Commonwealth Bank of Australia (ASX: CBA) has once again reminded the market why it trades at a premium.

Following its latest half-year result, the CBA share price rallied strongly as earnings came in ahead of expectations. That reaction doesn’t surprise me. While some brokers continue to argue the stock looks expensive, I’m still holding my CBA shares and I’m comfortable doing so.

The numbers back up the premium

In the half-year to 31 December 2025, CBA delivered cash net profit after tax of $5,445 million, up 6% on the prior corresponding period . Pre-provision profit rose 5% to $8,131 million, reflecting what I see as solid operational discipline across the core franchise.

Return on equity improved to 13.8%, which remains peer-leading. For a bank of this size, maintaining that level of profitability in a competitive lending environment is no small achievement.

Yes, margins were slightly lower and operating expenses increased due to inflation and continued investment in technology. But I actually like seeing that investment. The bank is spending over $1.2 billion on modernising its technology infrastructure and enhancing GenAI capabilities. In my view, that is how it protects its leadership position rather than slowly losing ground.

Credit quality remains a strength

One of the reasons I sleep well owning CBA shares is the quality of its balance sheet.

Loan impairment expense was $319 million, with a loan loss rate of just 6 basis points. Home loan arrears actually decreased in the half, and 87% of home loan customers are now ahead of their scheduled repayments.

To me, that speaks volumes about the resilience of both the customer base and the broader economy. The bank is also carrying a substantial provisioning buffer of around $2.8 billion above expected losses under its central scenario. That’s not the behaviour of an institution cutting things fine.

Capital remains strong too, with a CET1 ratio of 12.3%, comfortably above regulatory minimums. I think that balance sheet strength deserves a premium valuation.

The dividend still matters to me

CBA declared an interim dividend of $2.35 per share, fully franked. That’s up 4% on the prior corresponding period and continues the bank’s track record of rewarding shareholders.

As I’ve written before, yield alone doesn’t tell the full story. For long-term holders, yield on cost can look very different from the headline figure new investors see today. Add full franking credits into the mix and I still see CBA as a core income holding in my portfolio.

Why I’m not selling

I understand the valuation debate. On traditional metrics, CBA is not cheap. But I believe the market pays up for consistency, execution, and franchise strength. This result reinforced all three.

The bank continues to grow lending and deposits, invest in technology, maintain strong capital levels, and deliver reliable dividends. For me, that combination is exactly why I own it.

Foolish takeaway

CBA isn’t a bargain share. But I believe it remains Australia’s highest-quality bank.

With strong earnings, improving credit quality, and a fully franked dividend continuing to grow, I’m still happy to hold my CBA shares and let them compound over time.

The post Here’s why I’m still not selling my CBA shares anytime soon appeared first on The Motley Fool Australia.

More reading

• How to make a $50,000 passive income from ASX shares
• The ANZ share price is a sell – UBS
• Utilities outperform as ASX 200 ascends to a 3-month high
• The CBA share price is a sell – UBS
• How I would build an income portfolio that lasts a lifetime

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

Northern Star Resources Ltd (ASX: NST) shares have surged over the past year.

During this time, the gold miner’s shares have risen more than 50% in response to a booming gold price.

Is it too late to invest? Here’s what Bell Potter is saying following the company’s first-half result.

What is the broker saying?

Bell Potter was relatively pleased with Northern Star’s half-year results given the operational disruptions it experienced during the period. The broker said:

Highlights: Revenue A$3,414m (BPe A$3,417m, VA A$3,383m), EBITDA A$1,876m (BPe A$1,894m, VA A$1,890m), NPAT A$760m (BPe A$848m, VA A$779m) and EPS A$50cps (BPe A$59cps, VA A$54cps). The result was largely inline, except for a larger than anticipated impairment on exploration assets of A$77.6m (A$24.7m PcP).

