality ASX retailers under pressure

That backdrop helps explain the recent weakness in two long-term retail winners.

JB Hi-Fi Ltd (ASX: JBH) suffered its worst single-session decline on record earlier this month. The JB Hi-Fi share price crashed 12.3%, despite the company reporting record FY26 sales of over $11 billion and a 6% increase in statutory net profit to $489.9 million.

The concern was not the year just completed. It was the direction of current trading.

Comparable sales at JB Hi-Fi Australia declined 0.8% during the fourth quarter before falling another 1.4% in July. Comparable sales also declined at The Good Guys.

Management noted that customers were increasingly seeking value and concentrating their spending around major promotional events. That could place pressure on margins if deeper discounting is required to maintain sales volumes.

Furniture retailer Nick Scali Ltd (ASX: NCK) is exposed to a similar dynamic. The Nick Scali share price is down more than 35% over the past 12 months, at the time of writing.

Yet its FY26 results hardly resembled a business in distress. Group revenue increased 4.3% to $516.7 million, while net profit after tax rose 22% to $75.7 million on an underlying comparison.

The warning was again in the outlook. Written sales orders across Australia and New Zealand were flat during the first five weeks of FY27, following softer trading during the second half.

What should investors watch?

A weaker housing market does not automatically make JB Hi-Fi or Nick Scali poor businesses.

Both companies have strong brands, experienced management teams, healthy balance sheets, and long records of rewarding shareholders. Quality retailers can also use difficult conditions to win market share from weaker competitors.

Australia’s strong employment market and rising household incomes could provide another important cushion. The RBA has previously found that falling wealth is less damaging to consumption if jobs and income growth remain firm.

Still, investors may want to watch comparable sales, store traffic, inventory levels, gross margins, and the depth of promotional activity over the coming months.

The wealth effect helped support discretionary spending while Australian property prices climbed. If that effect is now reversing, retailers selling the purchases that households can postpone may feel the pressure first.

For long-term investors, the key question is whether recent share price declines reflect temporary weakness in the consumer cycle or something more permanent in the underlying businesses.

The post Are falling house prices hurting ASX retail shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Worley Ltd (ASX: WOR) share price is in focus today after the engineering services company reported a statutory NPATA of $306 million for FY26, with aggregated revenue largely unchanged at $12.0 billion.

What did Worley report?

• Aggregated revenue of $12,023 million, stable on the prior corresponding period
• Underlying EBITA fell 10.8% to $734 million
• Underlying NPATA down 16.8% to $395 million; statutory NPATA down 35.6% to $306 million
• Final unfranked dividend of 25 cents per share declared
• $500 million share buyback completed; additional $24 million spent on new buyback
• Bookings rose 23% to $15.5 billion; backlog increased 9% to $13.8 billion

What else do investors need to know?

Worley’s FY26 underlying earnings were impacted by ongoing conflict in the Middle East and foreign currency movements, as well as $120 million in transformation and restructuring costs. Revenue growth remained strongest in the Americas, while challenges in Europe and the Middle East held back some regions.

The group continues to deliver cost savings, achieving $132 million in cost-out initiatives, which surpassed their target. Strong project wins were recorded across energy, resources, and key growth areas such as energy transition materials. Sole-sourced wins made up 44% of bookings, reflecting customer confidence in Worley’s capabilities.

What did Worley management say?

Commenting on the results, Worley’s CEO, Chris Ashton, said:

While activity levels remained strong in some parts of the business, particularly in the Americas; the Middle East conflict, and softer market conditions have affected growth in other regions. Notwithstanding this, solid demand drivers in the markets where we operate, together with our growing pipeline, strong customer relationships and disciplined focus on delivery, continue to underpin growth and we expect mid to high single-digit growth in both aggregated revenue and underlying EBITA in FY27.

What’s next for Worley?

Looking ahead, Worley is optimistic about continuing growth, with management guiding for mid to high single-digit increases in both aggregated revenue and underlying EBITA in FY27. The company expects stronger activity in the second half, especially as delayed Middle East projects progress.

Worley is focused on expanding project delivery capability, investing in AI and digital platforms, and targeting high-growth sectors including integrated gas and energy transition materials. Strategic partnerships and further investment are planned to build scale in markets such as power, data centres and critical infrastructure.

Worley share price snapshot

The Worley share price has underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 12%.

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The post Worley FY26 earnings: profit down, pipeline up 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 DroneShield Ltd (ASX: DRO) share price is in focus after the company posted record interim revenue of $125.8 million, up 74% on the prior corresponding period, though it reported a statutory after-tax loss of $32.2 million.

What did DroneShield report?

