The Helia Group Ltd (ASX: HLI) share price is charging higher on Wednesday after the mortgage insurer released its full-year results.

In mid-morning trade, Helia shares are up 15.71% to $6.225. By comparison, the All Ordinaries Index (ASX: XAO) is 0.9% higher.

Here is what the company reported for the year ended 31 December 2025.

Profit edges higher as claims remain contained

Helia delivered statutory net profit after tax (NPAT) of $244.9 million for FY25. This was up 5.8% compared to the prior year.

On an underlying basis, net profit rose 12% to $247 million. Underlying diluted earnings per share (EPS) increased 18% to 89.9 cents.

The company said favourable claims experience helped support earnings. Gross loss ratios remained well below long-term averages, while delinquency rates declined during the year.

Insurance revenue fell 5% compared to FY24, reflecting lower gross written premium from recent book years. However, gross written premium for FY25 increased 23% to $240 million.

The company also noted that new insurance written increased during the year, supported by solid housing credit growth and continued lender demand for lenders mortgage insurance.

Underlying return on equity improved to 23.5%.

Capital position supports large dividend

A major focus for investors was Helia’s capital management.

The company ended the year with a prescribed capital amount coverage ratio of 2.03 times, representing a strong buffer above regulatory minimum requirements.

Helia declared a fully-franked final dividend of 16 cents per share. It also announced a special dividend of 67 cents per share. In total, shareholders will receive 83 cents on 26 March.

Total dividends for FY25 came to 126 cents per share. The company said FY25 dividends represent a 100% payout of statutory NPAT, alongside a reduction of approximately $100 million in its capital base.

Balance sheet and investment trends

Net investment revenue declined 17% over the year due to a smaller investment portfolio and unrealised losses in the second half.

Insurance contract liabilities fell 5% during the half year, reflecting favourable claims experience and changes in the reserving basis.

Net tangible assets per share finished the year at $3.71.

What about FY26?

Looking ahead, Helia expects FY26 insurance revenue to be between $320 million and $370 million.

Management also expects the total incurred claims ratio to remain well below long cycle average levels.

Overall, Helia delivered modest profit growth, maintained favourable claims performance, and returned significant capital to shareholders.

The sizeable special dividend and strong capital position appear to be key reasons the Helia share price is moving higher today.

The post Helia shares rocket 15% on full-year results. Here’s why 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 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.

There are not many ASX dividend stocks that I think could be a better choice for long-term annual passive income than WCM Global Growth Ltd (ASX: WQG).

The business is a listed investment company (LIC) that gives investors exposure to a high-quality portfolio of international shares and an impressive record of regular dividend growth.

LICs generate their (accounting) profits by making investment returns, so the strategy and level of performance are essential for paying large and growing dividends.

So, we’ll start by looking at why WCM Global Growth invests and then look at the dividend potential of the business to make $2,000 of annual passive income.

Impressive investment performance

There are two main elements that the fund manager looks for.

First, it wants to invest in businesses with good economic moats, or durable competitive advantages. It’s focused on the moat trajectory – is it structurally improving – rather than the size of the moat. WCM also uses a forward-looking competitive assessment as part of its process.

Second, the culture of the business is important as a source of advantage. WCM looks at factors like “leadership, alignment, adaptability” and how that can drive long-term value creation.

But, as you’d expect, there are a few other elements of the investment process.

WCM wants to find businesses benefiting from tailwinds with long-term secular trends that can help deliver compounding growth. Preferably, there’s a global structural demand supporting earnings.

The ASX stock has a high-conviction portfolio, meaning it’s concentrated in just WCM’s best ideas, not hundreds of names that could mean being too diversified.

On the valuation side of things, WCM looks for businesses offering great growth at fair prices, while maintaining a “downside protection focus” and an “active risk management”. This has helped its portfolio to decline less than the global share market when there are falls.

At 31 January 2026, its portfolio had delivered an average net return of 16% per year since inception in June 2017, outperforming the global share market by an average of 2.7% per year. The returns have been very good and helped fund a pleasing dividend, though that’s not guaranteed every year or over the long-term.

