Santos Ltd (ASX: STO) shares spent much of 2025 under a cloud.

By Friday’s close, Santos shares sat at $6.15, down 20.4% in the past 6 months. Takeover drama, environmental criticism and regulatory headaches have all taken turns knocking the energy stock lower.

Still, some analysts reckon the selling may have gone too far. This begs the question, whether the ASX energy share is good value at this level.

Takeover chaos

Last year delivered no shortage of fireworks for Santos shares. A failed takeover attempt from an ADNOC-led consortium put Santos firmly in the spotlight. It exposed how quickly governance and regulatory hurdles can derail big-ticket deals and send the share price south.

Behind the noise, though, Santos continues to generate solid cash flow. Management is pushing ahead with LNG expansion plans while talking up carbon initiatives designed to keep the company relevant in a transitioning energy system.

Projects like Barossa are central to that strategy. Once online, Barossa is expected to lift LNG volumes to Asian markets that still want reliable, high-calorific gas. Santos has also locked in mid-term LNG supply contracts this year, a sign demand for its product hasn’t evaporated.

If those gains hold, stronger cash flow and more flexibility for shareholder returns should follow.

Size and geographics matter

Scale remains one of Santos’ biggest advantages. Alongside Barossa, the company’s projects in PNG and Alaska add geographic diversity and reduce reliance on any single asset.

Santos is also leaning hard into low-emissions technology, arguing it can keep producing gas while lowering its carbon footprint. Whether critics are convinced is another question, but the strategy matters as regulators and investors sharpen their focus on emissions.

Analyst’s takeout

This is no free kick. Operational disruptions from weather and outages, volatile gas prices and ongoing scrutiny of emissions programs keep Santos firmly in the risk column. Oil prices just experienced their worst year since 2020.

The failed takeover attempt also showed just how sensitive the stock can be to external shocks.

Despite the risks, analysts remain cautiously constructive. Santos offers exposure to a large, cash-generating gas producer with production growth ahead and a stated plan for lower-carbon operations.

The average 12-month price target sits near $7.30, implying 19% upside. Some analysts are significantly more optimistic and think the share price could climb to $8.73 next year. That represents an impressive 42% upside from the current trading price.

UBS is one of the brokers that rates the Santos share price as a buy, with a price target of $8.10. The broker said it thinks the company could generate US$1.5 billion of net profit in FY26 and US$1.7 billion in FY28.

The post Can Santos shares reignite after a 20% slide? appeared first on The Motley Fool Australia.

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

ASX 200 mining shares enjoyed a strong finish to 2025 after several commodities surged over the year.

The silver price rose by a staggering 147% and reached a record US$83.62 per ounce in December.

Demand for silver increased due to surging industrial usage and the US designating it a critical material.

The gold price increased another 65% in 2025, its greatest annual rise in more than four decades, building on its 27% gain in 2024.

Strong central bank purchasing, lower interest rates, and less confidence in the US dollar as the reserve currency fuelled the rally.

A Goldman Sachs poll conducted in November found that one in three institutional investors expect gold to rise above US$5,000 this year.

Lithium began a long-awaited recovery in July after three years of dramatic declines followed by stagnation.

The lithium carbonate price rose 58% in 2025 amid improving demand for batteries, EVs, and new infrastructure.

Analysts at Trading Economics say the lithium carbonate price is now at a 19-month high.

Copper, which is a key ingredient in electrification, rose 42% as the green energy transition pushed global demand higher.

Commodity price strength led to the materials sector experiencing the strongest capital growth of the 11 market sectors in 2025.

The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and produced total returns, including dividends, of 36.21%.

Materials outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 4:1.

The ASX 200 rose 6.8% and delivered total returns of 10.32%.

Mining stocks dominate the materials sector, so let’s check out the top performers of 2025.

5 best ASX 200 mining shares for capital growth

Pantoro Gold Ltd (ASX: PNR)

This ASX 200 gold share skyrocketed 220% to close out 2025 at $4.89.

