The S&P/ASX 200 Index (ASX: XJO) is racing ahead today.

In morning trade on Thursday, the benchmark Aussie index is up 1.7% at 8,639.8 points. That will come as welcome news to investors after the index dropped 1.3% yesterday to plumb a new seven-week closing low.

So, who do investors have to thank for today’s rebound?

ASX 200 lifts on Middle East peace hopes

Well, like it or not, today’s strong performance on the ASX 200 comes largely thanks to United States President Donald Trump.

Yesterday (overnight Aussie time), Trump lifted investor sentiment when he said that the conflict with Iran is in its “final stages”.

That’s important because, as you’re likely aware, the outbreak of the Middle East conflict at the end of February has sent global energy prices surging. That in turn has stoked inflation and pressured central banks, like our own RBA, to increase interest rates.

The Brent crude oil price fell around 5% on the news to US$105 per barrel. Gold, which tends to perform better in lower interest rate environments, gained 1.5% to US$4,545 per ounce.

In US stock markets, the S&P 500 Index (SP: .INX) closed up 1.1% on renewed hopes of a peace deal. The tech-heavy (and more interest rate sensitive) Nasdaq Composite Index (NASDAQ: .IXIC) closed up 1.5%.

Sounding a note of caution to US and ASX 200 investors about potentially premature euphoria over a lasting peace deal with Iran, strategist Louis Navellier said (quoted by Bloomberg):

Everyone wants to see this end, but negotiations so far have been far apart on key issues, with both sides expecting each other to blink first. Even if a deal is struck, it may take some time to be sure it won’t be violated for things to fully return to normal.

Now, here’s how some of the biggest names on the ASX are performing on hopes that the end of the war may be near.

What’s happening with the likes of CBA, BHP, Newmont, and Woodside shares?

Starting with today’s underperformers, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 1.6% following the overnight slide in the oil price.

Santos Ltd (ASX: STO) shares are down 1.3% at $7.99, and Woodside Energy Group Ltd (ASX: WDS) shares are down 2.3% at $31.74 each.

The gold miners, on the other hand, are enjoying the brighter outlook for the yellow metal, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2.1% at the time of writing.

Newmont Corp (ASX: NEM) shares are up 2.1% at $149.63, and Evolution Mining Ltd (ASX: EVN) shares are up 3.7% at $11.79.

Many ASX tech stocks are also enjoying the prospect of potentially easing inflation, with the S&P/ASX All Technology Index (ASX: XTX) – which also contains some smaller tech companies outside of ASX 200 tech stocks – up 0.8%.

Shares in data centre operator NextDC Ltd (ASX: NXT) are up 3.1%, trading for $14.66 each, while shares in location sharing software developer Life360 Inc (ASX: 360) are up 3.3%, trading for $18.49 apiece.

Turning to the ASX 200 banks, Commonwealth Bank of Australia (ASX: CBA) shares are up 0.6% at $163.56, while Westpac Banking Corp (ASX: WBC) has gained 1.6% at $36.09 each.

And finally, the S&P/ASX 200 Resource Index (ASX: XJR) is also leaping higher today, up 1.8%.

BHP Group Ltd (ASX: BHP) shares are up 2.7% at the time of writing at $58.90, while Fortescue Ltd (ASX: FMG) shares are up 1% at $21.83 each.

The post Why is the ASX 200 going gangbusters on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in both Hillgrove Resources Ltd (ASX: HGO) and Havilah Resources Ltd (ASX: HAV) are trading higher after the two companies struck a deal over a South Australian copper deposit.

The companies said in a joint statement to the ASX on Thursday morning that they had signed an agreement under which Hillgrove could earn an 80% interest in the Mutooroo Copper Project.

Hillgrove currently operates the Kanmantoo underground copper mine in the Adelaide Hills.

Hillgrove to earn in

Under the deal, Hillgrove can complete a prefeasibility study looking at the viability of processing Mutooroo ore through the Kanmantoo processing facility.

The companies said:

Hillgrove’s Kanmantoo processing facility provides a potential lower capital intensity and lower execution risk pathway to develop Mutooroo’s 192 thousand tonne of copper from the JORC Sulphide Mineral Resource Estimate. Subject to further test work and the outcomes of the PFS, Hillgrove believes Mutooroo has the potential to lift Hillgrove’s Cu production beyond 20kt per annum.

