Category: Stock Market

Feel like you’ve read enough Budget coverage already? I hear you.

Haven’t read any? I hear you, too.

Me? I’ve spent the last 24 hours deep in the weeds. Partly because it’s my job, and partly because I’m just a finance and politics nerd. And that makes Budget day Nerd Christmas!

So, welcome to Budget Boxing Day.

I say “welcome,” but obviously we’re well into the day-after-the-Budget. Plenty of “hot takes” have emerged since the Treasurer rose to speak in Parliament House at 7.30pm Canberra time, yesterday.

But, I wanted to let the dust settle. Given the choice between being “fast” and being “considered,” our long-standing approach at The Motley Fool is not to try to outrun others (a losing bet), but rather to use the extra time to properly analyse the situation and refine our views.

And while I write in this space every year providing my perspective on the Budget and its implications for investors, the answer is usually “not much.” Typically, there are a few tweaks to programs or some specific spending here and there that might impact one company or maybe a whole sector. This year’s Budget is notably different, though, because the centrepiece is a change in tax treatment for investors – primarily in housing, but also in shares and other assets.

I hope you’ll find the following (short) analysis valuable and relevant. I’ll cover the big picture, then dive into specific areas with potential implications for how we allocate capital to maximise the long-term value of our portfolios.

The good news is that the Government is delivering a Budget with a smaller deficit over the next five years than previously forecast. It is not low enough in my view; I would prefer to see a structurally-balanced budget with meaningful debt repayments if the Government is serious about the national fiscal position and the impact on inflation and interest rates. 

Nevertheless, this result is better than previously forecast and much better than it could have been following policy changes announced last night.

There are several other positives. Yes, there is a small amount of money coming our way in a couple of years’ time, but I think I can say – without being accused of partisanship – that this is largely just a standard “giveaway” announcement every Treasurer tries to include on Budget night and isn’t particularly consequential… particularly given how long we’ll have to wait for the money.

More realistically, there was a positive announcement for small business: the Government is making the instant asset tax write-off permanent rather than it being a rolling year-to-year proposition. There are also a handful of relatively small but important improvements to paperwork and administration. This is the “boring but important” work of productivity that every government should engage in, and it was good to see.

At a national level, there was good news for potential first-home buyers regarding tax treatment, but also some related drawbacks for asset owners. The three major revenue-raising components of the Budget were changes to negative gearing, capital gains taxation, and the taxation of trusts.

Let’s address trusts first. The Government has decided to tax discretionary trusts at a minimum of 30% to prevent them from being used primarily as income-splitting tools. Opinions on whether this is legitimate will differ based on ideology. If these trusts are used primarily to minimise tax, I struggle to criticise the change, but the devil is always in the detail; we will see more in the coming weeks.

Now to negative gearing.

For residential properties purchased after 7.30pm last night, negative gearing will only be allowed until 30 June 2026. The only exception is the construction of new homes, which will still attract negative gearing benefits—a clear attempt by the Government to focus dollars on creating more dwellings. It will also be ‘grandfathered’: it will remain in place for all residential property already owned.

I support this approach on a national interest level. Most would agree that having more owner-occupiers is a worthy societal goal. Tilting the playing field away from investors and toward first-home buyers is sound policy, particularly as it is grandfathered and doesn’t hurt existing owners.

While removing negative gearing may increase rents in the short term, I think the long-term benefit is worth the risk. As a society, we must accept that worthy policy changes sometimes have winners and losers. (Radical, right? It never used to be, but that’s politics these days.)

Now to CGT: the Government announced that the taxation of capital gains will no longer attract a 50% discount but will return to the indexation method used prior to 1999. This applies to all assets, including shares.

As unpopular as this might be among investors (because it will mean a higher tax bill for some), I have long argued for a return to indexation for two reasons. First, from a first-principles perspective, there was no policy justification for an arbitrary 50% discount. Indexation ensures tax is levied at the taxpayer’s marginal rate only after allowing for inflation, which clearly should not be taxed.

