DigiCo Infrastructure REIT (ASX: DGT) shares are soaring on Wednesday.

At the time of writing, the ASX data centre stock is up 23% to $2.90.

Despite today’s rally, it is worth noting that DigiCo Infrastructure REIT shares remain well below their December 2024 IPO listing price of $5.00 per share.

Why is this ASX data centre stock rocketing today?

Investors are bidding the DigiCo’s shares higher after it announced the sale of its Chicago data centre asset and a major strengthening of its balance sheet.

According to the release, the company has entered into a binding agreement to sell its CHI1 facility in Chicago for US$750 million. This represents a roughly 5% premium to its November 2024 purchase price.

The sale is expected to complete in the first quarter of FY 2027.

Balance sheet boost

A key reason that investors appear pleased with the update is the impact the sale will have on DigiCo’s balance sheet.

The company expects the CHI1 sale to release net cash proceeds of approximately $360 million after repayment of asset-level debt.

Pro forma net debt is expected to fall from $1.5 billion at 31 December 2025 to approximately $0.5 billion, while gearing is expected to drop from 36% to 17%. At the same time, available liquidity is expected to increase to approximately $900 million.

This materially improves DigiCo’s financial position and gives it more flexibility to fund growth.

Focus turns to SYD1

Management intends to redeploy capital into the SYD1 development in Sydney, which it describes as its most compelling growth opportunity.

The company confirmed that practical completion has been achieved for the first 15MW of a 20MW upgrade, with the remaining 5MW on track for delivery before 30 June.

DigiCo also noted that the broader 88MW SYD1 development program remains supported by strong customer demand.

The ASX data centre stock’s interim CEO, Chris Maher, commented:

The release of capital from CHI1 provides additional financial flexibility and capacity to accelerate the delivery of the SYD1 development program. The 88MW project has progressed further, with design and tender documentation for the expansion continuing to advance, the 70% design milestone now achieved and a head contractor to be appointed in Q3 CY2026. The remaining capacity is planned to be delivered progressively over the next three years, with 10MW of capacity targeting delivery in Q2 CY2027. The demand pipeline for the remaining capacity is strong and expected to generate attractive returns.

Capital management and outlook

DigiCo also revealed that it intends to explore capital management initiatives, including potentially returning excess capital through enhanced distributions in the short term.

Another positive is that management has reaffirmed its FY 2026 underlying EBITDA guidance of $125 million.

It also expects the US asset sales to be materially funds from operations accretive from FY 2027, while the SYD1 expansion is expected to support strong EBITDA growth over the next four years.

The post Why this ASX data centre stock is rocketing over 20% today appeared first on The Motley Fool Australia.

More reading

• DigiCo Infrastructure REIT slashes debt after Chicago asset sale
• Experts name 3 ASX shares to sell

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.

AGL Energy Ltd (ASX: AGL) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $9.43. In late morning trade on Wednesday, shares are swapping hands for $9.55 apiece, up 1.3%.

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

AGL shares are in focus today following the company’s presentation at the annual Macquarie Group Ltd (ASX: MQG) Conference.

Here’s what investors are tuning into.

AGL shares gain on improved FY 2026 guidance

The core takeaway from the Macquarie conference was AGL’s amended full year FY 2026 profit and guidance range.

Management now expects FY 2026 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to be between $2.06 billion and $2.18 billion, giving investors a tighter and improved range from prior guidance of $2.02 billion to $2.18 billion.

On the profit front, AGL forecasts full year underlying net profit after tax (NPAT) will be between $610 million and $680 million. That’s also a narrowed and improved range from prior NPAT guidance of between $580 million and $680 million.

The company said its narrowed and improved FY 2026 profit and earnings guidance reflects “the continued strong operational and financial performance of the business since the half year results”. That includes improved plant availability, stabilisation of consumer margins and disciplined cost management.

AGL shares could also be supported over the medium term, with the company noting that it is well placed for at least the next three months of the global fuel crisis. The ASX 200 energy stock said its current diesel storage is near capacity for its power generation assets, and it expects ongoing supply as an essential services provider.

What did management say?

Looking to what could boost AGL shares over the longer-term, CEO Damien Nicks pointed to the $2 billion dollars of projects the company currently has underway.

