Do you have room for some new additions in your income portfolio? If you do, then it could be worth looking at the three ASX dividend shares in this article.

They have been given buy ratings by brokers, who are forecasting attractive and growing payouts in the near term. Here’s what they are recommending to clients:

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT could be an ASX dividend share to buy.

It is a real estate investment trust (REIT) that focuses on convenience-based retail centres such as supermarkets, pharmacies, and medical clinics. These are assets that tend to have stable tenants and long leases.

At the last count, its portfolio was valued at $4.9 billion, had 99% occupancy, and a weighted average lease expiry of 4.9 years.

UBS is a fan of the company and believes it is positioned to pay dividends of 8.6 cents per share in FY 2026 and then 8.7 cents per share FY 2027. Based on its current share price of $1.36, this would mean dividend yields of 6.3% and 6.4%, respectively.

The broker has a buy rating and $1.53 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that could be a buy according to analysts is IPH.

It is an international intellectual property services group working throughout 26 IP jurisdictions, with clients in more than 25 countries. The company has a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

Morgans is a fan of the company and is expecting it to reward shareholders with fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on its latest share price of $3.42, this would mean large 10.8% dividend yields for both years.

Morgans has a buy rating and $6.05 price target on its shares.

Jumbo Interactive Ltd (ASX: JIN)

A third ASX dividend share for income investors to look at is Jumbo Interactive.

It is the online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and Powered by Jumbo platform.

Morgan Stanley has been pleased with its positive start to the year. It believes that this leaves it positioned to pay fully franked dividends of 57.7 cents per share in FY 2026 and then 68.4 cents per share in FY 2027. Based on its current share price of $11.32, this would mean dividend yields of 5.1% and 6%, respectively.

The broker currently has an overweight rating and $16.80 price target on its shares.

The post These top ASX dividend shares offer 5% to 10% yields appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Corporate Travel Management and Boss Energy shares dumped from ASX 200
• 5 things to watch on the ASX 200 on Monday
• Forget Westpac shares and buy these ASX dividend stocks
• Brokers name 3 ASX dividend shares to buy in December

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 Jumbo Interactive. The Motley Fool Australia has recommended HomeCo Daily Needs REIT, IPH Ltd , and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When one ASX share is rated as a buy by an analyst, that’s interesting. When numerous experts rate a business as a buy, that could suggest there’s an opportunity for investors to take advantage of.

Share prices are always changing and experts are always looking to jump on ideas that look undervalued. At the moment, there are a few names that are highly rated by multiple leading brokers, let’s take a look at why they’re viewed as buy ideas.

Flight Centre Travel Group Ltd (ASX: FLT)

According to a collation of analyst ratings by Commsec, there are currently 11 buy ratings on the business.

One of the brokers that rates Flight Centre as a buy is UBS. The broker describes Flight Centre as a global travel agent in both the leisure and corporate travel segments, with key markets being Australia, New Zealand, the UK, Canada, South Africa, the US, Hong Kong, China, Singapore, India and the UAE.

UBS notes that the company is expecting flat profit before tax (PBT) growth in the first half of FY26, which places emphasis on the second half achieving growth of between 8% to 28% to achieve its FY26 guidance range.

The broker notes that ongoing productivity initiatives in the corporate division are driving efficiency improvements. The FY26 first quarter saw total transaction value (TTV) grow by 7%, but the company’s headcount reduced by 5%.

In the leisure segment, there are some green shoots emerging in US bookings from Australia, according to UBS.

UBS is projecting the ASX share can deliver net profit after tax (NPAT) of $222 million in FY26. The broker has a price target of $14.40 on Flight Centre shares.

Nextdc Ltd (ASX: NXT)

According to a collation of analyst ratings by Commsec, there are currently 15 buy ratings on the business.

UBS describes Nextdc as Australia’s leading data centre as a service, with multiple locations in Australia and the wider Asia and Pacific region.

UBS is one of the brokers that rates Nextdc following a positive update by the ASX share.

The broker said that Nextdc is on track for a new record of contract wins in FY26 by adding 71MW in the year to date, compared to 72MW in FY25.