Second, I cannot personally justify a wage-earner paying tax at twice the rate levied on capital gains. I say this as both an investor and someone who works for a wage. While many argue that investing should be encouraged because it creates productivity and prosperity, I am not convinced those arguments outweigh the case for indexation.

(By the way, I assume you know this by now, but I’m not here to lobby only for the interest of shareholders, despite my job. I am (thankfully) allowed free rein by The Motley Fool to put national- above self-interest when I write these pieces. But also, as I’ve mentioned before, if I was going to create a set of policies to maximise by portfolio returns, I’d focus on designing the most prosperous economy I could… that’s the best way for quality companies to truly thrive over the long term! So, I know some readers may be worse off in the near term under the new system, but I think the country will be better off. I hope you’ll agree with me that that’s the bigger objective, here, even if you disagree with my views on the specifics.)

I will also say I think the ‘minimum 30% tax rate on capital gains’ is a terrible idea. I get that it’s probably targeted at income splitting and tax minimisation, but the unintended victims will be those trying to live off capital sales, who will pay at least 30% from the first and every subsequent dollar earned, while someone earning a wage gets a very generous tax-free threshold before they pay a dollar of tax.

Okay, so what do the CGT changes mean for investors, when it comes to choosing how to structure their portfolios, and what companies to put in them? Directionally, it’s a change. However, for the investor buying quality businesses, it probably won’t change much over the long term.

Let’s break it down:

Essentially, if your rate of return is more than double the rate of inflation, you would have been better off under the old system. If your rate of return is less than double the inflation rate, you will actually benefit under the new system. But remember – and this is important when doing the maths – the rate of return we’re talking about is capital growth only; dividends will continue to be taxed as income, often with franking credits attached.

So, an investor might be tempted to lengthen their holding period or shift toward dividend-paying shares. However, it would be a mistake to uproot your entire strategy.

Why? Here’s the framework: The goal is not to minimise tax, but to maximise your after-tax return.

If you could double your money in two years with a particular company, it would be silly to give that up for an average company with a slightly higher dividend yield. If you thought they were close-run things, though, you might prefer the tax-advantaged fully-franked yield.

So it changes the margins, but not the bullseye.

I fully expect that investing remains a highly profitable pursuit. The productive capacity and ingenuity of Australian and international businesses remain as impressive as ever. If you are against these changes, that’s okay, but please don’t throw your toys out of the cot. The future for Australian investing is still bright.

I am not changing my portfolio at all as a result of yesterday’s announcement. I believe the businesses I own and recommend remain attractive long-term wealth creation opportunities. 

Taxes have changed in the past and will change again. The market has never failed to regain and surpass a previous high, regardless of the tax arrangements.

Feel free to have your view on these policies and express it to your local MP or Senator. But please, don’t stop investing. Under both the old and new tax regimes, I am confident that the future remains bright. 

Fool on! 

The post What Budget 2026 means for investors appeared first on The Motley Fool Australia.

More reading

• 2 ASX mining shares tipped by experts to rocket 55% to 85%
• BHP shares just hit a new all-time high. Here’s why
• Top brokers name 3 ASX shares to buy now
• Down 10%: 3 key takeaways from CBA results
• Why this ASX property stock is rising despite a brutal 40% slide

Motley Fool contributor Scott Phillips 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.

ASX mining shares are higher on Wednesday with the S&P/ASX 300 Metal & Mining Index (ASX: XMM) up 2.3%.

The broader S&P/ASX 300 Index (ASX: XKO) has now slipped into the red for 2026, down 1.4% the year to date (YTD).

However, ASX mining shares are on a different path, up 21% YTD.

The long-term outlook for the mining sector remains bright, despite the short to medium-term headwind of the global oil shock.

As we’ve reported, there are many drivers behind the new commodities super cycle now underway.

ASX mining shares began the year well after spectacular growth last year.