According to Nicks:

We’ve commenced commissioning on the first 250-megawatt tranche of the Liddell Battery in New South Wales, and the full 500 megawatts is expected to be operational by the end of this financial year.

Construction of the 500-megawatt Tomago Battery is progressing well, and we’ve also taken a final investment decision on the K2 project – further expanding the breadth and capacity of our flexible asset portfolio through a 220-megawatt, fast start gas peaker in Western Australia.

Nicks added, “The approximately $750 million proceeds from the sale of our 19.9% interest in Tilt Renewables are also expected to be received by 31 May.”

The post AGL shares lifting off on improved $2.1 billion full year earnings expectations appeared first on The Motley Fool Australia.

More reading

• AGL Energy narrows FY26 guidance as project pipeline grows
• Here are the top 10 ASX 200 shares today
• Here’s the dividend forecast out to 2028 for AGL shares
• Guess which ASX 300 energy stock is surging today on big AGL news
• Buy, hold, sell: AGL, Origin Energy, and Woodside shares

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

The GPT Group (ASX: GPT) share price is in focus after the company delivered its March quarter update, maintaining high occupancy across retail, office, and logistics, and reaffirming its FY 2026 guidance.

What did GPT Group report?

• Group investment portfolio averaged 97.5% occupancy with a 4.5-year weighted average lease expiry (WALE) for the quarter.
• Retail occupancy reached 99.7% as at 31 March 2026, with retail sales up 4.2% and specialty sales up 3.9% on the prior period.
• Office portfolio maintained 92.2% occupancy and a 4.9-year WALE; logistics achieved 98.8% occupancy and a 5.0-year WALE.
• Guidance was reaffirmed for FY 2026: FFO of approximately 35.4 cents per security (around 4% growth) and distributions of 24.5 cents per security.
• The GWSCF equity raise was oversubscribed, securing $610 million in new equity, supporting future fund growth.

What else do investors need to know?

GPT’s retail arm saw total moving annual turnover up 4.5% and specialty sales productivity remain high at $13,955 per square metre. April brought a 4.2% jump in retail foot traffic compared to last year, with redevelopments like Rouse Hill Town Centre on schedule for late 2026 completion.

Leasing activity was lively across all verticals. The office team completed 51,400 sqm of leasing over the quarter, with practical completion at 51 Flinders Lane, while logistics pushed forward with seven new deals for a combined 100,400 sqm. Construction continues at Kemps Creek, supporting future growth in logistics.

What’s next for GPT Group?

Looking forward, GPT maintains its guidance for the year and continues to invest in development across the logistics and retail portfolios. The successful equity raise supports the group’s capacity to pursue future projects and maintain high-quality assets.

Management remains focused on maximising occupancy and improving sales performance, while progressing planned developments and supporting growth across the investment portfolio.

GPT Group share price snapshot

Over the past 12 months, GPT Group shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the seme period.

View Original Announcement

The post GPT Group delivers March quarter update 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 JB Hi-Fi Ltd (ASX: JBH) share price is in the red on Wednesday after the electronics retailer released a sales update this morning.

At the time of writing, the JB Hi-Fi share price is down 3.40% to $75.22.

That adds to a weaker run over the past few months, with the stock now down 21% since the start of the year.

Today’s move may look strange at first glance, given the company reported sales growth across most of its major divisions.

But investors appear to be focusing on the weaker parts of the update, along with cost pressure flagged by management.

Here’s what JB Hi-Fi reported.

Sales are still growing

JB Hi-Fi said group sales continued to grow during the third quarter of FY26, covering the period from 1 January to 31 March.

In Australia, JB Hi-Fi sales rose 4% on a total basis, while comparable sales increased 2.6%. The New Zealand business was much stronger, with total sales up 23.2% and comparable sales rising 15.2%.

The Good Guys also posted growth, with total and comparable sales both up 2.5%. The weaker spot was e&s, where total sales fell 1.4% and comparable sales dropped 4.8%.

The year-to-date numbers were still positive across the group.

JB Hi-Fi Australia has lifted total sales by 5.7% so far this financial year, while New Zealand sales are up 29.7%. The Good Guys has grown total sales by 3.6%, and e&s remains slightly ahead on a total basis, with sales up 1.6%.