Despite the production downgrade in Jan-26 following disruptions across South Kalgoorlie and Jundee, lower mined grades from the Orelia OP (Thunderbox) and a primary crusher failure at KCGM, financial performance remained resilient, with EBITDA margins expanding across both Kalgoorlie and Pogo production centres. NST finished the half with A$293m in net cash.

Hemi delays

One of the key developments from the result was a potential delay to the Hemi project, which it gained with the acquisition of De Grey Mining. Bell Potter explains:

The key development from the announcement was the potential delay for the Hemi project. We had forecasted production commencement in Mar-29, however NST now anticipates this to occur around the beginning of FY30. A short delay, which was likely to be expected.

The broker also notes that meeting full-year production guidance in FY 2026 will require a stronger second half. It adds:

We still need to see a material grade lift across the portfolio to hit guidance (FY26 1,600-1,700koz), which is going to come from Golden Pike North (KCGM/ Kalgoorlie), and a normalization of operations at Yandal.

Should you buy Northern Star shares?

Despite the operational hurdles and the Hemi timing slip, Bell Potter remains positive on this ASX gold stock.

According to the note, the broker has retained its buy rating on Northern Star shares with an improved price target of $35.00.

Based on its current share price of $28.37, this implies potential upside of 23% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

Our Target Price lifts to $35.00/sh, and we maintain our Buy recommendation. The 1HFY26 result was already flagged as being impacted by the disruptions outlined above. The question is; how quickly the business can rectify remaining disruptions, in a timely manner to meet the downgraded guidance. We forecast the cashflow inflection point in FY28, with the potential for capital returns/ buybacks should KCGM reach capacity ahead of cash outlays for Hemi.

The post Should you buy Northern Star shares today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Utilities outperform as ASX 200 ascends to a 3-month high
• Brokers name 3 ASX shares to buy today
• Are Northern Star Resources shares a buy following their profit results?
• Here are the top 10 ASX 200 shares today

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

The Ansell Ltd (ASX: ANN) share price is in focus today after the company reported double-digit earnings growth and a lift in EBIT margin for the half-year ended 31 December 2025, while keeping its FY26 adjusted EPS guidance unchanged.

What did Ansell report?

• Total sales rose to US$1,026.6 million, up 0.7% on a reported basis
• EBIT (before significant items) increased to US$146.9 million, up 15.3%
• Adjusted EPS climbed 19% to US66.3¢
• Operating cash flow surged 71.8% to US$91.9 million
• Interim dividend of US26.60¢ declared, up 19.8%, with a 40% payout ratio
• Net Debt/EBITDA fell to 1.5x following share buybacks worth US$47 million

What else do investors need to know?

Ansell managed to offset the effects of higher US tariffs through price increases, especially in its industrial segment, helping maintain profit margins despite subdued trading conditions globally. Both its Industrial and Healthcare divisions delivered improved EBIT margins, thanks to increased synergies from its KBU acquisition and ongoing productivity programs.

The Accelerated Productivity Investment Program (APIP) reached its $50 million annual savings target, with cost-saving measures now shifting to IT upgrades and a system roll-out starting in North America. Ansell also resumed its on-market share buyback, with $47.2 million of shares repurchased in the half, supporting returns to shareholders.

What did Ansell management say?

Retiring Managing Director and CEO Neil Salmon said:

We delivered a strong set of first half results in what were subdued market conditions. Key investments made in recent years contributed to double-digit growth in earnings and a significant improvement in our EBIT margin, including higher synergies from the acquired KBU business and increased savings from our Accelerated Productivity Investment Program (APIP), which has now achieved its savings target of $50m… As we enter the second half, while we do not anticipate any meaningful improvement in market conditions, we continue to see growth opportunities in verticals and geographies favoured by increased public and private investment, enabled by our unmatched global presence and end-user focused sales approach. Based on this outlook, we are maintaining our guidance range for FY26 Adjusted EPS of US137¢ to US149¢.

What’s next for Ansell?

