Category: Stock Market

The Latitude Group Holdings Ltd (ASX: LFS) share price is in focus after the company posted a 39% surge in first half cash NPAT to $64.3 million, with receivables at their highest in six years and an interim dividend announced.

What did Latitude Group report?

• Cash NPAT rose 39% year on year to $64.3 million
• Statutory NPAT from continuing operations increased 37% to $54.4 million
• Operating income up 7% to $437.8 million
• Gross receivables increased 4% to $7.3 billion
• Cash operating expenses fell 2% to $181 million
• Declared fully franked interim dividend of 5.50 cents per share

What else do investors need to know?

Latitude’s disciplined execution delivered earnings growth despite three interest rate hikes and a tougher economy. The company’s new credit card and loan volumes hit $4.4 billion, supported by strong consumer demand. Its cost-to-income ratio improved to 41.3%, reflecting ongoing focus on efficiency.

The company’s new Enterprise Growth Division gained traction in health and home improvement, welcoming Ashley & Martin as a new partner. Continued investment in artificial intelligence and technology aims to lift customer experience and productivity.

Latitude completed $2.3 billion in funding transactions and a $135 million Capital Notes 2 issuance during the period, reinforcing its funding diversity and balance sheet strength.

What did Latitude Group management say?

Managing Director and CEO Bob Belan said:

Latitude delivered a strong first half result despite a more challenging macro-operating environment, with Cash NPAT increasing 39% to $64.3 million as we continued to grow receivables, expand margins and improve operating efficiency… The Board’s decision to declare a fully franked interim dividend of 5.50 cents per share reflects confidence in the fundamentals of the business and its ability to continue creating long-term value for shareholders.

What’s next for Latitude Group?

Latitude expects ongoing economic pressures but sees its diverse products and broad partner network positioning it for further profitable receivables growth in the second half. Management expects to protect margins through disciplined pricing and portfolio management as high interest rates persist.

Productivity improvements and technology investments, including AI, remain core to the strategy. Management says this focus will offset inflation and support better experiences for customers and partners, while maintaining flexibility to return capital to shareholders.

Latitude Group share price snapshot

The Latitude Group share price has underperformed the S&P/ASX 200 index (ASX: XJO) significantly over the past 12 months with a 20% decline.

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The post Latitude Group profit lifts 39% as dividend rises on record receivables appeared first on The Motley Fool Australia.

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• Charter Hall Group FY26 earnings: Operating earnings up 26.8%
• Accent Group reports FY26 results
• LGI posts FY26 earnings growth and expands renewable energy portfolio
• Alkane Resources declares maiden dividend and $50m share buy-back after strong FY26
• Why I’d buy Medibank shares for the dividend yield

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The LGI Ltd (ASX: LGI) share price is in focus as the company delivered a 17% lift in net revenue to $39.8 million and a 35% jump in net profit after tax (NPAT) to $8.8 million for FY26.

What did LGI report?

• Net revenue of $39.8 million, up 17% versus prior year
• Statutory and underlying EBITDA of $21.8 million, up 26%
• NPAT of $8.8 million, up 35%
• Biogas flows reached 170.2 million m³, up 33%
• Renewable energy generation totalled 140.8 GWh, up 29%
• Fully-franked total dividend of 2.6 cents per share, up 4%

What else do investors need to know?

LGI expanded its emissions reduction footprint by launching eight new carbon abatement projects during FY26, growing its contracted site portfolio by 9% year on year. The company also completed a $56.3 million capital raising, boosting its high-conviction project pipeline to exceed 80MW in capacity.

LGI renegotiated and expanded its debt facility to $82.5 million, a 66% increase over the previous limit, providing additional balance sheet flexibility. Importantly, its operational platform delivered a realised electricity price around 35% above the market average, highlighting strong risk management and demand for its offering.

What did LGI management say?

Chief Executive Officer Jarryd Doran said:

In FY26 we outperformed all our key operational drivers with year-on-year biogas recovery increasing by 33%, ACCU’s created increasing 18%, and a 29% increase in renewable energy from our fleet of power stations.

In summary, the Company’s strong operational performance was reflected in our financial results whereby we increased Net Revenue by 17%, and our Underlying EBITDA increased approximately 26%, delivering against our previously stated guided range.

Overall, FY26 was an exceptional team result, and testament to our strong business model. In particular, we demonstrated our ability to flex ACCU creation volumes, helping mitigate the electricity market dynamics observed throughout the year.

