Novonix Ltd (ASX: NVX) shares are on fire on Thursday morning.

At the time of writing, the battery materials technology company’s shares are up 24% to 26 cents.

This means Novonix is outperforming the market by some distance today. For comparison, the ASX 200 index is down 1% following a selloff on Wall Street overnight.

Why are Novonix shares rocketing?

Investors have been buying the company’s shares after it announced an important milestone with Panasonic Energy.

According to the release, the ASX battery materials technology stock has delivered a mass production qualification sample, known as a C-sample, of synthetic graphite anode active material to its lead customer Panasonic.

This is a key step in the qualification process for the company’s battery materials.

Novonix said this milestone marks the first known delivery of a synthetic graphite anode active material C-sample produced in North America.

This is significant because the industry is currently dominated by China, and Novonix is seeking to support the development of a North American battery materials supply chain.

What does this mean?

The ASX battery materials technology stock advised that its testing shows the material meets all of Panasonic’s required specifications.

This is a big deal because the qualification of anode active materials is a rigorous process and timelines can vary depending on customer requirements and protocols.

Management believes the delivery of the C-sample represents a significant step in the final stages of its qualification process with Panasonic. It also underscores its progress toward full-scale commercial production.

However, it is worth noting that formal validation is still subject to Panasonic’s assessment over the coming months.

The company has reaffirmed earlier guidance that it expects mass production for Panasonic to begin in the second half of 2027.

Management commentary

Novonix’s CEO, Mike O’Kronley, was pleased with the achievement of this milestone. He said:

The delivery of a mass production C-sample to Panasonic is an important moment for NOVONIX and for the development of a secure North American battery materials supply chain. This Milestone was achieved as a result of our dedicated team working closely with Panasonic to develop a new source of this critical mineral. We are now one step closer to realizing a fully domestic supply chain in the U.S.

Despite today’s strong gain, Novonix shares are down around 40% since this time last year.

The post Why is this ASX battery materials technology stock rocketing 24% 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 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.

Oil prices are back making headlines after climbing strongly overnight.

At the latest check, crude oil was up 5.2% to US$92.80 a barrel, while brent crude was up 4.4% to US$95.50 a barrel.

The move has been driven by rising tensions between the United States and Iran, with attention again turning to the Strait of Hormuz.

According to The Australian, energy researcher Rystad has warned that a resumption “in earnest” of US-Iran hostilities could lift oil prices towards US$150 a barrel.

While that’s not where oil sits today, it does give investors a clear number to watch if the situation deteriorates further.

Why traders are watching Iran

Oil moved higher after reports that the US targeted Iranian air defence and radar infrastructure following an Apache helicopter incident near the Strait of Hormuz.

Oilprice.com said officials and analysts described the operation as a limited warning, rather than the start of a wider war.

The Australian also reported that US President Donald Trump has warned Iran it will be hit “very hard”.

Rystad’s Jorge Leon said it was still too early to say whether the current escalation marked a full resumption of hostilities or a dangerous but limited conflict.

Leon added that the probability of a near-term US-Iran peace deal had narrowed from Rystad’s previous estimate of around 40% a few weeks ago.

The Strait of Hormuz is the key risk

Trading Economics reported that fears of disruption through the waterway have added to concerns about global supply.

It noted that a near-total closure of the strait could still affect oil flows, even though some crude is still moving through the Persian Gulf.

There are still some limits on how far prices have moved.

The Australian reported that record Strategic Petroleum Reserve releases have helped lift US exports, while China has reduced crude imports.

It also said around 5 million barrels per day of crude is bypassing the Strait of Hormuz through Saudi Arabia’s Yanbu port.

At the same time, US crude inventories fell by 7.2 million barrels last week, marking the seventh straight weekly decline.

What happens now?

The oil price is now being driven less by normal supply and demand and more by what’s happening in the Middle East.

If hostilities resume, Rystad’s warning shows why the market is taking a closer look.

Even though US$150 oil isn’t where prices are today, the fact that it’s being discussed at all tells us how quickly the risk has changed.

The post Could oil really hit US$150 a barrel? appeared first on The Motley Fool Australia.

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• Morgans says these ASX shares could deliver 23% to 60% returns
• Time to cash out? Why this expert is bearish on Goodman and BHP shares
• Prediction: I think Telix shares could double in value in 2026. Here’s why
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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 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.