Pantoro Gold only joined the benchmark index in the December quarter rebalance.

Its 52-week high in 2025 was $6.61.

Resolute Mining Ltd (ASX: RSG)

Fellow ASX 200 gold share Resolute Mining streaked 206% to finish the year at $1.23.

Its 52-week high was $1.32.

Liontown Ltd (ASX: LTR)

The Liontown share price roared 197% higher to finish the year at $1.58.

The ASX lithium share’s 52-week high was $1.75.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price exploded 196% to close at $7.55 on 31 December.

The ASX 200 gold share’s 52-week high was $7.83.

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price soared 194% to close out the year at $7.25.

Its annual high was $7.63.

The post 5 best ASX 200 mining shares of 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) have delivered one of the strongest performances on the ASX over the past year. In fact, the stock ranked 4th for share price growth within the S&P/ASX 300 Index (ASX: XKO).

The defence technology company’s shares surged 668% in 2025, closing last week at $9.95, just below record highs. So, is it too late to buy?

Based on what’s building inside the business, I don’t think it is.

Here’s why I believe EOS shares could reach $15 in 2026.

This is no longer a speculative story

A year ago, EOS was still seen by many as a high-risk defence technology play.

Today, the company now has a large and growing contract book, established customers, and improving cash flow. The focus has shifted from future potential to executing signed contracts.

As at late 2025, EOS reported an unconditional contract backlog of more than $400 million, giving the company strong revenue visibility into 2026 and beyond.

A flood of contracts late in 2025

EOS finished 2025 with a string of major announcements that, in my view, set up a strong 2026.

Here are some of the highlights.

In December 2025, EOS secured a $33 million contract supporting a US Army program, further expanding its presence in North America.

Just days earlier, the company announced a US$21 million remote weapon systems order from a North American customer, with production scheduled through 2026 and 2027.

EOS also entered a US$80 million conditional contract for high-energy laser systems in mid-December with South Korea, opening the door to a large Asian defence market.

These wins came on top of earlier 2025 contracts, including the $108 million LAND 400 Phase 3 remote weapon station contract and multiple Slinger counter-drone orders across Europe and the Middle East.

Why the backlog could keep growing

What makes EOS especially interesting right now is not just what it has already won, but what could come next.

Management has been clear that many of its systems are now proven in the field. In defence, that often leads to repeat orders, upgrades, spare parts, and long-term support contracts.

EOS has also flagged follow-on remote weapon system orders, rising counter-drone demand, and multiple high-energy laser opportunities that could be signed over 2026 and 2027.

Some of these future programs are very large. In previous updates, EOS has pointed to potential opportunities worth hundreds of millions of dollars if negotiations turn into signed contracts.

The global backdrop is doing EOS a big favour

Governments around the world are increasing defence spending, particularly in areas like drone defence, vehicle protection, and automated battlefield systems. These are exactly the markets EOS operates in.

Importantly, EOS is not trying to sell early-stage or unproven technology. Its systems are already deployed and operating, which lowers risk for customers and helps speed up procurement decisions.

That matters when compared with competitors.

For example, Rheinmetall and other European groups have been investing in laser weapons for years, but commercial products are still not widely available. In France and Israel, several defence companies are working on laser and counter-drone systems, but efforts are often spread across multiple partners, with technology ownership shared and deployment still limited.

By contrast, EOS fully owns its key laser technologies and intellectual property, can manufacture independently, and has already secured export contracts.

Why I think EOS can reach $15

At $9.95, EOS is no longer a small or unknown stock. But that doesn’t mean it’s expensive.

Today, EOS has a market capitalisation of roughly $1.92 billion, while holding more than $400 million in secured contract backlog scheduled to be delivered over the next few years.

With margins improving and multiple large contracts moving from signing into delivery, I believe earnings could rise sharply over the next two years.

If EOS continues converting its backlog into revenue and secures even a portion of its future pipeline, today’s valuation may end up looking conservative.

That’s why I think $15 in 2026 is achievable.

