Category: Stock Market

The share price of this ASX tech stock has taken a notable hit in recent weeks. In the last month, Megaport Ltd (ASX: MP1) has lost 27% of its value, with a 10.5% decline in the last 5 trading days alone.

The recent tumble is erasing a significant portion of Megaport’s strong 2025 rally, although the ASX tech stock is still up 74% this year.

It’s a stark contrast with the performance of ASX 200 tech shares in general. By comparison, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 20% in the past 12 months.

Streamlining cloud connectivity

Regardless of the current volatility, the ASX tech stock remains one of the stand-out tech companies this year. Megaport is a network-as-a-service solutions provider that streamlines cloud connectivity for businesses.

Rather than investing in costly physical infrastructure or committing to lengthy telecommunications contracts, organisations can use Megaport’s software to establish private, secure data connections within minutes.

Sticky revenue

Megaport’s platform allows customers to connect to around 860 data centres worldwide. In the first half of FY25 alone, the ASX tech stock added another 82 data centres and four new internet exchange locations. This approach offers greater cost efficiency, speed, and flexibility compared to conventional networking methods.

The ASX 200 tech stock has been experiencing swift growth. Its customer base is increasing quickly, and it is broadening its presence around the world. This has helped Megaport underpin a strong annual recurring revenue (ARR) growth. For example, in FY25, it reported a 20% increase in ARR to $243.8 million. 

Fresh scrutiny over acquisition

Despite a solid underlying business, the ASX stock price has been under pressure in recent weeks. At the centre of recent volatility is the acquisition of Latitude.sh.

When it announced the takeover, the ASX 200 stock highlighted that Latitude.sh enables the company to extend its offering beyond network connectivity. It would be capable of marrying high-performance computing with Megaport’s existing global private networking.  

That pitch clearly excited investors at the time. Now, it seems that negative sentiment dominates and puts pressure on the price of the ASX tech stock. Investors don’t seem to be happy that the acquisition was largely financed by a capital raise.

Megaport completed a fully underwritten $200 million institutional placement issuing roughly 14 million new shares. For many shareholders, that dilution paired with uncertainty over integration and execution has created unease, contributing to the recent sell-off.

What do analysts think?

While the long-term potential remains attractive, there are also concerns about Megaport’s near-term growth outlook. Its FY26 guidance appears to have disappointed investors.

Analysts are divided, and some remain wary of the integration risk of Latitude.sh. They’re also uncertain whether Megaport can deliver on its ambitious growth and margin targets.  

However, most brokers still view the booming ASX tech stock as a hold or buy. They also see a 22% upside with an average target price of $16.55 over the next 12 months.

The post Why has this booming ASX tech stock dropped 27% in the last month? appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares fight back after 10 weeks of decline
• The unstoppable ASX stocks powering the AI revolution
• The next wave of ASX tech winners to buy before 2026
• Why this high-flying ASX tech stock is surging again
• Bear market alert: ASX 200 tech shares down 24% since September peak

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 Megaport. 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.

After a strong run in recent years, several blue-chip names that Australians rely on for income, including Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL), have eased back from their highs. 

For many, it’s a reminder that even high-quality companies occasionally reset to more rational price levels.

For dividend investors, that can open a window. Not necessarily because yields shoot higher overnight, but because the next phase of long-term income growth often begins with buying quality businesses when expectations cool.

Why falling share prices can improve dividend prospects

When a share price pulls back, two things happen.

First, the starting yield often inches higher. We saw the reverse effect earlier this year, when Commonwealth Bank’s yield fell as the share price ran to all-time highs. Second — and more importantly — a valuation reset can give investors a better chance of achieving a margin of safety. 

Paying less for the same earnings power is one of the quiet levers behind a sustainable income strategy.

Contrast that with extremely high trailing yields often found in some mining, resources or energy companies. These yields can look enticing, yet they are backward-looking and typically reflect short-term conditions — such as elevated commodity prices — rather than what investors might reasonably expect going forward. Because profits in these sectors can swing sharply from year to year, the dividends that flow from them tend to fluctuate just as much.