Demand for capacity in Victoria remains “very strong” and it thinks there could be increases to analyst estimates in the business manages to sign another round of contracts in the second half of FY26.

The broker said that it’s waiting for approval for the new Sydney data centres (S4 and S5). UBS is positive that approval is a key catalyst to further accelerate the MW contracted and activation profile.

Due to the demand and supply dynamic in NSW, UBS believes there is “strong scope for early contract wins” once construction starts.

UBS concluded on the ASX share:

In our view, the structural AI thematic is reaccelerating, cloud remains very strong and we are likely to go back into a period of investors wanting to increase exposure to both.

The broker has a price target of $21.85 on Nextdc shares, implying a possible rise of 60% over the next year.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

More reading

• The ASX stocks I think could define the next decade of growth
• NextDC shares drop 23% from their peak: Buying opportunity or sign to sell-up?
• Flight Centre shares drop 18% this year: Buy, sell or hold?
• Stocks to target for a tech rebound in 2026
• Here are the top 10 ASX 200 shares today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Over the past six months, Tesla (NASDAQ: TSLA) and Alphabet (NASDAQ: GOOGL) have both delivered eye-catching gains as investors seemingly crowd into anything tied to AI (artificial intelligence). Tesla shares are up more than 45% in that span, while Alphabet has climbed nearly 70% and is closing in on a $4 trillion market capitalization.

The stories behind those moves look very different. Tesla is still primarily an electric vehicle company trying to reinvent its future around autonomous driving and humanoid robots. Alphabet, meanwhile, generates cash from search advertising, YouTube, and a fast-growing cloud computing business — and it is threading AI into all of these offerings.

Both companies could end up major winners from AI in 2026 and beyond. Yet when valuation and these companies’ underlying business fundamentals are weighed together, Alphabet arguably looks like the better option for investors looking for more investment exposure to AI. 

Tesla: AI could transform its business

The bull case for Tesla stock these days hinges less on boosting electric vehicle sales and more on converting its AI efforts into scalable software and services. At least, that’s the only way to explain the stock’s valuation, which features a price-to-earnings ratio of just over 300 as of this writing. Tesla’s autonomous driving network (Robotaxi), its autonomous driving subscriptions, and its humanoid robot efforts (Optimus) sit at the center of that ambition.

Recent financial results, however, highlight the gap between that vision and today’s reality.

In the first half of this year, Tesla’s revenue fell 10.6% year over year to $41.8 billion as automotive sales dropped almost 18%. Third-quarter results improved, with revenue rising about 12% year over year to $28.1 billion. But operating income still declined about 40% — and operating margin for the period was only 5.8% (down from 10.8% in the year-ago period). In addition, the rebound in sales trends may prove to be temporary, because the period benefited from a pull-forward in demand as consumers rushed to place orders before the federal electric vehicle credit expired on Sept. 30.

Management has been clear that AI is a major reason profitability remains under pressure. Not only has it been a significant driver of research and development spending recently, but management expects AI to weigh on its business next year.

“On the [capital expenditures] front,” said Tesla chief financial officer Vaibhav Taneja in the company’s third-quarter earnings call, “while we are expecting to be around $9 billion for the current year, we’re projecting the numbers to increase substantially in 2026 as we prepare the company for the next phase of growth in terms of not just our existing businesses, but our bets around AI initiatives, including Optimus.”

This spending may pay off if Tesla can scale and commercialize its Robotaxi network and move Optimus from demonstrations to meaningful production. For now, however, almost all of Tesla’s revenue still comes from its cyclical auto business, as well as its smaller but fast-growing energy business.

Alphabet: More profitable and cheaper

Alphabet’s AI push looks more incremental but also more durable than Tesla’s. Google Search and YouTube already rely heavily on machine learning to match users with relevant information and ads, and Alphabet’s cloud computing business, Google Cloud, is selling AI infrastructure and tools directly to customers. Overall, Alphabet’s move to integrate AI across its business seems to be creating an inflection in revenue growth.

Alphabet’s third-quarter revenue rose 16% year over year to $102.3 billion, with Google Cloud up 34% and both search and YouTube delivering solid growth as new Gemini-powered features rolled out across the portfolio.

