Small-cap stock Matrix Composites & Engineering Ltd (ASX: MCE) is in focus after its share price soared 9.5% higher on Thursday. 

The company provides subsea umbilicals, risers and flowlines (SURF) buoyancy and corrosion protection solutions to offshore oil and gas projects.

Based on an updated price target from Bell Potter, it still has significant upside.

Why did shares rise on Thursday?

Markets reacted positively to the company’s 2025 AGM, which included a positive FY26 outlook. 

The company announced $70m of FY26 secured revenue (including YTD sales), comprising $65m of contracted Subsea work. 

It reiterated a strong quotation pipeline for drilling and SURF markets, with opportunities currently under negotiation likely to add to the FY26 orderbook upon conversion.

The team at Bell Potter stated that, in addition, revenue, EBITDA, and profitability will be weighted towards 2H FY26, with EBITDA expected to be positive in FY26. 

Why does this matter?

For a small-cap stock, guidance that EBITDA will be positive in 2026 is a big deal because it signals a fundamental shift in the company’s financial health and risk profile.

Essentially, it marks a transition from “cash-burn” to “self-funding.”

Many small-caps – especially in tech, biotech, clean energy, and early-stage industries – operate with negative EBITDA, meaning their core operations are unprofitable.

A move to sustained positive EBITDA in 2026 is significant because, although the company has hovered around breakeven and even turned positive before, long-term projections from Bell Potter show a durable and expanding profitability trend. 

This shift signals that the business model is stabilising and scaling, reducing future funding risk and increasing investor confidence in lasting growth.

Is this small-cap stock a buy, hold or sell?

While the guidance of a positive EBITDA is good news, Bell Potter remains cautious about this small-cap stock. 

In a report from the broker yesterday, it maintained its hold recommendation, but lowered its target price to $0.26 (previously $0.28). 

Bell Potter said phasing of major work has driven a worse-than-expected impact on revenue, EBITDA and profitability in 1H FY26, driving a downgrade to our 1H FY26 EBITDA estimate from $1.8m to -$0.6m. 

On a positive note, it said a strong skew to 2H FY26 EBITDA and profitability should drive positive FY26 EBITDA (BPe $6.2m, +25% YoY). 

Matrix Composites & Engineering Ltd has flagged further pipeline opportunities that could support FY26 project deliveries upon conversion, potentially representing upside to our forecasts.

Matrix Composites & Engineering shares closed yesterday at $0.23 after the 9.5% jump. 

Based on the updated price target of $0.26, there is an estimated upside of approximately 13% for this ASX small-cap stock. 

The post Why did this small-cap energy stock just jump 10% higher? appeared first on The Motley Fool Australia.

More reading

• Wilsons Advisory says target these 9 international stocks
• The fundamentals behind quality investing according to experts
• Buy alert! Bell Potter says this ASX 200 stock is ‘unmatched’
• Dividend investors: Top Australian energy stocks to buy in December
• Forget Droneshield shares, I’d buy this ASX defence stock instead

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 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.

Australian energy stocks can be seen as some of the most appealing ASX defensive shares for dividend investors because of their ability to make fairly consistent profits and pay passive income.

There are a variety of types of investments in that space, including energy generators, retailers, and commodity producers.

The two businesses I’ll talk about are two of the largest energy generators and retailers in Australia: AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG).

Let’s start by looking at the passive income potential of both businesses in FY26.

Australian energy stock dividend potential

Both businesses do not trade on a high price-earnings (P/E) ratio, which means they are more likely to deliver a pleasing dividend yield for shareholders.

The projection on CMC Markets suggests both businesses are capable of delivering a high dividend yield for investors in the 2026 financial year.

Origin Energy is forecast to pay an annual dividend per share of 60 cents in FY26. This translates into a potential grossed-up dividend yield of 7.4%, including franking credits.

AGL is forecast to pay an annual dividend per share of 46 cents in FY26. That prediction equates to a possible grossed-up dividend yield of 7.3%, including franking credits.

There are not many ASX blue-chip shares forecast to pay a dividend yield of more than 7% in FY26 because of a combination of higher valuations (pushing down on yields) and the iron ore price not being particularly strong.

Why both ASX shares could be solid longer-term buys

Australia always needs energy – Origin and AGL can both produce it and sell it.

