Category: Stock Market

Australian energy stocks can be seen as some of the most appealing ASX defensive shares for dividend investors because of their ability to make fairly consistent profits and pay passive income.

There are a variety of types of investments in that space, including energy generators, retailers, and commodity producers.

The two businesses I’ll talk about are two of the largest energy generators and retailers in Australia: AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG).

Let’s start by looking at the passive income potential of both businesses in FY26.

Australian energy stock dividend potential

Both businesses do not trade on a high price-earnings (P/E) ratio, which means they are more likely to deliver a pleasing dividend yield for shareholders.

The projection on CMC Markets suggests both businesses are capable of delivering a high dividend yield for investors in the 2026 financial year.

Origin Energy is forecast to pay an annual dividend per share of 60 cents in FY26. This translates into a potential grossed-up dividend yield of 7.4%, including franking credits.

AGL is forecast to pay an annual dividend per share of 46 cents in FY26. That prediction equates to a possible grossed-up dividend yield of 7.3%, including franking credits.

There are not many ASX blue-chip shares forecast to pay a dividend yield of more than 7% in FY26 because of a combination of higher valuations (pushing down on yields) and the iron ore price not being particularly strong.

Why both ASX shares could be solid longer-term buys

Australia always needs energy – Origin and AGL can both produce it and sell it.

Energy demand may grow significantly in the coming years if the number of data centres in the country continues to grow. They are very energy hungry because of the growing usage of AI. More electric vehicles on the road may also lead to higher electricity demand.

I like that the Australian energy stocks are investing in renewable/storage areas like batteries and hydro because that can help them generate earnings during times when it’s most needed (and most valued), such as during evening/night hours and peak times.

Origin also has a compelling investment in a business called Octopus Energy, which is growing strongly in the northern hemisphere.

In the three months to September 2025, the Octopus Energy retail business added approximately 560,000 customers, with 230,000 in the UK and 330,000 outside of the UK. It now has 1 million customers in Germany, with 100% growth in the last 12 months.

Out of the two, I think Origin is more appealing because of its exposure to Octopus Energy, which continues to grow rapidly and could drive the value of Origin shares higher in the coming years. On the dividend side of things, their yields are very similar.

The post Dividend investors: Top Australian energy stocks to buy in December appeared first on The Motley Fool Australia.

More reading

• Macquarie reveals ASX 200 share tips in each market sector for 2026
• 1 no-brainer ASX energy stock to buy with $500 right now!
• Why DroneShield, GQG Partners, Origin Energy, and Worley shares are falling today
• How to prepare for a share market crash… before it’s too late
• 5 ASX 200 stocks I’m avoiding this week

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

Droneshield Ltd (ASX: DRO) shares closed 7.83% lower on Thursday afternoon, at $2.00 a piece. That means the stock has crashed nearly 70% since hitting an all-time peak in early October. The shares are now 166.67% higher for the year-to-date.

Recently, Droneshield shares have been under considerable pressure. From its US CEO resignation to employee share sell-offs and even an accidental ASX release, Droneshield shares have attracted a lot of not-so-positive attention. 

Sure, the 166.67% annual gain is still impressive, but I have my eye on another AI-centred defence stock which I’d buy instead.

Another ASX defence stock tipped to boom

Electro Optic Systems Holdings Ltd (ASX: EOS) is an Australian company that develops and produces advanced electro-optic technologies. The company’s products are used in space information and intelligence services, as well as in optical, microwave, and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air applications.

The group’s reportable segments are communication, defence, and space, but the company generates the highest portion of its revenue from its defence business. Like Droneshield, Electro Optic’s defence segment is involved in developing, manufacturing, and marketing advanced fire control, surveillance, and weapon systems to approved military customers. 

I believe any investor seeking exposure to the rapidly expanding market should consider Electro Optic shares as an alternative to Droneshield. As ongoing geopolitical uncertainty continues to put pressure on countries worldwide, and governments step up their spending on defence systems, Electro Optic Systems is well-positioned to snap up a good portion of the demand.

Is there any upside ahead for the defence stock?

Tradingview data shows that out of three analysts with a rating on the shares, all of them consider Electro Optic Systems a strong buy. The maximum target price for the shares is as high as $11.18 per share. This implies a potential upside as high as 149.55% over the next 12 months, at the time of writing. 

