Category: Stock Market

The team at Morgans has been busy running the rule over a number of popular ASX shares in recent days.

Let’s see what the broker is saying about them and whether it thinks they are in the buy zone right now:

A2 Milk Company Ltd (ASX: A2M)

Morgans was pleased with this infant formula company’s strong start to FY 2026 and has upgraded its estimates to reflect this.

However, while it is a fan of the company, it feels that its shares are fair value at current levels and has retained its hold rating with a $9.40 price target. It said:

A2M has had a stronger than expected start to FY26 and consequently, it has upgraded its sales and NPAT guidance. We have upgraded our forecasts and forecast strong growth from FY27 onwards. While we rate the company and its management team highly, we believe that the stock is trading on fair multiples (FY27 PE of 31.5x and PEG of 1.8x). We maintain a Hold rating with a new price target of A$9.40.

Mach7 Technologies Ltd (ASX: M7T)

Morgans has responded positively to the release of this enterprise image management systems provider’s strategic transformation plans. It believes it positions the company for sustainable growth in the coming years.

As a result, the broker has retained its buy rating with a trimmed price target of 76 cents. This is almost 70% higher than where its shares trade today. It said:

M7T released its strategic transformation plans at its AGM, introducing a customer-focused operating model and the upcoming Flamingo AI platform to drive long-term growth, efficiency, and new revenue through modernised imaging solutions. Despite potential near-term revenue softness, the transformation is well-aligned with industry trends and positions M7T for sustainable growth and signals genuine innovation and a commitment to delivering what radiology customers want.

VEEM Ltd (ASX: VEE)

A third ASX share that Morgans has been looking at is marine, defence, and mining products manufacturer.

While its recent trading update was softer than expected, the broker remains positive and sees plenty of upside for investors. In light of this, it has upgraded its shares to a speculative buy rating with a $1.10 price target. This implies potential upside of 30% for investors from current levels. It commented:

VEE’s AGM update was softer than expected, primarily due to delays in receiving ASC orders and a hold-up in obtaining security clearance for the Hunter-class propeller project. Additionally, anticipation around the launch of the Mark III gyro led to purchase hesitancy among potential customers in 1H26. These delays have shifted some work to 2H26, which management expects to be stronger, driven by significant contributions from defence (particularly ASC).

While the trading update was disappointing, we believe VEE’s outlook remains positive with multiple growth opportunities across defence (eg, HII, Northrop Grumman, Hunter Class Frigate Program), propulsion (VEEM Extreme, Sharrow), and gyros (Mark III). Timing of order flow remains uncertain, which is likely to cause earnings volatility in the near term. However, the long-term earnings potential of these opportunities remains significant.

The post Morgans gives its verdict on A2 Milk and these ASX shares appeared first on The Motley Fool Australia.

More reading

• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• Why did the ASX 200 dive to a near six-month low last week?
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Does Macquarie rate a2 Milk shares a buy, hold, or sell?

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 Mach7 Technologies. The Motley Fool Australia has recommended Veem. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer discretionary shares haven’t had the best year in general as a sector. 

While sectors like materials and industrials have brought strong returns (up 10% to 20%), consumer discretionary has lagged behind. 

For context, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has risen just 4% since January. 

However, the team at Bell Potter have just initiated coverage on Beacon Lighting Group Ltd (ASX: BLX) with a buy recommendation. 

Despite the share price being down roughly 3.5% since the start of the year, and almost 20% since August, Bell Potter has an optimistic price target on this consumer discretionary stock. 

Beacon Lighting Group  

Beacon Lighting Group is a specialist retailer of lighting, fans, globes, and electrical accessories, servicing retail, trade, and wholesale customers. 

The company retails over 3,500 products, with more than 85% of those designed in-house, which is key to its vertically integrated business model and thus provides high, defensive gross margins. 

These products are primarily sold through a network of 131 retail stores across Australia, as well as through a significant online presence. 

Future growth in store

Bell Potter said in yesterday’s report that, as the largest specialist retailer in a fragmented market made up of single-store operators or large multi-category retailers, it has a unique market positioning, as designer, manufacturer, and retailer of lighting products.

The key growth category for BLX is its trade business, currently making up ~40% of group revenue as of FY25, targeting 50% by FY28, which we estimate will grow at a 3- yr CAGR of 10% from FY25-28e. Comparatively, the more mature retail business is expected to grow ~4%, driven by a stable 4-store rollout per annum.