Excellent ASX dividend stock credentials

The business has increased its half-year dividend every year since FY19, which is when it first started paying a dividend. In the last few years, it switched to paying quarterly dividends, which is helpful for shareholder cash flow.

WCM Global Growth expects to continue increasing its quarterly dividend every quarter until at least the March 2027 dividend. The business aims to continue increasing its quarterly payout to “enhance shareholder value”.

Annualising the expected FY27 second quarter dividend of 2.45 cents per share means a grossed-up dividend yield of 7.4% (at the time of writing) is within sight and I’m expecting further dividend increases during FY27 (and beyond).

To reach an annual passive income of $2,000 (excluding the franking credits) from the ASX stock, we’re talking about owning 20,409 WCM Global shares at the time of writing.

I think it’s one of the leading ideas to look at for dividends, among others.

The post I’d buy 20,409 shares of this ASX stock to aim for $2,000 of annual passive income appeared first on The Motley Fool Australia.

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

The Woolworths Group Ltd (ASX: WOW) share price is on fire today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $31.54. In morning trade, shares are swapping hands for $34.66 apiece, up 9.9%.

For some context, the ASX 200 is up 0.9% at this same time.

This strong outperformance follows the release of Woolworths’ half-year results for the period ending 4 January (H1 FY 2026).

Here’s what’s stoking investor interest today.

Woolworths share price leaps on profit growth

Looking at the results before significant items, Woolworths reported half-year sales of $37.14 billion, up 3.4% year on year.

The company’s eCommerce sales were a particularly strong performer, up 14.6% to $5.4 billion.

Earnings before interest and tax (EBIT) of $1.66 billion was up 14.4% from H1 FY 2025.

The supermarket highlighted that all of its segments achieved year-on-year sales and EBIT growth. This growth was supported by cost of doing business (CODB) reductions in Australian Food, New Zealand Food, and BIG W. Australian Food sales increased by 3.6% in the half.

And on the bottom line, the Woolworths share price looks to be getting a big boost today with net profit after tax (NPAT) surging 16.4% year on year to $859 million.

With profits rising, management declared a fully-franked interim dividend of 45 cents per share. That’s up 15.4% from last year’s interim payout.

If you want to bag the interim Woolworths dividend, you’ll need to own shares at market close on 3 March. The ASX 200 stock trades ex-dividend on 4 March. You can then expect to bank that passive income payout on 2 April.

What did management say?

Commenting on the half-year results lifting the Woolworths share price today, CEO Amanda Bardwell said, “We are making progress on the strategy we outlined in August and have invested in value, our fresh offer, On Demand convenience and in-store execution.”

She added, “All customer metrics have improved, trading momentum is stronger and we are seeing market share stabilise.”

Looking to the months ahead, Bardwell said:

Trading in Q3 to date has been strong in Australian Food; however, customers continue to be value-focused, shopping multiple retailers in a highly competitive environment.

Our focus is to continue to provide value to customers, rebuild trust and maintain sales momentum while making further progress on our strategic priorities to deliver for our customers, team and shareholders.

With today’s big intraday gains factored in, the Woolworths share price is up 17.8% in 2026.

The post Why is the Woolworths share price rocketing 10% on Wednesday? appeared first on The Motley Fool Australia.

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

The Centuria Capital Group (ASX: CNI) share price is in focus today after the company posted a HY26 operating profit after tax (OPAT) of $54.6 million and upgrades guidance for FY26, impressing investors with record funds under management.

What did Centuria Capital Group report?

• HY26 operating profit after tax (OPAT): $54.6 million
• Operating earnings per security (OEPS): 6.6 cents, up 6.5% from HY25
• Interim distribution per security (DPS): 5.2 cents
• Record assets under management (AUM): $21.8 billion (up from $20.6 billion at FY25)
• Operating EBITDA: $89.3 million, supported by 49% growth in core Property Funds Management
• FY26 OEPS guidance upgraded to 13.6 cents per security (11.5% above FY25), DPS guidance set at 10.4 cents

What else do investors need to know?