So why are investors selling

The pressure on the share price looks more closely tied to what management said about the trading environment.

Group CEO Nick Wells said the company was pleased to see sales growth in JB Hi-Fi and The Good Guys in what he described as an increasingly uncertain retail environment.

He also said the company is entering the key end-of-financial-year trading period with technology categories facing supplier component-related cost increases and stock availability shortages.

On top of that, JB Hi-Fi is dealing with heightened competition.

JB Hi-Fi is still selling more, but investors are now weighing up how much of that growth can flow through if costs rise and competitors keep pushing hard on price.

That is especially relevant after such a big run in previous years when shares were trading above $100. The stock is now down 21% in 2026 and 27% over the past 12 months.

Foolish takeaway

I do not think this update was bad. The sales growth is still there, and New Zealand was easily the strongest part of the update.

But I can see why the market is being cautious today. The update was not clean enough to ignore the pressure building around costs, stock supply, and competition.

From my side, I would want to see whether JB Hi-Fi can keep growing sales without giving up too much margin.

Until there is more evidence of that, I am not in a rush to step in just because the share price is lower today.

The post Warning: JB Hi-Fi shares tumble as investors look past sales growth appeared first on The Motley Fool Australia.

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• JB Hi-Fi Q3 FY26 sales update: Australia & NZ drive growth
• Sell alert! Why this expert is calling time on JB Hi-Fi and Westpac shares
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• 3 star ASX dividend income stocks for the rest of 2026

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.

AML3D Ltd (ASX: AL3) shares have been bouncing around on Wednesday.

At one stage, the ASX defence stock was up 5.5% to 19 cents.

Its shares have since pulled back and are trading flat.

What’s going on with this ASX defence stock?

Investors were bidding the wire additive manufacturing company’s shares higher this morning after the release of a promising announcement.

According to the release, Austal Ltd (ASX: ASB) and AML3D have completed the order for delivery of the first portable ARCEMY small edition to the US Navy’s Additive Manufacturing Centre of Excellence (AM CoE).

Austal USA, which runs the AM CoE, ordered the portable ARCEMY, mounted in a 20-foot (~6 meter) shipping container to allow for fast and flexible deployment. The portable ARCEMY will be used to accelerate technological development and component manufacturing at Danville and add to the existing fleet of two custom large scale ARCEMY X systems.

ARCEMY uses wire additive manufacturing to provide advanced, automated, on-demand, point-of-need 3D manufacturing solutions. The ASX defence stock believes these solutions are more efficient, cost-effective, and have better ESG outcomes compared to traditional casting, forging, and billet machining processes.

It is expected the flexible deployment profile of the portable ARCEMY will also demonstrate its potential use for forward deployment by multiple branches of the US military.

ARCEMY technology is already used to manufacture components that meet US military specifications.

The release notes that the successful completion of factory acceptance testing and installation of this first portable ARCEMY triggers the final 50% payment of the ~A$1.2 million order.

‘Huge opportunity’

The ASX defence stock’s CEO, Sean Ebert, was pleased with the news. He said:

It is exciting to continue to build our relationship with Austal USA. The success of this first portable, containerised system demonstrates how AML3D can flex its technology to meet multiple US military and industrial manufacturing use cases. The addition of the portable ARCEMY brings Austal USA’s fleet of customised ARCEMY systems to three at the US Navy’s Danville Center of excellence.

And we still are only just beginning to access the huge opportunity to support the US Navy’s Maritime Industrial Base outlined in the Letter of Intent we received from the US Navy that indicated a need for up to 100 additive manufacturing systems and 3,400 additively manufactured parts by 2030.

Austal USA’s vice president, Don Hairston, commented:

At Austal USA, our growing relationship with AML3D reflects a shared vision to redefine what’s possible in advanced manufacturing. The introduction of a containerized, fully deployable additive manufacturing system is a game-changer—it not only increases our capability at the U.S. Navy AM CoE, but it also allows us to demonstrate production directly at the point of need.

Together, we’re not just enhancing supply chains—we’re transforming them, delivering next-generation capability exactly where and when it matters most.

The post This ASX defence stock just jumped on big US Navy news appeared first on The Motley Fool Australia.