Energy demand may grow significantly in the coming years if the number of data centres in the country continues to grow. They are very energy hungry because of the growing usage of AI. More electric vehicles on the road may also lead to higher electricity demand.

I like that the Australian energy stocks are investing in renewable/storage areas like batteries and hydro because that can help them generate earnings during times when it’s most needed (and most valued), such as during evening/night hours and peak times.

Origin also has a compelling investment in a business called Octopus Energy, which is growing strongly in the northern hemisphere.

In the three months to September 2025, the Octopus Energy retail business added approximately 560,000 customers, with 230,000 in the UK and 330,000 outside of the UK. It now has 1 million customers in Germany, with 100% growth in the last 12 months.

Out of the two, I think Origin is more appealing because of its exposure to Octopus Energy, which continues to grow rapidly and could drive the value of Origin shares higher in the coming years. On the dividend side of things, their yields are very similar.

The post Dividend investors: Top Australian energy stocks to buy in December appeared first on The Motley Fool Australia.

More reading

• Macquarie reveals ASX 200 share tips in each market sector for 2026
• 1 no-brainer ASX energy stock to buy with $500 right now!
• Why DroneShield, GQG Partners, Origin Energy, and Worley shares are falling today
• How to prepare for a share market crash… before it’s too late
• 5 ASX 200 stocks I’m avoiding this week

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.

Droneshield Ltd (ASX: DRO) shares closed 7.83% lower on Thursday afternoon, at $2.00 a piece. That means the stock has crashed nearly 70% since hitting an all-time peak in early October. The shares are now 166.67% higher for the year-to-date.

Recently, Droneshield shares have been under considerable pressure. From its US CEO resignation to employee share sell-offs and even an accidental ASX release, Droneshield shares have attracted a lot of not-so-positive attention. 

Sure, the 166.67% annual gain is still impressive, but I have my eye on another AI-centred defence stock which I’d buy instead.

Another ASX defence stock tipped to boom

Electro Optic Systems Holdings Ltd (ASX: EOS) is an Australian company that develops and produces advanced electro-optic technologies. The company’s products are used in space information and intelligence services, as well as in optical, microwave, and on-the-move satellite products, optical sensor units, and remote weapons systems for land, sea, and air applications.

The group’s reportable segments are communication, defence, and space, but the company generates the highest portion of its revenue from its defence business. Like Droneshield, Electro Optic’s defence segment is involved in developing, manufacturing, and marketing advanced fire control, surveillance, and weapon systems to approved military customers. 

I believe any investor seeking exposure to the rapidly expanding market should consider Electro Optic shares as an alternative to Droneshield. As ongoing geopolitical uncertainty continues to put pressure on countries worldwide, and governments step up their spending on defence systems, Electro Optic Systems is well-positioned to snap up a good portion of the demand.

Is there any upside ahead for the defence stock?

Tradingview data shows that out of three analysts with a rating on the shares, all of them consider Electro Optic Systems a strong buy. The maximum target price for the shares is as high as $11.18 per share. This implies a potential upside as high as 149.55% over the next 12 months, at the time of writing. 

Bell Potter is slightly more conservative, with a buy rating and a $8.10 price target on Electro Optic shares. The broker stated that a potential peace deal between Ukraine and Russia could impact its share price in the near term. But it doesn’t feel a deal will affect its growth forecasts. As a result, it is urging investors to pick up Electro Optic Systems shares now. The Bell Potter team also noted that the company recently completed the acquisition of the MARSS Group’s drone interceptor business, which it said is a good move by management given recent defence trends.

The post Forget Droneshield shares, I’d buy this ASX defence stock instead appeared first on The Motley Fool Australia.

More reading

• Why Amcor, DroneShield, Harvey Norman, and QBE shares are falling today
• Why EOS shares could rise 75% in just a year
• Here are the top 10 ASX 200 shares today
• Why DroneShield, EOS, Gentrack, and Web Travel shares are surging today
• Why is this ASX defence stock rocketing 10% today?

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 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.

Talk of an S&P 500 Index (SP: .INX) (and ASX ) stock market crash has been persistent over 2025 to date. Not that this sentiment is uncommon. Whenever markets have an uncommonly good year, as they have in both 2024 and 2025, investors start to get nervous.

