Drone company Innovaero Technologies Limited (ASX: INN) will list on the ASX next week after an initial public offer (IPO) which raised $40 million.

Australian defence force a key customer

The company’s prospectus said the company is focused on both crewed and uncrewed aircraft development and support systems.

Chair Vincenzo Di Pietro said in the prospectus:

As at the date of this Prospectus, the Company’s primary product is the OWL-B, a one-way loitering (OWL) munition system that forms part of the Company’s OWL family of systems, which is being developed in collaboration with the Commonwealth (Department of Defence) (DoD) via the Mission Talon-Strike Contract (refer to Section 7.1 for further details). In addition to the Company’s current and historic arrangements with the DoD for uncrewed aerial systems, the Company also derives revenue from its engineering, certification, composite manufacturing and MRO business.

Mr Di Pietro said a priority for the company would be advancing the development of the OWL family of systems, and in particular, “advancing the OWL-B system through remaining qualification and certification with the DoD with the objective of securing production contracts”.

The company would also be looking to expand into international markets in the UK, Japan, and the US, he said.

The company’s prospectus said it was looking to differentiate itself as an Australia-owned drone manufacturer.

The company said:

In Australia, the relevant market opportunity is significant compared with the United States and parts of Europe, particularly in relation to sovereign designed and manufactured armed drones and related interceptor capability. Historically, much of the defence market has been dominated by large primes and platform-centric acquisition models. However, the structural shift toward autonomous, attritable and scalable systems is increasing the role of specialist defence technology companies, such as the Company. The Company seeks to differentiate itself through sovereign capability, agility, and its unique (for its size) vertically integrated aerospace design/certification/manufacture capability.

Significant cash burn

The company’s financials, included in the prospectus, showed it generated revenue of $9.9 million in FY26 and made a net loss of $5.3 million.

The Innovaero Group was founded in 2006, before being formally incorporated in 2020.

The prospectus said:

Since then, its business and activities have evolved and expanded to include the delivery of integrated capabilities spanning complex aerial camera systems, mission-critical defence systems and high-value composite aerostructures for defence, aerospace, and adjacent industrial markets.

Following the capital raising, the executive director, Mike Von Bertouch, is expected to own 27.63% of the company.

The post Check out the ASX’s newest drone company appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• Atlas Arteria declares 20c H1 2026 distribution
• 2 ASX dividend shares raising dividends like clockwork
• Telstra vs NAB: Which ASX blue chip is the better buy?
• Buy, hold, sell: James Hardie, REA Group, and Ramelius shares

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.

Building a portfolio of ASX shares that can generate income alongside your usual earnings is a great way to enhance your financial security and diversify your income streams.

How to get started

Generating substantial earnings from dividends does however demand substantial amounts of savings, and getting there can seem an insurmountable task.

Therefore, it’s good to start relatively small, and use the power of compound interest to your advantage.

Today, I’m looking at what can be built up from a base of $20,000.

To generate the target of $5,000 per year in dividend income, you’d be looking at amassing about $100,000 in capital.

I’d argue you could generate about 7% per year from a combination of capital increases – share price growth – and dividends.

If you start with $20,000 in savings, I’d aim to save a further $100 per week.

Over a nine-year period, and assuming a return of 7% per year, you would have $99,055 at the end of this time.

If you’d like to tweak the calculations yourself, head over to the Federal Government’s Moneysmart calculator and have a play around.

Once you hit the $100,000 mark, if you choose, you could start taking your dividends out as an income stream rather than reinvesting them.

So at this stage, what sort of stocks would you be looking to own?

Building an income-generating portfolio

Firstly, it’s a good idea to keep in mind whether the stocks are paying franked dividends.

A fully-franked share comes with a 30% tax credit for the tax already paid by the company, meaning you do not have to pay your full tax rate on the dividends earned.

In terms of trying to hit our target of $5,000 a year, you’d need to be aiming for a dividend yield of 5% – but keep in mind this doesn’t take into account any tax you’d need to pay.

Tolls roads operator Atlas Arteria Ltd (ASX: ALX) is a reasonable company to consider, as it is currently paying a 9% yield, with brokers expecting a relatively strong yield to be maintained for the next few years.

Gas pipelines operator APA Group Ltd (ASX: APA) is also a good fit, paying a 5.39% dividend, albeit only 31% franked.

Investment company Wam Active Ltd (ASX: WAA) is paying 7.4%, while Argo Investments Ltd (ASX: ARG) is paying 4.18%.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.47% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.1%.

Retailer Universal Store Holdings Ltd (ASX: UNI) also has a healthy dividend yield at 6.22%.

So as you can see, there are plenty of stocks around which can deliver decent yields once your savings have hit the target.

The post Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria declares 20c H1 2026 distribution
• 2 ASX dividend shares raising dividends like clockwork
• How much do I need in superannuation to receive $1,000 passive income per week?
• 3 ASX dividend stocks to provide passive income through retirement 
• How to make $26,000 of passive income from ASX shares

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

The Atlas Arteria Group (ASX: ALX) share price is in focus after the company announced a distribution of 20.0 cents per stapled security for the first half of 2026, to be paid unfranked in October.

What did Atlas Arteria report?

• Interim distribution of 20.0 Australian cents per stapled security for H1 FY26
• Distribution will be unfranked
• Ex-entitlement date: 23 September 2026
• Record date: 24 September 2026
• Estimated payment date: 7 October 2026

What else do investors need to know?

The H1 2026 distribution applies for the six months to 30 June 2026. The payment will be made by both Atlas Arteria Limited and Atlas Arteria International Limited, as part of the group’s usual distribution policy.

This distribution will not be franked for tax purposes. Atlas Arteria shareholders are encouraged to check the company’s website for information about distribution treatment for their specific circumstances.

The business operates toll roads across France, Germany, and the US, including interests in APRR, AREA, A79, ADELAC, Chicago Skyway, Dulles Greenway, and the Warnow Tunnel.

What’s next for Atlas Arteria?

The company remains focused on delivering value for securityholders by managing its global toll road portfolio strategically. Investors can expect continued attention to sustainable business practices and disciplined asset management.

Looking forward, Atlas Arteria intends to maintain its current approach and provide regular distributions, but future payments will depend on business performance and market conditions.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO), which is flat over the same period.

View Original Announcement

The post Atlas Arteria declares 20c H1 2026 distribution appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• 3 ASX dividend stocks to provide passive income through retirement 
• How much superannuation do I need to earn $70,000 per year in passive income?
• 3 ASX shares with dividend yields of between 6% and 11%
• How much superannuation do I need to earn $80,000 per year in passive income?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.