The broker also said the trade segment has benefited from a housing boom versus the retail business stabilising due to cost-of-living pressures and less discretionary income available. 

Overall, it expects the total group to grow at a rate of ~7% per annum as it continues to take market share from single-owner operators and expands further into trade and commercial avenues.

Buy recommendation from Bell Potter

The broker has initiated coverage on this consumer discretionary stock with a price target of $3.35. 

Yesterday, Beacon Lighting Group shares closed at $2.96. 

This means Bell Potter’s price target indicates an upside of approximately 13.18%. 

The broker said it views the company’s leading market position in a fragmented market (~12% market share) and vertically integrated business model (FY25 GM ~69%) as attractive and unique characteristics for a specialty goods retailer.

We believe the business is well positioned to take advantage of a recovering retail environment, supported by a strong housing market and construction outlook.

The post Bell Potter just initiated coverage with a buy rating on this consumer discretionary stock appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX small-cap shares I’d buy with $3,000 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.

The Transurban Group (ASX: TCL) share price is in focus today after the company declared an interim distribution of 34.0 cents per stapled security for the six months ending 31 December 2025 and reaffirmed its full-year FY26 distribution guidance.

What did Transurban report?

• Interim distribution of 34.0 cents per stapled security for the half ending 31 December 2025
• Distribution to be paid on 24 February 2026
• No interim dividend from Transurban Holdings Limited or Transurban International Limited
• Distribution Reinvestment Plan (DRP) in operation, with no discount applied
• FY26 distribution guidance reaffirmed at 69.0 cps

What else do investors need to know?

The interim distribution will be paid entirely from Transurban Holding Trust and its controlled entities, with further details about tax components to be confirmed with the final distribution in August 2026. The DRP allows shareholders to reinvest their distributions at market price, with the pricing period spanning ten trading days from 7 January 2026.

Important dates include 30 December 2025 as the ex-distribution date, 31 December 2025 for record date, and 2 January 2026 as the final day to make DRP elections. The final payment and DRP allotment is scheduled for 24 February 2026.

What’s next for Transurban?

Transurban reaffirmed its commitment to a FY26 distribution of 69.0 cents per stapled security, subject to performance and economic factors. The company plans to provide more details on taxation with the final distribution statement.

Investors should keep in mind that future distributions will ultimately be determined by the Transurban Board and may be influenced by traffic trends and broader economic conditions.

Transurban share price snapshot

Over the past 12 months, Transurban shares have risen 15%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Transurban announces 34c interim distribution and reaffirms FY26 guidance appeared first on The Motley Fool Australia.

More reading

• Are Transurban shares a buy for dividend income right now?
• 3 ASX dividend machines I think will keep paying for decades
• 3 ultra-reliable ASX dividend stocks I’d buy for long-term income
• No savings at 55? Here’s how to still retire with passive income
• These top ASX dividend stocks offer 5% yields

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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. 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.

Not long ago, Ramelius Resources Ltd (ASX: RMS) wasn’t the first name investors mentioned when discussing a promising ASX gold stock. But the Perth-based miner has flipped the script.

Ramelius’ share price has soared this year, up 74% to $3.61 at the time of writing. The underperforming small speculative miner is now a $7 billion company.

Rebranded mid-tier miner

The gold mining and production business, like many of its competitors, surged on the back of record gold prices. Gold reached record highs in 2025 as lower interest rates in most major economies boosted its performance. With no yield, gold typically does well when rates fall.

However, Ramelius Resources has also quietly rebranded itself and is evolving into one of Australia’s more intriguing mid-tier gold producers. At its core, the company mines, processes, and sells gold from a range of Western Australian operations.

The main hubs are at Mt Magnet and Edna May. The ASX gold stock has grown its mineral resources every year since 2016 and continues to spend strongly on exploration, with a budget of $80 to $100 million earmarked for exploration this financial year.

Bold Spartan acquisition

But what’s really transformed the ‘ugly duckling’ story is the bold move mid-2024: the acquisition of Spartan Resources. This has given Ramelius control of the high-grade Dalgaranga gold project, including the promising Never Never and Pepper deposits.

The acquisition of Dalgaranga means access to high-grade ore, helping maintain strong profit margins. Ramelius can also integrate Dalgaranga with Mt Magnet’s current operations and facilities, creating opportunities for greater efficiency and cost savings.

Gold output doubled by 2030

The board of the ASX miner explained at the end of October that the Never Never gold project will generate $4.6 billion in free cash flow over a mine life of 11 years.