Bell Potter is slightly more conservative, with a buy rating and a $8.10 price target on Electro Optic shares. The broker stated that a potential peace deal between Ukraine and Russia could impact its share price in the near term. But it doesn’t feel a deal will affect its growth forecasts. As a result, it is urging investors to pick up Electro Optic Systems shares now. The Bell Potter team also noted that the company recently completed the acquisition of the MARSS Group’s drone interceptor business, which it said is a good move by management given recent defence trends.

The post Forget Droneshield shares, I’d buy this ASX defence stock instead appeared first on The Motley Fool Australia.

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• Why Amcor, DroneShield, Harvey Norman, and QBE shares are falling today
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Talk of an S&P 500 Index (SP: .INX) (and ASX ) stock market crash has been persistent over 2025 to date. Not that this sentiment is uncommon. Whenever markets have an uncommonly good year, as they have in both 2024 and 2025, investors start to get nervous.

To be fair, there have arguably been more reasons for investors to be fearful this year than there have been for a while. Many of them can be attributed to the erratic trade and economic policies coming out of the United States of America.

President Donald Trump has openly mused about undermining the US Federal Reserve by sacking board members, and the governor Jerome Powell, for one. Then there was the shambolic ‘Liberation Day’ tariff announcements, which caused a dramatic stock market dip until they were wound back a week or so later.

Investors have also had an uncertain interest rate and inflation environment to navigate. Interest rate sentiment has seemingly swung from ‘the next move will be down’ to ‘rates might rise’ and back again.

Amid all this uncertainty, the S&P 500 (particularly any stocks associated with the ‘AI boom’), the S&P/ASX 200 Index (ASX: XJO), gold, and Bitcoin (CRYPTO: BTC) have all hit new record highs, with plenty of bumps in between.

Over just the past month, the S&P 500 has both fallen more than 5% and rebounded by 4.2%.

No one seems quite sure what’s around the corner.

And, the truth be told, no one is. None, not Warren Buffett, Jerome Powell, Donald Trump, your neighbour Joe, or this writer, can predict what the markets will do next. The next market correction or crash is always inevitable. We just don’t know when it will occur.

All we can do is prepare.

How to prepare for an S&P 500 market crash

I think the best way to prepare for a market crash is by auditing your own investments. The whole point of investing is aligning our financial interests with companies that will be larger in the future than they are today. If you don’t believe a company is set for future prosperity, it shouldn’t be in your portfolio. If you do think a company is setting itself up for future success, it should be. Regardless of what the S&P 500, the price of gold, or any other metric is doing.

For example, I own companies that I would be comfortable, and more than happy to hold during a market crash. Names such as Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Mastercard Inc (NYSE: MA), and Procter & Gamble Inc (NYSE: PG) have strong balance sheets and fantastic, resilient business models. They will do just fine in any economic conditions. In my view, anyway. No matter what happens in the next year, I have literally put money on them being larger and more successful in the years and decades to come.

There are two things we do know about the stock market, both the S&P 500 and the ASX. The first is that it goes up far more often than it goes down. The second is that it has never failed to exceed a previous all-time high.

I think all investors would be better off if they kept those facts in mind and worried less about when the next market crash will be.

The post Is the S&P 500 set for a crash? Here’s my plan for the US stock market appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• What Australia’s shocking inflation print means for ASX 200 investors and interest rates
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Mastercard, Procter & Gamble, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Mastercard, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Bitcoin and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mastercard and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts are always on the lookout for opportunities, and there are some very exciting ASX growth shares that have been rated as a buy.

We’re going to examine two businesses that have been rated as buys by multiple analysts. While being highly rated isn’t a guarantee of strong performance, I think it could be an encouraging sign of potential.

The financial power of both ASX growth shares is expected to increase strongly in the coming years, which could lead to very good returns.

Catapult Sports Ltd (ASX: CAT)

Broker UBS describes Catapult as a sports technology company with two core segments: wearable tracking technology (performance and health) and video software analysis (tactics and coaching).

The core goals of the company are to help athletes and teams optimise performance, prevent injuries, and improve return-to-play rates.

UBS currently has a buy rating on the business, with a price target of $6.70. That suggests a potential rise of 25% over the next year.

The recent FY26 first-half result from the business showed UBS that the result was another confirmation of the broker’s positive growth-based investment thesis.

UBS noted that annualised contract value (ACV) grew by 20% year over year to US$116 million. The wearables segment was the standout, delivering its highest-ever period of new pro team logo wins (276).