More reading

• Why Bell Potter says this ASX defence stock could rocket 100%

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 All Ordinaries Index (ASX: XAO) is up 0.6% in morning trade on Wednesday, with plenty of help from this surging ASX All Ords mining stock.

The fast-rising stock in question is St George Mining Ltd (ASX: SGQ), which just announced a collaboration with global engineering and professional services company Worley Ltd (ASX: WOR).

St George Mining shares closed yesterday trading for 11.5 cents. At time of writing, shares are changing hands for 12.0 apiece, up 4.4%.

This sees shares in the ASX All Ords mining stock up a jaw-dropping 328.6% since this time last year. That’s enough to turn a $10,000 investment into $42,857.

In one year.

Worley shares are up 1.4% at $12.15 each.

Here’s what’s happening.

ASX All Ords mining stock lifts on Worley agreement

This morning, St George Mining announced that it has appointed Worley Engenharia – the Brazilian subsidiary of Worley – to provide technical advisory services at St George’s Araxa Project, located in Brazil.

St George is looking into the potential development of a niobium and rare earths mine at Araxa.

The ASX All Ords mining stock acquired 100% of the Araxa Project, located in proximity to proven niobium mining operations, in February 2025.

St George said it chose Worley for the advisory position in light of the company’s “engineering excellence and deep experience in the Brazilian resources sector”.

Under the technical services agreement, Worley will provide engineering and project management advice to St George to support development studies for a niobium and rare earths mining operation.

Worley will assist St George Mining with metallurgical and process engineering, feasibility and cost study work, process plant design, mine planning, tailings management, procurement and plant construction.

What did St George and Worley management say?

Commenting on the collaboration with Worley that’s helping boost the ASX All Ords mining stock today, St George executive chairman John Prineas said:

As one of the world’s largest providers of engineering and project management solutions to the resources sector, Worley brings extensive and relevant expertise to support St George as we advance the potential development of our world-class Araxa Project…

With a world-class resource already defined at our project, the appointment of Worley will enable economic studies to gain momentum as we look to fast-track development and take advantage of our favourable project logistics – notably, a location in an established mining region, access to existing transport and energy infrastructure, availability of an experienced workforce and high-grade mineralisation amenable to open-pit mining, which are all backed by a supportive permitting regime.

Tom Foster, Worley’s senior vice president for global operations in Latin America, added, “We’re pleased to partner with St George to bring our regional expertise and global capabilities to support the Araxa Project.”

The post Up 329% in a year, ASX All Ords mining stock surging again today on big Worley news 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 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 BWP Trust (ASX: BWP) share price is in focus after the company announced a fully underwritten $228 million entitlement offer intended to fuel its growth pipeline. BWP also reaffirmed FY26 distribution guidance of 19.41 cents per security.

What did BWP Group report?

• Fully underwritten 1-for-12 pro rata entitlement offer to raise around $228 million at $3.77 per new security
• Committed pipeline of $163 million in developments, asset expansions and upgrades
• Cumulative capital deployment of over $700 million in the past two years, including large acquisitions and internalisation of management
• FY26 distribution guidance reaffirmed at 19.41 cents per security
• Wesfarmers, the largest shareholder, committed to take up its full entitlement (~$53 million)

What else do investors need to know?

BWP’s entitlement offer is designed to maintain balance sheet strength and support a $163 million pipeline focused on large format retail projects. Four significant projects representing $78 million of capital expenditure are underway, with additional opportunities expected soon.

The offer price of $3.77 per new security comes at a slight discount to recent trading prices, aiming to encourage maximum participation by eligible securityholders in Australia and New Zealand. New securities will qualify for the second-half FY26 distribution.

BWP’s property portfolio sits at $1.2 billion as at 31 December 2025, driven by acquisitions, repurposing, and expansion within the large format retail sector.

What did BWP Group management say?

Managing Director Mark Scatena said:

BWP has been listed for 28 years and has a demonstrated track record of strong capital stewardship. It has been 13 years since BWP last undertook an equity raising and, importantly, over its listed life BWP has delivered approximately 12 per cent annualised returns to securityholders with $1.00 invested at listing in September 1998 worth $22.95 today, assuming reinvestment of distributions.

What’s next for BWP Group?