Shares in the Gina Rinehart-backed Southern Cross Media Ltd (ASX: SXL) are trading lower after the company said earnings would fall in a difficult trading environment, while it also announced massive staff cuts.

Revenue under pressure

The company, which merged with Seven West Media earlier this year to create a media conglomerate that includes the Seven Network, Triple M in radio, and a number of other digital and audio assets, said group revenue for FY26 was now expected to be $1.86 to $1.87 billion, down from the previous guidance of $1.91 to $1.92 billion.

The company added:

Proactive cost management has partly mitigated the revenue shortfall. However, underlying FY26 EBITDA is now expected to be $185 to $190 million versus previous guidance of $200 to $220 million. Reported EBITDA is expected to be $190 to $195 million.  

Southern Cross also announced a new, “significant”, cost reduction program on top of its merger synergy activities, which it said had delivered savings of $30 million, in line with expectations and earlier than expected.

The company said:

Including those merger synergies, the expanded cost reduction program is expected to deliver annual run-rate benefits of $145 to $150 million upon its conclusion, offsetting future cost inflation and funding targeted growth investments. Subject to finalising consultation and other processes, the program will lead to 250 to 300 FTE leaving the Group before 30 June 2026, which will result in a FY26 restructuring charge of around $20 million.

The company also said it had reviewed the outcomes expected from its legacy television contracts and expects to raise an onerous contract provision of $65 to $75 million.

Southern Cross Managing Director Rohan Lund said of the measures:

We must reset our cost base to meet current market conditions and capture the full benefits of scale across our trusted platforms for our audiences and advertisers, now and into the future. Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business. We are deeply grateful for their contributions, and we are committed to supporting them through this transition.

The company said its media assets were delivering strong audience outcomes, but the advertising market was challenging and had softened more than was expected in the fourth quarter, particularly in television.

The staff to be let go would largely be mid and back office and corporate staff, the company said.

Southern Cross shares traded as low as 55 cents on the news before recovering to be 4.2% lower at 56.5 cents.

Billionaire buys in

It emerged in late May that iron ore magnate Gina Rinehart had bankrolled the purchase of a 9.15% stake in Southern Cross Media by former Seven Network commercial director Bruce McWilliam.

Documents lodged with the ASX list Mr McWilliam as the owner of the shares, with Ms Rinehart’s company, Hanrine Finance, holding a “security deed” – a loan agreement – over the shares.

Ms Rinehart has previously owned interests in Network Ten and Fairfax Media.

The post Why are shares in this Gina Rinehart-backed ASX media company falling? 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.

Super Retail Group Ltd (ASX: SUL) shares are pushing higher on Thursday morning.

At the time of writing, the ASX 200 stock is up 3% to $12.62.

Why is this ASX 200 stock charging higher?

Investors have been buying the retail conglomerate’s shares after its release of a new group strategy went down well with the market/ was overshadowed by a selloff on Wall Street overnight which has spread to the local bourse.

The ASX 200 stock’s new strategy outlines how it intends to capture a greater share of its $65 billion addressable market opportunity across automotive, sport, and outdoor through growth in its core categories and expansion into adjacent categories within those markets.

New strategy

There are four key drivers of brand growth within the strategy.

The first aims to expand Supercheap Auto’s range to capture more of the brands that its customers want. This includes a focus on meeting future demand created through growth in electric vehicles.

Supercheap Auto plans to introduce new store formats and extend fitment capabilities to a broader range of existing products.

Another is a step change in growth for rebel’s store network with a stronger focus on regional opportunities. It will also double down on range optimisation and a relentless focus on owning sport.

Another initiative will see the ASX 200 stock extend BCF’s roll out of superstores, as well as new large-format stores, and unlocking access to the 4WD market through fitment.

The final initiative will be the ongoing growth of Macpac’s store network, increasing its brand awareness in Australia, and a continued focus on technical product innovation.

The company notes that this means the store portfolio is planned to increase from 790 stores to over 900 stores by 2031, focusing on opportunities in underrepresented regional areas, new formats and fitment alongside increased online penetration.

This will be supported by a disciplined store renewal program, optimising store space, expanding the offer in key locations and online. It also expects the increased store footprint to enable the accelerated growth of the brands omni-channel offers, expanding the customer reach for click and collect.