The broker also noted that the ASX growth share’s operating leverage was again impressive, with an incremental margin of 56%, as the business continues to scale profitably. Revenue growth alongside operating leverage can help cash operating profit (EBITDA) grow at more than 30% per year, which could mean it reaches US$45 million of A$69 million by FY28.

UBS explained why it’s confident in its growth expectations:

We’ve undertaken an extensive analysis into 3 key areas that support our forecasts and investment thesis.

(1) The remaining penetration opportunity is still significant and growing for Catapult’s wearables product after having been in the market for over 10 years now.

(2) The ability for Catapult to cross-sell its video software to existing customers. We undertook a number of channel checks that show the uniqueness and differentiation of being able to integrate wearables physiological data with video analysis.

 (3) Breakdown of key financial line items including GP margin, Variable costs, Fixed costs, and capex, which support our views around incremental Cash EBITDA margins.

Siteminder Ltd (ASX: SDR)

Siteminder is a software business that offers accommodation providers a range of solutions across the guest lifecycle, including distribution, bookings, operations management, and business intelligence.

UBS rates this ASX growth share as a buy, with a price target of $8.30. That implies a possible rise of 27% over the next year.

According to UBS, there were several positives in the Siteminder FY25 result, including achieving positive free cash flow, an acceleration of annual recurring revenue (ARR) to 27% with strong growth in the core business and additional smart products, rising profit margins, and profitable growth.

UBS likes the ASX growth share due to its market leadership position in a tech market with numerous greenfield opportunities. The broker thinks the company can achieve a revenue compound annual growth rate (CAGR) around 25% between FY25 to FY28.

Excitingly, UBS suggests the company could reach 73,000 customers (of a total of 950,000 addressable properties) by FY28 and 14% in the longer-term. This bodes well for the company’s long-term potential.

The post Experts rate these 2 ASX growth shares as buys for December! appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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• Why Morgans is bullish on these ASX tech shares
• Why Catapult, Kingsgate, Light & Wonder, and Reece shares are storming higher today
• The next wave of ASX tech winners to buy before 2026

Motley Fool contributor Tristan Harrison has positions in SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool Australia has positions in and has recommended Catapult Sports and SiteMinder. 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, rising 0.13% to finish at 8,617.3 points.

Many of Australia’s top companies provided financial reports to the market this month.

This led to top broker Morgans issuing new notes with revised ratings and 12-month price targets on several ASX 200 large-cap shares.

Large-caps are sector-leading stocks with a market capitalisation of $10 billion or more.

Many investors favour large caps because they are well-established companies that pay regular dividends.

Let’s take a look at some of these stocks.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is the second-largest ASX 200 consumer discretionary share with a market capitalisation of $36 billion.

The Aristocrat share price closed at $58.74 on Thursday, up 0.39%.

Morgans upgraded its rating from accumulate to buy after Aristocrat reported its FY25 earnings this month.

The broker said:

Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface.

Encouragingly, management expects the business to return to its normalised growth range moving forward.

We see no structural shift in market dynamics and remain comfortable with the outlook.

Given recent share price weakness and a more compelling valuation, we upgrade ALL from Accumulate to Buy, with our 12-month target price reduced to $73 (from $77).

Xero Ltd (ASX: TNE)

Xero is the second-largest ASX 200 tech share with a market capitalisation of $20 billion.

The Xero share price closed at $123.15 yesterday, up 2.29%.

Morgans retained its accumulate rating but slashed its 12-month share price target to $141 after Xero released its 1H FY26 report.

The broker said:

XRO’s 1H26 result was largely in line with expectations but higher investment expenses in the 2H and the inclusion of Melio into our forecasts lowers our EBITDA and FCF forecasts.

Our target price reduces ~30% to $141 on lower peer multiples and lower FCF per share.

We retain our Accumulate recommendation, noting it may take some time for management to build investor confidence in the value add of Melio and return XRO back to rule of 40 growth.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is the biggest ASX 200 energy share with a market capitalisation of $48 billion.

The Woodside share price closed at $25.02 yesterday, down 1%.

Morgans retained its buy rating with an unchanged price target of $30.50 after Woodside’s Capital Markets Day this month.

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

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

James Hardie Industries plc (ASX: JHX)

This building materials company is the largest non-mining ASX 200 materials share with a market capitalisation of $13 billion.

The James Hardie share price closed at $29.86 on Thursday, up 0.37%.

Morgans upgraded its rating to buy with a $35.50 share price target after James Hardie released its 2Q FY26 results.