Centuria completed $0.5 billion in real estate acquisitions and has an additional $0.8 billion in due diligence or secured since 31 December 2025. The company also increased its interest in Centuria Bass Credit to 100%, which strengthens its presence in real estate finance.

Notably, Centuria secured management rights for Arrow Funds Management, growing agricultural assets under management to $1.3 billion. The company’s property funds saw a mix of listed and unlisted AUM, with no single unlisted asset exceeding 3% of total AUM, reflecting disciplined diversification.

Centuria’s cash and undrawn debt stood at $288 million as of 31 December 2025. Its balance sheet gearing remained conservative at 12.4% and the group’s fund gearing averaged 45%, well below the weighted average covenant of 57%.

What did Centuria Capital Group management say?

Joint CEO John McBain said:

Today’s earnings upgrade reflects the strength of the underlying Group’s profit drivers and improved earnings visibility into 2H26. Centuria’s platform is positioned to benefit from improving real estate market conditions, supported by rising transactional activity and a growing network of more than 15,500 private investors.

What’s next for Centuria Capital Group?

Centuria has raised its FY26 guidance in light of improving market conditions and the successful acquisition of Arrow Funds Management. The business continues to pursue both organic and inorganic growth, building momentum through ongoing acquisitions and capital raisings.

Looking ahead, Centuria plans to advance its long-term strategy, including expanding its digital infrastructure and agricultural investment platforms, while maintaining a disciplined approach to balance sheet management. The group says it remains nimble amid changing markets and expects to benefit from its broad investor network and diversified portfolio.

Centuria Capital Group share price snapshot

Over the past 12 months, Centuria Capital Group shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Centuria Capital Group lifts profit and upgrades FY26 outlook appeared first on The Motley Fool Australia.

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

G8 Education Ltd (ASX: GEM) shares were trading lower on Wednesday after the company reported a slide in full-year revenue and a large net loss blown out by one-off write downs.

The company said in a statement to the ASX that revenue for the year had come in at $948.2 million, 7.2% lower than the previous corresponding period.

The company’s net loss came in at $303 million, which was impacted by a $349.1 million write down of goodwill.

On an underlying basis, EBIT was $93.3 million, down 18.9%.

Economic headwinds

The ASX 300 childcare company said occupancy was lower than the previous year, “with affordability and the macro environment, including sector challenges, continuing to impact families and enquiries”.

G8 Education Managing Director Pejman Okhovat said it had been a challenging period.

Occupancy continued to be affected by tough market conditions with falling birth rates, increased supply, trust and confidence in the sector impacted by media coverage and families experiencing sustained affordability pressures, resulting in lower occupancy than the previous corresponding period. Despite the fall in occupancy levels, our cost base remained well controlled. Our statutory Earnings Before Interest and Tax (EBIT) resulted in a loss of $234.7 million, with a Net Loss After Tax of $303.3 million, primarily reflecting a non-trading goodwill impairment expense recognised during CY25. We remain committed to balancing our operational needs with shareholder returns and delivered a fully franked total dividend of 2 cents per share paid in October 2025 with no final dividend being paid.

In terms of the outlook, the company said that as at February 15, group occupancy was 54.4%, 7.5% lower than the previous corresponding period and 57.2% year to date, 7.8% lower.

The company said the challenging trading environment was further exacerbated by significant changes to national laws and the regulatory environment, “requiring additional focus and resources”.

The company added regarding the outlook:

Near term operating conditions remain challenging, with ongoing cost of living pressures and no material relief from inflation or interest rates.

The company said other factors affecting demand included the female work participation rate starting to flatten, more supply coming into the sector, cost-of-living issues, and the costs associated with attracting talent.

G8 said over the medium to long term, the market dynamics were encouraging, with state and federal governments looking to create more equitable and affordable early childhood education, and supply starting to decline, with some operators likely to exit the sector.