‘Significant transformation’

Super Retail Group’s managing director and CEO, Paul Bradshaw, appears very positive on the new strategy. He said:

Our new Group Strategy puts the customer at the centre of everything we do as we build our business for its next phase of growth. We are determined to be closer to our customers than ever before – understanding and meeting their needs as they continue to evolve. Together, our four brands capture $4 billion of a $65 billion market opportunity in Australia and New Zealand. We have an incredible opportunity to pursue growth across our core auto, sport and outdoor markets, both in traditional and adjacent categories.

Our 13 million active club members account for 85% of our sales and these deep customer relationships are a clear competitive advantage. Our strategy focuses on building businesses that best serve our customers and their communities through range, store format, brand networks and fitment, and importantly meeting them where and how they shop. We have launched a significant transformation program to help power this growth. This will require deliberate short-term investments in our systems and unlock a sustainable cost advantage over time.

The post Guess which ASX 200 stock is avoiding the selloff and charging higher on big news 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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 Lendlease Group (ASX: LLC) has had a tough year of it.

As have its stockholders.

But in morning trade on Thursday, Lendlease shares are taking a positive turn, up 4.6%, trading for $2.74 apiece.

That leaves the Lendlease share price down 52.6% over the past 12 months, giving it a market cap of just over $1.8 billion.

For some context, the ASX 200 is down 0.8% today and down 0.1% since this time last year.

Following this year to forget, investors will be pinning their hopes that a shakeup of the top leadership can turn this floundering ship around.

With that in mind…

ASX 200 stock welcomes new CEO

Lendlease shares are marching higher after chairman John Gillam announced that Nick O’Neil will take over as CEO and managing director commencing on 10 September.

Tony Lombardo will now step down from the top role at the ASX 200 stock on or before 30 June.

“The board and I are deeply grateful to Tony for his significant contribution to Lendlease over nearly two decades,” Gillam acknowledged.

O’Neil is reported to have more than 25 years of experience across corporate and investment strategy, M&A, governance, capital markets, and real asset management. He is currently the head of Australian Real Assets at Australian Super.

Commenting on O’Neil’s appointment as the new Lendlease CEO, Gillam said:

With our strategy reset, portfolio simplification and foundations firmly in place, Nick is ideally positioned to lead the next phase of revitalising and strengthening Lendlease. He brings deep real asset management experience, a strong track record in global investment and innovation in aligning capital to market opportunities, as well as the leadership experience needed to drive execution and growth.

“I join Lendlease at a pivotal moment in its transformation with significant progress already made and a clear ambition for what comes next,” O’Neill said of his new role at the ASX 200 stock.

He added:

The technical capability of Lendlease’s people is broad, deep and unique. I am excited by the opportunity to work with that world class capability to deliver the services and investment opportunities that our clients are looking for.

What else is impacting Lendlease shares today?

In a separate market announcement this morning that could be supporting the Lendlease share price, the ASX 200 stock reaffirmed its full-year FY 2026 earnings per security guidance for its IDC business at 28 cents to 34 cents per security (or share). Management noted that guidance remains subject to targeted FY 2026 completions.

However, the company remains highly leveraged in a world of rising interest rates.

Lendlease noted that “due to the timing of transactions, and more challenging market conditions”, it expects its underlying gearing to be in the mid-30% range.

The post Down 53% in a year, guess which $1.8 billion ASX 200 stock is jumping today on big leadership 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.

BHP Group Ltd (ASX: BHP) shares have been very strong performers over the past 12 months.

While this is great for shareholders, other investors are now having to pay a premium to buy its shares.

The good news is that according to Bell Potter there is an alternative ASX mining stock to consider buying for exposure to the resources sector.

Which ASX mining stock?

The stock that Bell Potter is bullish on is Develop Global Ltd (ASX: DVP).

The broker highlights that it operates a unique hybrid business model centred on the decarbonisation and energy transition thematic.

This includes high-grade base metal assets such as the Woodlawn Zinc-Copper Mine and the Sulphur Springs and Pioneer Dome DSO Projects. It also has a cash-generative Mining Services division that provides underground development and production for third-party operators.

Bell Potter notes that the ASX mining stock has just given the green light to Sulphur Springs and Pioneer Dome. It was pleased with the news and believes they leave it well-positioned for the future.