Hillgrove said the prefeasibility expenditure would be phased to mitigate risk and would be fully funded from cash flow.

Under the agreement, Hillgrove will initially issue $5 million in shares to Havilah and then invest up to $10 million in new drilling over a period of up to 24 months.

Hillgrove will earn its full 80% interest on a final investment decision to go ahead with the project, at which time it will pay Havilah a further $35 million, of which between 30% and 70% will be cash.

Project ticks the boxes

Hillgrove Chief Executive Officer Bob Fulker said:

Mutooroo’s high‑grade sulphide mineralisation, proximity to rail, and favourable logistics align strongly with Hillgrove’s centralised processing hub model. Importantly, the capital intensity could be potentially lower compared to a standalone development, and execution risk could potentially be materially reduced by leveraging infrastructure, approvals and operational capability we already have in place. This transaction provides Hillgrove shareholders with a lower risk, capital efficient growth option at a time when new copper discoveries are scarce, and development costs globally continue to rise. The staged PFS approach to be funded out of Hillgrove cashflow ensures disciplined capital deployment with limited cash drain, with expenditure ramping up only as key technical assumptions are validated.

Havilah Technical Director Chris Giles said the deal had the potential to substantially reduce execution risk for Havilah shareholders.

The Mutooroo project is in South Australia, about 60km southwest of Broken Hill.

It is about 16km from the Transcontinental railway line and Barrier Highway, providing direct access to established freight routes across South Australia, the companies said.

In early trade, Havilah shares were 7.4% higher at 65 cents, while Hillgrove shares were 4.7% higher at 4.4 cents.

The post Shares in these 2 ASX copper companies are charging higher after a new deal was announced appeared first on The Motley Fool Australia.

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

A number of updates have hit the wires this week and Morgans has been quick to run the rule over them.

Let’s see if the broker has responded positively to them. Here’s what the broker is saying:

James Hardie Industries plc (ASX: JHX)

Morgans was pleased with this building materials company’s FY 2026 result, highlighting that it was in line with consensus expectations.

And while market conditions remain weak, the broker is cautiously positive on its outlook and has named James Hardie shares as a buy with a $39.00 price target. It said:

FY26 result was in line with Consensus (and a slight beat vs prior guidance), while Consensus for FY27 was at the top end of guidance. To this end, the company is forecasting FY27 pro forma growth of 4-8%, with siding back to organic growth. Market conditions remain subdued, citing lower builder activity and affordability pressures – looking forward management assumes no market recovery in FY27.

As such, FY26 can be chalked up as a transformational but financially dilutive year, while FY27 is about margin and cash-recovery driven by synergies rather than any improvement in the housing market. Buy retained, with a A$39.00/sh price target.

TechnologyOne Ltd (ASX: TNE)

This enterprise software provider’s performance in the first half of FY 2026 was in line with Morgans’ expectations.

In light of this and its strong sales pipeline, the broker has upgraded TechnologyOne’s shares to an accumulate rating with a $32.30 price target. It explains:

TNE’s 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus. The group enters 2H26, with a strong pipeline of ‘Plus’ leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance. The pullback in TNE’s share price sees our TSR lift to 18% and we therefore move to an Accumulate rating with a $32.30 price target.

Webjet Group Ltd (ASX: WJL)

Morgans wasn’t overly impressed with this online travel agent’s FY 2026 results.

And with trading conditions set to remain challenging in FY 2027, the broker has reduced its estimates meaningfully.

As a result, the broker has retained its hold rating on Webjet’s shares with a heavily reduced price target of 40 cents. It said:

WJL’s FY26 result was weak but in line with guidance. FY26 was impacted by subdued trading conditions and material investment in the business. FY27 is going to be a particularly challenging year for WJL given the Middle East conflict, cost of living pressures, Virgin Australia materially reducing its commission and overrides and the RBA surcharging regulation changes.

We have made significant revisions to our already well below consensus forecasts. In the absence of corporate activity, shareholders will need to be patient given the current challenges WJL needs to overcome while investing in its business for longer term success. We retain a Hold rating with a new price target of A$0.40.

The post Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One. 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.

A strong share price run is not protecting IPD Group Ltd (ASX: IPG) shares from a heavy fall today.

The electrical solutions company is down 8.24% to $5.68 on Thursday after releasing its FY26 earnings guidance.

It has still been a big year for shareholders, with IPD shares up around 29% in 2026 and 60% over the past 12 months.