Looking forward, our efforts during the year in registering and commencing carbon abatement across 8 new sites lays important foundations for continued growth. Together with our completed capital raising in October 2025, we look forward to continuing to deliver against our strategy of expanding our pipeline of generation capacity to beyond 80MW.

What’s next for LGI?

LGI is targeting further growth, with construction underway on its Canberra and Belrose battery projects set to boost total managed capacity to at least 45MW in FY27. Management expects biogas and carbon credits to deliver around 10% compound annual growth for the next three years, and is focused on rolling out flexible, scalable renewable energy projects.

The company is continuing to progress several development approvals and grid connections for high-conviction pipeline projects. With its enhanced capital base and expanded debt facility, LGI aims to execute on its strategy to reach more than 80MW of renewable energy capacity.

LGI share price snapshot

Over the past 12 months, LGI shares have declined 39%, trailing the All Ordinaries Index (ASX: XAO).

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The post LGI posts FY26 earnings growth and expands renewable energy portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Alkane Resources Ltd (ASX: ALK) share price is in focus today, after the company declared its first-ever fully franked final dividend of 2 cents per share for FY26 and announced a $50 million on-market share buy-back.

What did Alkane Resources report?

• Maiden fully franked final dividend of 2.0 cents per share for FY26
• Dividend record date: 8 September 2026; payment date: 1 October 2026
• Board approval of up to $50 million on-market share buy-back over the next 12 months
• Closing FY26 with cash, bullion and listed investments of A$454 million
• Record production, revenue and profit following merger with Mandalay Resources

What else do investors need to know?

Alkane Resources’ maiden dividend reflects a strong financial performance and aims to reward long-term shareholders, marking a new chapter for the gold and antimony producer. The buy-back will be executed on-market at the company’s discretion and is expected to represent less than 3% of total shares on issue, not requiring shareholder approval.

The announcement comes after a transformational year in which Alkane merged with Mandalay Resources, combining three operating mines across Australia and Sweden. The company continues with active near-mine exploration and holds a robust pipeline of potential growth projects, including its Boda-Kaiser Project.

What did Alkane Resources management say?

Alkane Resources’ CEO, Nic Earner, commented:

In conjunction with our maiden 2.0cps fully franked dividend announced today, the Share Buy-Back is a clear signal of confidence in Alkane’s ability to generate future cash flows and return capital to shareholders.

FY26 was a transformational year – we completed the merger of equals with Mandalay Resources, brought together three operating mines across two continents, and delivered record production, revenue and profit in our first year as a combined group, closing the year with cash, bullion and listed investments of A$454 million.

As the business evolves, our capital management strategies evolve in unison. A maiden dividend and a Share Buy-Back together reward our shareholders while preserving the balance sheet strength to continue funding organic growth across the portfolio.

What’s next for Alkane Resources?

Looking ahead, Alkane will focus on disciplined capital allocation, ongoing organic growth and delivering value through its diversified asset base. Management has earmarked reinvestment in the business as its top priority, followed by increased shareholder returns, and maintaining balance sheet strength.

Resource expansion activities at its existing mines and progressing the Boda-Kaiser Project will remain key strategic pillars. Investors can expect updates as these growth initiatives advance.

Alkane Resources share price snapshot

The Alkane Resources share price has significantly outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with an impressive gain of 90%.

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The post Alkane Resources declares maiden dividend and $50m share buy-back after strong FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Medibank Private Ltd (ASX: MPL) shares could be one of the most underrated options for passive income on the ASX because of its dividend yield, in my view.

Medibank is the largest private health insurer in Australia, through two brands – Medibank and ahm.

For a variety of reasons, I believe Medibank may be one of the most underrated ASX dividend shares within the S&P/ASX 200 Index (ASX: XJO).

Regular dividend growth

I think one of the most important factors when it comes to passive income is consistency.

If I’m investing in something primarily for the passive income, then I want to have a high level of certainty that the dividends will continue flowing in all economic conditions, including when times become leaner.

There’s no guarantee of dividend payments, of course – they are not term deposits or annuities.

But I think some businesses are more likely to deliver regular payouts than others. Firstly, some businesses may already have a long dividend growth record they want to continue. Second, specific ASX shares operate in sectors that provide more predictable, defensive earnings. Healthcare is fairly defensive.

Medibank has increased its dividend every financial year (except for FY20) since its listing in FY15. It has a good track record of regularly increasing the payout.