That’s why dividend investing is rarely about what a company paid last year. It’s about what it can sustain.

Focus on earnings strength, not yield-chasing

A strong yield is only as durable as the cash flows behind it. The true foundations of long-term income are:

1. Competitive advantages that protect margins

Industries with high switching costs, intellectual property, network effects or essential infrastructure tend to exhibit more predictable earnings. That can translate into more stable dividends over time.

Healthcare leaders, global logistics operators, defensive consumer businesses and financial services with strong moats often fall into this category.

2. Earnings that grow steadily across cycles

Dividend growth follows earnings growth. Investors often underestimate how powerful a steady increase in earnings per share can be over a decade or more.

Some of the strongest long-term dividend stories — both in Australia and globally — were not the highest-yielding companies at the start. They were the ones whose earnings expanded consistently. This mirrors the principle used in passive-income strategies: build the engine first, then let the income flow later.

3. Valuations that aren’t “priced for perfection”

Even an outstanding business can become a poor investment if bought at too high a price. As seen with Commonwealth Bank earlier this year, stretched valuations reduce future return potential and compress yields. A pullback improves the equation.

Buying quality at a reasonable price has always been at the heart of long-term dividend investing.

What might dividend investors look for now?

For dividend investors, the recent pullback across parts of the ASX is less a warning sign and more a chance to reassess quality. 

When long-established franchises with strong track records of compounding earnings reset to more reasonable valuations, the long-term yield on cost often becomes far more compelling than whatever headline yield appears today. The goal isn’t to chase the biggest number — it’s to position yourself in front of dependable earnings power.

That starts with businesses that generate reliable, recurring cash flow. Sustained dividends tend to come from service-based models, essential infrastructure, global operators and companies with diversified revenue streams that can absorb market shocks. 

Moderate but consistent dividend growth can outpace high but unstable yields over a decade. Balancing your income across sectors such as banks, healthcare, consumer staples and infrastructure can further smooth the ride.

The broader takeaway is simple: a reset is an opportunity to upgrade quality, not stretch for yield. Favour robust companies with durable advantages, steady earnings growth and reasonable valuations. Do this consistently and income tends to take care of itself.

Alternatively, investors who prefer a more hands-off approach can also use income-focused ETFs, such as the Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM), to gain diversification and remove the active stock-selection component from their process.

Strong dividend investing has always been simple, not dramatic.

The post Dividend investing opportunities emerging as quality ASX stocks reset appeared first on The Motley Fool Australia.

More reading

• Why CSL shares now look ‘massively oversold’
• Own CBA shares? Here are the dividend dates for 2026
• ASX bank stocks: Buy, sell, or hold?
• Down 8% and 11% in November – Is this the start of a long slide for NAB and CBA shares?
• 4 ASX shares I’d buy today with $10,000

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

Do you have room for some new additions to your income portfolio in December?

If you do, then it could be worth considering the two ASX dividend stocks in this article that brokers rate as buys. Here’s what they are recommending as buys:

Flight Centre Travel Group Ltd (ASX: FLT)

Analysts at Morgans think that Flight Centre could be an ASX dividend stock to buy in December.

The broker believes that it is worth holding the travel agent’s shares through the current period because when the tide turns, its earnings growth is expected to accelerate. Morgans believes this could put a rocket under its share price. It said:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

With respect to income, Morgans is forecasting fully franked dividends of 51 cents per share in FY 2026 and then 58 cents per share in FY 2027. Based on the current Flight Centre share price of $13.76, this would mean dividend yields of 3.7% and 4.2%, respectively.

The broker currently has a buy rating and $15.65 price target on its shares.

Rural Funds Group (ASX: RFF)

Over at Bell Potter, its analysts think that Rural Funds could be an ASX dividend stock to buy this month.

Rural Funds is an Australian agricultural property company with a total of 63 assets across five sectors

At the last count, it boasted a weighted average lease expiry of 13.9 years, which gives it significant visibility on its future earnings and distributions.