Management also laid out its roadmap to generating half a million ounces of gold per year by 2030. This would be more than double the guidance for the current financial year of roughly 200,000 ounces of gold.  

What do brokers think?

Analysts are increasingly warming up to the ASX gold stock. If Ramelius can deliver on its integration plan, its results and cash flow stay healthy, and the gold price remains supportive, brokers believe that the share price can surpass the record-high of $4.18 in October.

The majority of brokers are constructive with a buy recommendation. The average 12-month price target is $4.33, which suggests a 20% upside.

Morgans is feeling positive about the miner’s outlook, thanks partly to the $2.4 billion takeover of Spartan Resources. Analysts of the broker have put a buy rating and $4.50 price target on its shares, a potential plus of nearly 25%.

The post Why this underdog ASX gold stock is one to watch appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX 200 gold stocks like Northern Star smashing the benchmark on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Leading broker names 1 ASX 200 share to buy and 1 to hold

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

There are a lot of ASX dividend shares to choose from on the local share market.

But which ones could be buys in December? Let’s take a look at three that brokers rate as buys:

Jumbo Interactive Ltd (ASX: JIN)

Analysts at Morgan Stanley thinks that Jumbo Interactive could be an ASX dividend share to buy this month.

It is an online lottery ticket seller and lottery platform provider. It is best known for the Oz Lotteries app and the Powered by Jumbo platform.

Morgan Stanley has been pleased with its positive start to the financial year and believes it is positioned to reward shareholders with fully franked dividends of 57.7 cents per share in FY 2026 and then 68.4 cents per share in FY 2027. Based on its current share price of $10.76, this would mean dividend yields of 5.4% and 6.4%, respectively.

The broker currently has an overweight rating and $16.80 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX dividend share that analysts are tipping as a buy. As Australia’s largest telecommunications provider, it benefits from nationwide mobile demand, essential network usage, and growing data consumption.

Telstra’s fully franked dividend has been growing at a solid rate in recent years thanks to its successful T22 and T25 strategies. Looking ahead, this trend is likely to continue thanks to its new Connected Future 30 strategy which aims to double down on connectivity and radically innovate the core of its business.

Macquarie expects this to underpin fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $4.90, this would mean dividend yields of 4.1% and 4.3%, respectively.

The broker has an outperform rating and $5.04 price target on Telstra’s shares.

Woolworths Group Ltd (ASX: WOW)

Defensive earnings, stable cash flow, and a dominant market position make Woolworths a favourite among income-focused investors.

Supermarkets tend to hold up in all economic conditions because people still need groceries regardless of interest rates, inflation, or consumer sentiment. This makes Woolworths’ dividends highly dependable.

And while its performance has been disappointing this year, there are signs that it is now over the worst and ready to return to solid and sustainable growth.

Bell Potter expects the company to pay fully franked dividends of 91 cents per share in FY 2026 and then 100 cents per share in FY 2027. Based on its current share price of $29.39, this would mean dividend yields of 3.1% and 3.4%, respectively.

The broker has a buy rating and $33.00 price target on Woolworths’ shares.

The post Brokers name 3 ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

More reading

• ASX gaming stocks: Should you try your luck?
• This surging ASX energy stock is tipped to storm another 42% higher
• Up 131% in 2025, why Macquarie expects Lynas Rare Earths shares to keep outperforming in 2026
• What does Macquarie think Corporate Travel Management shares are worth?
• Macquarie tips 70% upside for this quality ASX 200 stock

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

The S&P/ASX 200 Index (ASX: XJO) fell 3% in November, but how did BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) shares stack up?

Well, while two of the ASX mining giants outperformed the benchmark’s losses, only one finished the month in the green.

That middling performance came after all three miners enjoyed a strong run into the end of October. This looks to have limited their gains in November, despite a resilient iron ore price and ongoing gains in the copper price.

Iron ore ended November at just over US$106 per tonne, while copper was trading for US$11,189 per tonne. The red metal has now gained more than 28% year to date.

As for the ASX 200 mining stocks…

Fortescue shares lead the charge

Fortescue shares were the only ones among the big three Aussie miners to gain in the month just past.

Fortescue closed out October trading for $21.29 a share and ended November at $21.41 a share. That saw the stock up 0.6% for the month, handily beating the 3% one-month loss posted by the ASX 200.

There were no new price-sensitive announcements released by the company in November.

BHP shares underperformed Fortescue shares, Rio Tinto shares, and the ASX 200 in November.

