If you are looking for big potential returns and have a high tolerance for risk, then it could be worth hearing what Morgans is saying about the speculative ASX shares named below.

Here’s what the broker is recommending:

EchoIQ Ltd (ASX: EIQ)

Morgans remains positive on this medical technology company following the release of its FY 2026 results and outlook for FY 2027.

In response, the broker has retained its speculative buy rating and $1.85 price target on its shares. Based on its current share price of $1.32, this implies potential upside of 40%. It commented:

The FY26 annual report confirms the numbers already flagged via quarterlies, but the real signal is the FY27 outlook section, which reads as almost entirely execution language now the balance sheet question is solved. 

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

PeopleIn Ltd (ASX: PPE)

Another ASX share that Morgans is recommending is PeopleIn. 

It rates the workforce solutions company’s shares as a speculative buy with a $1.00 price target. Based on its current share price of 66 cents, this implies potential upside of approximately 50%. It commented:

PPE’s FY26 sees the completion of its portfolio simplification, with two subscale divisions divested (c.35% of the business) and the ongoing operations returned to growth. Group Normalised EBITDA of $19.0m (+1.6% pcp) was in line with MorgansF, while Normalised NPATA of $8.7m (+29.9% pcp) came in c.53% ahead on a lower underlying D&A (excl acquisitions amortisation). 

Debt continues to decline, with capital management centred on dividends/buybacks, along with incremental M&A. Second-half momentum was the feature, with 2H26 Normalised EBITDA up 19.0% on 2H25 and Engineering, Trades and Labour up 122.7%, as the Queensland infrastructure ramp began to convert. We retain our Speculative BUY with a revised A$1.00 target price (70% PER / 30% DCF).

Readytech Holdings Ltd (ASX: RDY)

Finally, although this mission-critical software provider’s results were a touch short of expectations, Morgans remains positive.

In response, the broker has retained its speculative buy rating with a $2.25 price target. Based on its current share price of $1.54, this implies potential upside of approximately 45%. Morgans commented:

RDY’s FY26 result came in towards the lower end of its revised FY26 guidance range, with revenue of $125m & EBITDA of $34.8m -1%/-4% lower than MorgF respectively, with contract implementation timing and customer churn across RDY’s legacy portfolio key headwinds during the period. 

Lower planned investment into FY27 and an improved cost base stemming from the group’s FY26 efficiency program should see the pathway back towards improved growth and margins as achievable, underpinning FY27 guidance of revenue of ~$128-132m (+2.4-5.6% YoY) & cash EBITDA margins of 15-17%. We trim EBITDA forecasts by -3-4% in FY27-FY29F, with our SPEC BUY retained.

The post Morgans says these speculative ASX shares could rise 40% to 50% 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 Peoplein and ReadyTech. The Motley Fool Australia has recommended Peoplein. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sonic Healthcare Ltd (ASX: SHL) shares were stationary at $19.54 during Tuesday trading, but the ASX healthcare share has had a rough run. Sonic is down 11% over the past month, 14% year to date and 18% over the past 12 months.

That weakness could be catching the attention of passive income investors. But can this healthcare giant also deliver meaningful earnings growth?

Growth remains a key attraction

Sonic Healthcare is the largest private medical laboratory and pathology services operator in Australia, the United Kingdom, Germany and Switzerland. It is also a major provider of diagnostic imaging in Australia and the country’s largest medical centre operator.

The company’s FY26 result was impressive despite ongoing economic uncertainty. Revenue rose 13% to $10.9 billion, underlying EBITDA climbed 11% to $1.9 billion, while underlying earnings per share (EPS) increased 14% to $1.256.

There are reasons to believe demand can continue growing. Sonic operates in markets with ageing and growing populations, potentially supporting long-term demand for pathology, diagnostics and medical services.

Acquisitions provide another avenue for growth. The $10 billion ASX healthcare share has focused on expanding its European operations, with acquisitions helping increase its scale and potentially improve profit margins.

For investors, sustained profit growth is particularly important because earnings ultimately fund dividends.