Commenting on the final investment decisions, the broker said:

DVP has taken Final Investment Decisions (FIDs) for its Sulphur Springs and Pioneer Dome mining developments, with the latter staged (Stage 1: open-pit mining of 850kt DSO over 1 year). DVP expects to deliver first production at Sulphur Springs by the June 2028 quarter and Pioneer Dome by the December 2026 quarter.

Concurrently, DVP has refinanced its $105m debt facility with Trafigura, entering into an upsized ~$500m senior secured debt facility with Trafigura that will address the financing needs of Sulphur Springs and Pioneer Dome. The terms of the upsized facility are favourable; an 18-month grace period on repayments was secured (including the original Woodlawn debt drawdown in December 2024).

Big potential returns

According to the note, the broker has responded to the news by retaining its buy rating and $7.10 price target on the ASX mining stock.

Based on its current share price of $6.10, this implies potential upside of 16% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

DVP’s ability to rapidly bring Pioneer Dome to market presents an opportunity to capitalise on current robust lithium prices, with strong resulting free cash flows to support its balance sheet at a time of heightened capital spend at Sulphur Springs.

EPS changes: Incorporates the Pioneer Dome DSO production scenario outlined in the FID outcome, updated Sulphur Springs economics and non-operational adjustments: nc in FY26; +54% in FY27; and +1% in FY28.

The post Is this ASX mining stock a better buy than BHP shares? 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 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 cost of a comfortable retirement keeps climbing. Inflation may be cooling on paper, but cooling is not the same as falling – prices are still rising, just a little more slowly. That quiet creep matters more than most people realise.

It means the finish line keeps moving.

For Australians turning 50, that is an uncomfortable thought. Retirement is no longer an abstract idea somewhere over the horizon. It is roughly a decade until you can access your super at 60, and around 17 years until the Age Pension kicks in at 67. The window to fix things is still open. It is just narrower than it used to be.

So, where do you actually stand?

The gap hiding in plain sight

The Association of Superannuation Funds of Australia (ASFA) puts the average super balance for a 50 to 54-year-old man at $254,071 and for a woman at $190,175. Useful as a benchmark. Sobering as a starting point.

Because the same body estimates a single homeowner now needs around $630,000 to retire comfortably at 67, while a couple needs $730,000. Those targets rose in February for the first time in three years, driven by exactly the living costs that refuse to sit still.

Line the two numbers up, and the gap is obvious. Many 50-year-olds are sitting on roughly a third of what they will eventually need.

The median tells an even starker story. More than half of Australians in their early 50s hold less than the average, because a handful of large balances drag the average upward. If you feel behind, you are in very good company.

Where the catch-up actually happens

Here is the part that gets missed. Closing the gap is not only about contributing more. It is about what those contributions earn.

A balance growing at 7% a year looks very different over 15 years to one growing at 9%. On a six-figure starting balance, that two-point difference can mean hundreds of thousands of dollars by retirement. Returns are the lever most people leave untouched.

That is why how your super is invested deserves a hard look. Many Australians sit in a default ‘balanced’ option without ever choosing it. A higher-growth allocation – tilted toward shares rather than cash and bonds – carries more short-term volatility, but historically the Australian share market has returned close to 9% a year over the long run, including dividends. Low-cost index exposure, through funds like the Vanguard Australian Shares Index ETF (ASX: VAS) or the iShares S&P 500 ETF (ASX: IVV), is one way some investors build that growth tilt.

Contributions still matter, and the rules are about to get more generous. From 1 July 2026, the concessional contributions cap rises from $30,000 to $32,500. If your total super balance sits under $500,000, carry-forward rules let you mop up unused cap from the previous five years in a single hit – a genuine catch-up mechanism for anyone who has fallen behind. (Higher earners should keep Division 293 in mind, and very large balances Division 296, but neither changes the core opportunity.)

Foolish Takeaway

Turning 50 behind on super is not a verdict. It is a prompt.

The maths is not kind to complacency – markets fall, and the next 15 years will not move in a straight line. However, the same maths rewards action. Slightly higher contributions, a sharper look at how your money is invested, and the simple discipline of aiming for a margin of safety above the bare minimum can reshape what ‘enough’ looks like.

The cost of living will keep rising. The question worth sitting with at 50 is whether your super is built to outrun it.