Looking ahead, Ansell expects organic constant currency sales growth in the second half, with market conditions likely to remain steady. The company is maintaining its FY26 adjusted EPS guidance between US137¢ and US149¢ and plans further investment in manufacturing and IT systems to support future growth.

Earnings momentum from the first half is expected to continue, backed by ongoing productivity improvements, KBU synergies, and a strong balance sheet. The company highlighted its focus on seizing growth opportunities in key global markets while delivering shareholder returns through dividends and buybacks.

Ansell share price snapshot

Over the past 12 months, Ansell hares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Ansell shares: earnings jump and dividend rises in FY26 half-year appeared first on The Motley Fool Australia.

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• The a2 Milk Company impresses with 1H26 earnings—shares in focus

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

Owning ANZ Group Holdings Ltd (ASX: ANZ) shares has historically been a rewarding experience in terms of passive income and the dividend yield. Investors may be wondering if that record will continue in the coming years.

The ASX bank share impressed the market with its FY26 first quarter update, which included cash net profit of 17% compared to the quarterly average of the second half of FY25, excluding significant items. Operating expenses declined by 8%, while operating revenue grew 1%.

Including significant items, the cash net profit jumped an impressive 75%, with operating expenses lower by 21%.

Net loans and advances grew to $837 billion at December 2025, up 1% from September 2025 and up just 0.3% from December 2024.

After taking those numbers into account, analysts have revealed where they think the dividend yield is headed for owners of ANZ shares.

FY26

UBS noted that cash profit and costs were better than analysts were expecting, both from UBS and other market analysts. The credit environment is still “very benign”

The broker said that this is “clearly a good start to FY26”, along with operational deposit growth of 5% year-over-year, as well as a solid net interest margin (NIM).

UBS also noted some negatives:

…however, more immediately NZ and US rate cuts, relevant for the Institutional division, could be a headwind. Things we would call out that could be negatives are NII [net interest income] grew by only 0.4%, and lending only grew 1% QoQ or 0.3% including Institutional. Revenue growth (+3.0%) supported by Non-II [non-interest income] and markets income in this result. Key to ANZ achieving its targets is the ability of the group to hold onto revenue as it goes through this period of restructuring and reset.

Based on UBS’ forecasts, owners of ANZ shares could see a dividend yield (excluding franking credits) of 4.2%.

FY27

In the 2027 financial year, UBS is projecting a similar payout from ANZ, resulting in a dividend yield of 4.2% (excluding franking credits).

FY28

The ASX bank share’s payout is expected to jump in the 2028 financial year. UBS projects that owners of ANZ shares could receive a dividend yield of 4.5%, excluding franking credits.

FY29

The ANZ dividend per share could rise again in the 2029 financial year. This could mean the FY29 dividend yield for shareholders is 4.6%, excluding franking credits.

FY30

In the last year of this series of projections, ANZ is forecast by UBS to increase its payout again to a dividend yield of 4.7%, excluding franking credits.

UBS explained its negative view on the business:

We remain Sell-rated on ANZ with a price target of $36.5/share (was $35/share), as we think the stock has run ahead of fundamentals, with a particularly strong positive price reaction to this 1Q26 earnings update (~+10%). We remain cautious on ANZ’s strategy to reset profitability. ANZ is trading at 15.8x P/E (2-years forward)…

The post Here’s the dividend yield forecast out to 2030 for ANZ shares appeared first on The Motley Fool Australia.

More reading

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• Brokers re-rate CBA and ANZ shares after banks stun the market

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 a2 Milk Company Ltd (ASX: A2M) share price is in focus today after the company posted an 18.8% jump in revenue to $993.5 million and lifted its FY26 guidance.

What did The a2 Milk Company report?

