Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are on the slide on Thursday.

In morning trade, the regional bank’s shares are down almost 1% to $10.01.

Why are Bendigo Bank shares falling?

Investors have been selling the bank’s shares this morning after responding negatively to a big announcement.

According to the release, Bendigo and Adelaide Bank has agreed to acquire RACQ Bank’s retail lending assets and deposits.

The purchase price will be based on book value of the transferring book at completion, which comprised $2.7 billion of retail loans and $2.5 billion of retail deposits at the end of June.

The company notes that the asset and liability transfer is expected to be completed during the first half of 2027. It will be completed at book value and will be funded from cash reserves and will consume approximately 35bps of CET1 capital.

Why make this acquisition?

Management highlights that the acquisition of these retail lending assets and deposits from RACQ Bank, with over 90,000 customers, aligns with its strategy and is expected to contribute positively to its 2030 return on equity (ROE) target.

It highlights that RACQ Bank has a strong deposit franchise with retail deposits representing 92% of the lending portfolio, and a high proportion of lower-cost deposits. The assets are expected to generate net interest income of ~$50 million to $55 million.

Management believes that the simplification to one core banking system by the end of 2025 will enable efficient integration, minimising incremental costs, and leveraging existing migration and integration capabilities.

The estimated migration and transaction costs are ~$25 million to $30 million after tax, with the majority to be incurred prior to completion of the transaction. Whereas the estimated incremental cost to service the transferring book will be ~$12 million to $14 million before tax.

It also highlights that it increases geographic diversity, lifting Bendigo Bank’s Queensland exposure to 18% of its residential lending portfolio from 15%.

Commenting on the deal, Bendigo and Adelaide Bank’s CEO and managing director, Richard Fennell, said:

RACQ Bank’s strong deposit franchise and member focus complements Bendigo Bank’s own deposit franchise and longstanding focus on our customers and the community. This acquisition leverages our proven ability to efficiently integrate significant portfolios and is expected to drive improved shareholder returns through cost efficiencies and geographic diversification.

The post Bendigo Bank shares fall despite RACQ deal appeared first on The Motley Fool Australia.

More reading

• Bendigo and Adelaide Bank unveils RACQ Bank acquisition in investor update
• ANZ shares are lagging the other big banks: Here’s why
• Why these ASX 200 shares crashed 10%+ in November
• Bendigo Bank shares crash 20% in November: Are they a buy, hold or sell?
• Why Bendigo Bank, Bougainville Copper, Iress, and IVE shares are falling 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares may not be the most popular holding by retirees, but I think they’re a great choice for a number of reasons.

For starters, the ASX telco share isn’t operating in an ultra-competitive sector like banking, nor is its profits linked to a volatile commodity price. I believe the outlook for good earnings growth is positive and the possibility of good dividends is even stronger.

Let’s take a look at what makes the business so appealing.

Appealing earnings profile

Retirees may be tricked into thinking that a high dividend yield is always an attractive thing. But, there’s sometimes a danger that the profit of a business could go backwards significantly, hurting both the share price and the payout potential.

Telstra went through a rough patch several years ago as the NBN took control of the cable infrastructure, substantially hurting the company’s profit margins on broadband customers.

However, now that the transition has finished, Telstra’s earnings look much more defensive, and there’s growth too. Households and businesses seem to place a high importance on having an internet connection, giving Telstra resilient earnings.

The company is regularly winning new subscribers and achieving a higher level of revenue from each of its customers, helping profit margins due to the operating leverage as it spreads the costs of its network across more users.

In FY25, underlying earnings per share (EPS) grew 3.2% and the cash EPS jumped 12%.

As the country becomes more connected with more devices, I expect Telstra’s earnings can noticeably rise in the coming years.

Large dividend yield

Receiving cash into the bank account with dividends is probably a key focus for retirees, and it’s one of the important ways that owners of Telstra shares are being rewarded.

Telstra grew its annual dividend per share in FY22, FY23, FY24, and FY25.

The 2025 financial year saw the company pay an annual dividend of 19 cents per share. That equates to a grossed-up dividend yield of 5.5%, including franking credits. That’s not the biggest yield on the ASX, but combine that with further growth in the coming years, and it’s a great starting point.

Predictions for more passive income growth

If the company is able to grow its profits, then the payouts could continue to rise as well.