How EOS stacks up against peers

The valuation case becomes even more interesting when compared with other ASX defence stocks.

For example, DroneShield Ltd (ASX: DRO) currently has a market capitalisation of around $3.04 billion, despite having a smaller value of signed contracts and lower revenue visibility than EOS.

DroneShield focuses mainly on so-called soft-kill counter-drone systems, which disrupt or disable drones electronically. These systems play an important role, but outcomes can vary depending on conditions and countermeasures.

By contrast, EOS specialises in hard-kill solutions using kinetic weapons integrated into remote weapon systems. These systems physically neutralise threats and have been tested extensively in customer field trials, making them attractive for frontline military use.

This difference in capability, combined with EOS’s larger secured backlog and growing export footprint, helps explain why I see further upside in EOS shares from here.

Final thoughts

EOS shares have already delivered exceptional returns, but I don’t think the market is fully pricing in what lies ahead.

With a growing backlog and multiple large contracts moving into delivery, EOS appears to be entering a new phase of earnings growth.

For investors willing to accept some volatility, I believe EOS shares can reach $15 in 2026 as earnings continue to accelerate.

The post EOS shares are near all-time highs. Here’s why I think $15 is next in 2026 appeared first on The Motley Fool Australia.

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• These were the best performing ASX 200 shares in 2025
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Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are many investing strategies that can bring you strong returns – one of which is dividend investing. 

A dividend is a portion of a company’s profits paid to shareholders, and investors may target dividend-paying shares because they provide passive income.

This can bring returns even if a stock price falls. 

On the flip side, if a dividend stock also increases in value, you’ve brought yourself the magical combination of passive income and capital growth. 

Dividends are shrinking

According to S&P Global, Australia has historically been one of the highest-yielding equity markets in the world. 

However, this has shifted in the last few years. 

As of December 31, 2024, the trailing 12-month dividend yield of the S&P/ASX 300 Index (ASX: XKO) was approximately 3.5%.

While this still outpaced Europe, Canada and the US, it’s significantly lower than its long-term average of approximately 4.5%.

So what does this mean for dividend investors?

Broadly speaking, it’s harder to capture high yields, and high paying yields are increasingly coming from a smaller pool of companies. 

With that in mind, here are two dividend shares that paid out some of the best yields in 2025. 

APA Group (ASX: APA)

APA Group is Australia’s largest energy infrastructure company. 

In 2025, it paid out an annual dividend of 57 cents per share. 

This has been on a yearly uptick for more than 20 years. 

Based on its current share price, this equates to a dividend yield of roughly 6.3%, well above the average trailing yield of the ASX 300.

If an investor held $10,000 worth of shares in APA Group, they would have earned more than $800 in passive income based on last year’s opening share price of $7.03. 

Not only did it reward investors with strong dividends, it also rose more than 28% last year.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is the largest operator of oil and gas production in Australia and is Australia’s largest independent dedicated oil and gas company.

Last year, it paid roughly $1.66 per share in total dividends for the year.

Based on its current share price, that equates to a dividend yield of approximately 7%. 

At the start of last year, shares were trading at roughly $25.00 per share. 

An investor who held $10,000 in Woodside shares at that price for the last year would have enjoyed $700 in passive income. 

Woodside also may appeal to dividend investors as it maintains its status as one of Australia’s largest companies. 

This means investors hold a quality company with a proven track record, as well as one that pays strong yearly dividends. 

The post Which ASX shares paid the best dividends in 2025? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 energy shares outperformed the 10 other market sectors last week, rising 1.5%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 0.35% over the short trading week to close at 8,727.8 points.

Just four of the 11 market sectors finished the week in the green.

Let’s review.

Energy shares led the ASX sectors last week

Brent crude oil futures rose by 0.66% to US$61.25 per barrel on Friday, the first day of trading for the new year.

The Brent oil price experienced its biggest annual fall in five years last year due to ongoing geopolitical uncertainty.