• Revenue up 18.8% to $993.5 million
• EBITDA up 18.4% to $155.0 million; underlying EBITDA up 25.9%
• Net profit after tax (NPAT) up 9.4% to $112.1 million
• Basic EPS up 9.2% to 15.5 cents; underlying EPS up 19.4% to 16.9 cents
• Closing cash of $896.9 million with 90.8% operating cash conversion
• Interim dividend of 11.5 cents per share (unimputed, fully franked, ~74% NPAT payout)

What else do investors need to know?

The a2 Milk Company saw strong gains across key segments, with China & Other Asia revenue rising 20.3%, ANZ up 8.6%, and the USA surging 29%. Its English label infant milk formula performed especially well, jumping 20.9%, while China label sales hit a record market share.

The company recently expanded its range of kids and seniors nutritionals, and entered the paediatric supplement category, opening fresh growth avenues. Recent supply chain moves—including the completion of its a2 Pokeno acquisition and a divestment of Mataura Valley Milk—aim to support a higher-growth, lower-risk business.

What did The a2 Milk Company management say?

David Bortolussi, Managing Director and CEO, said:

Our upgraded outlook means we are now on track to achieve our $2 billion medium term sales ambition in FY26, a full year ahead of plan. This is testament to the execution of our team and the strength of the a2 brand.

What’s next for The a2 Milk Company?

Looking ahead, the company has lifted its FY26 revenue growth guidance from low to mid double-digit percent, alongside expectations for improved EBITDA margins. Management is focusing on growing its infant formula, adjacent nutrition categories, and expanding in international markets.

With innovation such as new fortified UHT kids’ products and China label paediatric supplements, a2 Milk aims to capture more market share and diversify. The supply chain projects and brand investments are expected to underpin higher profitability and reduce risk further.

The a2 Milk Company share price snapshot

Over the past 12 months, the a2 Milk Company share price has risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has climbed 4% over the same period.

View Original Announcement

The post The a2 Milk Company impresses with 1H26 earnings—shares in focus appeared first on The Motley Fool Australia.

More reading

• GPT Group delivers strong 2025 profit and distribution uplift
• BlueScope Steel books strong 1H FY26 profit and dividend surge
• Freightways Group lifts profit and dividend in HY26 results
• Contact Energy offers $47m for full King Country Energy ownership
• Ansell shares: earnings jump and dividend rises in FY26 half-year

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.

James Hardie Industries plc (ASX: JHX) shares have experienced sharp swings over the past year.

At one point, the stock fell roughly 40% to 50% from its high amid concerns over a large US acquisition, softer earnings, and governance uncertainty. In the first weeks of 2026, James Hardie shares have staged a meaningful recovery and gained 18% in value to $36.54, at the time of writing.

Let’s have a look why experts think there’s more to come from the ASX share.

Market leadership and pricing power

James Hardie is the dominant fibre cement player in North America and Australia. Its brand recognition, distribution network, and product durability create a competitive moat that is difficult for rivals to replicate.

The leadership position of James Hardie shares have historically allowed the company to push through price increases, even in mixed demand environments. The addition of outdoor living products through its US expansion broadens James Hardie’s addressable market and provides cross-selling opportunities.

Over time, management believes scale benefits and cost synergies can lift margins and support earnings growth.

Better than expected profit

Last week James Hardie released a third-quarter profit that exceeded expectations. The building products maker said in a statement to the ASX that its net sales rose 30% to US$1.2 billion, while operating income was US$176 million. The net sales figure was, however, inflated by the contribution of AZEK, which James Hardie bought mid-last year.

The company upgraded its full-year adjusted EBITDA guidance from US$1.2 to US$1.25 billion to US$1.23 to US$1.26 billion. It also upgraded the net sales outlook for both the siding and trim, and deck, rail & accessories divisions.

Cyclicality and execution risk

The flip side of the US presence is exposure to the housing cycle there. New construction, repairs and remodel activity are highly sensitive to mortgage rates and consumer confidence. Elevated interest rates have dampened housing demand, and volumes have been uneven across regions.

Valuation is another consideration. After rebounding, James Hardie shares are no longer priced for disaster. That means future gains will likely depend on earnings delivery rather than sentiment alone.

