West African Resources Ltd (ASX: WAF) shares hit a new 12-month high on Thursday, after the company announced a record profit and a large special dividend.

Maiden dividend a windfall for shareholders

The company is now trading with a dividend yield of more than 5% after announcing it would pay a 20 cent per share, unfranked dividend to its shareholders.

The record date for the dividend is 18 September, with the dividend to be paid on 7 October.

West African Resources shares hit a fresh 12-month high of $4.06 on the news before settling back to be 4.7% higher at $3.96.

The gold miner said it had achieved records across the board in its first half, with revenue of $1.46 billion and a profit after tax of $437 million.

The company had $876 million in cash and 42,453 ounces of unsold gold bullion at the end of June.

Production for the full year came in at 232,905 ounces of gold.

West African Executive Chairman Richard Hyde said:

WAF delivered an outstanding result for the first half of 2026, with the Group’s first full six months of combined production from Sanbrado and Kiaka. The Group continued to generate strong profit margins from 232,905 gold ounces produced and 214,883 ounces sold at a realised sales price of US$4,744/oz and an AISC of US$1,823/oz. With two large, low-cost and long-life gold production centres at Sanbrado and Kiaka, WAF is positioned to build on its performance through the second half of 2026 and beyond. This is underpinned by the updated 10-year production outlook released on 31 March 2026.

Mr Hyde said the company also intended to accelerate its debt repayments over the next 12 months.

The company had $388.1 million in debt at the end of June.

West African Resources was also planning more than 100,000 metres of exploration drilling for the remainder of 2026.

The company’s guidance for the full year is for production of 430,000 to 490,000 ounces of gold.

Major expansion plans in the wings.

Previous announcements indicate West African Resources is targeting an average of more than 533,000 ounces of gold production per year from 2026 to 2035, with annual production to peak at 569,000 in 2030.

An upcoming drill program is planned to target mineralisation beneath the current Kiaka open-pit reserve.

The company added:

The … mineralisation at Kiaka remains open at depth, with a significant proportion of ounces located below the planned pit design and currently classified as Inferred Mineral Resources. The program is designed to assess the potential for open pit expansion or the development of a large‐scale underground operation following completion of the open pit.

The post West African Resources’ new dividend yield might surprise appeared first on The Motley Fool Australia.

More reading

• West African Resources delivers profit surge and special dividend in H1 2026

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.

The Wesfarmers Ltd (ASX: WES) share price has drifted lower in recent weeks. I think this makes the business a compelling buy for several reasons.

Wesfarmers is not exactly a household name, but the company is the owner of several recognisable businesses including Bunnings, Kmart, Officeworks, Target and Priceline.

The company has a healthcare division and a chemicals, energy and fertiliser division called WesCEF.

Regular earnings compounding

It’s my belief that the best businesses to own over the long term are those that can significantly grow earnings.

That doesn’t mean they need to grow profit by 25% per year. Instead, growing at a solid rate can make a big difference over several years. For example, if earnings grow at a compound annual growth rate (CAGR) of 8%, they double in nine years.

We don’t know exactly how Wesfarmers will perform, but it has a track record of compounding earnings at a solid pace over the past few years.

In the 2026 financial year, the company reported that its underlying earnings per share (EPS) grew 8.3%, driven by 3.4% revenue growth, despite difficult trading conditions.

I think the quality of the Kmart and Bunnings businesses will allow Wesfarmers to continue earnings growth at a good single-digit pace in the coming years.

The business reported that its return on equity (ROE) (excluding significant items) improved by 4.3 percentage points to 35.5% in FY26, showing that the business usually generates a great return on additional money invested in the company.

I think Kmart Group and Bunnings Group can continue to generate returns on capital (ROC) of around 70% going forward, which is another strong signal of future profit growth for Wesfarmers.

Rising profits are a great tailwind for the Wesfarmers share price over time.

Well-suited to succeed during high cost of living

Customers always want good prices for the products they buy. Kmart and Bunnings are considered leaders in their respective retail categories.