Shares in Australia’s biggest miner (and second biggest stock on the ASX) closed on 31 October trading for $43.45 apiece. When the closing bell rang on 28 November, shares were changing hands for $41.67. This saw the BHP share price down 4.1% over the month just past.

Perhaps the biggest headwind impacting BHP shares has been China’s ongoing attempt to assert more control over iron ore pricing in its deals with BHP.

In November, ASX investors learned that China’s government had told domestic steel mills and commodity traders to no longer buy ‘Jingbao fines’ (low-grade iron ore). However, analysts were quick to note that Jinbao fines only make up a small percentage of BHP’s iron ore exports to the Middle Kingdom.

November also saw BHP announce that it was abandoning recently resumed acquisition discussions with global miner Anglo American (LSE: AAL).

BHP stated:

Whilst BHP continues to believe that a combination with Anglo American would have had strong strategic merits and created significant value for all stakeholders, BHP is confident in the highly compelling potential of its own organic growth strategy.

Which brings us to Rio Tinto shares, which outperformed the ASX 200 and BHP but underperformed Fortescue shares in November.

Rio Tinto shares closed out October at $132.87 and finished November trading for $132.28 apiece, down 0.4% for the month.

There were no new price-sensitive releases out from the miner in November.

The post What happened with BHP, Rio Tinto and Fortescue shares in November? appeared first on The Motley Fool Australia.

More reading

• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• Is the BHP share price a buy for passive income?
• Invested in Fortescue shares? Here are the dividend dates for 2026
• Here’s the earnings forecast out to 2030 for BHP shares
• Analysts think BHP and these ASX dividend shares are buys this week

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I don’t have kids yet, but if and when I do, there is one thing I’m absolutely certain about. I’d want to give them the best possible financial foundation.

And for anyone thinking about building long-term wealth for children or grandchildren, a simple, low-maintenance investment strategy is often the smartest way forward.

That’s where exchange-traded funds (ETFs) come in. With just a few high-quality ETFs, you can create a globally diversified portfolio designed to compound steadily over decades.

If I were building a long-term portfolio for future kids or grandkids, these are three ASX ETFs I would consider choosing.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF offers exposure to the Nasdaq-100 Index, which is home to some of the world’s most innovative businesses. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). These are companies driving advances in artificial intelligence, cloud computing, semiconductors, and consumer technology.

The Nasdaq has a long track record of outperforming many global indices thanks to its focus on high-growth sectors. Over a 10- to 20-year period, these businesses tend to reinvest heavily, innovate quickly, and grow earnings at a far faster rate than traditional industries.

For a child or grandchild with decades ahead of them, the Betashares Nasdaq 100 ETF could be a powerful long-term compounding machine.

Betashares India Quality ETF (ASX: IIND)

India is shaping up to be one of the world’s fastest-growing major economies, driven by rapid urbanisation, favourable demographics, and rising disposable incomes.

The Betashares India Quality ETF gives Australian investors a simple way to participate in this growth by owning a basket of high-quality Indian stocks that have been screened for strong profitability and financial strength.

Some of its notable holdings include Reliance Industries (NSEI: RELIANCE), Infosys (NYSE: INFY), and Tata Consultancy Services (NSEI: TCS). These are businesses that play central roles in India’s digital transformation, infrastructure expansion, and economic development.

As India’s middle class continues to grow and consumption accelerates, the country’s long-term investment case looks compelling. This fund was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Asia is home to some of the most influential technology companies on the planet, and the Betashares Asia Technology Tigers ETF captures them in a single trade.

This popular ASX ETF invests in giants such as Tencent Holdings (SEHK: 700), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Samsung Electronics, and Alibaba Group (NYSE: BABA). These are businesses that dominate gaming, social media, e-commerce, semiconductors, and AI hardware.

The region’s tech sector is expanding rapidly as digital adoption accelerates, cloud usage grows, and AI investment soars. For a child with decades of compounding ahead, exposure to Asia’s innovation engine could be incredibly valuable.

The post The ASX ETFs I’d buy for my kids or grandkids appeared first on The Motley Fool Australia.

More reading

• How to target China’s AI rush through ASX investing
• NVIDIA stock: You won’t believe how much $10,000 invested 3 years ago is worth today
• 2 reasons to buy the BetaShares Nasdaq 100 ETF (NDQ), and 1 not to
• What are the 5 top artificial intelligence (AI) stocks to buy right now?
• Want to invest in AI? These ASX ETFs give you instant exposure

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For much of this year experts and analysts were tipping interest rates to decline throughout the year. But with RBA whispers changing in recent weeks, the team at Macquarie has released updated guidance on what ASX stocks to target should interest rates go up. 