The broker said:

Whilst the headline 2QFY26 result was largely released in early Oct-25, the details and outlook were incrementally more positive than previously anticipated.

JHX is trading on c.17.1x FY26F as the business navigates its acquisition missteps, earnings downgrades and a challenging consumer environment in North America (NA).

However, at EPS of c.U$1.04/sh in FY26 we see upside from both earnings and an undemanding PER (ave PER. 20x).

The post 4 ASX 200 large-cap shares with new ratings from Morgans appeared first on The Motley Fool Australia.

More reading

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• The Warren Buffett golden rule that investors can’t ignore
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• Want to build wealth? Here’s how Warren Buffett does it
• How to retire early with ASX shares and the power of compounding

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 Technology One. 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.

If you’re investing with a long-term mindset, choosing the right ASX 200 stocks matters.

Short-term market noise, interest rate movements, and economic cycles all become far less important when you have a 10-year horizon.

What really counts is owning businesses with sustainable competitive advantages, strong earnings power, and the ability to keep compounding year after year.

With that in mind, here are three ASX 200 stocks I would feel very comfortable putting $10,000 into and leaving untouched for the next decade.

REA Group Ltd (ASX: REA)

Real estate might rise and fall with the economic cycle, but REA Group has proven again and again that it sits above the noise.

REA Group’s realestate.com.au website is the dominant digital property platform in Australia. It benefits from unmatched brand power, huge consumer traffic, and long-term relationships with agents and developers. When Australians look for property, they go to REA,  and that behaviour isn’t changing.

Importantly, the ASX 200 stock continues to find ways to monetise its leadership position. Premium listing upgrades, new adjacent services, data products, and international expansion provide multiple growth levers. Even in softer property markets, the company has maintained strong earnings momentum thanks to its pricing power and operational efficiency.

With its wide moat, high margins and expanding global footprint, I think REA is one of the most reliable long-term compounders on the ASX.

TechnologyOne Ltd (ASX: TNE)

Long-term wealth creation is built on consistency, and TechnologyOne might be the most consistent software company in Australia.

It specialises in enterprise SaaS solutions for government, education, and large organisations. These are customers that value reliability and tend to stick with their software providers for decades. This results in incredibly stable, high-margin recurring revenue and some of the stickiest client relationships in the market.

The company has delivered 16 consecutive years of record profit and continues to grow strongly as new customers join its platform and existing customers spend more.

The good news is that its growth is far from over. In fact, management believes that it can double in size every five years. In light of this, its proven management team, huge addressable market, and reliable earnings, TechnologyOne is exactly the type of company I would happily hold for 10 years or more.

Woolworths Group Ltd (ASX: WOW)

While Woolworths Group won’t match the hyper-growth of tech stocks, it brings resilience to a decade-long portfolio.

As Australia’s largest supermarket operator, this ASX 200 stock enjoys steady demand regardless of economic conditions. People always need groceries, household essentials and everyday goods, which gives the business a defensive earnings profile.

Over a 10-year period, this combination of defensive earnings and robust growth can deliver surprisingly strong compounding. So, for investors wanting stability alongside growth, Woolworths provides a dependable anchor for any long-term portfolio.

The post 3 ASX stocks I’d trust with $10,000 for the next decade appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 large-cap shares with new ratings from Morgans
• The Warren Buffett golden rule that investors can’t ignore
• Want to build wealth? Here’s how Warren Buffett does it
• How to retire early with ASX shares and the power of compounding
• Two ASX tech stocks Wilsons Advisory says are a buy after the recent tech sell-off

Motley Fool contributor James Mickleboro has positions in REA Group, Technology One, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has positions in and has recommended Woolworths Group. 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.

Do you have room in your income portfolio for some new additions? If you do, then it could be worth considering the three ASX dividend stocks in this article.

That’s because brokers have put buy ratings on them and are forecasting attractive and growing payouts in the near term.

Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

Cedar Woods could be an ASX dividend stock to buy now according to brokers.

It is one of Australia’s leading property companies with a portfolio diversified by geography, price point, and product type. This leaves Cedar Woods perfectly positioned to be a big winner from Australia’s chronic housing shortage.

It is for this reason that the team at Bell Potter is so positive on its outlook. 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 $8.86, this equates to 3.8% and 4.3% dividend yields, respectively.

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

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock that could be a buy for income investors is Jumbo Interactive.

It is the online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and Powered by Jumbo platform.