Australia is facing a high cost of living for the foreseeable future – I think this period will be an opportunity for Wesfarmers to capture further market share with the perceived lowest prices.

I like how Wesfarmers, particularly Bunnings, is working on expanding into new product categories, which increases its addressable market. Two of the latest areas of focus were pet care and auto care.

In the coming years, I reckon Wesfarmers will be able to improve its profit margins thanks to strong operating leverage, despite offering customers such low prices.

It’s possible that financial growth could accelerate during this period, rather than seeing a slowdown.

Better valuation of the Wesfarmers share price

The Wesfarmers share price is down 21% since July 2026, which is a significant and rapid drop. I think that makes it an appealing long-term buy, especially given how Wesfarmers continues to invest in new growth avenues like healthcare and lithium mining.

According to CommSec’s projection, Wesfarmers’ share price is valued at 27x FY27’s estimated earnings.

The post 3 reasons why the Wesfarmers share price is a buy appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $70,000 annual passive income?
• Why I’d buy BHP and these ASX shares with $5,000
• How much passive income can I earn off a $550,000 superannuation balance?
• How much do I need to retire on $80,000 a year at 50?
• Top 3 ASX shares to buy with $3,000 in September

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 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.

Many ASX investment experts reckon the changes to capital gains tax (CGT) will encourage a switched focus from growth to yield.

The 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method on 1 July next year.

The new rules grandfather existing ASX shares investments. So, the 50% CGT discount will apply to gains made before 1 July, 2027.

After that date, capital gains on existing investments, and new investments purchased thereafter, will be subject to cost base indexation.

A minimum 30% tax on net capital gains will apply.

Morgans has buy ratings on two ASX dividend shares that offer 6% to 7% annual distribution yields.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.89, down 0.5% today and down 14% over 12 months.

Morgans has an accumulate recommendation on this ASX real estate investment trust (REIT).

The broker said the ASX dividend share offers a 6% annual distribution that should continue to grow.

In a recent note, Morgans said:

CIP delivered FY26 FFO of 18.2cpu and distributions of 16.8cpu, both in line with guidance but at the bottom of the upgraded 18.2-18.5cpu range, and 1% below MorgansF of 18.4cpu.

CIP produced +5.2% like-for-like NOI growth, a near record 226,200sqm of leasing completed, spreads moderating to 30%, and +$116m like-for-like valuation gains, resulting in NTA up 2.3% to $4.01/unit.

FY27 FFO guidance of 18.8-19.2cpu was above market expectations, while the 17.3cpu of distribution guidance in FY27 reflects a more modest 3% growth (vs pcp), driven by rent reversion leasing in the second half.

We rate CIP ACCUMULATE, with a $3.25/sh PT, as the 6% distribution should continue to grow as rental income grows through a mix of positive rent reversion and lease indexation.

Waypoint REIT Ltd (ASX: WPR)

The Waypoint REIT share price is $2.27, down 1.1% today and down 17% over 12 months.

Morgans also has an accumulate rating on this ASX dividend share, which offers a 7% annual distribution.

The broker commented:

WPR’s 1H26 result was marginally ahead of our expectations, with management reaffirming CY26 Distributable EPS (DEPS) guidance of 17.14cps.

With limited expiries in CY27/28 (13% of NLA), WPR remains sensitive to the wider rate environment, and physical asset transactions point to some incremental softening in cap rates, albeit highly contingent on asset quality and location.

Trading at a c.7% distribution yield and 20% discount to NTA we do see value.

However, higher rates are likely to remain a headwind to earnings growth over CY27/28.

To this end, our target price remains broadly unchanged at $2.55, as we reiterate our ACCUMULATE recommendation on valuation grounds.

The post 2 ASX dividend shares offering 6% to 7% yields buy-rated by Morgans appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $70,000 annual passive income?
• How much do I need to retire on $80,000 a year at 50?
• 8 ASX shares upgraded by the professionals post-results this week
• How much is needed in superannuation to target a $60,000 annual passive income?
• How much is needed in superannuation for $1,500 in weekly passive income?

Motley Fool contributor Bronwyn Allen 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.