What do brokers see next?

Analyst views on James Hardie shares generally sit in the moderate buy to outperform range, with many price targets above recent trading levels. Forecasts point to gradual earnings improvement as cost savings flow through and housing markets stabilise.

The consensus expectation is not for explosive short-term growth, but for steady gains if management executes well and demand conditions normalise. Analysts have set the average 12-month price target for James Hardie shares at $41.77, a potential gain of 14% at current levels.

Morgans is feeling positive about the medium-term outlook of James Hardie shares. As a result, the broker has retained its buy rating with an improved price target of $45.75, a potential 25% upside. 

Foolish takeaway

James Hardie shares are not a straight-line growth story. They are cyclical, exposed to macro conditions. But the company also holds strong market positions, proven pricing power, and expansion opportunities in attractive categories.

If housing conditions improve and synergies are realised, the shares could continue trending higher. Investors should expect volatility, but long-term believers may see the recent swings as part of the journey rather than the end of the story.

The post Why James Hardie shares could keep charging higher 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.

REA Group Ltd (ASX: REA) shares have slid 41% over the past 12 months, even as the engine underneath keeps humming.

At current levels, this beaten-down ASX share looks mispriced. For investors prepared to ride out short-term volatility and tune out broader market noise, REA Group shares could offer compelling long-term upside.

Let’s have a look at the reasons why.

Dominant digital marketplace

REA Group is the owner of realestate.com.au — Australia’s dominant online property marketplace. In digital real estate, scale wins. REA Group has it.

The business throws off strong cash flow and has long demonstrated pricing power. Agents pay for depth products, premium listings and data insights because that’s where the eyeballs are. Even in softer listing markets, REA Group has historically lifted yield per listing to keep revenue moving higher.

Pricing and product mix drive growth

Recent quarterly numbers told the same story: revenue and EBITDA up, driven more by pricing and product mix than sheer volume. That’s the mark of a quality platform. The moat of the REA Group shares is clear — market leadership, network effects and recurring agent services.

REA Group recently reported its results for the six months to 31 December 2025. With its core operations, it reported revenue growth of 5% to $916 million, underlying operating profit excluding associates growth of 6% to $569 million, and net profit growth of 9% to $341 million.

Regulatory scrutiny and elevated multiples

But REA Group shares are not risk-free. Regulatory scrutiny is a live issue, and the stock still trades on elevated multiples compared to long-term averages. That can limit short-term upside if growth wobbles.

Still, leverage to a housing recovery remains powerful. If listings rebound or management successfully rolls out AI-driven tools that deepen agent engagement, sentiment could shift quickly.

Pullback as opportunity

For long-term investors, a 41% pullback in a category leader doesn’t automatically signal trouble. It can signal opportunity. Most brokers seem to think so.

Following the half-year results, Bell Potter has maintained its buy rating on REA Group shares but trimmed its price target to $211.00 from $244.00. With the shares currently trading at $158.09, that implies potential upside of around 33% over the next 12 months.

The business is also rated as a buy by UBS, with a price target of $218.90. This points to a possible rise of around 38% within the next year from where it is at the time of writing.

UBS recently explained that REA Group shares seem cheap compared to its valuation multiples of the last five years:            

We reiterate our Buy rating on REA. Whilst difficult to know where the valuation support would be in the current market environment, REA is trading today on 18.5x fwd EBITDA, 31x fwd P/E both more than 1SD below last 5yr averages, which we view as attractive for a stock continuing to deliver resilient double digit earnings growth, and most AI defensive across our Online Classifieds coverage.

The post 3 tailwinds that could send REA Group shares higher again 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.

The tech sector has been hit hard over the past week, with heavy selling sweeping across global markets.

Artificial intelligence (AI) disruption fears, stretched US valuations, and Nasdaq declines have sparked a broad sell-off in international software shares.