Despite this, Bell Potter notes that its shares are trading at a significant discount to net asset value. It said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

Bell Potter believes the company is positioned to pay dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.97, this would mean dividend yields of almost 6% for both years.

The broker has a buy rating and $2.45 price target on its shares.

The post Analysts expect 4% to 6% dividend yields from these ASX stocks appeared first on The Motley Fool Australia.

More reading

• Forget savings accounts, these ASX dividend stocks pay more
• I’d buy this ASX dividend stock in any market
• These ASX 200 shares rocketed 10%+ higher in November
• These are the 10 most shorted ASX shares
• 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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pilbara Minerals Ltd (ASX: PLS) shares are trading in the red on Thursday afternoon. At the time of writing the lithium producer’s share price is down 4.5% to $3.72 a piece. It’s not done much to dent the surging stock’s latest price rally though. Over the past month the shares have jumped 20.62%. They’re now an impressive 209.17% higher than just 6 months ago.

What’s happened to the Pilbara Minerals share price?

Pilbara Minerals shares have been on the rise since June, and they’ve been climbing pretty steadily too. Improved lithium market sentiment and demand has primarily been driven by a surge in interest in electric vehicles (EV) and battery energy storage. Global EV sales have been rising faster than carmakers can keep up! And demand for grid-scale energy storage to stabilise renewable energy is also booming.

It’s not just the lithium demand and strong prices pushing the producer’s share price higher though. Its business has also strengthened substantially over the past year, positioning the company as a major producer in the market. 

In its September quarter update, Pilbara Minerals posted a 2% increase in spodumene production and a 20% increase in realised pricing. This resulted in an exceptional 30% rise in revenue to $251 million.

Pilbara Minerals is also the 100% owner-operator of relatively low-cost, long-life spodumene mines. The company has a strong net cash balance sheet, which gives it more flexibility and a competitive edge over some of its peers.

Is there any more upside ahead?

The rally for lithium demand has exploded this year, and while there are concerns that some lithium producer’s shares have now peaked, I don’t think this is the case for Pilbara Minerals.

The stock has made headlines recently for being one of the most-traded shares last week, albeit the majority was selling activity. This also supports claims it is also one of the 10 most-shorted shares on the ASX.

Data shows that analysts are divided on the stock, with most having hold or buy ratings on the stock. Out of 20 analysts, 9 have a hold rating and 6 have a strong buy rating on Pilbara Minerals shares. The average target price is $3.11, however some think the share price could rise as high as $4.40 over the next 12 months. At the time of writing that represents anything from a potential 16.41% downside to an 18.28% upside. 

The post Up over 200% in 6 months: Are Pilbara Minerals shares still a buy? appeared first on The Motley Fool Australia.

More reading

• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• 5 most-traded Australian shares last week
• The 4 best ASX 200 stocks to buy and hold in November revealed
• These ASX 200 shares rocketed 10%+ higher in November
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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 Fletcher Building Ltd (ASX: FBU) share price is on the radar today after the company announced further steps to simplify its funding structure, including fully repaying all US Private Placement notes and securing new debt facilities to strengthen its liquidity.

What did Fletcher Building report?

• Prepaid all outstanding US Private Placement (USPP) notes on 10 November 2025, simplifying its funding mix
• Terminated associated cross-currency swaps and made a make-whole payment, totalling $7.2 million in cash costs
• Established a new two-year $200 million club facility on 10 September 2025
• Extended Tranche C ($325 million) of its Syndicated Facility Agreement by four years
• Extended Senior Interest Cover covenant at 2.25x to 31 December 2026; dividend restrictions remain in place until covenant lifted

What else do investors need to know?

Fletcher Building has deferred its next material debt maturity until FY28, giving it more breathing room to manage market uncertainty and operational priorities. The group continues to restrict dividend payments until it meets its standard covenant requirements, prioritising a conservative approach to capital management.