G8 shares were 2.7% lower in early trade at 35.5 cents.

The ASX 300 childcare company was valued at $282 million at the close of trade on Tuesday.

The post Why are shares in this ASX 300 childcare company on the slide?       appeared first on The Motley Fool Australia.

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

The Light & Wonder Inc (ASX: LNW) share price is in focus today after the company delivered its full-year 2025 result, with revenue lifting 4% to US$3,314 million and adjusted NPATA climbing 18% to US$567 million.

What did Light & Wonder report?

• Full-year revenue up 4% to US$3,314 million
• Consolidated AEBITDA rose 16% to US$1,443 million, with margins expanding to 44%
• Adjusted NPATA up 18% to US$567 million
• Earnings per share (EPSa) increased 27% year-on-year, reaching US$6.69
• Free cash flow grew 42% to US$452 million
• Returned US$877 million to shareholders through share repurchases

What else do investors need to know?

Light & Wonder’s earnings were underpinned by strong growth in its Gaming and iGaming segments, offsetting a slight revenue dip at SciPlay. The company finalised its acquisition of Grover Gaming, which added over 11,600 units to its installed base and contributed US$102 million in revenue for the year.

The business also transitioned to a sole ASX primary listing, returning most of its available capital to shareholders while maintaining a net debt leverage ratio at 3.5 times AEBITDA—well within its target range. Recurring revenue represented 67% of overall sales, demonstrating the benefits of an ongoing focus on high-quality, stable earnings streams.

What’s next for Light & Wonder?

Looking ahead, the company expects to again deliver strong adjusted NPATA and EPSa growth in FY26, emphasising recurring revenue and ongoing expansion in both hardware and digital content. Strategic investment will continue, with a focus on launching new cabinets in Australia and New Zealand, further integrating Grover, and delivering more first-party iGaming content.

Light & Wonder also aims to reduce debt levels over 2026, following major legal settlement payments, and will remain disciplined with capital management. Management maintains confidence in achieving its ambitious 2028 targets of US$2 billion AEBITDA and over US$10.55 per share in EPSa.

Light & Wonder share price snapshot

Over the past 12 months, Light & Wonder shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Light & Wonder FY25 profit rises on Gaming and iGaming strength appeared first on The Motley Fool Australia.

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

The DroneShield Ltd (ASX: DRO) share price is flying higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed yesterday trading for $3.01. In early morning trade on Wednesday, shares are changing hands for $3.09 apiece, up 2.7%.

For some context, the ASX 200 is up 0.6% at this same time.

This follows the release of DroneShield’s full-year earnings results for calendar year 2025.

Here are the highlights.

DroneShield share price lifts on profit surge

For the 12 months to 31 December, DroneShield reported revenues of $216.5 million, up 276% from 2024.

And the company continues to ramp up its SaaS (software as a service) revenue, which increased 312% over the year to $11.6 million. Management said they are continuing to target 30% of revenue from SaaS within five years.

And the DroneShield share price is marching higher today, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at $4.5 million, up from a loss of $8.6 million in 2024.

On the bottom line, profit after tax was up 367% year on year to $3.5 million.

Turning to the balance sheet, DroneShield held $210 million in cash and term deposits as at 31 December, down 4% year on year. The company has no debt and boasts three consecutive quarters of positive operating cash flow.

Looking at what could impact the DroneShield share price in the months ahead, the company has a $2.3 billion sales pipeline, which represents a 92% increase in the last 12 months.

The ASX 200 drone defence stock also highlighted its growth potential and capabilities, with the company’s global team growing to 450 (from 250) over the year. That includes more than 350 hardware and software engineers.

DroneShield also said it is scaling up its production capacity from $500 million a year in 2025 to $2.4 billion per year by the end of 2026 via new facilities in Australia, the United States, and Europe.

2025 also saw DroneShield join the ASX 200 in September.

What did management say?