On Friday, Trading Economics analysts said:

Geopolitical developments remained a backdrop, as Washington stepped up pressure on Venezuela’s energy sector by targeting China and Hong Kong based firms and vessels allegedly involved in bypassing export restrictions.

Separately, tensions between Russia and Ukraine flared over the New Year period, with reciprocal strikes hitting Black Sea port facilities and damaging key energy infrastructure.

Meanwhile, OPEC+ will meet today (Australian time) to decide whether to maintain its November agreement to pause output increases.

Let’s take a look at how some of the ASX 200 energy shares performed last week.

The Woodside Energy Group Ltd (ASX: WDS) share price rose 2.24% to close the week at $23.66.

The Santos Ltd (ASX: STO) share price lifted 1.15% to $6.15.

The Beach Energy Ltd (ASX: BPT) share price ascended 1.29% to $1.17.

Ampol Ltd (ASX: ALD) shares fell 0.14% to $32.12 apiece.

The Viva Energy Group Ltd (ASX: VEA) share price eased 0.24% to $2.09 on Friday.

The Karoon Energy Ltd (ASX: KAR) share price finished the week steady at $1.56.

ASX 200 uranium share Paladin Energy Ltd (ASX: PDN) jumped 4.09% to close the week at $10.13.

The Deep Yellow Ltd (ASX: DYL) share price lifted 3.99% to $1.95.

ASX 200 coal share Yancoal Australia Ltd (ASX: YAL) rose 0.81% to $5.01.

Whitehaven Coal Ltd (ASX: WHC) shares fell 0.89% to $7.81 apiece.

The New Hope Corporation Ltd (ASX: NHC) share price rose 0.25% to $4.05.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days of last week:

The post ASX 200 energy sector leads the market ahead of OPEC+ meeting appeared first on The Motley Fool Australia.

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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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Over the last three years, artificial intelligence (AI) has become a theme so influential that the broader market seems to ebb and flow based on this singular narrative. The S&P 500 and Nasdaq Composite indices are both hovering near record highs, with megacap technology stocks being some of the largest contributors to the market’s ongoing rally.

While just about every major investment fund on Wall Street can’t seem to get enough of AI, Berkshire Hathaway‘s Warren Buffett — who just retired as CEO — has primarily stuck to his contrarian methods. Throughout the AI revolution, Berkshire has been a net seller of stocks — hoarding cash on its balance sheet and collecting passive income through Treasury bills.

Last quarter, Berkshire finally put some of its excess capital to use and made a significant addition to its portfolio. Let’s dig into some of the fund’s moves in recent years and try to make sense of what drove these decisions. From there, we’ll take a look at valuation and assess if now is a good opportunity to follow in Buffett’s footsteps. 

No longer the apple of Buffett’s eye

Berkshire Hathaway has long been a fan of consumer businesses and financial services. For decades, many of the firm’s largest positions have included insurance companies and banks, as well as a mix of consumer staples and discretionary brands.

Back in 2016, Buffett made headlines following Berkshire’s purchase of Apple (NASDAQ: AAPL) stock. Many investors viewed this as a rare instance of Buffett investing in the technology sector. However, given Apple’s brand moat, consumer loyalty, robust hardware ecosystem, and steady cash flow generation, the company actually checks off many of Buffett’s investment criteria.

A combination of meaningful price appreciation and subsequent buying over the last decade ultimately turned Apple into Berkshire’s largest position. Throughout the AI revolution, however, Buffett has been trimming exposure to the iPhone maker.

Data Source: 13f.info

Since the end of 2023, Berkshire has reduced its exposure to Apple by roughly 73%. Many pundits on Wall Street have criticized Apple for being late to the AI market. While I personally agree, I do not think this necessarily played much of a role in Buffett’s decision to sell the stock.

To me, the rationale behind these sales was more macro-oriented. Since October 2023, both the S&P 500 and Apple stock have risen by about 60% — an abnormally high return in a rather short period. Buffett has always exercised prudent judgment. I think taking advantage of a frothy market and rotating capital into more passive vehicles seemed like a better deal in the eyes of Buffett.