The ASX 300 Metals & Mining Index rose 9.7% in January and 9.3% in February, but fell 14.1% in March due to the war in Iran.

In April, the index rose 5.2% as investors bought the dip. In May, ASX mining shares have gathered even more strength, up 12.3% so far.

And today, BHP Group Ltd (ASX: BHP) reclaimed its crown as the market’s largest company, while also resetting its record price at $62.30.

With mining looking attractive for the long term, here are two ASX shares tipped to rocket 55% to 85% over the next year.

Fenix Resources Ltd (ASX: FEX)

The Fenix Resources share price is steady at 35 cents, down 28% YTD.

Bell Potter has a buy rating on this ASX iron ore mining share with a price target of 63 cents.

This suggests 83% capital growth ahead.

For 3Q FY26, Fenix Resources reported group iron ore production of 1,243kt and sales of 974kt.

Its average realised price was A$146 per tonne. Group C1 cash costs were A$70 per tonne, down 7% over the quarter.

The broker said:

FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook.

FEX holds the largest storage position at the strategic and fast-growing Geraldton Port.

On Wednesday, iron ore was trading at a near 15-month high of US$111.10 per tonne, mainly due to resurgent industrial activity in China.

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is 46 cents, up 2.7% today and down 22% YTD.

Morgans reiterated its buy rating on this ASX copper mining share after the miner released its 3Q FY26 report.

The broker expects the Aeris Resources share price to rise more than 55% to its previous 52-week high of 70 cents within 12 months.

Morgans said:

Copper production missed on lower Tritton grades but this was offset by a solid cost performance and strong cash flow (+72% qoq), materially strengthening the balance sheet and funding flexibility.

Tritton is set up for a stronger 4Q26, while Constellation, Golden Plateau and the Peel acquisition underpin a longer-term production and mine life extension story.

Today, the copper price reached a new record high of US$6.60 per pound, up 7.6% over the past week and 16% in the YTD.

The post 2 ASX mining shares tipped by experts to rocket 55% to 85% appeared first on The Motley Fool Australia.

More reading

• 4 ASX mining shares to buy: brokers
• Bell Potter names the best ASX shares to buy in May
• Buy, hold, sell: Aeris, ANZ, and Bega Cheese shares
• 4 ASX copper shares to buy now: experts
• Forget Rio Tinto shares and buy this ASX copper miner

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 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.

When a company that has been around in some form since 1885 hits a new all-time high share price, it’s a notable occasion indeed. That’s exactly what we saw with mining giant BHP Group Ltd (ASX: BHP) shares this Wednesday.

BHP closed at $59.78 a share yesterday evening. But this morning, those same shares opened at $60.75 each before rising as high as $62.30. That, you guessed it, is the ‘Big Australians’ new record high. BHP shares have cooled off a little from that high. At the time of writing, the miner is trading at $61.48, up a happy 2.84% for the day thus far.

So why are BHP shares at such a pinnacle today?

Why did the ‘Big Australian’ just hit a new all-time record high?

Well, it’s hard to know for sure. We haven’t got any price-sensitive news out of the company for a while now. Since the quarterly activities report from 22 April, to be specific.

However, there are some factors we can point to that may be helping BHP shares to till fresh ground.

Firstly, as my Fool colleague James noted today, BHP has just announced the appointment of Mark Vassella as a non-executive director. Vasella is an industry veteran, having served many years as CEO of BlueScope Steel Ltd (ASX: BSL). Perhaps the market has taken a shine to this news.

Secondly, copper prices have continued to soar to new heights this week. As we covered yesterday, the red metal has cracked US$6.40 per pound as a perfect storm of low supply and high demand takes hold. Copper is one of the world’s hottest metals right now. Its uses stretch from electric vehicles to solar panels and data centres. Indeed, electric vehicles require significantly more copper than traditional internal combustion vehicles, indicating that demand isn’t going away anytime soon.