Looking ahead, BWP plans to actively deploy capital from the entitlement offer to develop and upgrade properties, as well as pursue further portfolio growth opportunities. Management’s focus remains on portfolio optimisation, profitable growth, and renewal, targeting long-term income and capital gains.

The company’s active participation in the large format retail sector, underpinned by robust tenant demand, sets up BWP for ongoing rental income and valuation growth. Distribution guidance assumes no major economic shocks or market changes.

BWP Group share price snapshot

Over the past 12 months, BWP Group shares have risen 8%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post BWP Group launches $228 million entitlement offer 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.

Like many ASX gold stocks, Pantoro Gold Ltd (ASX: PNR) enjoyed a stellar run through much of 2025 and into early 2026. 

Pantoro is a West Australian gold production and development company. Its flagship asset is the 100%-owned Norseman Gold Project (NGP), south of Kalgoorlie in WA.

However since hitting a recent peak of nearly $6 per share in March, this ASX gold stock has fallen significantly. 

Since early March, it has dropped more than 46%. 

At the end of April, the company released a quarterly report, which prompted updated guidance from the team at Bell Potter. 

What did this ASX gold company report?

All-in Sustaining Cost (AISC) for the quarter was $3,204 per ounce, generating EBITDA was $88.4 million.

The company reported March quarter gold production of 17,757oz from the Norseman Gold Project (NGP) at All-In-Sustaining-Costs (AISC) of A$3,204/oz. 

The result was a miss compared with Bell Potter’s forecast of 20,861oz at A$2,604/oz. 

Production was impacted by flooding at the Scotia underground associated with Cyclone Mitchell in February, and by significant loader downtime throughout February and March.

The company also said it expects a strong finish to FY2026 and is currently on track to achieve the guidance range of 86,000 to 92,000 ounces by the end of the year.

Buy, hold or sell?

After falling significantly this year, investors might be hoping for a buy-low opportunity for this ASX gold stock. 

However, based on Bell Potter’s guidance, it seems there is limited upside. 

The broker has maintained its hold recommendation. It also lowered its price target to $3.55 (previously A$4.20). 

From yesterday’s closing price of $3.16, this indicates a modest upside of 12%. 

PNR offers unhedged gold production exposure and potential production growth, but we see multiple risks to both the near and medium-term outlook. It has a strong balance sheet, continues to generate positive free cash flow and has an active share buyback program in place.

However, we expect the market to apply a risk discount until delivery to guidance is restored.

Brokers views mixed

It is worth noting that there is more optimism for this ASX gold stock from other brokers. 

Recently, the team at Morgans said although its production was softer than expected during the third quarter, there is upside for this ASX gold stock. 

Morgans has put a buy rating and $6.29 price target on its shares. 

This indicates an upside potential of 99%. 

The post Is this ASX gold stock a buy, hold or sell after its quarterly results? appeared first on The Motley Fool Australia.

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

On Tuesday, the Reserve Bank of Australia increased the cash rate target by 25 basis points to 4.35%.

That changes the income conversation.

If an investor has a very low tolerance for risk, I think term deposits may be the better option right now. They offer a known return, no share market volatility, and very little effort.

But for investors with a normal tolerance for risk, I still think ASX dividend stocks can make a lot of sense.

The reason is simple. Term deposits may offer income, but they do not offer capital growth. Good dividend shares can potentially provide both.

Below are three stocks I would consider buying for income even as interest rates rise.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is the kind of ASX dividend stock that may divide opinion in a higher-rate environment.

Retailers can be sensitive to household budgets, and rising interest rates can put pressure on discretionary spending. I would not ignore that risk.

But I also think Harvey Norman has a few qualities that make it interesting for income investors.

It has a long history as one of Australia’s best-known retail brands, with exposure to furniture, electrical goods, appliances, and home-related spending. It also has a valuable property-backed model, which gives the business an asset base that many retailers do not have.

For me, this is not just a simple retail yield story. It is a business with scale, brand recognition, and a history of returning cash to shareholders.

The dividend can move around with earnings, so I would not treat it like a term deposit. But if investors are willing to accept some volatility, I think Harvey Norman could still play a useful role in an income portfolio.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is another dividend option I would consider.

What I like here is the nature of its property exposure.