Economists say the next cash rate movement will be higher, after worse than anticipated October inflation has all but killed off the prospect of a further rate cut.

Meanwhile, Westpac has weighed in that it expects the cash rate to hold steady at this month’s RBA meeting. 

As a refresher, the cash rate in Australia is set by the Reserve Bank of Australia (RBA) and acts as the benchmark interest rate for the economy. 

Changes in Australia’s cash rate influence ASX stocks by affecting borrowing costs, investor preferences, and economic activity, with rate hikes generally pressuring share prices (but not always). 

Macquarie said we are increasingly closer to the beginning of rate hikes. 

Hikes are a headwind for stocks, as they impact valuations today and earnings tomorrow.

What is Macquarie’s view?

The team at Macquarie said in a report released last week that with rising risk, the next move by the RBA is a hike. It reviewed asset and sector rotation ahead of past hiking cycles.

Just two weeks ago, we suggested the RBA was likely on hold, with hikes possibly starting in 2H CY26 as part of a global pivot due to stronger growth. With the latest core inflation print above the RBA’s target band of 2-3%, the risk of hikes has increased.

Macquarie said this risk is not unique to Australia, as 6 of 10 developed markets it tracks have core inflation of at least 3%. 

It reinforced that it does not see this as a stagflation scenario, as higher inflation is partly due to stronger growth and the unemployment rate is still relatively low (albeit trending up slowly).

Sectors to favour/avoid

Macquarie said late cycle sectors tend to outperform in the lead up to hikes. 

The analysis suggests favouring resources, because they benefit from stronger growth, protect against inflation, and are less hurt by valuation drops when bond yields rise. 

Small resources have performed especially well in past cycles, and basic materials, transport, banks, and financial services also tend to outperform before the first RBA rate hike.

On the flip side, the team at Macquarie said cyclicals like media, retail and discretionary often underperform in the lead up to hikes as the market starts to anticipate the best has passed. 

We prefer US consumer cyclicals given potential for more Fed cuts. REITs and Defensives also tend to underperform ahead of RBA hikes. Defensives usually perform better after hikes actually start.

ASX stocks to target

In the report, Macquarie also listed individual holdings to target in the resources sector, including:

• Rio Tinto Limited (ASX: RIO)
• Pilbara Minerals Limited (ASX: PLS)
• South32 Limited (ASX: S32)
• Northern Star Resources Limited (ASX: NST)
• Genesis Minerals Limited (ASX: GMD)
• Perseus Mining Limited (ASX: PRU)

In the financial services sector, the broker named: 

• Challenger Limited (ASX: CGF)
• Australian Finance Group Limited (ASX: AFG)
• Zip Co (ASX: ZIP). 

ASX stocks to avoid

The report from Macquarie also listed the following stocks as ones in sectors that tend to lag ahead of hikes: 

• Wesfarmers Limited (ASX: WES)
• Super Retail Group Limited (ASX: SUL)
• Premier Investments Limited (ASX: PMV)
• Bapcor Limited (ASX: BAP)
• Scentre Group (ASX: SCG)
• Treasury Wine Estates Limited (ASX: TWE)
• Suncorp Group Limited (ASX: SUN)
• Origin Energy Limited (ASX: ORG)

The post Macquarie names best and worst ASX stocks to buy in a rising interest rate environment appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 3 things about Wesfarmers stock every smart investor knows
• 70% of institutional investors expect gold price to rise in 2026
• 5 most-traded Australian shares last week
• Why AUB, Titomic, Treasury Wine, and Woodside shares are rising today

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 Super Retail Group, Treasury Wine Estates, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Super Retail Group and Treasury Wine Estates. The Motley Fool Australia has recommended Challenger, Premier Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There aren’t too many ASX stocks on our market that pay out dividends you could set your watch to. Our unique system of franking arguably incentivises companies to pay out as much of their profits as they can during any given year. Whilst this is great for our dividend-loving investors out there, it can result in ebbs and flows in shareholder income, often depending on the economic cycle.

Just go back to the COVID-ravaged years of 2020 and 2021 to see this in action with many of the ASX’s most prominent dividend payers.

But despite this, there are still a handful of ASX 200 shares that dividend investors can indeed set their watches to, or have decades-long streaks of not cutting their shareholder payouts anyway.