In FY26, the business decided to hike its annual dividend per share by 6.7% to 19.2 cents. Earnings per share (EPS) jumped 27.5% to 23.2 cents, while underlying EPS grew 2.9% to 23.1 cents.

Good dividend yield

If Medibank continues to increase its payout each year, the dividend yield for long-term shareholders could keep improving.

The company’s 6.7% increase in the dividend was pleasing, considering the dividend yield was already at a pleasing level.

At the time of writing, and based on the current Medibank share price, the business has a FY26 grossed-up dividend yield of 6%, including franking credits. I expect the annual payout will grow in FY27.

Good outlook for growth in FY27

The ASX dividend share has provided outlook commentary suggesting further earnings improvement in the 2027 financial year.

Medibank said it aims to grow its resident policyholder market share in a disciplined way, including improved momentum for the Medibank brand. It also expects the FY27 resident private health insurance gross margin to be broadly consistent with FY27.

Non-resident private health insurance gross profit is expected to deliver solid growth in FY27.

With the compelling Medibank health division, segment profit growth is expected to be approximately 25% in FY27, partly due to a full-year contribution from Better Medical.

The ASX dividend share also expects to pursue further acquisition opportunities, which could help grow and diversify the overall business.

Overall, I think Medibank shares and its dividend yield are a compelling investment that I’d be happy to own for the long term.

The post Why I’d buy Medibank shares for the dividend yield appeared first on The Motley Fool Australia.

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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.

The GQG Partners Inc. (ASX: GQG) share price is in focus after the global fund manager reported half-year revenue of US$397.2 million and net profit after tax of US$228.4 million for the six months ending 30 June 2026.

What did GQG Partners Inc. report?

• Revenue from ordinary activities: US$397.2 million, down 1.4% year on year
• Net profit after tax: US$228.4 million, down 0.8% year on year
• Average funds under management: US$164.5 billion, up 1.0% year on year
• Distributable earnings: US$234.9 million, down 0.7%
• Final dividend: US$0.0365 per share paid in March; interim dividend: US$0.0354 per share paid in June; new dividend declared: US$0.0362 per share, unfranked
• Net tangible assets per CDI: US$0.10 (30 June 2026), up from US$0.08

What else do investors need to know?

GQG Partners managed US$156.0 billion in assets at the end of June 2026, with net flows in the period negative at US$(15.1) billion. The business reported that all four major investment strategies trailed their benchmarks over one, three, and five years, mainly due to defensive positioning in volatile markets.

Operating expenses were tightly managed, falling 0.5% from the previous year. The company maintained a robust balance sheet with US$168.9 million in cash and no debt, and returned 90% of distributable earnings to shareholders through dividends.

What did GQG Partners management say?

Chief Executive Officer Tim Carver said:

It is my pleasure to share GQG’s results for the first half of 2026…Our business is headquartered in the United States, with offices in Australia, the United Arab Emirates, and the United Kingdom…We remain focused on delivering long-term value for clients through a disciplined investment process designed to compound capital across a range of market environments.

What’s next for GQG Partners?

Looking ahead, GQG Partners aims to stick with its active, benchmark-agnostic investment approach and continue building concentrated, high-conviction portfolios. Management highlighted opportunities for product innovation, especially in ETFs, following strong growth in its US Equity ETF.

The fund manager expects to maintain its disciplined cost base and strong dividend payout in line with its policy. GQG says it remains well positioned to serve and grow its diversified global client base, supported by a culture of co-investment and long-term value creation.

GQG Partners share price snapshot

Over the past 12 months, GQG Partners shares have declined 18%, trailing the All Ordinaries Index (ASX: XAO).

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The post GQG Partners: 2026 half-year earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Arena REIT (ASX: ARF) share price is in focus today after the company posted an 8% lift in net operating profit to $79.1 million and hiked its distribution per security by 5.5% for FY2026.

What did Arena REIT report?

• Net operating profit (distributable income) of $79.1 million, up 8% on FY2025
• Statutory net profit of $132 million, up 62% year over year
• Operating earnings per security (EPS) of 19.60 cents, up 5.7%
• Distributions per security (DPS) of 19.25 cents, up 5.5%
• Total assets grew to $2.0 billion, up 8%
• Net Asset Value (NAV) per security rose to $3.60, up 4%

What else do investors need to know?

Arena finished the year with a strong balance sheet, reporting low gearing of 24.5% and a 100% portfolio occupancy rate. The company’s portfolio of 307 properties posted a valuation uplift of $47.4 million, with a weighted average lease expiry of 17.5 years.