Copper happens to be one of BHP’s most significant operations, with the mining pivoting decisively to a focus on copper a few years ago. This seems to be paying off well for the company, considering today’s new share price heights.

BHP share price snapshot

BHP shares have had an extraordinary year in 2026. The miner is currently up a whopping 34.25% year to date so far, a gain that stretches to 56.75% over the past 12 months. If an investor was lucky enough to buy BHP shares in April of last year, they would be up mor ethan 73% today.

At the current BHP share price, this ASX 200 mining stock is trading on a market capitalisation of just under $313 billion, with a trailing dividend yield of 3.18%.

The post BHP shares just hit a new all-time high. Here’s why appeared first on The Motley Fool Australia.

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• BHP shares regain their market crown as CBA slides 10%
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• Why are Sandfire, Capstone and BHP shares jumping in Wednesday’s sinking market?
• $10,000 invested in BHP shares 12 months ago is now worth…
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

CSL Ltd (ASX: CSL)

According to a note out of Morgans, its analysts have retained their buy rating on this biotech giant’s shares with a reduced price target of $147.59. Morgans was disappointed to see CSL downgrade its guidance for FY 2026 due to China Albumin price pressure, US immunoglobulin channel inventory normalisation, and other impacts. However, it notes that the issues are being framed as primarily executional rather than structural, with infrastructure overbuild, organisational complexity, and weak commercial execution cited. So, with underlying demand and industry structure remaining healthy, Morgans thinks it is worth sticking with CSL and sees significant value in its shares at current levels. The CSL share price is trading at $99.13 on Wednesday.

Life360 Inc (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company’s shares with a trimmed price target of $32.50. Bell Potter was pleased with Life360’s performance in the first quarter, highlighting that it outperformed expectations for everything but monthly active users (MAUs). Life360 recorded 2 million MAU additions, compared to Bell Potter’s 2.6 million estimate. However, this was due to technical issues, which have since been resolved. In light of this and recent share price weakness, Bell Potter thinks investors should be snapping up the company’s shares while they can. The Life360 share price is fetching $18.69 at the time of writing.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their outperform rating on this cloud accounting platform provider’s shares with a lowered price target of $223.60. According to the note, the broker is feeling bullish on Xero ahead of the release of its FY 2026 result on Thursday. It highlights that industry feedback in the United States has been positive, which suggests that subscriber growth could be strong in the key market. Macquarie is also feeling upbeat on Xero’s AI offering and suspects that it could boost its average revenue per user metric. The Xero share price is trading at $80.80 this afternoon.

The post Top brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• Down 59%: Will CSL shares ever regain momentum?
• Life360 shares rebound 4.5% today: Buy, sell or hold?
• Is CSL now an ASX dividend stock to buy?
• Does Bell Potter think the Life360 share price is dirt cheap?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in CSL, Life360, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Life360, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Life360, Macquarie Group, and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are having a rough day.

On Wednesday afternoon, the banking giant’s shares are down 10% to $154.71.

That follows the release of its third-quarter results this morning. 

However, I would be careful about blaming the entire move on the result itself. The broader market is also under pressure, and investors may still be digesting the Federal Budget and what it means for banks, households, housing, and the economy.

Even so, CBA’s result is the main event today. And while the share price reaction is sharp, I do not think the update changes the long-term quality of the business.

Here are my three key takeaways.

CBA’s profit result was steady, not spectacular

The first takeaway is that CBA continues to perform solidly, even if this was not a result that was likely to excite the market.

The bank reported unaudited cash net profit after tax of approximately $2.7 billion for the quarter. This was down 1% on the average quarterly profit from the first half, but up 4% on the prior corresponding period.

Operating income was flat for the quarter, with lending and deposit volume growth offsetting the impact of two fewer days. CBA also noted that its underlying net interest margin was broadly stable excluding non-recurring tailwinds.

I think this is a reasonable performance in a tougher environment.