The post Behind on superannuation at 50? Here’s what to do now appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Megaport Ltd (ASX: MP1) share price is in focus today after the company opened its $309 million retail entitlement offer, following a $518 million institutional raise and the announcement of four major AI contracts worth nearly $459 million.

What did Megaport report?

• Retail entitlement offer opened to raise approximately $309 million at $14.30 per new share
• Institutional entitlement offer recently closed, raising around $518 million with 99% take-up
• Combined capital raising seeks to generate $827 million in total proceeds
• Four new AI infrastructure contracts secured with a total contract value of approximately $458.9 million
• FY26 revenue guidance tightened to between $307 million and $315 million
• Pro forma liquidity post-offer estimated at roughly $287.6 million

What else do investors need to know?

Megaport’s retail entitlement offer gives eligible shareholders the chance to purchase 1 new share for every 3.08 shares they already own, at the same price as the institutional component—representing a 13.9% discount to the pre-offer price. Shareholders who take up their full entitlement can also apply for extra shares up to 50% more than their entitlement under a top-up facility, though there’s no guarantee all requests will be filled.

Funds from both raises will help deliver new contracts and seed an on-demand GPU pool to support global AI infrastructure, including major investment in NVIDIA GPUs and additional hardware. The entitlement offer is fully underwritten by Merrill Lynch Equities (Australia) and UBS Securities Australia.

What did Megaport management say?

Chief Executive Officer Michael Reid said:

By combining Megaport’s global footprint of more than 1,100 data centres in 31 countries with Latitude.sh’s platform capabilities, we are building a Globally-Distributed AI Inference Cloud designed to support AI at global scale. The exceptional 99% take-up in the institutional offer reflects the strong support of our institutional shareholders and their confidence in our strategy. We now look forward to our retail shareholders having the same opportunity to participate on a pro rata basis. We’re just getting started. Game on!.

What’s next for Megaport?

The retail entitlement offer closes at 5:00pm (Sydney time) on Monday, 29 June 2026. Megaport will use the proceeds to fund delivery of recent AI contracts, invest in its GPU pool infrastructure, and bolster balance sheet capacity. The company’s guidance for FY26 has been narrowed for revenue, while other targets remain unchanged.

Investors are encouraged to read the full offer booklet and consult their financial adviser before making any decisions. The company expects to provide further operational and financial updates with its full-year results in August 2026.

Megaport share price snapshot

Over the past 12 months, Megaport shares have risen 33%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Megaport launches retail entitlement offer after $827 million capital raise 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 positions in and has recommended Megaport and Nvidia. The Motley Fool Australia has recommended Nvidia. 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.

Fifty thousand dollars a year, landing in your account without you lifting a finger. It is the quiet ambition behind a lot of Australian investor portfolios.

Most people size it up the same way. Pick an income target, pick a yield, and divide one by the other.

At a 3% dividend yield, $50,000 a year points to a portfolio of around $1.67 million.

It is a tidy number. It is also wrong.

The simple sum ignores the two forces that shape every income investor’s real result: tax and the franking credits that can soften it. Account for both, and the honest answer stops being a single figure. It becomes a range, and where you land depends almost entirely on your own tax position.

Why assume 3%? Because the broad market currently yields a little above that level. Some quality shares pay more, and you could aim higher. However, planning on a conservative 3% leaves room to be pleasantly surprised rather than disappointed.

Franking credits do heavy lifting

Here is the part the back-of-the-envelope version leaves out.

Fully-franked dividends arrive with a credit attached for the 30% company tax already paid on those profits. You declare the larger grossed-up figure as income, then use the credit to offset your own tax bill. If the credit is bigger than the bill, the difference is refunded.

That one feature pulls the answer in two directions.

Picture someone living mainly off their shares. Fully-franked dividends of around $42,000, once grossed up, sit inside the lower tax brackets. The franking credits more than cover the tax owed, and a refund tops up the rest. After tax, that investor clears roughly $50,000 from a portfolio closer to $1.4 million than $1.67 million.

Now, picture someone still earning a healthy salary. Their dividends stack on top of that income and face a much higher marginal rate. To keep $50,000 after tax, they might need about $57,000 in fully-franked dividends in the 37% bracket, or closer to $66,000 at the very top rate. At 3%, that is a portfolio of roughly $1.9 million to $2.2 million.