Profitability and cash flow help the story.

Alphabet’s earnings per share in Q3 increased more than 35% year over year, and Alphabet generated about $48.4 billion in cash from operations during the period, bringing the total for the first nine months of 2025 to more than $112 billion. Cash and marketable securities on the balance sheet sit around the $98.5 billion mark, and the company continues to return capital through share repurchases and a modest dividend while still funding heavy AI investment.

Like Tesla, Alphabet’s management expects its investments to rise from already high levels due to AI. Indeed, not only did management lift its full-year outlook for capital expenditures when it reported its third-quarter results, but it said it expects “a significant increase” in capital expenditures next year. Investments to support its AI-capable compute power for Google Cloud represent the primary driver for its capital expenditures.

The better bet for 2026 and beyond

Ultimately, the scale tips in favor of Alphabet for two primary reasons.

First, Alphabet’s business is more established than Tesla’s and is able to generate substantial profits — and do so on a more consistent basis.

More importantly, however, the Google parent has a much cheaper valuation than Tesla’s. Alphabet trades at 31 times earnings, and Tesla’s price-to-earnings ratio is just over 300. Even when looking at price relative to analysts’ consensus forecasts for earnings per share over the next 12 months (forward price-to-earnings), the chasm between the two remains massive. Alphabet trades at about 23 times forward earnings, and Tesla trades at close to 200 times forward earnings.

Sure, Tesla and Alphabet both hold significant promise when it comes to AI’s impact on their businesses next year (and beyond). Tesla’s upside rests on breakthroughs in full self-driving and robotics that could eventually reshape its economics. But the company is navigating a challenging environment in autos and a stock price valuation that is borderline egregious. Meanwhile, Alphabet faces its own risks, including regulatory scrutiny and the chance that its massive AI infrastructure doesn’t pay off as well as expected. Still, its combination of strong cash generation, a cash-rich balance sheet, and a much lower valuation multiple arguably makes it the more attractive way to participate in AI heading into 2026. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla vs. Alphabet: Which is the better AI stock for 2026? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Alphabet stock jumped 13.9% in November. What’s next?
• If you’d invested $3,500 in Tesla 12 years ago, here’s how much you’d have today
• Here’s why Alphabet is the best-performing “Magnificent Seven” stock in 2025 (and why it has room to run in 2026)
• Prediction: This will be the world’s largest company by year-end 2026 (Hint: It’s not Nvidia)
• Better $3 trillion AI stock to buy now: Microsoft or Alphabet

Daniel Sparks and/or his clients have positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Tesla. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team out of Morgans yesterday released updated guidance on two ASX shares that have performed very differently in 2025.

Both ASX shares have buy ratings from the broker.  

Here’s the latest guidance out of Morgans.

Symal Group (ASX: SYL)

Symal Group specialises in public and private infrastructure. It offers a range of services, including contracting, plant and equipment hire, material sales, recycling, and remediation services.

The company has seen its share price rise an impressive 80% in 2025. 

It announced yesterday it has entered into a $28 million conditional agreement to acquire the assets of Queensland-based civil contracting and haulage businesses Timms Group and L&D Contracting via an upfront cash purchase.

This ASX share rose 5% on the back of this announcement. 

Morgans is optimistic on this news, saying the acquisition largely reflects the company’s intention to continue expanding both its geographic and sector diversification, via a mix of organic and acquisition-led strategies. 

The further expansion into South East Queensland is seen as a positive, as the business expands its wider East Coast presence and looks to take advantage of South East Queensland infrastructure projects.

The broker said the company has a mix of organic and acquisition-led growth, combined with a healthy balance sheet and an undemanding earnings multiple (vs peers). 

Based on this guidance, Morgans reiterated its Buy recommendation. 

It has increased its target price to $3.75, as a result of higher earnings expectations and a progressively reducing peer multiple discount.

Based on yesterday’s closing price of $3.07, this indicates an upside of 22.15%. 

Guzman Y Gomez (ASX: GYG)

Unlike the previous ASX share mentioned, Guzman Y Gomez shares tumbled by more than 50% this year. 