To be fair, there have arguably been more reasons for investors to be fearful this year than there have been for a while. Many of them can be attributed to the erratic trade and economic policies coming out of the United States of America.

President Donald Trump has openly mused about undermining the US Federal Reserve by sacking board members, and the governor Jerome Powell, for one. Then there was the shambolic ‘Liberation Day’ tariff announcements, which caused a dramatic stock market dip until they were wound back a week or so later.

Investors have also had an uncertain interest rate and inflation environment to navigate. Interest rate sentiment has seemingly swung from ‘the next move will be down’ to ‘rates might rise’ and back again.

Amid all this uncertainty, the S&P 500 (particularly any stocks associated with the ‘AI boom’), the S&P/ASX 200 Index (ASX: XJO), gold, and Bitcoin (CRYPTO: BTC) have all hit new record highs, with plenty of bumps in between.

Over just the past month, the S&P 500 has both fallen more than 5% and rebounded by 4.2%.

No one seems quite sure what’s around the corner.

And, the truth be told, no one is. None, not Warren Buffett, Jerome Powell, Donald Trump, your neighbour Joe, or this writer, can predict what the markets will do next. The next market correction or crash is always inevitable. We just don’t know when it will occur.

All we can do is prepare.

How to prepare for an S&P 500 market crash

I think the best way to prepare for a market crash is by auditing your own investments. The whole point of investing is aligning our financial interests with companies that will be larger in the future than they are today. If you don’t believe a company is set for future prosperity, it shouldn’t be in your portfolio. If you do think a company is setting itself up for future success, it should be. Regardless of what the S&P 500, the price of gold, or any other metric is doing.

For example, I own companies that I would be comfortable, and more than happy to hold during a market crash. Names such as Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Mastercard Inc (NYSE: MA), and Procter & Gamble Inc (NYSE: PG) have strong balance sheets and fantastic, resilient business models. They will do just fine in any economic conditions. In my view, anyway. No matter what happens in the next year, I have literally put money on them being larger and more successful in the years and decades to come.

There are two things we do know about the stock market, both the S&P 500 and the ASX. The first is that it goes up far more often than it goes down. The second is that it has never failed to exceed a previous all-time high.

I think all investors would be better off if they kept those facts in mind and worried less about when the next market crash will be.

The post Is the S&P 500 set for a crash? Here’s my plan for the US stock market appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• What Australia’s shocking inflation print means for ASX 200 investors and interest rates
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in Bitcoin, Mastercard, Procter & Gamble, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Mastercard, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Bitcoin and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mastercard and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts are always on the lookout for opportunities, and there are some very exciting ASX growth shares that have been rated as a buy.

We’re going to examine two businesses that have been rated as buys by multiple analysts. While being highly rated isn’t a guarantee of strong performance, I think it could be an encouraging sign of potential.

The financial power of both ASX growth shares is expected to increase strongly in the coming years, which could lead to very good returns.

Catapult Sports Ltd (ASX: CAT)

Broker UBS describes Catapult as a sports technology company with two core segments: wearable tracking technology (performance and health) and video software analysis (tactics and coaching).

The core goals of the company are to help athletes and teams optimise performance, prevent injuries, and improve return-to-play rates.

UBS currently has a buy rating on the business, with a price target of $6.70. That suggests a potential rise of 25% over the next year.

The recent FY26 first-half result from the business showed UBS that the result was another confirmation of the broker’s positive growth-based investment thesis.

UBS noted that annualised contract value (ACV) grew by 20% year over year to US$116 million. The wearables segment was the standout, delivering its highest-ever period of new pro team logo wins (276).

The broker also noted that the ASX growth share’s operating leverage was again impressive, with an incremental margin of 56%, as the business continues to scale profitably. Revenue growth alongside operating leverage can help cash operating profit (EBITDA) grow at more than 30% per year, which could mean it reaches US$45 million of A$69 million by FY28.

UBS explained why it’s confident in its growth expectations:

We’ve undertaken an extensive analysis into 3 key areas that support our forecasts and investment thesis.

(1) The remaining penetration opportunity is still significant and growing for Catapult’s wearables product after having been in the market for over 10 years now.