Same goal. Same yield. Around $800,000 difference in capital, decided by your tax bracket alone.

The catches worth knowing

A few things can move your number again.

Not every dividend is fully franked. Banks like Commonwealth Bank of Australia Ltd (ASX: CBA) and miners like BHP Group Ltd (ASX: BHP) usually frank in full, but broad funds such as the Vanguard Australian Shares Index ETF (ASX: VAS) pass through only partial franking, and most property trusts pay unfranked distributions. Less franking means less of that valuable offset.

Capital gains tax, meanwhile, is the dog that does not bark. A true income portfolio is one you hold, not one you sell – and CGT is only triggered on a sale. Draw the dividends, leave the shares be, and you sidestep it entirely. That is a quiet part of the appeal.

There is also a structural shortcut. Inside superannuation, earnings are taxed at just 15%, and in the pension phase, that can fall to zero, turning franking credits into a straight cash refund. The same dividends simply travel further.

Foolish Takeaway

So how large does the portfolio need to be? Somewhere between roughly $1.4 million and $2.2 million for $50,000 a year at a 3% yield, with the precise figure set by your tax rate, your franking mix, and whether you invest inside or outside super.

None of it is guaranteed. Yields shift, dividends get cut, and the share market can fall just as you begin drawing on it. But the principle holds. In Australia, the headline yield is only half the story. Franking credits write the other half – and they are why the real number is rarely the one the simple sum hands you.

The post How big an ASX portfolio earns $50,000 a year in dividends? appeared first on The Motley Fool Australia.

More reading

• Behind on superannuation at 50? Here’s what to do now
• Megaport launches retail entitlement offer after $827 million capital raise
• Why this ASX financial stock could deliver a huge return
• Down 52% in 2026, why this ASX All Ords stock now looks ‘incredibly cheap’
• Why WiseTech Global shares could rise 90% in a year

Motley Fool contributor Leigh Gant 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 Australian share market has historically delivered a return of around 10% per annum.

While that is a great return, there are some ASX stocks out there with the potential to outperform this.

In fact, Bell Potter has just tipped one ASX financial stock to deliver a return of almost 20% over the next 12 months.

Which ASX financial stock?

The stock that has caught the eye of the broker is Cuscal Ltd (ASX: CCL).

It is an authorised deposit-taking institution that provides B2B payments and regulated data services in Australia.

Bell Potter notes that its offering involves facilitation and connectivity across the value chain, with core capabilities in real-time payments, card issuing and acquiring.

Bell Potter has been looking at recent data and believes the company is positioned to deliver on its guidance in FY 2026. It said:

We expect the February guidance to remain in reach, with 45% of profits expected to be realised in 2H26. Guidance reflects lower net interest income, no cost synergies and high-single-digit volume growth, driving mid-teens earnings growth.

The broker also believes that the ASX financial stock will report double-digit volume growth for the year. It adds:

We expect total volume growth of +11% YOY, enhanced by acquiring +17% YOY and payments +10% YOY. Debit card transactions are undisturbed, with consistent +5% YOY growth from larger card issuers. That is outperformance compared with the pcp. The RBA has also indicated the share of payments made by card has stabilised, with online growing share and mobile wallets gaining. We see this as another angle to guidance and future runway.

Device-not-present debit card transactions are up +10% YOY with mobile wallets growing +60% YOY. Total mobile wallet transactions are up +17% YOY and PayID push payments are still most used for transfers to families and friends, while awareness for PayTo pull payments is low with 5% use from consumers in the past year. We think this will drive volume growth closer to low-double-digits.

Strong potential returns

According to the note, Bell Potter has retained its buy rating and $5.80 price target on the company’s shares.

Based on its current share price of $4.94, this implies potential upside of approximately 17.5% over the next 12 months.

In addition, a fully franked 2% dividend yield is expected over the period, boosting the total potential return to approximately 19.5%.

Speaking about its recommendation, the broker said:

We reiterate our earnings, which are consistent with the February guidance. Our Buy rating and target price are unchanged. CCL is well positioned to benefit from its end-to-end payment capabilities and client portfolio. There is emerging upside with New Zealand land and expand being heavy on in-store transactions. The story of winning clients and cross-selling services would be energised. CCL continues to screen well.

The post Why this ASX financial stock could deliver a huge return 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 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.