Here’s what the company told investors.

Guidance still points to growth

According to the release, IPD expects FY26 underlying EBITDA of between $54.5 million and $55.3 million.

At the midpoint, this represents growth of about 18% compared with FY25 statutory EBITDA.

The company also expects underlying EBIT of between $46.3 million and $47.1 million, which would be around 19% higher on the same basis.

Excluding the recently acquired Platinum Cables business, IPD is still expecting growth.

On that measure, underlying EBITDA is forecast to land between $50.5 million and $51.3 million, while EBIT is expected between $42.7 million and $43.5 million.

Both would be around 10% higher than FY25 statutory results.

The guidance is based on unaudited results for the 10 months to the end of April, along with management forecasts for May and June.

What’s driving the growth?

The update points to an improvement coming from more than one part of the business.

IPD said revenue is expected to rise in FY26, supported by strong growth across its core business and EX Engineering.

CMI Electrical is also expected to deliver a record result, with revenue forecast to move above the levels it was generating before IPD bought the business.

Data centre revenue is another area moving higher, with a 25% increase expected compared with the prior corresponding period.

Data centre demand is still attracting plenty of attention across the market, as businesses spend more on power, infrastructure, cloud computing, and AI-related capacity.

IPD also expects gross profit margins to improve through the second half.

The company said its order book is continuing to shift towards more complex and competitive work, which is helping margins.

Costs are also taking up a smaller share of revenue after IPD invested in the business.

What does IPD do?

IPD isn’t a household name for many retail investors, but it sits in a part of the market with several long-term tailwinds.

The company provides electrical products and services across power distribution, energy management, automation, industrial communications, hazardous area equipment, EV charging, and electrical engineering.

Its portfolio includes IPD, Addelec, EX Engineering, CMI Electrical, and Platinum Cables.

Together, these businesses give IPD exposure to infrastructure spending, electrification, data centres, industrial upgrades, and energy-related projects.

Foolish takeaway

The update IPD provided today wasn’t bad at all. The company is still guiding to higher earnings, stronger revenue, and better margins.

This fall looks more like a reaction to how far the share price has already run.

After a 60% gain over the past year, investors may have wanted more than just steady growth. Some may also be taking profits while the stock is still well ahead for 2026.

The post Up 60% in a year, so why is this ASX stock tumbling 8% today? appeared first on The Motley Fool Australia.

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

Shares in AFT Pharmaceuticals Ltd (ASX: AFP) are trading higher after the company announced a 24% increase in profit on strong revenue growth.

Solid full-year effort

The company said in a statement to the ASX that net profit had increased to NZ$14.1 million on revenue of NZ$254.7 million, up 22%.

The company will pay a dividend of NZ2.5 cents per share and gave guidance for operating profit in FY27 of NZ$28 to NZ$32 million, up from NZ$24.4 million.

The company is also targeting increased revenue of NZ$300 million for the current financial year, with the company’s reporting period running until the end of March.

AFT chair David Flack said it was another strong result, “reflecting the strength of our core Australasian business and the benefits of our increasing geographic and product diversification”.

He added:

We have continued to invest for long-term value creation – progressing international hubs, executing licensing opportunities, and advancing a portfolio of valuable innovative products that can support our ambition to exceed $300 million sales this financial year.

Revenue growth in FY26 was driven by continued momentum in Australia, steady expansion in New Zealand, and a growing contribution from AFT’s International and Asian hubs as they scale.

The company said:

Australasia remained the cornerstone of AFT’s earnings and cash generation, growing revenue by 16% to reach $210.5 million. In the Australian market we saw broad-based strength across OTC brands and ongoing uptake across prescription medicines. The growth was also supported by a steady stream of new launches and portfolio expansion which remains a key focus. New Zealand delivered steady growth with continued opportunities across key categories including allergy, dermatology and eyecare.

Expanding in known markets

The company said it was continuing its strategy of building international business hubs in markets that share similar commercial and regulatory dynamics to its Australasian operations.

The company said:

During FY26, the company continued to expand its footprint across the UK, Europe, North America, and South Africa, progressing each hub along the path from establishment to development. In the United Kingdom, AFT continued to broaden distribution of Maxigesic tablets (marketed as Combogesic) from Boots and SuperDrug to now include independent pharmacies. The initial launches of Combogesic IV in several London NHS hospitals continued to progress, with sales momentum linked to formulary inclusion.