That volatility has dragged down several of the ASX’s highest quality technology companies, pushing them to multi-year lows.

Investors have been cutting risk, with growth stocks sold off the hardest. This sharp correction has created some appealing opportunities.

Why tech shares are under pressure

For the past 18 months, AI has been treated as a major growth driver for software companies. Investors are now reassessing how it will affect earnings, customer demand, and competition across the sector.

At the same time, valuations across US software stocks had expanded significantly after a strong rally, making the sector sensitive to even minor setbacks.

Significant falls on the Nasdaq have prompted fund managers to reduce exposure across the technology sector, and that selling has flowed through to the ASX.

Interest rates are also weighing on sentiment. Higher bond yields tend to pressure long-duration growth companies, where much of the valuation is tied to future earnings.

WiseTech Global Ltd (ASX: WTC)

On Friday, WiseTech shares fell 10.41% to $42.62, their lowest level since July 2022.

WiseTech is best known for its CargoWise platform, which helps logistics providers manage complex global supply chains. It has built a strong position in freight forwarding software and continues to expand its footprint internationally.

Over the past decade, the company has delivered consistent revenue growth and strong margins. Management has focused on developing a single global platform rather than stitching together multiple disconnected systems, supporting scalability and integration.

A large portion of revenue comes from recurring contracts with customers who use the software to run critical parts of their business.

Despite the recent decline, the company remains exposed to a large global market with a long runway for growth.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne shares dropped 7.05% on Friday to $20.17, their lowest level since early August 2024.

The company provides enterprise software to governments, councils, universities and large organisations. Its systems are deeply embedded in customer operations, making switching providers difficult.

TechnologyOne has spent years transitioning customers to its cloud platform, increasing recurring revenue and supporting margin expansion.

Annual recurring revenue (ARR) has grown strongly in recent years, alongside steady improvements in profitability. The business model is simple, focused and scalable.

Like WiseTech, the share price weakness appears more linked to global sector sentiment than any material change in the company’s fundamentals.

Foolish takeaway

Tech stocks do not fall 10% in a day without reason.

The market is reassessing growth expectations across the tech sector. That does not mean the fundamentals have suddenly changed.

WiseTech and TechnologyOne are not without risk. However, after this correction, both are trading at levels not seen for some time. If earnings continue to grow and margins remain solid, today’s prices could look very attractive in hindsight.

The post 2 ASX tech stocks smashed to multi-year lows appeared first on The Motley Fool Australia.

More reading

• The $10,000 Test: Which ASX shares would I still own after 10 years?
• Should you just forget ASX tech stocks after the AI selloff?
• How I would build an income portfolio that lasts a lifetime
• Why WiseTech shares are plunging 11% today
• Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today

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 Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

The ASX dividend stock Pinnacle Investment Management Group Ltd (ASX: PNI) has sunk a painful 36% since its February 2025 peak. When a business like Pinnacle falls that far, I think it’s a great time to consider an investment.

Pinnacle is invested in a portfolio of funds management businesses (affiliates), so funds under management (FUM), management fees and performance fees are a core part of the ASX dividend stock’s performance.

The business recently reported its FY26 half-year result, which reinforced to me why it’s a strong pick for dividend income.

Solid HY26 result

The company reported that its bottom line – the net profit after tax – declined by 11% to $67.3 million. That was essentially because performance fees (post-tax) contributed $13.4 million of Pinnacle’s net profit, compared to $36.4 million in the prior corresponding period.

Pinnacle noted that its affiliates have continued medium-term outperformance across many affiliates, with 86% of five-year affiliate strategies outperforming their respective benchmarks over the five years to 31 December 2025.

Excluding performance fees, Pinnacle’s net profit rose 37% year-over-year, or it was 11% higher than the second half of FY25.

Pinnacle reported a record net inflows for the half-year period of $17.2 billion, with domestic retail net inflows of $6.8 billion, domestic institutional net inflows of $7 billion and international net inflows of $3.4 billion.