Banking partners have affirmed their ongoing support as the company works through its strategic reset, with covenant levels carefully managed to provide added balance sheet resilience while debt remains above guidance.

What did Fletcher Building management say?

Andrew Reding, Managing Director and CEO said:

These steps represent another milestone in strengthening our financial foundations. Simplifying our funding structure and extending key facilities gives us greater flexibility, lowers our ongoing cost of capital, and supports the disciplined execution of our strategic reset. We remain committed to reducing leverage and ensuring the business is well positioned to navigate current market conditions and return to sustainable, long-term performance.

What’s next for Fletcher Building?

Looking ahead, Fletcher Building’s focus remains on reducing leverage and maintaining investment-grade credit metrics. Management aims to further simplify funding arrangements and prioritise balance sheet flexibility, supporting the company as it navigates tough market conditions.

The board believes these funding and covenant changes will help safeguard operations and place Fletcher Building on a more resilient footing for a return to long-term, sustainable growth. Investors can expect capital management discipline to remain central to company strategy until balance sheet targets are comfortably met.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post Fletcher Building updates funding: repays USPP, extends bank facilities appeared first on The Motley Fool Australia.

More reading

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• BWP Group announces December 2025 half-year dividend: distribution details and DRP

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.

Thankfully for income investors, there are a lot of options out there for them to choose from on the Australian share market.

But which ASX dividend shares could be buys for investors with $5,000 to put into the market? Let’s take a look at three that analysts are recommending to clients this month:

Cedar Woods Properties Limited (ASX: CWP)

Cedar Woods could be an ASX dividend share to buy according to Bell Potter.

It is one of Australia’s leading property companies with a portfolio that is diversified by geography, price point, and product type. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in vibrant inner-city neighbourhoods.

Bell Potter notes that this leaves Cedar Woods well-positioned to be a big winner from Australia’s chronic housing shortage.

The broker expects this to underpin dividends per share of 34 cents in FY 2026 and then 38 cents in FY 2027. Based on its current share price of $7.69, this equates to 4.4% and 4.9% dividend yields, respectively.

The broker has a buy rating and $9.70 price target on its shares.

Harvey Norman Holdings (ASX: HVN)

Another ASX dividend share that brokers are positive on is Harvey Norman.

This retail giant is a household name in furniture, electronics, and appliances. It also has one of the largest retail property portfolios in Australia, which provides both stability and an additional layer of asset backing for shareholders.

Bell Potter is positive on the retailer and expects fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.24, this would mean dividend yields of 4.25% and 4.9%, respectively.

Its analysts have a buy rating and $8.30 price target on the company’s shares.

Transurban Group (ASX: TCL)

Transurban is a third ASX dividend share that could be a good option for the $5,000 investment.

It is a toll road giant that operates a network of roads across Australia and North America. This includes CityLink in Melbourne, the Eastern Distributor in Sydney, and AirportlinkM7 in Brisbane.

This portfolio of roads has been experiencing growing traffic volumes over the years and this looks set to continue thanks to urbanisation and population growth. And with its pricing linked to inflation, Transurban is well-placed to steadily grow distributions over the long term.

Citi is forecasting dividends per share of 69.5 cents in FY 2026 and then 73.7 cents in FY 2027. Based on its current share price of $15.10, this equates to dividend yields of 4.6% and 4.9%, respectively.

Citi currently has a buy rating and $16.10 price target on the ASX dividend stock.

The post 3 ASX dividend shares to buy with $5,000 appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX dividend shares to buy in December
• 5 things to watch on the ASX 200 on Thursday
• 3 top consumer discretionary shares from Bell Potter
• Transurban announces 34c interim distribution and reaffirms FY26 guidance
• Does Macquarie rate Harvey Norman shares a buy, hold or sell?

Citigroup is an advertising partner of Motley Fool Money. 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of well-established, index tracking ASX ETFs. 

In Australia, funds like Vanguard Australian Shares Index ETF (ASX: VAS) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) track the biggest companies domestically. 

Additionally, there are similar funds to track US blue-chips.

