Category: Stock Market

Major blue-chip shares like Commonwealth Bank of Australia (ASX: CBA) are a popular choice for investors seeking reliable passive income.

Bank stocks are generally considered cyclical rather than classically defensive, but large-scale banking giants like CBA certainly have defensive qualities.

Banking and credit are usually seen as an essential service. This means the sector can remain relatively stable in times of economic volatility.

As a result, banks like CBA are able to record a consistent operational performance and earnings, even when markets are mostly weak.

Another bonus is that the bank is huge, dominant, and highly profitable. This means investors generally consider it a safe haven when markets are unstable. Scarcity of quality stocks on the ASX also means investors tend to put major players, like CBA, on a pedestal. 

Its huge scale has enabled the bank to generate a long history of paying a regular fully-franked dividend every year, dating back to 1992. 

Generally, CBA has also raised its dividend over time as profits have grown, with the exception of periods of economic decline, such as the Global Financial Crisis in 2008-09 and during COVID-19.

How many CBA shares can you get for $5,000?

At the time of writing, CBA shares are trading at $162.64 a piece.

That means that your $5,000 investment would buy around 30 of the ASX bank’s shares. 

What dividend does CBA pay its shareholders?

The banking giant pays its shareholders two fully-franked dividends per year, in March and September.

CBA most recently paid its shareholders an interim dividend of $2.35 per share, fully franked, in March this year.

Based on the latest forecasts, the bank is forecast to pay a total dividend of $5.15 in FY26. It is then forecast to pay shareholders $5.45 per share in FY27.

Based on the current share price of $162.64, that translates to a forward dividend yield of around 3.2% for FY26. For FY27, the forward dividend yield is closer to 3.4%, at the time of writing.

So, what’s the estimated passive income for FY26 and FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in CBA shares. 

If the banking giant pays the expected $5.15 per share in FY26, then your 30 CBA shares would generate a total of $154.50 in passive income.

Assuming the $5.45 dividend forecast for FY27 also comes to fruition, your 30 shares would generate an estimated $163.50 in passive income for the year.

Does that mean CBA shares are a good buy for passive income?

CBA shares are currently viewed as overvalued versus its peers. And if the highly anticipated share price correction actually happens, it could affect the amount of passive income paid to shareholders.

But keeping in mind that ASX bank stocks are cyclical investments, even a near-term decline could rebound in the mid-term. I personally think CBA shares are still a solid investment for passive-income-seeking investors.

The post If I invest $5,000 in CBA shares today, what passive income would I get in FY27? appeared first on The Motley Fool Australia.

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• Brokers rate these 4 ASX 200 shares as a sell!
• Here’s the dividend forecast out to 2027 for CBA shares

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

Goodman Group (ASX: GMG) has been one of the most interesting real estate investment trusts (REITs) to have watched on the ASX over the past decade or so. Heck, it’s been one of the most interesting stocks in the S&P/ASX 200 Index (ASX: XJO).

Goodman spent years as a clear market darling. Its units rocketed 50% between late 2014 and late 2017, and then by another 210% or so between 2017 and 2021.

The REIT’s fortunes have been far more volatile since. To illustrate, Goodman lost more than 40% of its value over the first two-thirds of 2022, only to regain it all and then some by early 2025. But the past 18 months or so have once again seen the pendulum swing back, with Goodman today more than 15% away from its all-time high of over $38 a share at current pricing.

Indeed, at today’s price (at the time of writing) of $32.26 a unit, Goodman has spent the past 12 months drifting 6.6% lower.

This fluctuating unit price is only one of the characteristics of this ASX REIT that arguably make it interesting, though. Another is its income potential.

Most investors know REITs as generous providers of dividend income, albeit typically without franking credits.

For example, popular REITs like Scentre Group (ASX: SCG) and Charter Hall Long WALE REIT (ASX: CLW) are currently offering yields of 4.6% and 6.75%, respectively.