Banks are dealing with competition in mortgages and business lending, higher funding costs, more cautious consumers, and rising macroeconomic uncertainty. Against that backdrop, a stable underlying margin and modest profit growth compared with last year are not bad outcomes.

The challenge is valuation.

CBA shares were priced for a lot of good news before today’s fall. So, a steady update may not have been enough to satisfy investors after such a strong run.

Credit quality is still sound, but caution is rising

The second takeaway is that CBA is preparing for a tougher economic backdrop.

Loan impairment expense was $316 million for the quarter, and the bank increased the forward-looking component of collective provisions by $200 million. Management said this reflected revised macroeconomic forecasts and a higher weighting to its downside scenario.

That is worth watching.

CBA also reported that consumer arrears and corporate troublesome and non-performing exposures increased during the quarter. Home loan and credit card arrears rose modestly due to seasonality, while personal loan arrears increased by 30 basis points.

I do not see this as a reason to panic.

The bank said underlying portfolio credit quality remains sound, actual losses remained low, and provision coverage remains strong.

But it does show that CBA is not operating in a risk-free environment.

Higher energy prices, interest rates, and supply chain disruption are all putting pressure on households and businesses. If those pressures last longer than expected, investors may need to be more patient.

The balance sheet remains a major strength

The third takeaway is the strength of CBA’s balance sheet.

This is still one of the main reasons I rate the bank so highly.

CBA finished the quarter with a customer deposit funding ratio of 79%, a liquidity coverage ratio of 133%, and a net stable funding ratio of 116%. Its CET1 capital ratio was 11.6%, which remains comfortably above APRA’s minimum requirement of 10.25%.

That gives the bank flexibility.

It can keep supporting customers, funding growth, paying dividends, and absorbing shocks from a more uncertain economy.

CBA also noted that it paid $3.9 billion in dividends during the quarter, benefiting more than 800,000 direct shareholders and more than 14 million Australians through superannuation.

That reminds investors why the stock remains so popular.

Foolish takeaway

CBA shares are down heavily today, and I can understand why some investors may want to pause before buying.

The result was solid, but the valuation was high, the broader market is weak, and the economic backdrop has become more complicated.

That said, I still think CBA is a very high-quality ASX bank.

It has a strong balance sheet, deep customer relationships, a powerful deposit franchise, and a long record of rewarding shareholders.

For me, the sharp fall does not make CBA a bad business. But after such a big move, I would be inclined to let the dust settle before rushing in.

The post Down 10%: 3 key takeaways from CBA results appeared first on The Motley Fool Australia.

More reading

• BHP shares regain their market crown as CBA slides 10%
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Why are CBA shares crashing 8% today?
• Why the big four banks could keep delivering for income investors

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

It has been a rough year for ASX property shares, but one beaten-down name is finding some support today.

At the time of writing, the Lendlease Group (ASX: LLC) share price is up 2.31% to $3.10.

That gives shareholders some relief, but it does not change the bigger picture. Lendlease shares remain down more than 40% in 2026 and have fallen around 43% over the past year.

The latest buying appears to be tied to speculation around the property group’s next chief executive.

Let’s take a closer look.

CEO search heats up

The move comes after The Australian reported that Lendlease may be close to announcing its next CEO. Current boss Tony Lombardo is due to step down after the company releases its full-year results on 17 August.

According to the report, the search has not been straightforward.

The company has been looking for a new leader at a difficult time. Lendlease has been hit by weak returns, high debt, project writedowns, along with investor frustration.

The Australian said chief investment officer Penny Ransom had been viewed as a serious internal contender. However, the latest speculation points to a possible external candidate from Asia.

That would make sense in some ways. Lendlease has been pulling back from international construction, but it still wants to grow its investment platform across Australia and Asia.

A tough job awaits

Whoever gets the top job will takeover a company still trying to fix years of underperformance.

Lendlease reported a statutory loss of $318 million for the first-half of FY26. That included non-cash revaluations and impairments, while segment EBITDA came in at $204 million.