The Edge Early Learning portfolio, comprising 31 properties (14% of Arena’s annual rental income), has hit some turbulence after Edge failed to pay August rent. Arena has issued default notices and taken steps to protect its income and assets, including signing new lease agreements for two newly developed centres. Management has also reaffirmed that its legal rights and security arrangements are in place.

Arena saw active portfolio management during FY2026: eleven early learning centre (ELC) properties were divested for $53.5 million at a premium, while the company completed $87 million in development projects and maintains a pipeline of 29 projects.

What did Arena REIT management say?

Managing Director Justin Bailey commented:

FY2026 delivered strong growth in earnings, distributions and net assets, underpinned by contracted rental growth, development completions and active portfolio management. Throughout the year we continued to improve portfolio quality through disciplined capital allocation, development activity and targeted divestments.

What’s next for Arena REIT?

Arena is guiding for a FY2027 distribution of at least 18.0 cents per security. This conservative outlook factors in the uncertainty around the Edge portfolio and assumes no income from those properties beyond the existing security pool.

Looking ahead, Arena says it will focus on resolving the Edge Early Learning situation, carefully managing its portfolio through the current market environment, and progressing its development pipeline. The company also continues to prioritise a strong balance sheet and disciplined investment decisions.

Arena REIT share price snapshot

The Arena REIT share price has significantly underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 40%.

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The post Arena REIT FY2026 earnings: profit up 8%, distributions higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The TPG Telecom Ltd (ASX: TPG) share price will be in focus today after the telco reported a 1% lift in half-year EBITDA to $821 million and raised its interim dividend to 10 cents per share.

What did TPG Telecom report?

• Service revenue up 0.5% to $2,071 million
• Mobile service revenue up 3.1% driven by 64,000 more mobile subscribers
• EBITDA up 1% to $821 million (up 4.5% pro forma)
• NPAT of $35 million, up from $32 million last year
• Operating free cash flow of $199 million, up 16.4% pro forma
• Interim dividend increased to 10 cents per share, 25% franked

What else do investors need to know?

TPG Telecom highlighted continued growth in its mobile business, propelled by its digital-first brands and network expansion, helping boost average revenue per user to $35.21. Home broadband revenue slipped by 1.9% amid fierce competition, but the business expects further subscriber improvement in the second half of FY26.

The company has realised gains from selling its fibre and enterprise assets to Vocus Group in 2025, allowing for lower borrowing costs and a stronger balance sheet. Its fixed wireless business also returned to growth, supported by new standalone 5G offerings.

What did TPG Telecom management say?

Iñaki Berroeta, CEO and Managing Director, said:

TPG Telecom delivered a strong first-half result, demonstrating the benefits of network sharing and the strength of our multi-brand strategy, along with disciplined delivery, and a continued focus on value for our customers and shareholders. We are executing our strategy with discipline, improving profitability and generating strong cash flows.

The benefits of our simplified operating structure and ongoing network and IT systems enhancements are supporting improving business performance and shareholder returns. With clear strategic foundations in place, we remain focused on delivering sustainable long-term value. TPG Telecom is well-positioned for the years ahead as we deliver ongoing growth in free cash flow, earnings per share and return on capital.

What’s next for TPG Telecom?

The board has reaffirmed its FY26 guidance, targeting EBITDA between $1,665 million and $1,735 million, and capital expenditure of around $750 million. Management expects ongoing improvements in free cash flow as past investments in network and IT start to pay off, along with further momentum from mobile subscriber growth and digital-first strategies.

TPG Telecom says it will keep prioritising sustainable growth and increasing dividends in line with profit and cash flow over time. The company continues with its operational simplification and cost controls to drive long-term shareholder value.

TPG Telecom share price snapshot

The TPG Telecom share price has significantly underperformed the S&P/ASX 200 Index (ASX: XJO) over the past 12 months with a decline of around 33%.

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The post TPG Telecom shares on watch as earnings and dividend edge higher in HY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Two ASX shares enjoyed a strong rise yesterday following the release of earnings results and study results. 

Cuscal Ltd (ASX: CCL) shares rose almost 8% yesterday, while AVITA Medical Inc (ASX: AVH) rose 4%. 

This prompted fresh buy ratings from the team at Bell Potter, as well as upgraded price targets. 

What did the companies announce?

Cuscal shares rose strongly yesterday following the release of full-year results. The company reported a 49% jump in statutory NPAT to $42.7 million for FY26, boosted by acquisitions of Indue and Paymark.