Telstra’s earnings are projected to continue rising, and the dividend could become much larger.

The broker UBS is projecting Telstra could pay an annual dividend per share of 21 cents in FY26, which would be a grossed-up dividend yield of 6.1%.

UBS forecasts the annual dividend per share could rise in every subsequent year until it reaches 30 cents in FY30. That’d be a grossed-up dividend yield of 8.7%, including franking credits. I think it’s a very appealing choice for retirees.

The post Why Telstra shares are a retiree’s dream appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX dividend shares to buy in December
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• These are the top ASX blue-chip shares I’d buy today
• 3 reasons Telstra shares are a screaming buy right now!

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

Vulcan Energy Resources Ltd (ASX: VUL) shares have returned from their trading halt on Thursday with a thud.

In morning trade, the lithium developer’s shares are down 33% to $4.11.

Why are Vulcan shares crashing?

Investors have been selling the company’s shares today after it completed a major capital raising.

According to the release, Vulcan has successfully completed its fully underwritten institutional placement and fully underwritten institutional entitlement offer.

The institutional offer raised 398 million euros (A$710 million) from the issue of ~178 million new shares at $4.00 per new share. This represents a sizeable 34.7% discount to its last close price.

The company notes that the institutional offer received strong support, with existing eligible institutional shareholders subscribing for approximately 23.2 million new shares. In addition, a number of new local and global institutions took part in the offer.

The proceeds from the offer will be applied to the Phase One Lionheart development.

Vulcan’s managing director and CEO, Cris Moreno, commented:

We would like to thank our existing shareholders for their continued support and welcome our new shareholders onto the register, including strategic investors. “The Placement will enable Vulcan to transition from development phase into execution phase with project execution of Project Lionheart due to commence in the coming days.

This is a lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. We look forward to providing further updates to our shareholders on the start of construction activities.

Finance package

Today’s institutional placement and entitlement offer complement the major finance package that Vulcan announced on Wednesday following the board’s positive final investment decision (FID) on the project.

It revealed a financing package, inclusive of its capital raising, worth approximately 2,200 million euros (A$3,929 million).

The bulk of this comes from a 1,185 million euros (A$2,116 million) senior debt funding package by a syndicate of 13 financial institutions. This comprises the European Investment Bank, five export credit agencies, and seven commercial banks.

There are also German government grants totalling 204 million euros (A$364 million) and a 133 million euros (A$238 million) investment from a consortium for a 15% equity interest in the Phase One Lionheart Project.

CEO Cris Moreno commented:

Securing this financing package and taking a positive FID is a significant achievement in the history of Vulcan Energy. It will allow the Company to transition from development phase into execution phase with the construction of the commercial scale supply chain for Lionheart.

A lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany’s Upper Rhine Valley.

The post Why are Vulcan Energy shares crashing 33% today? appeared first on The Motley Fool Australia.

More reading

• Gina Rinehart-backed Vulcan Energy Resources pulls trigger on European lithium project
• Why is this ASX lithium stock sinking 7% 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 copper price hit new all-time highs on Wednesday, with trading on the London Metal Exchange seeing copper futures climb above $11,400 per tonne for the very first time.

Overall, the global benchmark copper price in London has now increased by more than 30% since the start of the year.

For context, the All Ordinaries Index (ASX: XAO) is up by about 5% across the same period.

And copper could also be an attractive investment in 2026, according to Jun Bei Liu, founder and lead portfolio manager at Sydney-based hedge fund Ten Cap.

Critical metal

Copper is one of the most important metals of the modern-day world.

It boasts mass industrial applications thanks to its ductility, malleability, resistance to corrosion, and its thermal and electrical conductivity.

Such properties make the metal a key ingredient in a wide array of applications, including construction, power grids, transportation, and consumer electronics.

And as the world electrifies, its strategic value is growing.

For example, electric vehicles use roughly four times more copper than traditional cars, and AI data centres rely heavily on the metal for power distribution and cooling.

Some of the world’s biggest mining companies have also been growing their exposure to the metal in recent years.

These include ASX 200 mining heavyweights BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

And some analysts are also predicting a bright future for the metal.

Expert viewpoint

As reported in the Australian Financial Review, Jun Bei Liu believes that the structural demand for copper makes the metal one of the market’s most compelling trades for next year.