The company has been trying to simplify the business, sell assets, reduce risk, and recycle capital back into areas with better returns.

While there has been some progress, the half-year update showed $1.8 billion raised across Australian and Asian investment mandates.

But investors are still waiting for proof that the turnaround will lead to stronger earnings.

The company also needs to hold on to major funds management relationships, including the Australian Prime Property Funds (APPF) platform. The Australian reported that losing APPF could knock about 9% from net profit, based on analyst estimates.

Foolish takeaway

Lendlease shares have had a rough run, and the latest CEO talk shows investors are watching the leadership change closely.

A new leader could help steady confidence. But the bigger issue is whether Lendlease can turn asset sales and cost cuts into better earnings.

The post Why this ASX property stock is rising despite a brutal 40% slide appeared first on The Motley Fool Australia.

More reading

• BHP shares just hit a new all-time high. Here’s why
• Top brokers name 3 ASX shares to buy now
• Down 10%: 3 key takeaways from CBA results
• BHP shares regain their market crown as CBA slides 10%
• Buying Telstra shares today? Here’s the dividend yield you’ll get

Motley Fool contributor Aaron Teboneras 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.

BHP Group Ltd (ASX: BHP) shares are once again at the top of the S&P/ASX 200 Index (ASX: XJO).

BHP shares are up 3.4% to $61.75 currently after resetting their record high at $62.30.

This gives the mega miner a market capitalisation of $303.76 billion, according to the ASX.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) shares are down 10% to $154.41 — a near record one-day fall.

This follows the bank’s 3Q FY26 update. This gives CBA shares a market capitalisation of $287.11 billion.

BHP shares back on top of ASX 200

BHP and CBA shares have played musical chairs over the past year, unseating each other at the top of the charts on several occasions.

But perhaps BHP shares will sit at the top of the table for a longer period now.

Australia’s largest miner has several tailwinds today, while Australia’s largest bank faces macroeconomic challenges.

BHP shares are benefitting from soaring copper prices, with the red metal reaching a record US$6.58 per pound on Wednesday.

That’s a big deal for BHP, given copper now represents more than half of its earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Analysts at Trading Economics say today’s record copper price is largely due to stronger Chinese demand and growing supply concerns.

Recent data suggested resilient industrial activity in China despite geopolitical headwinds, while consumption remained robust across power grids, renewable energy, and artificial intelligence-related infrastructure.

The ongoing rally in AI equities has also reinforced expectations for continued investment in data centers, further supporting copper demand.

The build-out of data centres, which requires a lot of copper and silver, is now so significant in Australia that it was directly identified as contributing to our first monthly trade deficit since 2017.

The Australian Bureau of Statistics attributed a sharp rise in imports in March partly to automatic data processing equipment, representing the surging investment in data centres.

On top of this, BHP shares are also benefiting from the same long-term tailwinds boosting all mining shares these days.

They include the green energy transition, volatile geopolitics creating higher demand for resources and critical minerals to attain more self-sufficiency, investment in artificial intelligence (AI), and supply-side constraints for multiple industrial metals.

Meanwhile at CBA…

Meanwhile, CBA shares have some tailwinds, as today’s update from the bank showed.

CBA reported an unaudited cash net profit after tax (NPAT) of $2.7 billion. That was 1% lower than the quarterly average for 1H FY26.

Net interest income rose 1% due to lending and deposit volume growth, earnings on the replicating portfolio, and higher deposit margins.

This was partially offset by cash rate lag, lending competition, the lower New Zealand dollar, and two fewer days in the quarter.

CBA also lifted its provisions given the uncertain economic outlook.

For 3Q FY26, CBA’s loan impairment expense was $316 million.

The bank raised the forward-looking component of collective provisions by $200 million to account for greater geopolitical and economic risks.

CBA CEO Matt Comyn also commented on weakening consumer sentiment, which has plunged to its lowest level since the pandemic.

Comyn said:

Many Australian households and businesses are navigating cost-of-living pressures from higher energy prices and interest rates.

Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty.

He added:

We are closely monitoring the impacts of the Middle East conflict and the broader macroeconomic environment.

The Australian economy continues to demonstrate resilience, but supply chain disruptions, higher prices and interest rates are expected to weigh on household spending and business activity.

The post BHP shares regain their market crown as CBA slides 10% appeared first on The Motley Fool Australia.

More reading

• BHP shares just hit a new all-time high. Here’s why
• Down 10%: 3 key takeaways from CBA results
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday

Motley Fool contributor Bronwyn Allen has positions in BHP 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 recommended BHP 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 considering buying shares of ASX 200 telco Telstra Group Ltd (ASX: TLS) today, chances are you are doing so with an eye on this company’s famous dividend.

Ever since Telstra was incrementally privatised and floated onto the ASX back in the 1990s and 2000s, its shares have been known for the fat, and usually fully-franked dividends they shower on shareholders’ shoulders.

Of course, Telstra’s dividend chops aren’t as beefy as they used to be. If you bought Telstra between 2005 and 2016, you would have become used to bagging a fully-franked dividend yield of 6% or even 7%.

Those days are, sadly, over. But even so, Telstra has proved itself a winning dividend share in recent years. To illustrate, Telstra shareholders haven’t seen a dividend cut since 2019 and have enjoyed an annual dividend increase every year since 2022.

So, where does this stock’s dividends stand in May 2026?

What kind of dividend yield are Telstra shares offering?

Well, Telstra has paid out two dividends over the past 12 months, as is its norm. We had last year’s final dividend from September, worth 9.5 cents per share, fully franked. That represented a 5.56% hike over 2024’s final dividend of 9 cents per share.

Then, this year, we saw Telstra announce an interim dividend of 9.5 cents per share. That matched the equivalent payout of 2025. However, this latest interim dividend was unusual. It was the first dividend Telstra has paid out in a very long time that didn’t come with full franking credits attached. Yes, it was partially franked at 90.48%, so not a huge impact for investors. But still, the symbolism is notable.

So, we have an interim dividend worth 9.5 cents per share, and a final dividend also worth 9.5 cents per share. This annual total of 19 cents per share gives Telstra a trailing dividend yield of 3.8%. That’s at the current (at the time of writing) share price of $5.27.

Remember, a trailing dividend yield only represents a company’s past payouts. It does not mean that investors buying Telstra shares today are guaranteed to get a 3.8% return on their investment from dividends.

Saying that, experts are optimistic when it comes to Telstra’s potential future payouts. My Fool colleague Tristan looked at this just this week. He found that analysts are pencilling in an annual dividend of 21 cents per share for FY 2026, rising to 22 cents by FY 2027, and 23 cents by FY 2028.

Of course, those are just predictions. We’ll have to wait and see what Telstra’s next dividend will look like.

The post Buying Telstra shares today? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

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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 positions in and has recommended Telstra Group. 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 are edging higher on Wednesday, but investors are still dealing with a bruising week.

At the time of writing, the DroneShield share price is up 1.26% to $3.22.

That follows a 9.92% fall on Tuesday after the company confirmed it had received a notice from the corporate regulator.

The stock is now down almost 15% over the past week and remains a long way below its 52-week high of $6.71.

So, can this former market darling get back there?

ASIC notice rattles investors

Tuesday’s sell-off came after DroneShield told the market it had received a notice from ASIC.

The company said ASIC has required it to provide reasonable assistance in connection with an investigation under the Corporations Act.

DroneShield said the investigation relates to announcements and information provided to the ASX between 1 November and 20 November 2025. It also relates to trading in DroneShield shares between 6 November and 12 November 2025.

The company said it will cooperate fully with the investigation.

At this stage, the key uncertainty is what comes next. DroneShield said it is not clear what action, if any, may result from ASIC’s investigation, leaving investors to weigh the risk with little detail.

November is back in focus

The ASIC notice has dragged last November’s share sales back into the spotlight.