(2) The ability for Catapult to cross-sell its video software to existing customers. We undertook a number of channel checks that show the uniqueness and differentiation of being able to integrate wearables physiological data with video analysis.

 (3) Breakdown of key financial line items including GP margin, Variable costs, Fixed costs, and capex, which support our views around incremental Cash EBITDA margins.

Siteminder Ltd (ASX: SDR)

Siteminder is a software business that offers accommodation providers a range of solutions across the guest lifecycle, including distribution, bookings, operations management, and business intelligence.

UBS rates this ASX growth share as a buy, with a price target of $8.30. That implies a possible rise of 27% over the next year.

According to UBS, there were several positives in the Siteminder FY25 result, including achieving positive free cash flow, an acceleration of annual recurring revenue (ARR) to 27% with strong growth in the core business and additional smart products, rising profit margins, and profitable growth.

UBS likes the ASX growth share due to its market leadership position in a tech market with numerous greenfield opportunities. The broker thinks the company can achieve a revenue compound annual growth rate (CAGR) around 25% between FY25 to FY28.

Excitingly, UBS suggests the company could reach 73,000 customers (of a total of 950,000 addressable properties) by FY28 and 14% in the longer-term. This bodes well for the company’s long-term potential.

The post Experts rate these 2 ASX growth shares as buys for December! appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Morgans is bullish on these ASX tech shares
• Why Catapult, Kingsgate, Light & Wonder, and Reece shares are storming higher today
• The next wave of ASX tech winners to buy before 2026

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

S&P/ASX 200 Index (ASX: XJO) shares closed higher on Thursday, rising 0.13% to finish at 8,617.3 points.

Many of Australia’s top companies provided financial reports to the market this month.

This led to top broker Morgans issuing new notes with revised ratings and 12-month price targets on several ASX 200 large-cap shares.

Large-caps are sector-leading stocks with a market capitalisation of $10 billion or more.

Many investors favour large caps because they are well-established companies that pay regular dividends.

Let’s take a look at some of these stocks.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is the second-largest ASX 200 consumer discretionary share with a market capitalisation of $36 billion.

The Aristocrat share price closed at $58.74 on Thursday, up 0.39%.

Morgans upgraded its rating from accumulate to buy after Aristocrat reported its FY25 earnings this month.

The broker said:

Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface.

Encouragingly, management expects the business to return to its normalised growth range moving forward.

We see no structural shift in market dynamics and remain comfortable with the outlook.

Given recent share price weakness and a more compelling valuation, we upgrade ALL from Accumulate to Buy, with our 12-month target price reduced to $73 (from $77).

Xero Ltd (ASX: TNE)

Xero is the second-largest ASX 200 tech share with a market capitalisation of $20 billion.

The Xero share price closed at $123.15 yesterday, up 2.29%.

Morgans retained its accumulate rating but slashed its 12-month share price target to $141 after Xero released its 1H FY26 report.

The broker said:

XRO’s 1H26 result was largely in line with expectations but higher investment expenses in the 2H and the inclusion of Melio into our forecasts lowers our EBITDA and FCF forecasts.

Our target price reduces ~30% to $141 on lower peer multiples and lower FCF per share.

We retain our Accumulate recommendation, noting it may take some time for management to build investor confidence in the value add of Melio and return XRO back to rule of 40 growth.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is the biggest ASX 200 energy share with a market capitalisation of $48 billion.

The Woodside share price closed at $25.02 yesterday, down 1%.

Morgans retained its buy rating with an unchanged price target of $30.50 after Woodside’s Capital Markets Day this month.

Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure.

Growth to 2032 with net operating cash flow guided to ~US$9bn (+6% CAGR) with a pathway to ~50% higher dividends.

James Hardie Industries plc (ASX: JHX)

This building materials company is the largest non-mining ASX 200 materials share with a market capitalisation of $13 billion.

The James Hardie share price closed at $29.86 on Thursday, up 0.37%.

Morgans upgraded its rating to buy with a $35.50 share price target after James Hardie released its 2Q FY26 results.

The broker said:

Whilst the headline 2QFY26 result was largely released in early Oct-25, the details and outlook were incrementally more positive than previously anticipated.

JHX is trading on c.17.1x FY26F as the business navigates its acquisition missteps, earnings downgrades and a challenging consumer environment in North America (NA).