In particular, she cited the global energy transition as a key catalyst:

It’s almost like copper is the tech of the resources [sector] – the exciting part…

The demand needed for the energy transition is increasingly interesting. And should there be any sell-off, you’ve certainly seen a lot of support for copper and copper equities.

Curiously, Liu noted that she favours mid-cap ASX 200 mining stocks with an exclusive focus on copper over the diversified mining giants.

Here, she pointed to Capstone Copper Corp CDI (ASX: CSC) and Sandfire Resources Ltd (ASX: SFR), with the duo in the “sweet spot”, given their correlation to rising copper prices.

Two ASX 200 pure-play copper miners

Sandfire is a copper-focused mining stock with two producing assets.

In FY25, it churned out 94,000 tonnes of copper equivalent from its MATSA operations in Spain.

It added another 58,000 tonnes equivalent from its Motheo mine in Botswana.

Sandfire shares have jumped by 76% since the start of the year to $16.34 at Wednesday’s close.

Meanwhile, Capstone is a Canadian-based copper miner with several producing assets in the Americas.

In 2025, the company is targeting output of between 220,000 and 255,000 tonnes of copper.

Since early January, its share price has increased by 30% to $13.19 per share at yesterday’s close.

Rio Tinto or BHP shares?

Out of the two biggest ASX 200 mining stocks, Liu said she preferred Rio Tinto ahead of BHP shares.

Here, she believes that Rio Tinto offers a more attractive valuation and fewer strategic risks.

Since the start of the year, shares in Rio Tinto have lifted by 14% to reach $135.28 per share.

In comparison, BHP shares have risen by 7.5% during the same period to $42.96 apiece at the close of trading on Wednesday.

The post Rio Tinto or BHP shares? Expert says which stock to buy as copper price smashes record appeared first on The Motley Fool Australia.

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• 3 ASX dividend shares to buy for a passive income stream
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• With copper increasingly in demand, what are the Aussie stocks Wilsons Advisory is tipping to be winners?
• What happened with BHP, Rio Tinto and Fortescue shares in November?

Motley Fool contributor Bart Bogacz 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The drawn-out takeover saga involving Mayne Pharma Group Ltd (ASX: MYX) appears to be drawing to a close, with the company saying it will move to strike out the agreement.

US company Cosette Pharmaceuticals Inc launched a $7.40 per share takeover bid for Mayne in February, with the offer a 37% premium to the Mayne share price at the time.

Cosette’s doubt emerge

But Cosette later tried to back out of the deal, arguing that there were a number of factors that constituted a “material adverse change” with regard to Mayne’s business, including a trading update in April and certain correspondence with the US Food & Drug Administration (FDA).

Mayne, at the time, denied that the arguments put forward by Cosette constituted a material adverse change as defined in the scheme implementation deed for the deal and stated that the company would challenge Cosette’s right to withdraw.

As Mayne Pharma said in a statement to the ASX in May:

Mayne Pharma maintains its position that all information relevant to the financial position of Mayne Pharma has been disclosed to the market in the earnings announcement released on 22 April and that there is now new information required to be disclosed in light of the contents of the Cosette notice.

Mayne took the matter to court, winning a ruling in the New South Wales Supreme Court, which denied Cosette’s bid to back out of the deal.

Plant closure plans doomed the bid

But the proposed transaction also had a political element, with Cosette’s plans to close Mayne’s Adelaide-based drug manufacturing plant piquing the interest of the Foreign Investment Review Board and Treasurer Jim Chalmers.

The Treasurer wrote to Cosette in October, saying his “preliminary view is that the proposed acquisition would be contrary to the national interest, on the grounds that it would negatively impact the Australian economy and community”.

That preliminary notice was followed by a formal notification in November that the Treasurer had objected to the proposed takeover.

Mayne said at the time:

As a result, Mayne Pharma is disappointed to inform shareholders that the FIRB condition precedent to the scheme will not be satisfied such that the scheme is unlikely to proceed.

Late on Wednesday this week, Mayne said in a statement to the ASX that it “has not been able to reach any position with Cosette that might allow the scheme to proceed”.

Mayne said it had issued a notice to Cosette “in relation to Cosette’s material breaches of the scheme implementation deed with Mayne Pharma considers were wilful and intentional”.

Mayne said it now had the right to terminate the scheme “if the relevant circumstances set out in the notice of intention to terminate continue to exist for five business days, being to 10 December”.