Yet Goodman is a conspicuous miser, trading on a trailing yield of just 0.75% today. Even so, Goodman remains a popular ASX investment. So today, let’s talk about whether it can be considered a worthwhile income investment too.

Is Goodman Group a buy for ASX dividend income in 2026?

If you are searching for a fat yield, Goodman is probably not the stock for you. Unlike most of its REIT peers, Goodman is still very much in growth mode. The company clearly prioritises expansion of its property portfolio over paying out dividend distributions as income to its shareholders.

Goodman is well-known for its investment in future-facing industries. Most of its best properties are used for data centres, logistics warehousing, and e-commerce fulfilment.

The company’s results and focus are clearly on expanding its investments in these areas further, not on providing its investors with a large, rising yield. This is evidenced by its recent payouts. Goodman has consistently paid two dividends of 15 cents per unit each year since 2019. That doesn’t look like it will change in 2026 either.

This indicates that the REIT is not likely to pivot to an income-prioritising strategy anytime soon.

Investors invest in Goodman Group for the capital growth potential, not its dividend prowess. As such, ASX investors looking for dividend income might wish to look elsewhere.

The post Is Goodman Group a buy for dividend income today? appeared first on The Motley Fool Australia.

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• How to make $2,000 of monthly passive income from ASX shares
• Want to retire earlier? This mix of ASX shares and ETFs could help
• 6 ASX 200 shares with fresh buy ratings this week
• Brokers rate these 6 ASX 200 shares a strong buy, and tip upsides of up to 227%
• Goodman Group announces June 2026 distribution

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 positions in and has recommended Goodman Group. 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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are in the spotlight again on Wednesday.

In morning trade, the defence and space company’s shares are up 9% to $9.52.

This compares favourably to the S&P/ASX 200 Index (ASX: XJO), which is largely flat at the time of writing.

In addition, it means that EOS shares are now up a remarkable 240% over the past 12 months.

To put that into context, a $5,000 investment a year ago would now be worth over $17,000.

Why are EOS shares storming higher again today?

Investors have been scrambling to buy the company’s shares today after it announced another big contract win for the recently acquired MARSS business.

According to the release, EOS’ Command and Control (C2) business, MARSS, has been selected as C2 provider for the BAE Systems (LSE: BA.) Anti Threat System (BATS). It is a next-generation, counter-drone (CUAS) capability.

Management advised that the MARSS NiDAR platform will serve as the intelligent “nerve centre” for BAE Systems’ Anti Threat System. Its AI-powered C2 platform, NiDAR, will be used to integrate sensors and effectors across the defence giant’s global BATS CUAS capability.

The company believes this selection by BAE Systems underscores MARSS’ position as one of very few companies with the ability to deliver advanced, AI-powered C2 platforms that accelerates decision-making from minutes to seconds across detection, classification, and defeat.

It thinks this capability positions MARSS as an ideal partner to support BAE Systems as it delivers market-leading CUAS solutions to meet the growing demand from NATO and international clients.

EOS advised that the collaboration agreement was signed at the Eurosatory Defence and Security Exhibition in Paris.

MARSS will provide both software licensing and technical support for BAE Systems’ CUAS demonstrations and deployments. It notes that in time, this may give rise to customer contracts for BAE Systems and for MARSS.

Should you invest?

While it has not had time to respond to today’s news, Bell Potter has been positive on EOS shares. Late last month, the broker put a buy rating and $10.60 price target on them.

In light of this, despite its heroics over the past 12 months, it is possible that there could still be more gains to come for shareholders over the next 12 months.

Time will tell if that proves accurate, but contract wins like the one with BAE Systems certainly help the bull case.

The post EOS shares rocket 9% on BAE Systems deal appeared first on The Motley Fool Australia.

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• EOS shares are sliding again. Here’s what investors are worried about
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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 Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BAE 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.

The S&P/ASX 200 Index (ASX: XJO) is just about flat today, despite the best lifting efforts of this ASX 200 stock.