Underlying NPAT was up 20% to $46.2 million, while underlying net operating income rose 20% to $347.7 million. Aggregate transaction volumes grew 12% over the year and the final dividend of 7 cents takes the full-year dividend to 11.5 cents per share. 

Following yesterday’s rise, Cuscal shares are now up 93% over the last year. 

Meanwhile, investors were gobbling up AVITA Medical shares after the announcement of its study results. 

According to the release, it has produced evidence that its PermeaDerm treatment may replace expensive cadaveric skin grafts with a product that works similarly, costs ~70% less, and is far easier to prepare.

The full releases from both companies can be found here: 

• Cuscal full-year results 
• AVITA clinical study announcement.

Upgraded outlook for Cuscal following earnings results 

Following the full-year results, the team at Bell Potter provided upgraded guidance for Cuscal shares. 

The broker said the underlying FY26 NPAT came in at $46.2 million, ahead of expectations. 

Bell Potter also said the balance sheet remains healthy, and noted the final dividend was increased to 7 cents per share fully franked. 

For FY27, management is guiding to mid-20% volume and underlying NPAT growth. Although acquiring growth is expected to be weaker, Bell Potter sees this as implying organic earnings growth of more than 10%, with volumes having picked up since June.

Based on this guidance, the broker retained its buy recommendation and raised its price target to $6.50 (previously $5.80). 

From yesterday’s closing price, this indicates an upside potential of almost 16%. 

Big upside for AVITA Medical

Bell Potter has also raised its outlook for AVITA Medical shares following its study results. 

Bell Potter is more bullish on the company because its products are showing strong cost and clinical benefits. 

PermeaDerm significantly reduced treatment costs and preparation time while achieving similar healing results to cadaver skin, although it is still a small part of AVH’s revenue.

The bigger story is RECELL (AVITA’s main product), where revenue growth is picking up, reimbursement uncertainty is improving, and cash burn is moderating. 

Bell Potter believes the broader product range could also help it sell more products into existing hospitals.

Based on this guidance, the broker retained its buy recommendation on the company and raised its price target to $3.70 (previously $2.10). 

This indicates a 36% upside from current levels. 

The post Broker puts fresh buy ratings and tips 36% upside for these earnings results winners  appeared first on The Motley Fool Australia.

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

The Inghams Group Ltd (ASX: ING) share price is in focus after the company reported FY26 earnings in line with guidance, including a return to core poultry volume growth and strong cash generation.

What did Inghams Group report?

• Revenue rose 2.4% to $3,227.4 million
• Underlying EBITDA pre AASB 16 was $186.4 million, down 21.2% on the prior year
• Net profit after tax (NPAT) dropped 61.5% to $34.6 million
• Core poultry volumes grew 1.9%
• Final fully franked dividend of 6.1 cents per share declared
• Net debt reduced by $27.1 million to $403.3 million

What else do investors need to know?

Inghams delivered $82.3 million in cost savings during the year, hitting the upper end of its target, despite facing $13.2 million in additional costs linked to ongoing Middle East conflict. The company continued to diversify its customer base, particularly in Australia, where retail volumes excluding Woolworths rose 17.2%.

Production inefficiencies earlier in the year and cost pressures from ingredients, freight, and labour weighed on full-year profitability. However, the second half saw operational improvements with inventories and supply chains returning to normal levels.

What did Inghams Group management say?

CEO and Managing Director Ed Alexander said:

We made significant progress strengthening the underlying business during FY26. Encouragingly, our earnings in the second half were materially above the first half, reflecting the improved underlying operating metrics… While the operating environment remains challenging, we enter FY27 with a more balanced network, a stronger and more diversified customer portfolio, a refreshed senior management team, and clear visibility of the opportunities still to unlock.

What’s next for Inghams Group?

Looking ahead, Inghams expects its primary earnings measure to shift to underlying EBIT, with FY27 guidance set at $155–180 million. The company forecasts further core poultry volume growth of 2.5–4.0% but anticipates continued cost pressures—including higher transport, packaging, and feed costs—due to both inflation and ongoing geopolitical disruptions.

Management is focused on ongoing cost control, leveraging procurement and continuous improvement initiatives to offset rising expenses. Capital expenditure for FY27 is expected around $80 million, as the group aims to strengthen its network and support future growth.

Inghams Group share price snapshot

Over the past 12 months, the Inghams Group share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) with a decline of around 37%.