However, there have been plenty of new funds hitting the market this year as providers try to focus on niche sectors and themes.

At the end of October, Betashares dropped its newest fund. 

The fund is the FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL). 

ASX ETF overview 

According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that provides exposure to infrastructure companies from developed countries, hedged into Australian dollars.

It is currently made up of 135 holdings. 

The provider said 50% of the portfolio is invested in utilities, 30% in transportation companies and 20% in infrastructure REITs, energy pipelines and telecommunications.

Infrastructure companies provide capital-intensive essential services that tend to be in consistent demand across the economic cycle. As a result, they typically enjoy strong market positions and pricing power, making them a useful portfolio building block. Low historical correlations with global equities mean an allocation to global infrastructure can also contribute to portfolio diversification.

According to the provider, the companies that this fund invests in tend to generate stable, long-term cash flows that are often linked to inflation. 

It aims to generate attractive quarterly income, funded by the dividends paid by the companies in the portfolio.

It has a 12 month trailing dividend yield of 3.2%.

Geographically, its largest exposure is to companies in: 

• United States (59.0%)
• Canada (10.8%)
• Australia (6.2%)
• Spain (5.7%)
• Britain (4.2%)

The fund is currency-hedged to AUD. This means the fund seeks to neutralise fluctuations in foreign currencies vs the Australian dollar. That means investors hold a “global infrastructure” exposure but with reduced foreign-exchange risk.

How has it performed?

This ASX ETF has only been listed for roughly one month so far. 

However, it is up 1.26% in that span. 

The fund may be ideal for investors wanting global infrastructure exposure without currency risk. 

It is worth mentioning there are some funds already listed on the ASX that may be directly competing with this Betashares ETF. 

For example: 

• Vanguard Global Infrastructure Index ETF (ASX: VBLD) – This fund offers exposure to infrastructure sectors, including transportation, energy and telecommunications. The ETF is exposed to the fluctuating values of foreign currencies.
• VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA) – Also gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.

The post Meet the newest ASX ETF from Betashares appeared first on The Motley Fool Australia.

More reading

• Macquarie names 3 top dividend-paying ASX 200 shares to buy today
• Top ASX shares to buy right now with $1,000
• Broker reveals ratings on 4 ASX 200 sector leaders
• 5 things to watch on the ASX 200 on Friday
• The best stocks to invest $1,000 in right now

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.

With 2026 fast approaching, now’s a great time to think about buying a few S&P/ASX 200 Index (ASX: XJO) shares that look well-placed to outperform in the new year. With a particular eye out for companies that also pay dividends.

With that in mind, we look at three such large-cap passive income shares Macquarie Group Ltd (ASX: MQG) expects should deliver gains of 7% to 12% atop their attractive dividend yields.

Two agribusiness ASX 200 shares to buy today

First up, we have agribusiness Elders Ltd (ASX: ELD).

Elders shares closed on Thursday trading for $7.33 each. That sees the Elders share price up 2% in 2025. The ASX 200 share also trades on a partly franked 4.9% dividend yield.

Looking to the year ahead, Macquarie has an outperform rating on Elders shares.

According to the broker:

Optimism from the company re FY26 outlook evident at recent result with first 6 weeks of trading +30% vs pcp (pre Delta, EBIT basis) on improvement in seasonal conditions. Delta adds c$40m of EBIT on our forecasts and underpins our expectation for EBIT growth of 49% next 12 months.

15% return on capital target in focus with benefit from streamlined NWC, less bolt-on M&A activity and as come to end of SysMod transformation programme. Medium-term, we think ELD offers good earnings growth potential with cyclical rebound, Delta synergies (conservative) and further organic growth.

Macquarie has a price target of $8.25 on Elders shares. That represents a potential upside of more than 12% from current levels, not including dividends.

Which brings us to the second ASX 200 share to buy that Macquarie expects to outperform, rival Aussie agribusiness Graincorp Ltd (ASX: GNC).