Valuation concerns and disappointing results in the US market have weighed heavily on investor sentiment.

It has consistently been a top 10 most shorted share throughout the start of December.

However the team at Morgans has reiterated a buy rating, believing the fast casual Mexican chain can bounce back. 

Morgans said in a note yesterday that GYG has launched its latest limited-time offer (LTO): the BBQ Chicken Double Crunch (BBQ CDC). 

Early feedback suggests the item is one of GYG’s more indulgent menu items and taste tests have been overwhelmingly positive.

The product leverages existing ingredients, meaning no incremental complexity or cost for stores, a margin-friendly innovation that aligns with GYG’s operational discipline. 

Management has repeatedly emphasised that menu innovation is a key lever for same-store sales (SSS) growth, and this launch reinforces that commitment. We reiterate our BUY rating.

The post Morgans says to buy these two ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX shares to buy and hold for the next decade
• These are the 10 most shorted ASX shares
• 2 ASX growth shares to buy now while they’re on sale
• Why Catapult, Collins Foods, Guzman Y Gomez, and Pantoro shares are falling today

Motley Fool contributor Aaron Bell 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.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ended the day slightly lower. The benchmark index fell a fraction to 8,579.4 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 40 points or 0.45% higher this morning. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 0.5%, and the Nasdaq is 0.1% higher.

Oil prices climb

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.4% to US$58.49 a barrel and the Brent crude oil price is up 0.45% to US$62.23 a barrel. This was despite the US reporting a smaller than expected reduction in crude stocks.

Premier Investments goes ex-div

Premier Investments Ltd (ASX: PMV) shares will be on watch on Thursday when they go ex-dividend for its latest payout. Back in September, the ASX 200 retail giant released its full year results and revealed a 31.1% jump in profit. This allowed the Smiggle and Peter Alexander owner to declare a 50 cents per share fully franked final dividend. This will be paid to eligible shareholders next month on 23 January.

Gold price rises

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Thursday after the gold price edged higher. According to CNBC, the gold futures price is up 0.2% to US$4,245.1 an ounce. Traders were bidding gold higher after US Federal Reserve cut interest rates.

Buy GYG shares

Morgans thinks that investors should be buying Guzman Y Gomez Ltd (ASX: GYG) shares after they hit a 52-week low. In response to its latest limited time offer for the BBQ Chicken Double Crunch, the broker has reiterated its buy rating. It said: “The product leverages existing ingredients, meaning no incremental complexity or cost for stores, a margin-friendly innovation that aligns with GYG’s operational discipline. Management has repeatedly emphasised that menu innovation is a key lever for same-store sales (SSS) growth, and this launch reinforces that commitment. We reiterate our BUY rating.”

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Abacus Storage King declares partially franked December 2025 dividend
• Charter Hall Group unveils 42.28c per security capital reallocation
• TPG Telecom lifts free float after $73 million Retail Reinvestment Plan
• Ampol delivers $649m RCOP EBITDA and updates investors on strategic growth

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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AGL Energy Ltd (ASX: AGL) is an underperforming ASX utilities stock. 

In 2025, the S&P/ASX 200 Utilities (ASX:XUJ) index is up a healthy 7%. 

Meanwhile, AGL shares have fallen almost 19%. 

The company remains one of the top 5 largest utilities stocks by market capitalisation. 

After falling significantly this year, the team at Ord Minnett has reiterated a buy recommendation on the ASX utilities stock along with an attractive price target. 

Here is the latest from the wealth management firm. 

Increased confidence

Ord Minnett said after recently attending the AGL Energy investor day, it came away with greater confidence in its already positive view on the company’s investment proposition. 

Yesterday’s report noted a highlight of the day was seeing how AGL’s investment of more than $800 million in recent years has allowed the development of flexible generation capacity of 3.3 gigawatts (GW) at Bayswater. 

Ord Minnett said trials in October successfully took coal generation units offline and then put them back online within five minutes, thereby matching the flexibility inherent in gas-powered electricity generation.

In effect, these developments mean AGL can optimise margins by shutting down and restarting its generation units between demand peaks as required. 