• Revenue jumped 74% to $125.8 million (1H 2025: $72.3 million).
• Recurring revenue increased 229% to $11.5 million (1H 2025: $3.5 million).
• Statutory net loss after tax of $32.2 million, versus a $2.1 million profit a year earlier.
• Underlying EBITDA loss of $12.4 million (1H 2025: $8.0 million profit).
• Net tangible assets per share: $0.28 (31 December 2025: $0.33).
• No interim dividend declared.

What else do investors need to know?

The interim period saw DroneShield expand both its product range and geographic footprint, with over half of its revenue coming from Europe and the UK. The company completed its new Sydney production facility and launched European operations, underpinning its growth strategy.

Higher operating costs followed increased staff numbers and strategic investments in software and next-generation hardware, contributing to the reported loss. Cash and term deposits at 30 June stood at $180 million, while inventory was built up to support upcoming product launches.

Significant governance changes occurred during the half-year, including a new CEO, Angus Bean, after Oleg Vornik’s departure, and the appointment of Hamish McLennan as Chairman.

What’s next for DroneShield?

Looking ahead, DroneShield is preparing to launch new AI-enabled hardware and software solutions, aiming to grow its subscription and recurring revenue streams. The company is focused on production scale-up, ongoing research and development, and capitalising on increased demand for counter-drone solutions globally.

Management expects that strategic partnerships and regional expansion, particularly in high-demand regions like Europe and the US, will continue to play a pivotal role in future growth.

DroneShield share price snapshot

The DroneShield share price has been sold off over the past 12 months and is down 45% over the past 12 months. This compares to a modest gain by the S&P/ASX 200 index (ASX: XJO).

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The post DroneShield share price in focus as record revenue meets interim loss 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 DroneShield. 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 Koala Company Ltd (ASX: KOA) share price will be in focus after the company delivered a $24.6 million net profit for FY26, swinging strongly back to profitability, on revenue up 20.1% to $332.3 million.

What did The Koala Company report?

• Revenue rose 20.1% to $332.3 million (up 24.4% in constant currency)
• Net profit after tax (NPAT) improved from a $4.6 million loss to $24.6 million profit
• Pro forma EBITDA rose 139% to $27.9 million at an 8.4% margin, beating IPO Prospectus targets
• Group ended the year debt-free, holding $71.2 million in net cash
• Gross margin expanded to a record 65.3% (+2.9 percentage points over FY25)
• No dividends declared for FY26

What else do investors need to know?

FY26 was Koala’s first reporting period as an ASX-listed company following its March 2026 debut. The business delivered results ahead of Prospectus forecasts, driven by double-digit growth across all core geographies—Australia, Japan, and the US. Koala also entered the UK, marking its fourth market, using its capital-light global expansion model.

During the year, the company deepened its focus on product innovation, highlighted by launches such as the Torquay and Tamarama modular sofas, and upgraded best-sellers like the Koala Sofa Bed. Strong gross and contribution margin growth reflected disciplined cost control and stable marketing ratios. Koala also accelerated its supplier diversification program to strengthen supply chain resilience.

What did The Koala Company management say?

Co-Founder and CEO Dany Milham said:

We have built a repeatable model that enables us to create category-winning products, strengthen our brand equity, scale efficiently across global markets and generate the cash required to fund future growth. To our shareholders, thank you for backing us. To our customers, thank you for choosing Koala. And to our people, suppliers and partners, thank you for continuing to build alongside us.

What’s next for The Koala Company?

Koala expects to deliver further growth in sales and profits over the coming years by expanding ranges, driving innovation, and growing in both existing and new markets. Immediate priorities include strengthening its core product lineup, launching new bedroom and sitting furniture, entering Canada and priority European markets, and boosting brand equity. The company also plans to expand its physical retail footprint and deliver its first stand-alone sustainability report in FY27 in line with new climate reporting standards.

Koala remains focused on scaling its direct-to-consumer and product innovation model, aiming to further expand market share outside Australia.

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The post The Koala Company jumps to profit in FY26: Earnings highlight strong growth 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.

The ASX stock L1 Long Short Fund Ltd (ASX: LSF) is one of my favourite ideas for passive income due to its rapid growth in quarterly payouts for shareholders amid impressive investment performance.

The listed investment company (LIC) is already one of the larger players in the LIC sector, with a market capitalisation of around $3 billion, according to the ASX. I wouldn’t be surprised if it became the largest in Australia one day, given its growth trajectory.

The investment team from L1 Group Ltd (ASX: L1G) have delivered great portfolio returns which has unlocked share price growth and dividends.  

Let me explain why the LIC is such an attractive pick to unlock $500 per week of passive income.

Compelling investment process

Before I talk about the returns, it’s important to keep in mind that past performance is not a guarantee of future performance. Plus, we should judge fund managers based on long-term returns, not just an excellent single year.