The outperforming company in question is Sims Ltd (ASX: SGM).

Shares in the metal and electronics recycler closed yesterday trading for $29.44. In early morning trade on Wednesday, shares are changing hands for $31.04 apiece, up 5.4%. That gives Sims a market cap of just over $6 billion.

It also sees the ASX 200 stock up 98.9% since this time last year. And brave, or well-informed, investors who waded in and bought shares at the one-year closing lows of $13.27 on 1 October will now be sitting on gains of 133.9%.

Here’s what’s grabbing investor interest today.

ASX 200 stock jumps on earnings upgrade

The Sims share price is marching higher after the company released a promising trading update.

Investors are bidding up the ASX 200 stock, with Sims upgrading its FY 2026 underlying earnings before interest and tax (EBIT) guidance to the range of $420 million to $435 million.

That’s up from prior full-year EBIT guidance in the range of $350 million to $400 million, which the company provided on 18 March.

Management cited “continued strength across non-ferrous markets, as well as improved trading conditions for ferrous” for the improved earnings outlook.

Sims said it now expects its North American Metal businesses to deliver “a significant increase” in second-half earnings (H2 FY 2026). Earnings are likely to get a boost from strong operating performances across both Sims North America Metals and SA Recycling.

The ASX 200 stock noted that ferrous prices in Asia have recently improved. However, prices in ANZ were reported to remain subdued due to ongoing elevated Chinese steel exports.

The company also said that its Sims Lifecycle Services business continues to “benefit significantly” from the fast-growing global data centre ecosystem.

With that in mind, management now expects the underlying FY 2026 EBIT for Sims Lifecycle Services to be in the range of $170 million to $175 million.

The company noted:

While the business continues to benefit from strong underlying demand and favourable long-term industry trends, the timing of customer decommissioning programs will influence the distribution of volumes and earnings between reporting periods.

What’s been boosting Sims shares?

As today’s update confirms, the ASX 200 stock has been enjoying a strong run this year.

At its half-year results (H1 FY 2026), released on 17 February, the company reported a 65.9% year-on-year increase in underlying EBIT to $121.1 million.

And on the bottom line, net profit after tax (NPAT) surged 70.9% to $60 million.

The post Up 134% since October, why is this $6 billion ASX 200 stock leaping higher again today? appeared first on The Motley Fool Australia.

More reading

• Sims lifts outlook as North American metals drive gains
• 7 ASX shares attracting upgraded ratings this week
• Here are the top 10 ASX 200 shares today
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Flight Centre Travel Group Ltd (ASX: FLT) shares are having a volatile start to trade on Wednesday.

The travel agent’s shares were down 4% at one stage before rebounding to be 2.5% higher at $12.12.

Why were Flight Centre shares sinking?

Investors were selling the company’s shares after it downgraded its earnings guidance for FY 2026.

According to the release, less than a month since its last trading update, management has revised its underlying profit before tax guidance range to $275 million to $295 million.

This is below its previous guidance range of $310 million to $345 million, with the mid-point of its new range broadly in line with FY 2025’s underlying profit before tax of $286 million.

Management stressed that this reflects temporary, conflict-driven headwinds, and is not a deterioration in the underlying business, which grew underlying profit before tax almost 10% over the first three quarters.

It notes that fourth-quarter disruption is expected to reduce leisure earnings by around $50 million, compared to previous expectations, with a further $5 million impact in touring businesses and a $5 million to $10 million foreign exchange impact.

One bright spot is that its global corporate business has been less affected and is on track to deliver strong FY 2026 profit growth.

Looking ahead, management is hopeful that the US-Iran peace deal agreed this week will provide a clearer runway into FY 2027 and a significant earnings tailwind. However, it is unlikely to meaningfully improve the FY 2026 result trajectory given its timing.

However, this guidance downgrade has been overshadowed by news that the company is launching a buyback.