In Europe, the company said it was making progress with a portfolio of injectables acquired from an insolvent company, “with updated regulatory dossiers and licenses now supporting planned EU launches that are expected to make a meaningful contribution in FY27”.

The company said it was well-funded, with net debt of $38.6 million at the end of March, within its target leverage range.

AFT shares were 2.4% higher in early trade at $2.93. The ASX healthcare company is valued at $299.9 million.

The post This ASX healthcare company’s profit has rocketed 24% appeared first on The Motley Fool Australia.

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

There are many attractive shares on the S&P/ASX 200 Index (ASX: XJO) that could generate decent returns and perhaps even robust passive income. 

But which are the best options for investors who want to buy and hold for several years?

Here are two of my top picks.

Xero Ltd (ASX: XRO)

It’s been a bloodbath for Xero shares over the past year. After spiking at an all-time high of $194.21 in June last year, the cloud-based accounting software provider’s shares have lost 60% of their value, at the time of writing.

It’s been a step-and-continuous decline, too. Aside from a couple of small rebounds, the share price has consistently tumbled downwards. In early April, the ASX 200 shares dropped to a four-year low of $71.46 each.

The share price decline was mostly the result of a sector-wide sell-off of technology stocks following rising concerns that AI could disrupt traditional software models. Many investors were worried that smarter, cheaper tools could reduce the need for subscription platforms like Xero.

At the same time, investor concerns about the company’s Melio acquisition and its potentially overvalued share price led many to sell up. 

But I see Xero as an attractive long-term investment.

Its business model, which is often referred to as “sticky”, means it has recurring revenue, global exposure, and good profitability. 

The company is actively expanding its presence and its product suite. The company is still a relatively small market player, which means there is a large amount of potential future growth. These growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. 

Xero’s latest FY26 result shows the company is growing, too. It posted a 31% hike in operating revenue last week, and its adjusted EBITDA is up 18%.

Analysts rate the ASX 200 shares as a strong buy and forecast the shares to climb by 202% to $236.45 over the next 12 months alone, at the time of writing. I think the shares have the potential to accelerate even further over the next few years.

Brambles Ltd (ASX: BXB)

Brambles shares crashed 20% earlier this week after the company scaled back its guidance figures for FY26. The ASX 200 supply pallets and crates supplier revised its sales revenue growth forecast to 2% to 3%, down from prior guidance of 3% to 4% revenue growth (at constant exchange rates).

Profit guidance was also cut, with Brambles now expecting FY26 profit growth of 3% to 5%, down from prior guidance of 8% to 11%.

The company said that it has to spend more on repairing its pallets to bring them up to standard for customers who were increasingly automating their processes.

Brambles said it was progressively increasing its repair quality to meet this demand, which has created a bottleneck. But the company noted that the “material” cost increase is short-term. 

It looks to me like the company is going through a rough period, and its shares are oversold. 

Looking ahead, Brambles expects to expand margins by at least 3 percentage points in FY28 compared with FY24. Ongoing investment in innovation, digital capability, and customer solutions is a key part of the company’s longer-term strategy.

It’s also widely considered a defensive stock. Its business underpins essential fast-moving consumer goods and grocery supply chains, and its recurring business model means it can maintain stable earnings across different phases of the economic cycle. 

I think that once it’s through the latest short-term operational bottleneck, the company will switch back into a growth gear.

Analysts are still bullish on the stock, even after this week’s sell-off. The majority (8 out of 15) rate the shares as a buy or strong buy. They also tip the shares to climb up to 70% higher over the next 12 months, as high as $27.90, at the time of writing.

The post 2 ASX 200 shares I’d buy today and hold for years appeared first on The Motley Fool Australia.

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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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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) stock IperionX Ltd (ASX: IPX) is charging higher today.

Shares in the ASX titanium products producer closed yesterday trading for $4.66. In early morning trade on Thursday, shares are changing hands for $4.86 apiece, up 4.3%.

For some context, the ASX 200 is up 1.4% at this same time.

Here’s what’s grabbing investor interest.

ASX 200 stock jumps on titanium manufacturing milestone

The IperionX share price is leaping higher after the ASX 200 stock reported that it has successfully commissioned its advanced 300-ton, six-axis SACMI powder metallurgy press at the company’s Titanium Manufacturing Campus, located in the US state of Virginia.

IperionX said the new press triples its existing powder metallurgy capacity, as well as expanding the range of titanium powder-to-product components that can be manufactured in the US.