Graincorp shares closed on Thursday trading for $8.19 each. This puts the Graincorp share price up 12% in 2025. Graincorp stock also trades on a market-beating, fully franked 5.9% dividend yield.

Macquarie noted:

GNC balance sheet/returns metrics compare well to peers. Particularly in Ag sector, a strong balance sheet affords flexibility to sustain investment requirements and capital returns even volatile cycle. GNC has demonstrated these characteristics over the past 2-3 years as grain prices and earnings have fallen from peak levels.

We expect FY26 EBITDA -1% vs pcp on fall in east coast grain vols (albeit remain near record levels) amid constrained margin environment. Recent corporate activity across broader infrastructure space a reminder of value inherent in GNC assets.

Macquarie has an $8.80 price target on Graincorp shares. That represents a potential upside of more than 7% from yesterday’s closing price, not including those upcoming dividends.

Also tipped to outperform

The third ASX 200 share you may wish to buy today in preparation for the new year is Orica Ltd (ASX: ORI).

Shares in the mining and infrastructure solutions provider – which is also the world’s largest commercial explosives manufacturer – closed on Thursday trading for $24.01.

This sees the Orica share price up a whopping 45% in 2025. Orica shares also trade on a 2.4% unfranked dividend yield.

And Macquarie expects more outperformance from Orica in the year ahead.

According to the broker:

We fct a positive earnings outlook (10% CAGR eps next 3 years) coupled with a strong bal sheet. At 17.5x FY27e, PE ORI trades at 4% PE rel discount to ASX100 vs ~4% L/T premium and a slight discount to DNL’s 18.1x (FY27 first year post-fert for DNL). Gold is ORI’s largest end market commodity (26% of rev) with exposure via explosives, cyanide and Axis (latter more exploration driven).

At FY25 result ORI lifted medterm earnings growth targets for Specialty Mining Chemicals (SMC) to high-single digit EBIT growth (mid-single digits prior) & Digital to middouble digits (low-double digits). Other focus areas inc duration of CF supply outage at Yazoo city: force majeure declared and ORI has lined up alternate supply but likely additional cost.

Commod price evolution (gold prices likely supported near term) and activity drivers across Nth Am Q&C, mining and coal sectors also in focus.

Macquarie has an outperform rating on Orica shares with a $25.95 price target. That’s more than 8% Thursday’s close. And again, it doesn’t include the upcoming 2026 dividends.

The post Macquarie names 3 top dividend-paying ASX 200 shares to buy today appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Wednesday
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• How much higher can this explosive ASX stock go?
• Ord Minnett just raised its price target on this soaring ASX 200 stock

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

November was a rough month for ASX 200 shares. 

The S&P/ASX 200 Index (ASX: XJO) fell more than 3% in that span. 

Sectors that were hit particularly hard by losses were Financials, Technology and Real Estate, which all fell between 4-11% according to Bell Potter’s Monthly Bell report. 

But when quality blue-chip stocks lose ground, it can create buying opportunities. 

It’s not uncommon for investor sentiment to fall, and spiral on itself, despite a company not having any serious flaws. 

There are a few ASX 200 stocks that I believe might fall into this bucket. 

When this happens, it’s a great time to jump in on undervalued stocks. 

With that sentiment in mind, here are three ASX 200 shares to target right now with $1,000. 

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the largest publicly listed software companies in Australia, with offices across six countries. 

It develops user-friendly enterprise software products that are deeply integrated into customers’ information technology, or IT, infrastructure.

The information technology sector fell more than 11% in the month of November. 

TechnologyOne was certainly not immune to the pain. 

Its share price is down more than 20% in the last month. 

This was despite the fact the company actually delivered another record full year result for FY 2025.

I still see this as a quality company. With its share price now below fair value, it could be an opportunity for investors to swoop in. 

Bell Potter has a price target of $33.00 on this ASX 200 stock, indicating an upside of 12.55%. 

REA Group (ASX: REA)

REA Group shares are down 9% in the last month and 20% over the last 6 months. 