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The post Inghams Group FY26 earnings: volume growth, headwinds, and FY27 outlook appeared first on The Motley Fool Australia.

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• Alkane Resources declares maiden dividend and $50m share buy-back after strong FY26

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Australian investors have spent more than two decades operating under the same capital gains tax rules. Hold an eligible asset for at least 12 months, sell it, and the taxable capital gain is generally reduced by 50%.

That arrangement is changing.

From 1 July 2027, the 50% capital gains tax discount for individuals, partnerships, and trusts will be replaced by inflation-based cost-base indexation. A minimum 30% tax rate will also apply to real capital gains.

The reforms apply to shares and exchange-traded funds, not only investment property. However, they are prospective: gains accruing before 1 July 2027 retain the existing treatment, even if the investment is sold later.

Importantly, the new system will not automatically leave every investor paying more tax. The outcome will depend on the return earned, inflation, and the investor’s marginal tax rate. Treasury modelling suggests indexation could have produced a slightly larger effective discount than the current system for average ASX share returns over some historical periods.

Nevertheless, the changing rules provide a timely reason to examine how investment returns are delivered. That brings a much older strategy back into focus.

Income that gives itself a pay rise

Dividend growth investing focuses on businesses capable of growing their earnings, cash flow, and shareholder distributions over time.

The objective is not simply to find the highest yield available today. It is to own companies that can increase their dividends without weakening their balance sheets or starving the business of necessary investment.

Consider a $10,000 investment yielding 4%. That produces $400 of income in the first year, before tax. If the dividend grows by 5% annually, the payment reaches approximately $620 in year 10 without the investor contributing another dollar.

Reinvesting those dividends could increase the income further by adding more shares, although taxes and changing share prices will affect the eventual result.

Unlike an unrealised capital gain, a dividend delivers part of the shareholder’s return in cash without requiring the shares to be sold. However, dividends are generally taxable in the year they are received, while capital gains remain deferred until an investment is sold.

That means neither approach is automatically more tax-efficient. The better outcome depends on the business, the price paid, and the investor’s circumstances.

Separating a payer from a grower

Not every generous yield is sustainable. A yield approaching 9% may reflect a falling share price and expectations that the dividend will be cut.

Four characteristics can help separate a genuine dividend grower from a potential yield trap.

The first is earnings and free cash flow growth. A dividend cannot keep rising indefinitely unless the business produces more cash to support it.

The second is the payout ratio, which measures how much profit is being distributed. A company paying out almost everything it earns has little room for weaker conditions or further investment.

The third is balance-sheet strength. Heavy debt repayments compete directly with shareholders for the same cash.

Finally, investors can examine capital-allocation discipline and dividend history. A company that has increased its payout through different economic conditions has demonstrated something a forecast cannot.

How Wesfarmers has grown its dividend

Wesfarmers Ltd (ASX: WES) provides a useful recent example.

The conglomerate increased its total dividends from $1.80 per share in FY22 to $1.91 in FY23, $1.98 in FY24 and $2.06 in FY25. Its FY26 interim dividend rose to $1.02 per share, up from 95 cents a year earlier. These dividends were fully franked. That record does not guarantee future increases. Wesfarmers must continue growing its earnings while balancing dividends against investment in businesses such as Bunnings, Kmart and WesCEF.

Washington H. Soul Pattinson and Co. Limited (ASX: SOL) offers a longer example, with FY26 marking its 28th consecutive year of dividend growth. Its record shows why investors may accept a lower starting yield when they believe the payout can compound over decades.

The franking factor

Australia adds another element through dividend imputation.

A 4% fully-franked cash yield equates to approximately 5.7% on a grossed-up basis when the company tax rate is 30%. This accounts for the company tax already paid and attached to the dividend as franking credits.

The investor’s final benefit depends on their tax rate, eligibility for refunds, and compliance with the relevant holding-period rules. Some investors may receive excess franking credits as a refund, while those on higher marginal rates may owe additional tax.

Foolish takeaway

Dividend growth investing is not risk-free. Dividends can be reduced, and an excessive focus on income can leave a portfolio concentrated in mature sectors or cause investors to overlook businesses capable of reinvesting capital at attractive returns.

The CGT reforms do not make dividend growth investing universally superior. Some investors may pay more tax under the new rules, while others could pay less.

However, the calculation is changing. For investors thinking in decades rather than quarters, companies capable of growing both their underlying value and their cash distributions may deserve a closer look.

The post How ASX dividend growth shares can build lasting income appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.