Commenting on the full-year results helping to boost the DroneShield share price today, Peter James, independent non-executive chairman, said:

Sadly, the Ukraine war recently entered its fifth year. While there is expectation of continued sales to Ukraine for DroneShield in 2026, the vast majority of sales are not directly related to this location, and the company has sales globally with particular focus on United States, Western Europe, Asia-Pacific (excluding China) and South America.

Looking to 2026, James noted:

FY 2026 already has $104 million in secured revenue of which $22 million has been recognised to date. Secured SaaS in FY 2026 is at $22 million, of which $2 million has been recognised to date, and SaaS expected to increase further as additional sales are secured.

DroneShield shares are now up more than 286% since this time last year.

The post DroneShield share price lifts off on 367% full-year profit surge appeared first on The Motley Fool Australia.

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

The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus after reporting group revenue of $1,344.9 million, up 1% on the prior period, and a 14.3% lift in EBITDA to $217.4 million for the half year ended 31 December 2025.

What did Tabcorp report?

• Group revenue: $1,344.9 million, up 1% on 1H25
• EBITDA (before significant items): $217.4 million, up 14.3%
• NPAT (before significant items): $35.7 million, up 61.5%
• Wagering & Media EBITDA: $181.4 million, up 15.8%
• Interim dividend: 1.5 cents per share (unfranked), up 50%
• Net debt as at 31 Dec 2025: $631.2 million; leverage ratio 1.5x

What else do investors need to know?

Tabcorp’s operating expenses decreased by 1.1%, reflecting ongoing cost discipline and efficiencies. The growth in earnings resulted in a 190 basis point improvement in EBITDA margin to 16.2%, delivering positive operating leverage over the period.

The company successfully completed a $300 million issue of five-and-a-half year Australian medium term notes, which improved funding diversity and extended average debt maturity to 5.4 years. Tabcorp says its balance sheet is healthy and positioned for growth.

Tabcorp also highlighted the execution of key strategic initiatives, including new retail and in-play product launches, and ongoing integration of its digital, retail, and media assets.

What did Tabcorp management say?

Managing Director & Chief Executive Officer Gillon McLachlan said:

Our 1H26 results highlight that we are a more consistent company, with greater capability… There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond.

What’s next for Tabcorp?

Looking ahead, Tabcorp expects trading conditions in the second half of FY26 to be similar to the first. The focus remains on executing its strategy and further advancing omnichannel customer experiences.

The company will continue emphasising cost control to partly offset inflation. Additional spending of about $5 million is planned for promotion and marketing around the 2026 FIFA World Cup, and capital spending is expected between $120 million and $140 million in FY26. The interim dividend remains unfranked due to limited franking credits.

Tabcorp share price snapshot

Over the past 12 months, Tabcorp shares have risen 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Tabcorp FY26 half-year result: Earnings grow, dividends rise appeared first on The Motley Fool Australia.

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

The Jumbo Interactive Ltd (ASX: JIN) share price is pushing higher on Wednesday. This follows the company’s release of its half-year results for the 6 months ended 31 December 2025.

In early trade, Jumbo shares are up 1.37% to $9.59. Despite today’s gain, the stock remains down roughly 10% over the past month.

Here’s what the lottery software and digital gaming group reported.

Revenue jumps 29% following acquisitions

Jumbo reported revenue of $85.3 million for the half, up 29% on the prior corresponding period.

Total transaction value rose 15.6% to $524.1 million, reflecting continued demand across its lottery and managed services segments.

Statutory net profit after tax (NPAT) came in at $15.5 million, down 13.4% year on year. However, underlying NPAT increased 22.6% to $22.8 million, highlighting the impact of acquisition-related and other non-recurring items.

Underlying EBITDA climbed 22.6% to $37.5 million, with the underlying EBITDA margin holding above 40%.

The company declared a fully-franked interim dividend of 12 cents per share, representing a 49% payout ratio. The dividend will be paid on 18 March 2026.

Dream Giveaways delivers strong contribution

A key driver of growth during the half was the Dream Giveaways business in the UK and the US.