Management commentary and buyback

Commenting on the guidance downgrade, Flight Centre’s managing director, Graham Turner, said:

The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year. It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business.

Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25.

Turner also revealed that Flight Centre plans to buy back up to $200 million of shares on the belief that they are undervalued. He adds:

Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board’s decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.

In leisure, our strategy continues as we work to strengthen Flight Centre brand, expand in growth sectors, including cruise, tour and luxury, and embed the new World360 Rewards program, which now has more than 420,000 members. The $200m profit milestone the business was on track to achieve during FY26 remains a viable, near-term target given that travel downturns are historically short and followed by rapid rebounds

The post What’s going on with Flight Centre shares today? appeared first on The Motley Fool Australia.

More reading

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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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company reported US$80 million in adjusted EBITDA from operations for April and May 2026, with operations rebounding strongly in May. Key highlights also include an expected US$70 million working capital distribution and progress at the Excelsior Nickel Cobalt HPAL project.

What did Nickel Industries report?

• Adjusted EBITDA from operations of approximately US$80 million for April and May 2026
• April EBITDA of US$29 million impacted by Hengjaya Mine downtime and planned maintenance
• May EBITDA rebounded to approximately US$51 million
• Release of RKEF working capital with ~US$70 million to be received by early July 2026
• Refund of US$15 million option fee from Shanghai Decent relating to the ONI matte converter
• ENC project commissioning progressing, with first ore received in May and MHP expected by July

What else do investors need to know?

Nickel Industries opted not to move forward with its investment in the ONI matte converter, instead favouring HPAL technology, which supports higher margins and a greener production footprint. This led to a US$15 million refund from its largest shareholder, Shanghai Decent, highlighting collaboration and strong relationships.

The company’s strategic focus continues to be on developing the Excelsior Nickel Cobalt (ENC) HPAL project, which is receiving ore and progressing toward producing mixed hydroxide precipitate (MHP) by mid-July 2026. Nickel cathode production is on track for mid-August, while commissioning of the refinery and leach-circuit is due in late June, aiming to register its cathode with the LME and SHFE.

What did Nickel Industries management say?

Managing Director Justin Werner said:

We are very pleased with the Company’s recent performance. After a softer April, impacted by downtime at the Hengjaya Mine and planned maintenance at the RKEFs, our operations rebounded strongly in May to deliver approximately US$51m in Adjusted EBITDA, underscoring the quality and resilience of our asset base.

Our balance sheet also continues to strengthen, with our RKEF operations unwinding a substantial amount of working capital and Nickel Industries expects to receive around US$70m in distributions by early July. Together with the US$15m option-fee refund from Shanghai Decent, this reflects strong cash generation and disciplined capital management across our portfolio.

Commissioning of our transformational ENC project is well underway, with ore received at the limonite feed preparation plant in May, slurry to the ENC Smelter in the coming week, MHP anticipated by mid-July and nickel cathode expected by mid-August – defining milestones as we diversify our production towards the electric vehicle battery supply chain.

What’s next for Nickel Industries?

Looking ahead, the company is focused on ramping up production at the Excelsior Nickel Cobalt HPAL project. Expectations are for first mixed hydroxide precipitate production in July and first nickel cathodes by mid-August, which should strengthen the company’s position in supplying the global electric vehicle battery supply chain.

With the anticipated inflow of US$70 million from RKEF operations and cost discipline across its portfolio, Nickel Industries says it remains committed to sustainable growth, carbon footprint reduction, and capital management. The company is also targeting registration of its nickel cathode on major global exchanges in the coming months.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Nickel Industries posts US$80m EBITDA and HPAL progress in operating update appeared first on The Motley Fool Australia.

More reading

• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
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• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
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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 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.

If you have a high tolerance for risk, then it could be worth looking closely at Alpha HPA Ltd (ASX: A4N).

That’s because the team at Bell Potter believes this ASX 300 share could rise materially from current levels.