Billionaires are plowing into Alphabet stock

For much of the AI revolution, companies such as Nvidia and Palantir Technologies have been the main attractions. When it comes to legacy internet companies, both Amazon and Microsoft have also become heavily featured in the broader AI discussion.

One company that has been relatively quiet for the last few years, however, is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). For a while, the rise of large language models (LLMs) such as ChatGPT were viewed as a knockout punch for traditional search engines — namely, Google.

But over the last few years, Alphabet quietly trudged along and built out its AI roadmap. Now, billionaires are finally catching on. During the third quarter, notable investors, including Stanley Druckenmiller, Israel Englander, Ken Griffin, Philippe Laffont, and now Warren Buffett, all poured into Alphabet stock.

Is Alphabet stock a good buy right now?

Alphabet currently boasts a forward price-to-earnings (P/E) multiple of 29. While the time to buy the stock at bargain prices may have passed, there are still plenty of upsides.

GOOGL PE Ratio (Forward) data by YCharts

Today, Alphabet has integrated its own LLM, Gemini, into core aspects of its business — from an overhauled Google search landing page to the company’s Android consumer electronics devices.

In addition, Alphabet has also invested heavily into its own hardware in the form of custom application-specific integrated circuits (ASICs) called Tensor Processing Units (TPUs) — integrating this technology into its budding cloud computing platform. Most recently, Alphabet announced a $4.7 billion acquisition of Intersect — a provider of clean energy power sources for data centers.

By vertically integrating all aspects of the AI value chain across its ecosystem, Alphabet is positioning itself to emerge as a durable leader of the next technological supercycle. Against this backdrop, I think Alphabet is poised for meaningful valuation expansion over the next several years and see the company as a compelling opportunity to buy and hold for patient investors with a long-term time horizon — just like Berkshire Hathaway. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Berkshire is selling Apple stock and buying this other magnificent artificial intelligence (AI) stock instead appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new year often brings fresh optimism for investors, and January can be a great time to revisit an investment portfolio.

But which ASX 200 shares could be great picks for investors right now?

Let’s take a look at three that I think are among the best to buy this month and for 2026:

CSL Ltd (ASX: CSL)

It may have disappointed in 2025, but CSL remains one of the highest-quality companies on the Australian share market. The global biotech leader dominates the blood plasma market and has a deep pipeline of therapies that should be supportive of long-term earnings growth.

Short-term issues, including margin pressures, albumin demand, and weak influenza vaccine sales, have weighed on sentiment. But these factors don’t change the core investment case. Demand for plasma therapies continues to grow globally, barriers to entry are extremely high, and CSL’s scale gives it a significant competitive advantage.

For patient investors, January could be an attractive time to accumulate shares while the market remains cautious, rather than chasing the stock once momentum returns.

Macquarie Group Ltd (ASX: MQG)

Macquarie is Australia’s leading global investment bank. Its earnings are diversified across asset management, infrastructure, commodities, and capital markets. This helps smooth returns across economic cycles.

While there has been underperformance in parts of its business in FY 2026, I don’t expect this to be for long. Macquarie has a long history of adapting to changing conditions. Its asset management division continues to grow funds under management, while its infrastructure expertise positions it well for long-term global investment trends.

For investors looking for an ASX 200 share with exposure well beyond the domestic economy, Macquarie remains a high-quality option to consider early in the year.

Woolworths Group Ltd (ASX: WOW)

Woolworths may not be the most exciting stock on the market, but its reliability is exactly what makes it appealing. As one of Australia’s dominant supermarket operators, it generates steady cash flow regardless of economic conditions.

Margin pressure and increased competition have been weighing on its performance over the past 12 months, but there are signs that the worst is now behind it. In addition, during this time Woolworths has continued to invest heavily in automation, supply chain efficiency, and digital capability. Over time, I believe these investments will bear fruit and position it for the future.