Morgan Stanley thinks it would be a good pick for investors right now. It was pleased with its positive start to the year and believes it is positioned to pay 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 $10.62, this would mean dividend yields of 5.4% and 6.4%, respectively.

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

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth-focused fashion retailer Universal Store could be an ASX dividend stock to buy.

Bell Potter is positive on the company, highlighting that it is executing very well on its national store rollout strategy.

The broker believes this strong form will continue and is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.61, this equates to dividend yields of 4.3% and 4.8%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

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

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

Two leading investment experts say that now is the time to sell these three S&P/ASX 200 Index (ASX: XJO) stocks.

One of the companies is a fast food operator, the second is an Aussie rare earths miner, and the third is an Australian retail conglomerate.

Here’s why shares in these three companies could be in for a rough patch in the months ahead (courtesy of The Bull).

Two ASX 200 stocks still awaiting a confirmed turnaround

The first company tipped as a sell is Super Retail Group Ltd (ASX: SUL).

Super Retail shares have gained 9% over the past 12 months. Atop those capital gains, the ASX 200 stock also trades on a 5.9% fully franked trailing dividend yield.

But looking ahead, MPC Markets’ Mark Gardner sees headwinds building.

“The retail giant’s brands include Supercheap Auto, Macpac, Rebel and BCF,” said Gardner, who has a sell recommendation on Super Retail shares.

“In our view, Super Retail’s profit outlook is modest, with few signs of accelerating growth amid challenging consumer trends,” he noted.

Gardner gave a nod to the passive income on offer from Super Retail shares. But he believes there are better opportunities on the ASX for passive income investors.

“The dividend yield is a bright spot, but overall, retail exposure is better gained through JB Hi Fi Ltd (ASX: JBH) or Wesfarmers Ltd (ASX: WES), which we believe offer stronger brands, wider margins and better scale advantages,” he said.

Gardner concluded, “Downside risk outweighs the upside without a near-term turnaround.”

Gardner also issued a sell recommendation on Collins Foods Ltd (ASX: CKF).

Collins Food shares have surged 34% over the past 12 months. Atop those gains, the ASX 200 stock trades on a fully franked 2.3% trailing dividend yield.

“The company operates hundreds of KFC outlets in Australia and Europe. The company announced in April 2025 that it was exiting the underperforming Taco Bell business,” Gardner said.

And he noted that statutory profits have come under heavy pressure.

“Revenue growth in Australia in full year 2025 was partially offset by softness in Europe. Statutory net profit after tax of $8.8 million was down 88.5%,” he said.

Gardner concluded, “In our view, fast food peer Guzman Y Gomez (ASX: GYG) presents as a stronger brand with superior momentum. We recommend switching to category leaders while CKF’s story remains in transition.”

Which brings us to…

Calling time on Lynas shares

Ord Minnett’s Tony Paterno recommends cashing in gains on Lynas Rare Earths Ltd (ASX: LYC).

Lynas shares have soared 110% since this time last year, though they remain well down from the multi-year highs notched on 15 October.

“Lynas is the only significant producer of separated rare earths materials outside of China,” said Paterno, who has a sell recommendation on the ASX 200 stock.

He noted:

Gross sales revenue of $200.2 million in the first quarter of fiscal year 2026 was up on the prior quarter and the prior corresponding period but missed consensus. The shares have fallen from $21.64 on October 15 to trade at $15.51 on November 19.

Paterno concluded, “In our view, the shares remain overvalued, so investors may want to consider cashing in some gains.”

The post Sell alert! Experts name 3 ASX 200 stocks to unload today appeared first on The Motley Fool Australia.

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• What’s going on with Lynas Rare Earths shares today?
• How this new development could drive the next big boost for ASX rare earths stocks like Lynas

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 Super Retail Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Collins Foods and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence isn’t just a buzzword anymore, it is rapidly becoming one of the defining technologies of the decade.

From cloud computing to logistics to data processing, AI is transforming how businesses operate and creating enormous investment opportunities along the way.

And while the world’s biggest AI winners tend to come from the US, the ASX is home to several stocks that play critical roles in the infrastructure behind the boom.

These aren’t speculative AI stocks chasing hype. They are established, essential businesses supplying the digital backbone that AI systems rely on.

If you’re looking for ASX stocks positioned to thrive as AI adoption accelerates, these three stand out according to analysts.

Goodman Group (ASX: GMG)

When you think of AI stocks, property developers might not come to mind, but Goodman Group is quietly becoming one of the most important players in the global data economy.