What is Alpha HPA?

Alpha HPA is the owner of the HPA First Project in Gladstone, Queensland, which is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery, and light emitting diode (LED) manufacturing sectors.

Bell Potter notes that the project’s proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.

The broker highlights that a recent update revealed letters of intent and commercial supply agreements. It said:

A4N’s positive marketing update points to product offtake Letters of Intent exceeding 12ktpa, further maturity in commercial supply agreements from Stage 1 production, adoption of HPA in semiconductor tooling, and product demand projections exceeding 50ktpa by 2030. Four new LOIs include: 324tpa for semiconductor thermal fillers (2 x LOIs to South Korea & Japan); 180tpa for catalyst applications; and up to 5,000tpa from a Tier-1 lithium-ion battery group which follows a multi-year cycle of product qualification.

Commercial supply agreements have been added with US and European semiconductor Chemical Mechanical Planarisation customers and with Japanese and South Korean semiconductor thermal filler customers. A4N’s modelling sees demand for key products HPA and High Purity ATH exceeding 50ktpa by 2030, including around 30ktpa from the semiconductor sector.

Bell Potter thinks this leaves the ASX 300 share well-placed to unlock its debt funding. It adds:

The update puts A4N in a strong position to meet Conditions Precedent to draw on its $400m debt funding from Export Finance Australia and the Northern Australia Infrastructure Facility. A key CP was 100% offtake coverage from Stage 2 (10ktpa). We expect that A4N will now be working with the lenders on the basis that a significant offtake threshold has been reached, to enable debt release in 2H 2026.

In the interim, A4N is well funded, with $212m cash at the end of the last quarter. A4N’s sales from its current smaller-scale Stage 1 facility are important market seeding to demonstrate the unmatched capability of A4N’s HPA First products. The demand modelling, in particular from the AI data centre-driven semiconductor sector, adds further confidence with respect to the debt CPs and future expansion potential.

Big potential returns for this ASX 300 share

According to the note, Bell Potter has retained its speculative buy rating and $1.50 price target on Alpha HPA’s shares.

Based on its current share price of 86 cents, this implies potential upside of approximately 75% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter concludes:

Over 2H 2026, we expect A4N to firm-up existing offtake LOI volumes and progress to sales contracts for Stage 2 capacity. A key catalyst will be drawing on the project’s committed NAIF and EFA debt facility, which we expect in 2H 2026. A4N’s recent commentary relating to potential volume expansions beyond Stage 2 give us further comfort on the long-term adoption of HPA by the semiconductor sector and therefore product demand. We have made no changes to our A4N valuation or positive outlook in this report.

The post Bell Potter says this ASX 300 share could rise 75% appeared first on The Motley Fool Australia.

More reading

• Got $10,000? I’d buy these ASX 200 shares right now
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• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains

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.

If I had $10,000 to invest in S&P/ASX 200 Index (ASX: XJO) shares today, I would focus on quality rather than chasing the market’s most speculative names.

These are two ASX 200 shares I would consider buying right now.

ResMed Inc (ASX: RMD)

ResMed is an ASX 200 share I would consider buying today with part of the $10,000.

The company is a global leader in sleep apnoea treatment and connected care. Its devices help patients start therapy, while masks, accessories, software, and data tools support ongoing treatment.

What I like about ResMed is the combination of medical need and repeat use.

Sleep apnoea is not a one-off issue for many patients. Once someone is diagnosed and starts therapy, they tend to need ongoing support, replacement masks, accessories, monitoring, and software-linked care.

That can create a strong relationship between the company, clinicians, providers, and patients, as well as recurring revenue.

I also like that the market opportunity remains very large. Sleep health is still underdiagnosed in many places, and awareness should keep improving as healthcare systems focus more on chronic conditions, fatigue, cardiovascular risk, and quality of life.

ResMed is not immune to competition, pricing pressure, product cycles, or regulatory changes. Investors also need to watch how weight-loss drugs affect diagnosis and treatment behaviour over time.