A compelling dividend history

There aren’t many ASX companies with a dividend track record quite like Sonic Healthcare’s.

The ASX healthcare share has paid dividends since 1994 and has increased its payout almost every year since then. The only exceptions were 2011 and 2012, when Sonic maintained its dividend.

In FY26, Sonic continued its progressive dividend policy, increasing the payout by 1 cent per share to $1.08. Based on the current share price, that represents a dividend yield of approximately 5.4% before franking credits, or around 7% including franking credits.

That’s an attractive income proposition if Sonic can continue growing earnings and supporting its progressive dividend policy.

What do brokers think?

Sonic isn’t universally viewed as a buy. TradingView data shows 10 of 18 brokers rate the ASX healthcare share a hold, while four rate it a buy or strong buy and four have a sell or strong sell recommendation.

The average 12-month price target is $22.11, implying potential upside of roughly 13% from the current share price.

Bell Potter is more bullish. The broker maintained its buy rating after reviewing Sonic’s FY26 results, although it reduced its 12-month price target from $28.75 to $27.50.

Even after that downgrade, the target implies potential upside of around 40%.

Is Sonic Healthcare a buy?

At roughly 16 times earnings, Sonic Healthcare doesn’t appear excessively valued given its defensive operations, impressive dividend history and potential for long-term earnings growth.

The combination of a 7% fully franked-equivalent yield and potential earnings growth makes Sonic an ASX healthcare share income-focused investors may want to consider.

The post Could this 7%-yielding ASX healthcare share be a growth winner? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

September could be a good time to look at the income side of your portfolio.

But which ASX dividend shares could be worth considering this month?

Three shares that I think could be strong picks for passive income are listed below. Here’s what you need to know about them:

APA Group (ASX: APA)

APA Group could be an ASX dividend share to consider in September. It owns and operates a large portfolio of energy infrastructure assets across Australia.

This includes gas pipelines, processing assets, storage facilities, electricity transmission assets, and other infrastructure that helps move energy from where it is produced to where it is needed.

That gives APA Group a different profile to many other income shares. Its assets are tied to the movement of energy, which remains essential for households, businesses, and industry.

A large portion of APA Group’s earnings is supported by long-term contracts and regulated assets. This can provide a level of income visibility that is attractive for dividend investors.

Energy markets are changing, but Australia will still need reliable infrastructure for a long time.

Based on current estimates, APA Group offers a FY 2027 dividend yield of approximately 5.4%.

Charter Hall Long WALE REIT (ASX: CLW)

A second ASX dividend share for income investors to look at is Charter Hall Long WALE REIT.

This real estate investment trust (REIT) owns a portfolio of properties leased to government, corporate, and major tenant customers.

As its name suggests, a key feature is its long weighted average lease expiry. That means many of its properties are leased for long periods, which can provide better visibility over future rental income.

The portfolio includes assets across areas such as government, social infrastructure, industrial, convenience retail, and other essential or mission-critical properties.

Charter Hall Long WALE REIT has not been immune to higher interest rates and property market pressure. But its long leases and quality tenant base remain attractive features for income investors.

For FY 2027, the market is expecting Charter Hall Long WALE REIT to offer a dividend yield of roughly 7.3%.

HomeCo Daily Needs REIT (ASX: HDN)

Finally, HomeCo Daily Needs REIT is an ASX dividend share to consider.

The property company owns convenience-focused assets across neighbourhood retail, large-format retail, health, and services.

These are properties linked to things people keep using. Its tenants include supermarkets, pharmacies, healthcare providers, pet stores, childcare operators, and other daily-needs businesses.

That does not make the REIT risk-free, but it does give its portfolio a practical defensive quality.

People may delay big purchases when household budgets are tight, but groceries, healthcare, medicines, and essential services remain part of everyday life.

This can help support rental income and dividends through different market conditions.

At current levels, HomeCo Daily Needs REIT is expected to offer a FY 2027 dividend yield of around 7.7%.

The post 3 strong ASX dividend shares with yields up to 7.7% appeared first on The Motley Fool Australia.

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