According to The Australian, ASIC is looking at share sales involving former CEO Oleg Vornik, former Chair Peter James, and another Director. The inquiry also covers disclosures made around that period, including a contract that had already been announced.

DroneShield has been one of the ASX’s more volatile names over the past year. It has also been one of the more closely watched.

The company operates in a popular part of the market, with its counter-drone technology sitting across defence, government, law enforcement, airports, and critical infrastructure.

The numbers are still strong

The difficult part for investors is that the latest operating numbers were very strong.

In its March quarter update, DroneShield reported revenue of $74.1 million, up 121% on the prior corresponding period.

Customer cash receipts reached a record $77.4 million, up 360% on the prior corresponding period.

SaaS revenue also rose to $5.1 million, while net operating cash flow came in at $24.1 million.

The balance sheet also looked healthy, with DroneShield finishing the quarter with $222.8 million in cash and no debt.

Foolish Takeaway

DroneShield still has a lot going its way.

The business is growing quickly, demand for counter-drone technology remains supportive, and the company has a healthy cash position.

But the ASIC investigation has added a layer of uncertainty that investors cannot ignore.

Getting back to $6.71 would mean the share price has to more than double from current levels.

While that’s a big move, it’s not impossible if DroneShield keeps delivering and the ASIC matter clears without serious damage.

The post Can DroneShield shares climb back to their $6.71 high? appeared first on The Motley Fool Australia.

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

Healius Ltd (ASX: HLS) shares are having a horror session on Wednesday.

In afternoon trade, the ASX 300 share is down 23% to a multi-year low of 37.2 cents.

Why is this ASX 300 share crashing today?

The selling has been sparked by the release of a trading update for FY 2026, which points to a challenging operating environment for the pathology company.

According to the release, Healius now expects group underlying EBITDA of between $259 million and $264 million for FY 2026. It also expects group underlying EBIT of between $30 million and $35 million.

This compares positively to underlying EBITDA of $239.3 million and underlying EBIT of $17.1 million in FY 2025.

Pathology pressures continue

However, taking some of the shine off the profit update was an update on trading conditions.

Management advised that there is ongoing pressure in Healius’ pathology business.

For the first half, pathology volumes grew by 1.2% and revenue increased by 3.5%. However, momentum appears to have weakened since then.

For the 10 months to April 2026, pathology volumes declined by 0.4%, while revenue growth slowed to 2.4%.

This is a concern because the division remains the company’s core business.

GP attendances have also been soft, falling 1.5% in the first half and 1.0% for the January to March period.

Wage costs add another headwind

Healius has been working to contain costs, with pathology costs rising just 1.1% for the 10 months to April 2026.

However, wage pressure is now emerging as a fresh challenge.

The company advised that pathology labour costs will be impacted by $1.8 million in the fourth quarter due to the Fair Work Commission’s initial findings on gender-based undervaluation.

Pathology collectors received an increase from 1 April 2026, with further increases still to come.

Healius said pathology labour costs have now increased 0.8% for the 10 months to April 2026, whereas previous guidance had been for broadly flat labour costs for FY 2026.

The company is now undertaking a strategic review of its Agilex Biolabs and could consider selling the business.

Federal Budget disappointment

Another negative in the update was Healius’ response to the Federal Budget.

The ASX 300 share said this year’s Federal Budget contained no new funding for pathology, despite the sector facing rising wage costs and an ongoing indexation freeze for most tests.

Management warned that inadequate funding has forced difficult decisions, including cutting staff, closing collection centres, and closing regional laboratories.

The company also said out-of-pocket fees for pathology tests may be the only viable option left to bridge the funding gap.

Overall, today’s update highlights a difficult mix of slowing pathology volumes, rising wage costs, limited government funding support, and pressure on earnings.

That combination appears to have spooked investors and sent the ASX 300 share sharply lower.

The post Why is this ASX 300 share crashing over 20% today? 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.