But I think it has a strong global position in the healthcare market, which should remain important for decades to come.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX 200 share I would buy is the Commonwealth Bank of Australia.

CBA often looks expensive compared with the other major banks. That is a fair point, and valuation always needs to be considered.

But I think CBA’s premium reflects a genuinely strong franchise.

The bank has a central role in Australian financial life. It touches mortgages, deposits, everyday transaction accounts, credit cards, business banking, merchant services, payments, and digital banking.

That gives CBA scale, data, trust, and regular customer engagement.

I think the digital side is particularly important to the investment thesis. Banking is not just about branch networks anymore. Customers expect fast apps, simple payments, useful tools, and a reliable experience. CBA has invested heavily in that area, and I think it helps strengthen the customer relationship.

Bad debts, margins, funding costs, and regulation remain risks. But I believe CBA has the management team and franchise strength to navigate these risks over time and continue growing earnings and dividends.

Foolish Takeaway

A $10,000 investment can be split across businesses that do very different things.

I would want companies with strong positions, long-term relevance, and the ability to keep adapting as conditions change. These two shares will not be perfect in every market environment, but I think they offer a useful blend of quality, growth, income potential, and resilience.

That is why I would be happy to put money into them today.

The post Got $10,000? I’d buy these ASX 200 shares right now appeared first on The Motley Fool Australia.

More reading

• Forget CBA and buy these ASX dividend shares
• What does the RBA decision mean for the big four bank shares?
• 6 ASX 200 shares with fresh buy ratings this week
• Brokers rate these 4 ASX 200 shares as a sell!
• Here’s the dividend forecast out to 2027 for CBA shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for a combination of major upside and a generous dividend yield, then read on!

That’s because Bell Potter has just picked out one ASX stock that it believes offers both.

Which ASX stock?

The stock that Bell Potter is positive on is Dexus Convenience Retail REIT (ASX: DXC).

It owns a portfolio of 91 service stations and convenience retail assets positioned alongside major roads on the Eastern Australian seaboard.

Bell Potter highlights that the Dexus Convenience Retail REIT is differentiated by the high-quality and long-term tenants that it leases these assets to, including Chevron, 7-Eleven, United, Mobil, and Ampol (ASX: ALD).

Commenting on the company, Bell Potter points out that buybacks are currently more attractive than developments. It explains:

Buyback currently more attractive than developments – With a 7.9% earnings yield and c. 6.3% marginal cost of debt, the buyback generates a +1.6% positive spread per dollar deployed. Glass House Mountains Stage 2 offers a 5-6% yield on cost – a negative spread to funding costs, albeit with +1% NTA uplift. We estimate +0.4% FFO/share accretion in FY27 on completion of the remaining buyback, representing upside risk to our forecasts.

The broker has also been looking at electric vehicle adoption and the impact this may have on its service station tenants. It adds:

Tenants resilient in face of EV headwinds. While EVs reached 20% share of new vehicle sales in May 2026, fuel volumes and margins remain above pre-COVID levels. Non-fuel gross profit per site continues to grow, with Viva Energy (21% of DXC income) reporting +1.4% gross margin improvement to 38.8% in Q1 CY26.

Big total returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with a trimmed price target of $3.15 (from $3.25).

Based on its current share price of $2.67, this implies potential upside of 18%.

In addition, Bell Potter is forecasting dividend yields of 7.9% in FY 2026, 7.7% in FY 2027, and then 8.2% in FY 2028.

Speaking about its investment thesis, the broker said:

We maintain our Buy rating on DXC and lower our target price to $3.15. The buyback and developments offer attractive long-term returns, despite the short-term headwinds from rising bond yields. With our revised forecasts DXC is yielding 7.9% vs. 6.4% passive REIT average which we think offers compelling risk adjusted value, and at an implied 8.21% cap rate, despite recent asset sales supporting book value.