According to the company, testing during October showed that applying the new operating pattern across four generation units for 100 similar days equated to circa $25 million in annualised earnings. 

AGL expects Bayswater to remain the lowest-cost generator in NSW given recent spot coal contracts struck by the company, its additional flexible capacity, and high availability rates. This position, and new pricing for supply to the Tomago aluminium smelter from 2028, indicates material upside to earnings forecasts.

Raised earnings and price target

Following the investor day, Ord Minnett raised FY26 EPS estimates by 6.1% to incorporate wider electricity margins partially offset by higher growth capital expenditure. 

Meanwhile, forecasts for FY27 and FY28 have been trimmed 0.5% and 0.2%, respectively. 

It has upgraded its target price on this ASX utilities stock to $13.00 from $12.00. It reiterated its buy recommendation.

Based on yesterday’s closing price of $9.26, this indicates an upside of 40.38%. 

Elsewhere, it seems other analysts and brokers are tipping a similar rebound. 

Late last month, Macquarie placed a price guide of $11 on the ASX utilities stock. 

TradingView has a one year price target of $11.41. 

The post Ord Minnett tips 40% upside for this ASX utilities stock appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Dividend investors: Top Australian energy stocks to buy in December
• Macquarie reveals ASX 200 share tips in each market sector for 2026

Motley Fool contributor Aaron Bell 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.

ASX All Ords gold share Aurum Resources Ltd (ASX: AUE) just did it again.

And by ‘it’, I mean racing ahead of the All Ordinaries Index (ASX: XAO).

Aurum Resources shares closed up 1.70% on Wednesday, trading for 60 cents apiece, well ahead of the almost flat finish posted by the All Ords yesterday.

That sees the Aurum share price up a whopping 130.77% since market close on 31 January. Or enough to turn an $8,000 investment into $18,461.6.

The ASX All Ords gold share has been catching tailwinds on several fronts.

First, the gold price has surged more than 60% in 2025, with the yellow metal currently fetching US$4,214 per ounce.

Second, investors have been keeping a close eye on the growing potential of the miner’s Boundiali and Napie Gold Projects, both located in Côte d’Ivoire (formerly Ivory Coast).

And earlier in December, Aurum caught the attention of Canaccord Genuity, which initiated coverage on the stock with a speculative buy rating.

Here’s what you need to know.

ASX All Ords gold share tipped to keep shining bright

Canaccord sees significant opportunity at the Boundiali project.

“The flagship Boundiali consists of seven neighbouring exploration tenements stretching 75km north to south for ~1,470km2 with a total combined resource of 2.41Moz @ 1.0g/t Au,” the broker said.

And the ASX All Ords gold share has a dozen drill rigs aiming to boost that gold resource.

According to Canaccord:

AUE believes its competitive advantage is its ability to run a fleet of company owned diamond drill rigs, which can be operated at costs much lower than its peers. AUE and its twelve operating rigs can potentially achieve higher drill advancement rates, delivering more resource updates at lower costs compared to its peers, in our view.

Commenting on the potential resource growth at Aurum’s two projects, Canaccord said:

We see potential for the broader Boundiali Gold Project to host ~3.1Moz over time, inclusive of the 2.4Moz defined to date. We see potential for the broader Napie Gold Project to host ~1.1Moz over time, inclusive of the 0.87Moz defined to date.

And the company looks well-funded for ongoing exploration.

“AUE reported cash of A$23.7m as at the end of the SepQ’25 with no outstanding debt,” Canaccord noted.

“It subsequently sold ~A$23m of Montage Gold Corp (TSE: MAU) shares, issued in lieu of cash consideration as part of MAU’s 9.9% strategic investment, for estimated pro forma cash of ~A$40m,” the broker added.

Canaccord has a price target of $1.50 on the ASX All Ords gold share. That represents a potential upside of 150% from Thursday’s closing price.

The post Up 131% since February, why this ASX All Ords gold share is forecast to more than double again appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Ord Minnett tips 40% upside for this ASX utilities stock
• Is the Qantas share price a buy today?
• Here are the top 10 ASX 200 shares today
• 3 excellent ASX ETFs to buy with $3,000 in December

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.