The SACMI press also improves product flexibility and production repeatability. This will allow IperionX to create more complex near-net-shape titanium components like fasteners, gears, brackets, and actuators for defence aerospace and industrial customers.

The ASX 200 stock noted:

Compared with conventional uniaxial pressing systems, the SACMI press provides higher compaction force, multi axis movement, improved repeatability and enhanced geometry control. These capabilities are expected to support customer programs that require more complex component designs, tighter process control and higher-volume production pathways.

On the productivity front, the company said its titanium manufacturing platform is capable of up to 24 pressing cycles per minute. That works out to some 11 million single-cavity parts per year.

The company said its manufacturing pathway can reduce titanium waste, production cost, and lead times, without impacting titanium’s critical performance characteristics.

What did IperionX management say?

Commenting on the successful commissioning of the press that’s helping lift the ASX 200 stock today, IperionX CEO Anastasios Arima said, “Commissioning this advanced SACMI press is an important milestone for IperionX.”

Arima added:

It gives us greater titanium manufacturing capacity and more flexibility to manufacture a wider range of titanium components for customers in defence, aerospace and industrial markets.

Titanium is a critical material, but its use has often been limited by cost and supply chain challenges. By combining our US-sourced titanium powder, patented HAMR process, powder metallurgy pressing and HSPT sintering and forging, IperionX is building a more scalable platform for domestic titanium manufacturing.

Looking ahead, Arima concluded:

This new press, together with our upcoming furnace expansion, is designed to help move customer programs from prototypes toward repeatable, higher-volume production.

With today’s intraday moves factored in, the IperionX share price is up 35% in 12 months.

The post Guess which ASX 200 stock is lifting off today on a major US milestone appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are pushing higher on Thursday.

In morning trade, the ASX defence stock is up 2.5% to $8.12.

Why is this ASX defence stock rising today?

Investors have been buying the defence and space company’s shares this morning after it made a positive announcement.

According to the release, EOS has now completed the acquisition of the MARSS business for an upfront consideration of US$36 million (A$50.4 million).

There is also an earnout component, which has a maximum cap of EUR140 million (~A$227 million).

MARSS is a Europe-based provider of command and control (C2) systems, which are critical for effectively countering drones. Its proprietary C2 technology, NiDAR, provides advanced artificial intelligence (AI)-enabled decision making and sensor-effector orchestration to rapidly counter asymmetric drone threats.

EOS notes that by combining its own best-in-class effector and sensor capabilities with MARSS’ C2 technology, it is transforming from a component supplier to an integrated counter-drone systems provider, with strong software and AI capabilities.

Earlier this month, the company revealed that MARSS had secured new orders totalling EUR102 million (~A$165 million) from an existing customer in the Middle East to take its existing order book to EUR135 million (~A$217 million).

It notes that the addition of MARSS’ A$217 million order book to EOS’ existing A$509 million order book would illustratively increase EOS’ total order book to A$726 million. This bodes well for its near-term sales growth.

‘A significant addition’

Commenting on the transaction, the ASX defence stock’s CEO and managing director, Dr. Andreas Schwer, said:

We are pleased to have completed the MARSS acquisition – this is a significant addition to EOS’ capability. In recent months, the MARSS NiDAR platform has been protecting critical assets in the Middle East from drone attacks. We welcome the MARSS team to EOS and look forward to working together to secure and execute the commercial opportunities that lie ahead.

The CEO of the MARSS business, Johannes Pinl, added:

We are very proud of the MARSS team and the success of the NiDAR Counter-Drone Command and Control platform. With systems and personnel supporting operations across the Middle East, MARSS remains committed to protecting critical sites and advancing our capabilities. We are pleased to become part of EOS and look forward to growing our business together.

The post Here’s why this ASX defence stock is charging higher today appeared first on The Motley Fool Australia.

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

I still think ASX dividend shares are the best way to generate passive income, despite interest rates going higher. Yes, money in a savings account (or term deposit) is safer. However, if I’m not saving for a specific goal, I’d want to invest in the stock market with a good dividend yield for passive income.

Businesses can offer a good dividend yield, but it’s the potential for organic capital and dividend growth that puts them ahead of a term deposit, in my view.