However, at EPS of c.U$1.04/sh in FY26 we see upside from both earnings and an undemanding PER (ave PER. 20x).

The post 4 ASX 200 large-cap shares with new ratings from Morgans appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks I’d trust with $10,000 for the next decade
• The Warren Buffett golden rule that investors can’t ignore
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• Want to build wealth? Here’s how Warren Buffett does it
• How to retire early with ASX shares and the power of compounding

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

If you’re investing with a long-term mindset, choosing the right ASX 200 stocks matters.

Short-term market noise, interest rate movements, and economic cycles all become far less important when you have a 10-year horizon.

What really counts is owning businesses with sustainable competitive advantages, strong earnings power, and the ability to keep compounding year after year.

With that in mind, here are three ASX 200 stocks I would feel very comfortable putting $10,000 into and leaving untouched for the next decade.

REA Group Ltd (ASX: REA)

Real estate might rise and fall with the economic cycle, but REA Group has proven again and again that it sits above the noise.

REA Group’s realestate.com.au website is the dominant digital property platform in Australia. It benefits from unmatched brand power, huge consumer traffic, and long-term relationships with agents and developers. When Australians look for property, they go to REA,  and that behaviour isn’t changing.

Importantly, the ASX 200 stock continues to find ways to monetise its leadership position. Premium listing upgrades, new adjacent services, data products, and international expansion provide multiple growth levers. Even in softer property markets, the company has maintained strong earnings momentum thanks to its pricing power and operational efficiency.

With its wide moat, high margins and expanding global footprint, I think REA is one of the most reliable long-term compounders on the ASX.

TechnologyOne Ltd (ASX: TNE)

Long-term wealth creation is built on consistency, and TechnologyOne might be the most consistent software company in Australia.

It specialises in enterprise SaaS solutions for government, education, and large organisations. These are customers that value reliability and tend to stick with their software providers for decades. This results in incredibly stable, high-margin recurring revenue and some of the stickiest client relationships in the market.

The company has delivered 16 consecutive years of record profit and continues to grow strongly as new customers join its platform and existing customers spend more.

The good news is that its growth is far from over. In fact, management believes that it can double in size every five years. In light of this, its proven management team, huge addressable market, and reliable earnings, TechnologyOne is exactly the type of company I would happily hold for 10 years or more.

Woolworths Group Ltd (ASX: WOW)

While Woolworths Group won’t match the hyper-growth of tech stocks, it brings resilience to a decade-long portfolio.

As Australia’s largest supermarket operator, this ASX 200 stock enjoys steady demand regardless of economic conditions. People always need groceries, household essentials and everyday goods, which gives the business a defensive earnings profile.

Over a 10-year period, this combination of defensive earnings and robust growth can deliver surprisingly strong compounding. So, for investors wanting stability alongside growth, Woolworths provides a dependable anchor for any long-term portfolio.

The post 3 ASX stocks I’d trust with $10,000 for the next decade appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 large-cap shares with new ratings from Morgans
• The Warren Buffett golden rule that investors can’t ignore
• Want to build wealth? Here’s how Warren Buffett does it
• How to retire early with ASX shares and the power of compounding
• Two ASX tech stocks Wilsons Advisory says are a buy after the recent tech sell-off

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

Do you have room in your income portfolio for some new additions? If you do, then it could be worth considering the three ASX dividend stocks in this article.

That’s because brokers have put buy ratings on them and are forecasting attractive and growing payouts in the near term.

Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

Cedar Woods could be an ASX dividend stock to buy now according to brokers.

It is one of Australia’s leading property companies with a portfolio diversified by geography, price point, and product type. This leaves Cedar Woods perfectly positioned to be a big winner from Australia’s chronic housing shortage.

It is for this reason that the team at Bell Potter is so positive on its outlook. The broker expects this to underpin dividends per share of 34 cents in FY 2026 and then 38 cents in FY 2027. Based on its current share price of $8.86, this equates to 3.8% and 4.3% dividend yields, respectively.

The broker currently has a buy rating and $9.70 price target on its shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock that could be a buy for income investors is Jumbo Interactive.

It is the online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and Powered by Jumbo platform.