When you look at the fundamentals, this company is still operationally strong. 

In its Q1 FY26 release, the company reported revenue of $429m, up 4% YoY, and EBITDA excluding associates of $254m, an increase of 5%.

I believe investors might have overreacted to the news that its competitor Domain was acquired by CoStar Group Inc (NASDAQ: CSGP) in August. 

In my opinion, REA Group still holds market dominance.

Morgans recently cut its target price. 

However the updated target of $247 still indicates more than 28% from its current share price. 

Life360 Inc (ASX: 360)

Life 360 shares are down almost 22% in the last month. 

However, its Q3 2025 results included a reported 34% year-on-year increase in revenue for the three months to US$124.5 million. 

Net profit of US$9.8 million was up more than 27% from Q3 2024.

The team at Bell Potter seems to agree it is now undervalued. The broker placed a price target of $52.50 on the company in November. 

This indicates an upside of more than 38%. 

The post Top ASX shares to buy right now with $1,000 appeared first on The Motley Fool Australia.

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• 3 high-quality ASX 200 shares now trading at multi-year discounts
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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 positions in and has recommended Life360 and Technology One. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares closed higher on Thursday, up 0.27% to 8,618.4 points.

There are 11 market sectors comprising the ASX 200.

Let’s take a look at some new ratings and 12-month price targets for four sector leaders.

ASX 200 sector leaders: Buy, hold, or sell?

Here’s what the analysts at Morgans think of these four sector leaders.

1. Woodside Energy Group Ltd (ASX: WDS)

Oil & gas giant Woodside is the largest ASX 200 energy share with a market cap of $48 billion.

The Woodside share price closed at $25.55, up 0.59% yesterday and up 2.4% in the year to date.

Morgans has a buy rating on Woodside shares with a price target of $30.50.

The broker recently commented:

Growth to 2032 with net operating cash flow guided to ~US$9bn (+6% CAGR) with a pathway to ~50% higher dividends.

Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure.

2. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the largest ASX 200 consumer discretionary share with a market cap of $93 billion.

The Wesfarmers share price closed at $82.01, up 0.35% yesterday and up 14.8% in 2025.

Morgans has a trim rating on Wesfarmers with a price target of $79.30 per share.

In a note, the broker explained:

While we continue to view WES as a core long-term portfolio holding with a diversified group of well-known retail and industrial brands, a healthy balance sheet, and an experienced leadership team with a strong track record of growth, trading on 35x FY26F PE we see the stock as overvalued in the short term.

3. Woolworths Group Ltd (ASX: WOW)

Woolworths is the largest ASX 200 consumer staples share with a market cap of $93 billion.

The Woolworths share price closed at $29.39, down 0.1% yesterday and down 3.5% in the year to date.

Morgans has a hold rating on Woolworths with a price target of $28.25.

The broker commented:

… we think the stock remains fully valued and prefer to wait for further evidence of improvement before reassessing our view.

4. Goodman Group (ASX: GMG)

Goodman Group is largest ASX 200 property share with a market cap of $60 billion.

The Goodman Group share price closed at $29.36, down 2.7% yesterday and down 18.5% in 2025.

Morgans has an accumulate rating on Goodman Group with a share price target of $36.30.

The broker says:

GMG continues to reiterate the immense data centre opportunity ahead – 5GW of potential capacity across key global gateway cities.

However, the longer time to develop these assets is seeing capital intensity increase as data centres form a larger proportion of work-in-progress (WIP).

… we attribute much of the recent share price decline to the shifting narrative around the outlook for hyperscale capex.

The post Broker reveals ratings on 4 ASX 200 sector leaders appeared first on The Motley Fool Australia.

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• The best stocks to invest $1,000 in right now
• Is Beach Energy’s 7.7% dividend yield a tempting passive income opportunity?
• 3 ASX blue-chip shares I’d buy with $3,000 right now
• Best ASX retail stock to buy right now: Wesfarmers or Woolworths?
• 4 ASX shares I’d buy today with $10,000

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