There are plenty of great ASX dividend shares with yields below 8%, so we don’t necessarily need to choose only high-yielding ideas, but this article is about those with exceptionally high yields, like the two below.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is one of the largest listed investment companies (LICs) on the ASX. Its goal is to actively invest in large, high-quality businesses on the ASX.

At the end of April, some of its largest positions were names like Wesfarmers Ltd (ASX: WES), Rio Tinto Ltd (ASX: RIO), REA Group Ltd (ASX: REA), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Goodman Group (ASX: GMG), BHP Group Ltd (ASX: BHP), and Alcoa Corporation (ASX: AAI).

As a LIC, the business is able to turn profits from investment returns generated into paying dividends.

Its solid investment returns have enabled the business to steadily increase its dividend each year since FY17, a pleasing record of consistency.

Its investment returns, before fees, expenses, and taxes, have averaged 11.9% per year since inception in May 2016. That’s almost 3% per year better than its benchmark, though past outperformance is not a guarantee it will continue to deliver future outperformance.

It expects to pay an annual dividend per share of 9.6 cents in FY26, translating into a grossed-up dividend yield of 10.5%, including franking credits. It’s one of the few ASX dividend shares with a double-digit yield that I’d be willing to buy, and I expect it can continue to slightly increase the dividend each year.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an ASX retail share that sells a variety of hair removal products, including a number of exclusive products from high-quality brands. It also has its own brand called Transform-U.

Impressively, the business started paying a dividend in 2017 and hasn’t cut its payout since, despite various wider financial impacts during that period.

It has increased its dividend every year, except FY24, when it maintained the dividend. We’ll see what it pays in FY26.

The ASX dividend share’s latest two half-year dividends come to 10.3 cents per share. That translates into a grossed-up dividend yield of 11.3%, including franking credits.

Shaver Shop is doing its best to continue growing profits and hiking its dividend. Its plans include opening more stores across Australia and New Zealand, expanding its Transform-U product range, selling more online, and perhaps working with additional shaver brands.

According to the forecast on CMC Invest, the Shaver Shop share price is valued at 11 times FY26’s estimated earnings.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, Goodman Group, Shaver Shop Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Arafura Rare Earths Ltd (ASX: ARU) shares are catching the eye on Thursday.

In morning trade, the ASX rare earths stock is up 14% to 33.5 cents.

Why is this ASX rare earths stock in the spotlight?

This morning, Gina Rinehart-backed Arafura Rare Earths revealed that its board has made a final investment decision (FID) for the Nolans Rare Earths Project.

According to the release, the decision is to proceed with the development and follows a number of key recent developments under the company’s comprehensive, multi-year financing and offtake strategy.

This includes binding commitments from sovereign-backed institutions across four nations and binding offtake agreements with leading manufacturers across the globe.

The ASX rare earths stock will now turn its focus to construction of the Nolans Project, targeting commencement from September 2026.

Once operational, the company notes that the Nolans Project has the potential to be among the most consequential contributions to Australian industrial productivity in the Northern Territory’s modern history.

It highlights that independent economic analysis commissioned ahead of FID concludes that the project will deliver a forecast economic benefit of $25.2 billion to gross territory product over the planned initial 38-year life of mine.

‘A long-awaited milestone’

Commenting on the news, Arafura Rare Earths’ chair, Mark Southey, said:

The Board’s decision today marks the delivery of a long-awaited milestone for Arafura and its stakeholders. It is the culmination of a deliberate and patient strategy. We have always believed that the right partners would define the quality and durability of the Nolans supply chain. Together with our customers, investment partners and financiers across Europe, Korea, Canada, the United States and Australia, we are now ready to deliver our transformational Project.

This sentiment was echoed by the company’s CEO and managing director, Darryl Cuzzubbo. He said:

The achievement of FID reflects years of disciplined execution and partnership building. The offtake relationships we have established with Hyundai, Kia, Siemens Gamesa, Traxys and the various types of economic support provided by the Australian Government are not transactional arrangements. They reflect a shared recognition that the diversification of global rare earth supply chains is an imperative, not merely an opportunity.

The Australian Government has taken a decisive and proactive approach, developing an economic toolkit that supports the rare earths sector in the near term that will deliver independent and functional markets into the future. On behalf of the Board, I extend my thanks to all our stakeholders for your continued support and for entrusting us to build a company that will play a defining role in the world’s technology and energy transition for decades to come.

The post This ASX rare earths stock is rocketing 14% on big news appeared first on The Motley Fool Australia.

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• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again 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.