For investors building a balanced ASX 200 portfolio, Woolworths offers defensive characteristics that can complement higher-growth holdings. And with its shares down meaningfully from their highs, now could be an opportune time to load up on them.

The post My best ASX 200 shares to buy in January appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Woolworths Group. 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.

With most brokers taking a break over the holiday period, there haven’t been many notes hitting the wires.

But don’t worry because summarised below are three recent recommendations that remain very relevant today. Here’s what brokers are recommending to clients:

Breville Group Ltd (ASX: BRG)

According to a note out of Macquarie, its analysts retained their outperform rating and $39.20 price target on this appliance manufacturer’s shares. The broker highlighted that the Macquarie Kitchen Benchmark and De’Longhi Revenue Index have shown strong growth so far in the third quarter. And given how Breville has outperformed the benchmark by 11% per annum between 2018 and 2024, Macquarie believes this supports its forecast for 10%+ per annum revenue growth between FY 2025 and FY 2028. Key drivers of this are expected to be its coffee segment, new market development, and its investment in new product development. The Breville share price was trading at $29.94 on Friday.

Collins Foods Ltd (ASX: CKF)

A note out of Citi revealed that its analysts retained their buy rating on this KFC restaurant operator’s shares with a trimmed price target of $12.85. This followed the release of a half year result for FY 2026 which came in ahead of the broker’s expectations. In addition, Citi highlighted that management upgraded its profit guidance for the full year. It is now expecting profit growth of mid-to-high teens. This is up from low-to-mid teens previously. And while its sales growth rate is a touch behind expectations, the broker has only reduced its estimates by a touch. The Collins Foods share price was fetching $10.44 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Macquarie upgraded this logistics solutions technology company’s shares to an outperform rating with a $108.50 price target. According to the note, while Macquarie sees limited risk with its upcoming half year results, it remains cautious on full year results and FY 2027 guidance. Nevertheless, the broker is feeling more confident about WiseTech Global’s business model transition and is bullish on the long term. It believes that the company can and will fundamentally reshape the logistics industry. It also notes that execution risks are commensurate with the size and deliverability of a massive market opportunity, and that its current share price doesn’t reflect this delivery. The WiseTech Global share price ended the week at $68.55.

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

More reading

• 5 things to watch on the ASX 200 on Friday
• 9 ASX All Ords shares upgraded to strong buy ratings for the new year
• Shocking declines: Australian shares that disappointed investors in 2025
• Why WiseTech shares are pushing higher today
• Where to invest $10,000 into ASX 200 shares in January 2026

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

The ASX passive income stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is my leading pick for dividends in 2026.

Regular readers will know I’m a big fan of this business, but I think this is a particularly good time to look at investing in it for passive income.

For starters, the Soul Patts share price has dropped by 16% since September 2025. I get excited when my favourites trade at a discounted price.

The investment conglomerate is already the largest position in my portfolio, and I’m planning to buy more for a few different reasons.

Solid starting dividend yield

If I’m investing in an ASX passive income stock, I’m choosing it with a good initial dividend yield.

I would much rather own Soul Patts shares than have cash in the bank because of the size of the payout and the ability to grow that payment over time.

Based on the FY25 payout, Soul Patts has a grossed-up dividend yield 4%, including franking credits.

Impressively, the business has hiked its annual ordinary dividend every year since 1998, the longest record on the ASX.

I estimate that Soul Patts will pay an annual dividend per share of $1.08, which translates into a potential grossed-up dividend yield of 4%, including franking credits.

I’m very pleased to own an ASX passive income stock that has a clear desire to regularly increase the payout for investors.

Expanding investment portfolio

I like that Soul Patts is an ever-evolving business because of its flexible investment mandate, allowing it to buy and sell assets as it sees new opportunities. This helps it remain future-proof.

Additionally, Soul Patts pays out a majority of the cash flow it receives each year, but it can invest the remainder into new opportunities.

With how Soul Patts is set up, I think it’s a good option for steady compounding as it builds up its portfolio value through new and existing investments.