The LIC’s portfolio has delivered an average net return per year of 17.9% over the last three years, 16.1% per year in the past five years and 20% per year in the prior seven years. Since the start of the L1 long-short strategy in September 2014, it has returned an average of 19.9% per year.

It invests in both ASX shares and international shares, using both long-term investing and short selling (betting that a share price could go down) strategies. By investing in different markets and stocks for both gains and declines, it has been able to match the ASX in positive months and significantly outperform during market downturns.

The LIC’s latest commentary on its portfolio highlights its process for picks, which are sometimes contrarian:

We continue to focus on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments. We believe the portfolio looks well placed at present, with the median long position trading on 10x P/E, supported by double-digit EPS growth and modest debt levels.

Great dividend payouts

Given those investment returns, the business has been steadily increasing its passive dividend income to shareholders.

The business has increased its annual payout each year since it started paying its dividend in 2021. It changed to a quarterly payment frequency last year rather than half-yearly payouts. The ASX stock’s quarterly payout has been hiked each quarter since the shift last year.

Over the next four quarters, I expect the dividend will be at least 15.8 cents per share, which currently translates into a dividend yield of 3.3% excluding franking credits and 4.75% including franking credits.

I think that’s a great starting point for the yield considering the dividend could significantly increase in the coming years.

$500 of passive income per week

The LIC doesn’t pay every single week, but we can think of the weekly goal as an annual, or annualised, goal. With $500 per week, we’re talking about an annual goal of $26,000.

With a potential 15.8 cents per share in the year ahead, it would take 164,557 L1 Long Short Fund shares to unlock the desired income goal.  

The LIC does have a diversified portfolio itself, so I wouldn’t mind investing significantly into the LIC. However, I do think it would be a good idea to own a diversified portfolio rather than put all of that money into one name, so I’d want to buy additional stocks to generate returns.

The post I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Group and L1 Long Short Fund. 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 Tabcorp Holdings Ltd (ASX: TAH) share price is in focus today after the company delivered FY26 results showing revenue rose 0.8% to $2,636.3 million and group EBITDA climbed 10.3% to $431.7 million.

What did Tabcorp report?

• Group revenue: $2,636.3 million, up 0.8% on FY25
• Group EBITDA: $431.7 million, up 10.3% on FY25
• Net profit after tax (before significant items): $71.1 million, up 43.6% on FY25
• Final dividend: 1.5 cents per share, unfranked; full year dividend: 3.0 cents, up 50%
• Net debt at 30 June 2026: $533 million; leverage reduced to 1.2x EBITDA
• Wagering & Media EBITDA: $361.8 million, up 9.9%; Integrity Services EBITDA: $69.9 million, up 12.0%

What else do investors need to know?

Tabcorp highlighted a strong focus on executing its transformation strategy, including cost discipline and a differentiated wagering product. The retail commercial model was updated, new betting terminals rolled out, and TAB LIVE in-play launched in pubs and clubs across approved states.

After the reporting period, Tabcorp announced an agreement to acquire BetMakers Technology Group, aiming to modernise its wagering technology and expand global B2B operations. This acquisition is expected to support further growth and efficiency once completed.

The company also extended and diversified its funding, issuing $300 million in notes and lengthening loan maturities. Liquidity stood at $1,161 million at 30 June 2026, and the company declared a 3.0 cent full-year dividend with a 58% payout ratio.

What did Tabcorp management say?

Gillon McLachlan, Managing Director & Chief Executive Officer, said:

Midway through our turnaround journey, we’re executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth. The first two stages of our transformation were to get fit and operationalise our game plan. We’ve done that and we’re ready to enter the growth phase of our transformation. Our proposed acquisition of BetMakers will accelerate our strategy, allowing us to release products faster and more cheaply while using BetMakers’ complementary global assets to grow our international revenue opportunities.

What’s next for Tabcorp?

Tabcorp expects domestic wagering turnover growth in FY27 to be broadly consistent with FY26, with further benefits anticipated from the Next-Gen terminal rollout and commercial model changes. Ongoing cost control and continued investment in strategic initiatives remain priorities.

Completion of the BetMakers acquisition, expected in the third quarter of FY27 and subject to regulatory conditions, is set to further modernise Tabcorp’s operations and create new global growth opportunities. The company’s strong balance sheet is expected to support its strategic goals.

Tabcorp share price snapshot

The Tabcorp share price has outperformed the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a strong gain of around 27%.

View Original Announcement

The post Tabcorp lifts FY26 profit, unveils new tech acquisition appeared first on The Motley Fool Australia.

More reading

• Tabcorp to acquire BetMakers in $267 million growth-focused deal
• Here are the top 10 ASX 200 shares 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. 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.