The Australian Foundation Investment Co Ltd (ASX: AFI) is one. AFIC is a listed investment company (LIC) that has been around for almost 100 years. Over the past three or four decades, it has built and maintained a reputation as one of the ASX’s most reliable income payers. Indeed, it has been decades since its shareholders endured a dividend cut.

Every six months, a dividend payment that has either been held steady or raised has arrived in shareholders’ bank accounts without fail. That includes during the COVID-induced ASX dividend drought, as well as the tumultuous years of the global financial crisis.

Like most LICs, AFIC owns and manages a portfolio of underlying investments on behalf of its investors. This portfolio consists mostly of blue chip ASX dividend stocks, with some international stocks thrown in.

You can set your watch to this 4.4% ASX dividend stock

Using prudent and conservative stewardship, AFIC’s management team uses the stream of income received from these ASX dividend stocks to fund its own payouts.

The result has been that remarkable decades-long streak of uncut, uninterrupted shareholder payouts.

The most recent of these payouts was the August final dividend worth 14.5 cents per share. Before that, shareholders enjoyed the interim dividend from February worth 12 cents per share. The final dividend also came with a bonus special dividend worth 5 cents per share.

These 2025 dividends give AFIC shares a trailing dividend yield of 4.44% at yesterday’s closing share price of $7.10. Now, we don’t yet know what kind of ordinary payouts AFIC will dole out over 2026. Saying that, this ASX dividend stock’s track record does bode well. However, AFIC has already told shareholders to expect two special dividends, each worth 2.5 cents per share, alongside the ordinary payments when they arrive in 2026.

You’d forgive shareholders for setting their watches for that today.

The post The 4.4% ASX dividend stock you can set your watch to appeared first on The Motley Fool Australia.

More reading

• 5 best Australian dividend stocks to buy in December
• Own AFIC shares? There’s a double special dividend coming your way
• Age Pension worries? 7 income stocks to consider for retirement
• The 2 ASX dividend shares perfect for building a retirement around

Motley Fool contributor Sebastian Bowen 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 savings account rates slipping and term deposit returns rolling over, many Australians are starting to realise that parking cash in the bank may no longer be the most rewarding option.

For income investors that are willing to take on a modest level of market risk, several ASX dividend shares currently offer yields that comfortably outpace what the banks are paying.

Here are three ideas that could deliver far better results than leaving your money in cash.

HomeCo Daily Needs REIT (ASX: HDN)

If you want steady, property-backed income, HomeCo Daily Needs REIT continues to stand out. The company owns a nationwide portfolio of essential-service retail assets, including supermarkets, pharmacies, and health clinics. These are businesses that Australians rely on regardless of economic conditions.

Its tenant list reads like a who’s who of defensive retail, with Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), and Chemist Warehouse among the largest contributors. These long-term, inflation-linked leases support a level of earnings stability that most savings accounts can only dream of.

The consensus estimate is for HomeCo Daily Needs REIT to increase its dividend to 8.7 cents per share in FY 2026. Based on its current share price, this would mean a dividend yield of 6.2%.

Rural Funds Group (ASX: RFF)

Rural Funds is a unique income play and one of the few diversified farmland REITs on the ASX. It owns agricultural assets such as cattle properties, vineyards, and cropping land, leasing them to high-quality tenants on long agreements.

Farmland has historically been a resilient asset class with low correlation to equity market volatility. This means that Rural Funds’ rental streams remain stable even through economic downturns, which helps underpin its distribution profile.

Management is guiding to a dividend of 11.73 cents per share in FY 2026. Based on its current share price, this would mean an attractive 5.7% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

For investors who prefer broad diversification, the Vanguard Australian Shares High Yield ETF is one of the simplest ways to tap into a basket of high-yielding Australian blue chips in a single trade.

The ETF holds ASX dividend shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS), all of which have long histories of paying reliable dividends.

The benefit here is instant exposure to dozens of income-producing companies, rather than relying on one or two individual stocks. In addition, the fund distributes quarterly, making it appealing for retirees or investors wanting regular cash flow.

At present, the fund trades with a trailing dividend yield of 4.2%.

The post Forget savings accounts, these ASX dividend stocks pay more appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• I’d buy this ASX dividend stock in any market
• 3 ASX ETFs perfect for retirees seeking peace of mind
• Forget term deposits and buy these ASX dividend shares
• 2 top ASX dividend shares for retirees

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group, HomeCo Daily Needs REIT, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.