The UK operation delivered strong revenue and EBITDA performance, with management noting it is tracking ahead of expectations. The US business is progressing in line with plan following its October acquisition.

The Managed Services segment also contributed positively, with Canada guidance upgraded. Underlying EBITDA growth in Canada is now expected to be between 20% and 25% in FY26.

Meanwhile, the core Australia Lottery Retailing business remained resilient despite a softer jackpot environment compared with the prior period.

Strong cash generation and balance sheet flexibility

Operating cash flow rose 9% on a 4-year compound basis, with the company reporting a cash conversion ratio of 129%.

Jumbo finished the half with $44.7 million in available cash and $57.8 million in available funds, including undrawn debt facilities.

Net leverage remains conservative at 0.8x, and management confirmed it continues to pursue an on-market share buyback alongside dividend payments.

FY26 outlook upgraded

Jumbo upgraded guidance for parts of its business, particularly Dream Giveaways UK and Canada Managed Services.

For Australia, underlying EBITDA margin guidance remains between 46% and 50%.

Dream Giveaways UK is now expected to deliver underlying EBITDA of 8 million to 8.3 million pounds in FY26. Meanwhile, the US business is forecast to contribute between US$2.7 million and US$3 million.

Foolish Takeaway

Jumbo delivered solid underlying earnings growth in the first half, supported by recent acquisitions and continued momentum across its platform businesses.

Although statutory profit fell due to acquisition-related costs, underlying earnings improved, and management lifted guidance for parts of FY26.

The post Jumbo reports half-year results. Here’s what investors need to know 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 Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The leader of a particular industry can be an appealing investment due to its market share, profit margins and brand power. The ASX blue-chip share Medibank Private Ltd (ASX: MPL) is an appealing ASX dividend share because of the impressive dividend yield.

Medibank is the leading private health insurance business in Australia, with its Medibank and ahm brands.

The recent FY26 half-year result showed a number of positive growth numbers, which bodes well for long-term growth of its dividend payouts.

ASX blue-chip share’s earnings recap

A key driver of value for the business is policyholder growth. Net resident policyholders grew by 1.9% (or 38,300) and net non-resident policy unit growth was 1,500 (or 0.4%).

The policyholder growth helped group revenue from external customers increase by 5.5% to $4.5 billion.

Health insurance operating profit rose 3.5% to $361.5 million, Medibank Health (a separate division) saw operating profit increase 28.5% to $48.3 million. This led to group operating profit increase 6% to $381.7 million.

Net profit after tax (NPAT) declined 11% to $302.9 million, though that was largely because of a reduction in the ASX blue-chip share’s net investment income.

This helped fund a 6.4% increase in the interim dividend per share to 8.3 cents.

Is it a buy for the solid dividend yield?

The business continues growing its operating profit and this is a key driver for the dividend payments.

For the company, it’s also pleasing to see that Medibank Health is growing with an “increase in community and acute reflecting strong volume growth and increase in ownership of Amplar Health Home Hospital and growth in wellbeing in line with increased Live Better members and financial wellbeing policies.” The business has unlocked another growth avenue that offers defensive earnings.

Medibank is aiming to grow its market share in FY26 in a “disciplined way” in the resident health insurance market, though the industry is expected to see slower growth in FY26 compared to FY25. Non-resident health insurance aims to deliver solid gross profit growth.

Broker UBS is expecting steady earnings per share (EPS) and dividend growth from the business over the next few years. The broker forecasts that the annual dividend per share could be 19 cents in FY26, which translates into a potential grossed-up dividend yield of 6.2%, including franking credits.

The payout could rise again to 20 cents per share in FY27. This would be a grossed-up dividend yield of 6.5%, including franking credits.

For a ASX blue-chip share that’s steadily growing the payout, I think this ASX blue-chip share is a solid opportunity.

The post Is this ASX blue-chip share a buy for its 6.5% dividend yield? appeared first on The Motley Fool Australia.

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