The REIT owns convenience-focused and daily-needs assets, with tenants that often sit in categories such as supermarkets, healthcare, large-format retail, and essential services.

That kind of tenant mix is useful when the economy becomes more uncertain.

Higher interest rates can be a headwind for property trusts because debt costs can rise and investors can compare yields more closely with cash and term deposits.

But I think the quality of the underlying rental income is important too. HomeCo Daily Needs REIT ticks this box with its 99% occupancy and high-quality tenant base that includes Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). 

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods is the more cyclical ASX dividend stock pick of the three, but I think it is also one of the more interesting.

The company develops residential communities and housing projects across Australia. Rising interest rates can weigh on buyer confidence, and Cedar Woods itself recently noted that sales and enquiry activity had softened recently, reflecting lower consumer confidence, rising rates, and the Middle East conflict.

But I think the bigger picture remains compelling. Australia still has a significant housing shortage, and Cedar Woods highlighted that this structural shortfall is expected to continue supporting sales volumes, while noting it will take many years to address.

The latest update also showed robust demand, with 9,663 enquiries in the third quarter, the highest quarterly result in the company’s history. It also recorded 442 gross sales, its second strongest quarter on record.

Just as importantly, Cedar Woods reported record presales of more than $788 million, with over 80% of forecast FY27 revenue already presold. For me, that provides useful visibility.

This is still a property developer, so I would not call it defensive. But I do think Cedar Woods offers income investors exposure to a powerful long-term housing theme, with the potential for dividends and capital growth if it keeps executing.

Foolish takeaway

Rising interest rates make term deposits more attractive, particularly for investors who want certainty.

But I do not think they remove the case for ASX dividend stocks. For investors who can handle some market risk, I think Harvey Norman, HomeCo Daily Needs REIT, and Cedar Woods could still be worth considering.

They each offer income potential, but also something term deposits cannot provide: the chance of capital growth over time.

The post Why I’d still buy these ASX dividend stocks as interest rates rise appeared first on The Motley Fool Australia.

More reading

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• How much could a $50,000 ASX share portfolio pay in dividends?

Motley Fool contributor Grace Alvino 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 Harvey Norman and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not every investor will actively target ASX small-caps. However when a company is tagged with 130% upside, it’s hard not to pay attention. 

The ASX small-cap stock in question is gold stock Linq Minerals Ltd (ASX: LNQ). 

It has already rocketed 95% higher year to date. The Bell Potter team expects this to continue. 

Linq Minerals is an early-stage gold-copper explorer that has garnered attention from brokers, who have identified potential for significant growth following strong drilling results at its Gilmore project.

Its Gilmore site is an advanced exploration stage project covering ~597km2 between Temora and West Wyalong in central west NSW.

In late April, the company released a quarterly report.

This was followed up by a drilling result from its Dam deposit, part of its 100%- owned Gilmore Gold Project. 

These updates have prompted new guidance from the team at Bell Potter, who are extremely optimistic about this small-cap. 

Drilling results 

According to Bell Potter, the objective of the current round of drilling is to test the extents of a higher-grade gold-copper core zone within the known mineralisation. 

The latest drill hole, TDRCD005, hit 114 metres at 1.19 grams per tonne gold equivalent from a depth of 144 metres.

This result extends the higher-grade zone by another 50 metres to the north, bringing the total strike length to about 400 metres.

Drilling has been successful so far, with four of the first five holes delivering strong results.

The higher-grade zone is still open, meaning it could continue further along strike and at depth.

There are still results pending from nine more drill holes, which are testing extensions to the north, south, and deeper underground.

These are further positive results that continue to build the scale, consistency and add to the economic value of the Dam deposit. This latest assay result is now one of multiple intersections of this scale and width, building a critical mass that we anticipate will be reflected in the next Resource update.

Big upside for this ASX small-cap

Following this update, the team at Bell Potter retained its buy recommendation, and price target of 90 cents per share. 

From yesterday’s closing price of 39 cents, this indicates an upside potential of 130% for this ASX small-cap. 

We see the foundations of a competitive development project that is undervalued by the market. Current and planned drilling programs have the potential to highlight this and catalyse a re-rating. We retain our Speculative Buy recommendation.

The post The ASX small-cap every investor should be paying attention to appeared first on The Motley Fool Australia.

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