The ASX dividend stock Future Generation Global Ltd (ASX: FGX) could be one of the best options for reliable dividends on the ASX.

There are not many ASX shares that have increased their dividend payout every year over the past decade, which I think makes it clear that the board of directors wants to give investors reliable payouts.

The ASX dividend stock offers a winning combination of a high dividend yield and growth. Let’s run through why I think it’s a top option for passive income.

Diversification

Rather than getting exposure to a single business like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), investing into this ASX dividend stock gives investors exposure to multiple portfolios.

Future Generation Australia is a listed investment company (LIC) which gives investors exposure to a portfolio of funds.

All of those fund managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities.

The funds are invested across both large and small ASX shares, providing exposure to more than 430 shares. I like this strategy because it gives more exposure by weighting to growing businesses than the overall ASX share market does.

Some of the fund managers that are involved here include Vinva, Firetrail, Smallco, Eley Griffiths, QVG, L1 Group Ltd (ASX: L1G) and Sandon Capital.

Large dividend yield

As I’ve already mentioned, this ASX dividend stock is providing investors with a very pleasing dividend yield.

Future Generation Australia has already provided guidance about what its upcoming 2026 financial year annual dividend will be.

The ASX dividend stock has said that FY26 payout will be 7.6 cents per share.

At the time of writing, that translates into a grossed-up dividend yield of 8.4%, including franking credits. I think the business is one of the best for large dividends for the foreseeable future.

Rising payouts

It’s not just the size of the dividend that’s impressive, but this business has regularly increased its payout. Few high-yielders can point to a record like Future Generation Australia’s.

The ASX dividend stock has increased its annual dividend per share every year since 2015 – that’s more than a decade of regular increases. I think plenty of ASX blue-chip shares would love to be able to say they’ve increased their payout every year for the past decade.

What a $3,000 investment could unlock

If someone were to invest $3,000 into Future Generation Australia shares today with an 8.4% dividend yield (including franking credits), it would unlock approximately $176.74 of dividend cash and around $252.49 of overall dividend income with an investment of 2,325 Future Generation Australia shares.

That’s a really impressive level of dividends, though I’m not expecting significant capital growth because it’s paying so much of its profit out as dividends.

The post $3,000 buys 2,325 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and L1 Group. 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.

If you are looking for some big potential returns, then it could be worth checking out the two S&P/ASX 200 index (ASX: XJO) shares in this article.

That’s because the team at Bell Potter believes they are significantly undervalued and have the potential to deliver market-beating returns over the next 12 months.

Here’s what it is recommending to clients:

Liontown Ltd (ASX: LTR)

Bell Potter thinks that Liontown could be an ASX 200 share with strong potential returns over the next 12 months.

The broker recently put a buy rating and $1.90 price target on the lithium miner’s shares. Based on its current share price of $1.02, this implies potential upside of approximately 85% for investors.

Bell Potter believes the market is undervaluing Liontown’s shares, especially given the significant improvements it has made this year. This includes reducing its net debt and ramping up underground production at Kathleen Valley.

In light of this, the broker thinks now could be a good time to buy:

We still believe that LTR’s EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since this date. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t. 

While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction

Paladin Energy Ltd (ASX: PDN)

Bell Potter also sees major upside potential in this uranium producer. 

It recently retained its buy rating and $14.50 price target on the ASX 200 share. Based on its current share price of $9.52, this implies potential upside of 52%.

Bell Potter believes Paladin Energy is well-positioned to benefit from increasing demand for uranium thanks to a combination of electrification, energy security and artificial intelligence (AI)-related power requirements. It said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has ~56% exposure to market prices out to 2030.

Production at LH continues to improve with higher-grade mined ore feeding the processing plant. PDN continues to derisk its key growth project at Paterson Lake South in Canada’s Athabasca Basin.

The post These ASX 200 shares could return 50% to 85% 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.

Shares in both BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are up strongly over the past 12 months, with both racking up gains of more than 40%.

But while both remain major iron ore producers, they have diversified their other income streams to the point where a different investment case can be made for each.

Major miners both kicking goals

Canaccord Genuity has just released a new research report into the companies, and said when it came to iron ore, it is no longer the majority revenue generator for each company.

The broker commented:

Nearly 60% of each company’s EBITDA came from future-facing commodities over the six months to end-June 2026, with copper central to this transformation. This changes the investment case for BHP and RIO, which both increasingly provide upstream exposure to prominent structural growth thematics including electrification and the AI infrastructure build-out. In our view, their evolving earnings profiles also warrant a different valuation framework, with a greater contribution from copper supporting structurally higher earnings multiples.

Canaccord Genuity said BHP and Rio outperformed the S&P/ASX 200 Index (ASX: XJO) by about 50% over the past 12 months, despite iron ore tracking slightly lower.

The broking house said copper accounted for 57% of earnings at BHP and 36% at Rio, while aluminium accounted for 20% of Rio’s earnings.

Lithium was also emerging as an important commodity for Rio.

 Canaccord Genuity said:

The shifts in both companies’ earnings mixes reflect years of disciplined capital allocation through organic project development and selective M&A, including BHP’s acquisition of OZ Minerals in 2023 and RIO’s acquisition of Arcadium Lithium in 2025, alongside support from commodity price tailwinds.

Canaccord Genuity said copper was the central focus of BHP’s organic growth strategy, with projects under development in South Australia, Chile and Argentina.

The broker said Rio’s growth strategy was broader, “spanning copper, Simandou in iron ore, the Arcadium portfolio in lithium, and aluminium”.

Canaccord Genuity added:

BHP and RIO are targeting broadly comparable copper production growth of ~20–25% by 2030 relative to FY26 levels, supported by brownfield expansions, operational ramp-ups and the development of their respective copper portfolios.

Canaccord Genuity also noted that copper producers generally traded at higher multiples than iron ore companies, reflecting copper’s more attractive long-term fundamentals.

The broker said it preferred BHP to Rio, despite both being compelling propositions, because BHP was the highest-quality diversified miner, with a strong track record of operational delivery.

They also preferred BHP because of the central role of copper.

Canaccord Genuity added:

As the world’s largest copper producer, BHP provides one of the largest and lower-risk ways to gain leverage to our preferred commodity

The post BHP vs Rio Tinto: What’s the better buy? 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.