The aggregate affiliate FUM grew to $202.5 billion at 31 December 2025, up $23.1 billion, or 13%, from $179.4 billion at 30 June 2025. Affiliate retail FUM grew 18% over the six months to $46.7 billion and affiliate international FUM rose 12% to $57.8 billion.

Pinnacle also noted that all of its affiliates are profitable, with revenue and core earnings continuing to build.

The ASX dividend stock also welcomed its 19^th affiliate, Advantage Partners of Japan and also announced a further investment into Pacific Asset Management.

With the business paying out virtually all of its net profit as a dividend, the payout was 12% lower than the FY25 half-year dividend. However, it was 7% higher than the FY25 final dividend.

ASX dividend stock credentials

So far, FY26 has been very volatile in terms of share market valuations, which could have impact earnings and the dividend in the annual result. However, the future of dividend growth looks very promising, in my view.

The broker UBS forecasts that the business could pay an annual dividend per share of 81 cents in FY27. The payout could then be increased each year to FY30 when the payment could be $1.28 per share, representing growth of 58% between FY26 to FY30. I don’t know what the level of franking will be, so I’ll calculate the potential dividend yield without franking credits.

Those projections suggest a dividend yield of 5.8% in FY26 and 7.8% in FY30, excluding franking credits. I think those would be very pleasing yields if they happen.

The post 1 ASX dividend stock down 36% I’d buy right now appeared first on The Motley Fool Australia.

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

Insurance Australia Group Ltd (ASX: IAG) shares ended in the green on Friday afternoon. At the close of the ASX, the shares finished up 1.03% to $6.87 a piece.

It’s welcome news for investors after the insurance shares have dropped nearly 10% since the start of February. And the stock is now 11.92% lower than this time last year.

What happened to IAG shares this month?

IAG started dropping on Monday last week. There was no price-sensitive news out of the company at the time, so it’s possible that investors were taking gains off the table ahead of the company’s first half FY26 results. 

Extreme wet weather events, particularly in NSW and Queensland which would result in a surge of insurance claims and increased payouts, likely dented investor confidence too. A higher number of claims generally reduces profit margins for insurers like IAG.

Investors were right to be apprehensive. The company’s half-year FY26 results, posted on Thursday, showed a significant drop in profit.

For the six months to 31st December 2025, IAG’s revenue was up 23.3% but its net profit after tax dropped 35.1%.

Despite the decline, IAG maintains its FY26 profit guidance of between $1,550 million and $1,750 million.

Why I think the share price could jump higher

While IAG shares tumbled in February, I think there is potential for the stock to storm up to $10 per share this year. Here’s why.

IAG is likely to hike its home and motor insurance premiums following high claims from several extreme weather events across the country over the past few months. 

According to a report by The Australian, market analysts expect the combined impact of recent catastrophes and broader claims inflation to flow through to upcoming renewals as insurers work to manage loss ratios and capital requirements.

This means that if weather conditions normalise (or at least the number of extreme events reduces, even slightly) earnings could rebound fast. This translates through to better dividends for investors and possible share buybacks. It could also drum up more investor confidence (or interest) in IAG shares, which would in turn drive the price higher. 

Analysts are very bullish on the outlook for IAG shares right now. Out of 11 analysts, 7 have a buy or strong buy rating. The maximum target price is $9.80, which implies a 42.65% upside at the time of writing. And I think, if the pieces of the puzzle fall into place, the shares could well break the $10 barrier this year.

The post Prediction: IAG shares could jump to $10 in 2026 appeared first on The Motley Fool Australia.

More reading

• IAG shares could go how high?
• IAG FY26 half-year result: profit down, revenue up, dividend steady
• ASX 200 financials flew but tech and mining shares faltered last week
• Buy, hold, sell: IAG, Mineral Resources, and Westpac shares
• IAG share price drops 13 in a year: Buying opportunity or time to sell up?

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