The post Buy this ASX income stock for 18% upside and 8% dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why this ASX REIT is climbing despite a rough year

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.

Space Exploration Technologies Corp (NASDAQ: SPCX) listed last week at US$1.75 trillion.

It was the largest IPO in stock market history. And it is just the beginning.

Anthropic is targeting a December 2026 public debut at a forecast first-day market cap of approximately US$1.1 trillion, according to the most current forecasts.

OpenAI, which filed its own confidential S-1 earlier this month, is expected to follow in early 2027 at a comparable valuation.

Together, SpaceX, Anthropic, and OpenAI represent a combined public market value approaching US$4 trillion.

For Australian investors who cannot buy any of these stocks on the ASX, the question is what it means for the companies they can buy.

Why these IPOs matter for ASX investors

The most important consequence of trillion-dollar AI IPOs is not the immediate share price movement in SPCX, Anthropic, or OpenAI.

It is the reallocation of institutional capital that follows.

When capital flows into public AI companies at these valuations, attention and money flow toward every company in the AI infrastructure supply chain, including those listed on the ASX.

The AI thesis is being publicly validated at a scale never seen before.

Three ASX stocks sit directly in the path of that validation.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is already living proof of the thesis.

The fund launched at $14 per unit on 12 May 2026, well before SpaceX listed. It surged approximately 30% in the weeks leading up to the SpaceX IPO as anticipation built.

This served to demonstrate how powerfully public AI IPOs move adjacent listed markets.

RCKT holds 28 companies across the global space economy, with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX itself will take time to enter the index, but the attention the listing generates flows directly into RCKT’s holdings.

As Anthropic and OpenAI approach their own listings later this year and in 2027, the same dynamic will play out across AI infrastructure stocks globally.

For ASX investors, RCKT captures that excitement in a single trade.

NextDC Ltd (ASX: NXT)

NextDC is Australia’s largest independent data centre operator and has the most direct relationship with the AI IPO wave of any ASX company.

OpenAI is NextDC’s foundational customer for its US$7 billion AI data centre campus in Western Sydney.

When OpenAI lists publicly at close to US$1 trillion, that customer relationship may be permanently reframed.

NextDC has already raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Morgans carries a buy rating on NextDC with a $19 price target, implying upside of approximately 36% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology Group plays a different but equally important role.

Anthropic’s Claude platform is already being deployed by Australian government agencies and critical infrastructure operators who cannot use offshore AI infrastructure.

Anthropic’s annualised revenue reportedly crossed $47 billion in May 2026, and the company is on track to post its first operating profit in Q2 2026.

As Anthropic’s public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

Macquarie Technology is the primary beneficiary of that demand, backed by a $200 million National Reconstruction Fund investment and 20 consecutive half years of operating income growth.

Canaccord Genuity upgraded MAQ shares following the NRF investment, predicting significant upside from current levels.

The risks

History offers a clear warning about mega-cap IPOs.

According to Professor Jay Ritter’s updated long-run IPO statistics, the average newly listed company underperforms its peers by approximately 8% per year over the five years following its debut.

If Anthropic or OpenAI disappoint in their early trading sessions, the repricing could weigh on AI infrastructure stocks.

Foolish Takeaway

SpaceX has listed. Anthropic targets December. OpenAI follows in 2027.

For ASX investors seeking exposure to the AI IPO wave without buying US-listed stocks, RCKT, NXT, and MAQ each offers a distinct way to participate.

The post After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know appeared first on The Motley Fool Australia.

More reading

• SpaceX shares are rocketing – how can Aussie investors get exposure?
• Where to invest $20,000 in ASX 200 shares in June
• 6 ASX 200 shares with fresh buy ratings this week
• Which top ASX tech shares would I buy for FY27?
• SpaceX IPO: Should you buy an ASX space ETF to cash in?

Motley Fool contributor Mark Verhoeven 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 AST SpaceMobile and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.