Mayne shares traded as high as $7.31 when the takeover was first announced, but are now changing hands for just $3.36, not far off their 12-month lows of $3.27.

The post Doomed takeover bid for Mayne Pharma to come to an end 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.

While Westpac Banking Corp (ASX: WBC) and the rest of the big four banks have been great picks for income investors in recent years, there are signs that their shares could have peaked now.

In light of this, investors may get better results by focusing on other areas of the share market.

But which ASX dividend stocks? Let’s take a look at three that analysts are bullish on right now:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a great alternative is Centuria Industrial REIT.

It is one of Australia’s leading industrial real estate companies. Its portfolio includes 87 high-quality, fit-for-purpose industrial assets worth a collective $3.89 billion. These assets are situated in key in-fill locations and close to key infrastructure.

The team at UBS thinks investors should be buying its shares and has put a buy rating and $3.95 price target on them.

As for income, the broker is forecasting dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.46, this equates to dividend yields of 4.85% and 5.2%, respectively.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that gets the thumbs up from analysts is IPH.

It is a global intellectual property services company that helps clients protect their patents, trademarks, and intellectual property across multiple jurisdictions. Its clients range from Fortune 500 companies to SMEs.

While trading conditions are soft at present, Morgans remains positive. It currently has a buy rating and $6.05 price target on its shares.

With respect to income, the broker is expecting IPH to reward shareholders with fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on its current share price of $3.49, this implies very generous dividend yields of 10.6% for both years.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare has also been named as an ASX dividend stock to buy now.

It is a medical diagnostics company that operates laboratories and collection centres across Australia, Europe, and the United States.

Bell Potter thinks the company is ready for a return to consistent growth and feels investors should be snapping up its shares. It recently put a buy rating and $33.30 price target on its shares.

As for income, the broker is forecasting partially franked payouts of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $23.12, this equates to dividend yields of 4.7% and 4.8%, respectively.

The post Forget Westpac shares and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

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• Westpac versus CBA shares: Which bank is a better buy for 2026?
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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH Ltd and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares were 0.098% higher at the close of the ASX on Wednesday afternoon, at $81.72 a piece. The stock crashed nearly 15% at the end of October following the retail company’s annual general meeting (AGM). This has dragged Wesfarmers shares 2.96% lower over the past month. For the year to date, the shares are still 14.42% higher.

What happened?

At the Wesfarmers’ AGM, management spoke positively about the company’s performance so far in FY26. They said that year-to-date sales growth in its Bunnings business was ahead of the growth recorded in the second half of FY25, supported by solid trading in the consumer segment. 

Management also said that its Kmart Group has benefited from “strong value credentials and quality” of its Anko product range, with year-to-date sales growth broadly in line with the second half of the 2025 financial year.

However, management did say that its Industrial and Safety division isn’t performing as strongly, citing that “trading conditions remain challenging, with earnings impacted by subdued demand across the mining and resources sectors”.

And it looks like investors were unimpressed by the company’s AGM announcement. 

Is there any upside ahead? 

Data shows that analysts aren’t too positive on the outlook for Wesfarmers shares. Out of 15 analysts, 7 have a sell or strong sell rating. Another 7 have a hold rating, and 1 has a strong buy rating.

The average target price is $81.25, implying a 0.57% downside from the current share price. Although some analysts think the shares could fall another 22.17% to around $63.60 over the next 12 months.

Are Wesfarmers shares worth holding for passive income though?

It’s true that while the Wesfarmers share price might have tumbled recently, and the outlook for its share price isn’t positive, investors need to factor in the passive income that Wesfarmers dishes out to its investors. The company continues to be one of the most effective ASX blue-chip shares to own over the long term. 

That’s because, while Wesfarmers is famous for its well-known retailers Bunning and Kmart, it also owns several other businesses. This diversity helps the company maintain a strong track record of delivering growth while consistently increasing dividends for shareholders. 

For FY25, the Wesfarmers board of directors decided on a fully franked final dividend of $1.11 per share. That brings the full-year dividend to $2.06 per share, representing a year-over-year increase of 4%. The full-year dividend represents 88% of underlying earnings per share.

So is it time to sell up? I think I’d sit and wait for now. Wesfarmers shares are a long-term play.

The post Is it time to sell your Wesfarmers shares? appeared first on The Motley Fool Australia.

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• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
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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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.