In recent times, it has allocated money towards areas like electrification, agriculture, swimming schools and more. It has also invested internationally, which I think is a positive development because of the numerous opportunities overseas.

Defensive positioning

Soul Patts has deliberately built its portfolio to be defensive and largely uncorrelated.

Its portfolio being spread across numerous sectors means the company receives cash flow from a variety of sources. This defensive cash flow is integral for paying the consistent and growing passive income.

I like the industries it’s invested in, including telecommunications, resources, building products, industrial properties, financial services, healthcare and more.

I don’t know what’s going to happen in 2026 and beyond, but I think the company’s portfolio has good prospects of delivering good returns in the long-term and it should be able to generate good earnings, even if there’s a downturn, thanks to its defensive portfolio.

The post Here’s my number 1 passive income stock for 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some blue chip additions to your portfolio, then it could be worth hearing what Morgans is saying about the three listed below.

Let’s see if the broker is bullish on bearish on these big names right now:

Amcor (ASX: AMC)

This packaging giant could be undervalued according to Morgans. Its analysts have put a buy rating and $15.20 price target on its shares.

The broker highlights the low multiples its shares trade on, its positive growth outlook, and its generous dividend yield as reasons to buy. Morgans said:

Our target price is maintained at $15.20 and with a 12-month forecast TSR of 25%, we upgrade our rating to BUY (from ACCUMULATE). Following AMC’s solid 1Q26 result, management’s increased confidence in delivering FY26 synergy targets, and the reaffirmation of FY26 guidance, we believe the outlook remains positive. Trading on 10.4x FY26F PE with a 6.1% yield, we view the valuation as attractive. Potential positive catalysts include meeting or exceeding expectations in upcoming quarterly results and the successful completion of additional asset sales.

ANZ Group Holdings Ltd (ASX: ANZ)

This banking giant’s recent second half results disappointed Morgans.

The broker responded by retaining its trim rating (between hold and sell) on ANZ’s shares with a $33.09 price target. It feels that its shares are expensive after a strong gain. Morgans explains:

Ex $1.1bn of significant items, 2H25 profit declined 7% vs 1H25, with a -3% decline in pre-provision profit (revenue +2%, costs +6%) and a doubling of credit impairment charges. Earnings were materially below market expectations, albeit consensus may not have fully adjusted for the significant items. We have downgraded our FY26-28F cash earnings by 1-2%. However, 12 month target price lifts 29 cps to $33.09/sh due to CET1 capital outperformance in 2H25. We recommend clients TRIM into share price strength, with the share price and implied valuation multiples trading at or around all-time highs.

Macquarie Group Ltd (ASX: MQG)

Finally, Morgans has been looking at this investment bank. It was a little disappointed with its performance in the first half of FY 2026.

In light of this and its fair valuation, the broker has put a hold rating and $215.00 price target on its shares. It commented:

MQG’s 1H26 NPAT (A$1.65bn) was +3% on the pcp, but -9% below company-compiled consensus ($1.81bn). Whilst acknowledging there were some explainable items driving this miss, e.g. increased investment spend in CGM, factors like green asset impairments and non-repeated prior year gains also came into play. Purely on face value, it was another headline result miss for MQG, albeit full year guidance commentary appears relatively unchanged. We make mild downgrades to our MQG FY26 earnings of -2%, with future year earnings slightly lifted (+2% to 4%) on a broad review of our earnings assumptions. Our PT is reduced to ~A$215 (previously ~A$223). We maintain our HOLD recommendation on MQG, believing the stock is currently fair value trading on 19x PE.

The post Buy, hold, sell: Amcor, ANZ, and Macquarie shares appeared first on The Motley Fool Australia.

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• How to retire with a $1 million ASX share portfolio
• 3 ASX dividend shares to buy for passive income in 2026
• Top 5 ASX 200 financial shares of 2025
• Happy New Year: Here are two ASX stocks to watch going into 2026

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.