Morgan Stanley thinks it would be a good pick for investors right now. It was pleased with its positive start to the year and believes it is positioned to pay fully franked dividends of 57.7 cents per share in FY 2026 and then 68.4 cents per share in FY 2027. Based on its current share price of $10.62, this would mean dividend yields of 5.4% and 6.4%, respectively.

It currently has an overweight rating and $16.80 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth-focused fashion retailer Universal Store could be an ASX dividend stock to buy.

Bell Potter is positive on the company, highlighting that it is executing very well on its national store rollout strategy.

The broker believes this strong form will continue and is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.61, this equates to dividend yields of 4.3% and 4.8%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post Brokers name 3 ASX dividend stocks to buy appeared first on The Motley Fool Australia.

More reading

• Buy these dirt cheap ASX dividend stocks before it’s too late
• These top ASX dividend stocks offer 5% yields
• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• Why Ord Minnett is bullish on these ASX shares
• I’d buy 3,483 shares of this ASX stock to aim for $2,000 a year of passive income

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two leading investment experts say that now is the time to sell these three S&P/ASX 200 Index (ASX: XJO) stocks.

One of the companies is a fast food operator, the second is an Aussie rare earths miner, and the third is an Australian retail conglomerate.

Here’s why shares in these three companies could be in for a rough patch in the months ahead (courtesy of The Bull).

Two ASX 200 stocks still awaiting a confirmed turnaround

The first company tipped as a sell is Super Retail Group Ltd (ASX: SUL).

Super Retail shares have gained 9% over the past 12 months. Atop those capital gains, the ASX 200 stock also trades on a 5.9% fully franked trailing dividend yield.

But looking ahead, MPC Markets’ Mark Gardner sees headwinds building.

“The retail giant’s brands include Supercheap Auto, Macpac, Rebel and BCF,” said Gardner, who has a sell recommendation on Super Retail shares.

“In our view, Super Retail’s profit outlook is modest, with few signs of accelerating growth amid challenging consumer trends,” he noted.

Gardner gave a nod to the passive income on offer from Super Retail shares. But he believes there are better opportunities on the ASX for passive income investors.

“The dividend yield is a bright spot, but overall, retail exposure is better gained through JB Hi Fi Ltd (ASX: JBH) or Wesfarmers Ltd (ASX: WES), which we believe offer stronger brands, wider margins and better scale advantages,” he said.

Gardner concluded, “Downside risk outweighs the upside without a near-term turnaround.”

Gardner also issued a sell recommendation on Collins Foods Ltd (ASX: CKF).

Collins Food shares have surged 34% over the past 12 months. Atop those gains, the ASX 200 stock trades on a fully franked 2.3% trailing dividend yield.

“The company operates hundreds of KFC outlets in Australia and Europe. The company announced in April 2025 that it was exiting the underperforming Taco Bell business,” Gardner said.

And he noted that statutory profits have come under heavy pressure.

“Revenue growth in Australia in full year 2025 was partially offset by softness in Europe. Statutory net profit after tax of $8.8 million was down 88.5%,” he said.

Gardner concluded, “In our view, fast food peer Guzman Y Gomez (ASX: GYG) presents as a stronger brand with superior momentum. We recommend switching to category leaders while CKF’s story remains in transition.”

Which brings us to…

Calling time on Lynas shares

Ord Minnett’s Tony Paterno recommends cashing in gains on Lynas Rare Earths Ltd (ASX: LYC).

Lynas shares have soared 110% since this time last year, though they remain well down from the multi-year highs notched on 15 October.

“Lynas is the only significant producer of separated rare earths materials outside of China,” said Paterno, who has a sell recommendation on the ASX 200 stock.

He noted:

Gross sales revenue of $200.2 million in the first quarter of fiscal year 2026 was up on the prior quarter and the prior corresponding period but missed consensus. The shares have fallen from $21.64 on October 15 to trade at $15.51 on November 19.

Paterno concluded, “In our view, the shares remain overvalued, so investors may want to consider cashing in some gains.”

The post Sell alert! Experts name 3 ASX 200 stocks to unload today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: Sigma Healthcare, CSL, and Lynas shares
• Analysts name 3 ASX shares to sell now
• What’s going on with Lynas Rare Earths shares today?
• How this new development could drive the next big boost for ASX rare earths stocks like Lynas

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 Super Retail Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Collins Foods and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.