Goodman develops and owns industrial facilities around the world, and more recently it has been shifting aggressively into large-scale data centre infrastructure. These sites are in massive demand thanks to AI training models, cloud providers, and hyperscale computing companies needing enormous amounts of secure, high-power, high-cooling capacity real estate.

Global tech giants are now turning to Goodman to build the next generation of AI-ready facilities. With a development pipeline in excess of $12 billion, and 68% of this focused on data centres, Goodman is well-placed to be a big winner from the AI boom.

It is partly for this reason that UBS has a buy rating and $36.41 price target on its shares.

Megaport Ltd (ASX: MP1)

Artificial intelligence requires data to move quickly and reliably across multiple cloud platforms. That’s where Megaport shines.

Its global software-defined networking platform allows businesses to connect seamlessly to cloud providers like Amazon Web Services, Microsoft Azure and Google Cloud. As AI workloads increase, so does the need for flexible, high-speed connectivity that traditional networks simply can’t match.

The company also recently acquired Latitude.sh, which is a globally scalable Compute-as-a-Service platform. It provides automated high-performance compute infrastructure that enables customers to scale their workloads. Management notes that this now means that it has “open[ed] the door to the explosive world of AI inference and training.”

This week, the team at Morgans put a buy rating and $17.00 price target on its shares.

NextDC Ltd (ASX: NXT)

NextDC is one of Australia’s leading data centre operators. It continues to expand aggressively, building hyperscale centres designed to support AI-intensive workloads. Its facilities offer industry-leading power capacity, energy efficiency and connectivity, making them attractive to cloud providers and multinational enterprises.

The company has secured long-term customer contracts and is investing billions into new sites, including major expansions in Sydney, Melbourne and international markets. With AI adoption driving unprecedented demand for compute power, analysts expect NextDC to benefit from a multi-year structural tailwind.

UBS currently has a buy rating and $21.45 price target on its shares.

The post The unstoppable ASX stocks powering the AI revolution appeared first on The Motley Fool Australia.

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

If you are on the hunt for income opportunities on the Australian share market, a number of ASX dividend shares are currently catching the attention of analysts.

As well as being labelled as buys, these shares are expected to deliver attractive dividend yields in the coming years and could be worth a closer look for investors wanting a source of passive income.

Here are three ASX dividend shares that brokers are rating as buys right now.

BHP Group Ltd (ASX: BHP)

Mining giant BHP Group remains a favourite for income-focused investors.

And it isn’t hard to see why. The Big Australian continues to generate strong free cash flow through its world-class iron ore, copper, and metallurgical coal operations.

It is thanks to these operations that BHP has long been recognised as a dependable payer of large, fully franked dividends.

And Morgan Stanley believes shareholders can expect another couple of healthy years of income. The broker is forecasting fully franked dividend equivalents of $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.74, this equates to dividend yields of 4.55% and 4.1%, respectively.

Morgan Stanley has an overweight rating and $48.00 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Income investors may also want to consider HomeCo Daily Needs REIT. This property trust owns and operates convenience-focused retail centres anchored by essential services. These are properties like supermarkets, pharmacies, large-format retailers, and healthcare centres.

Its tenant base includes heavyweights such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES), helping underpin stable rental income.

UBS is positive on the company, highlighting the discount between its share price and its net tangible asset value.

It also expects some big distributions over the next two years. The broker is forecasting 9 cents per share in dividends for both FY 2026 and FY 2027. Based on its current share price of $1.35, this equates to dividend yields of 6.7%.

UBS has a buy rating and $1.53 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share on brokers’ buy lists is Sonic Healthcare.

It operates a global network of pathology and diagnostic imaging services, spanning Australia, the US and Europe.

Bell Potter sees Sonic as a top pick for income investors. The broker believes Sonic is poised for a meaningful improvement in its earnings driven by cost-rightsizing measures, recent acquisitions, and the gradual return to pre-pandemic activity levels across its laboratories and clinics.

The broker expects this to underpin dividends of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. With Sonic shares trading at $23.35, this equates to dividend yields of 4.7% and 4.8%.

Bell Potter has a buy rating and a $33.30 price target on its shares..

The post Analysts think BHP and these ASX dividend shares are buys this week 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 Wesfarmers. The Motley Fool Australia has recommended BHP Group, HomeCo Daily Needs REIT, Sonic Healthcare, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.