The Premier Investments Ltd (ASX: PMV) share price is in focus today after the company reported a statutory net profit after tax (NPAT) of $101.7 million for the first half of FY26 and declared a fully franked interim dividend of 45 cents per share.

What did Premier Investments report?

• Statutory NPAT: $101.7 million for 1H26
• Profit before tax (PBT, excl. significant items): $141.9 million, down 4.3% vs 1H25
• Premier Retail EBIT: $119.3 million with a margin of 26.4%
• Total group sales: $452.8 million (Peter Alexander: $312.3m, up 4.9%; Smiggle: $140.5m, down 10.7%)
• Gross margin: 66.9%
• Fully franked interim dividend: 45 cents per share

What else do investors need to know?

Premier’s result was driven by steady growth from its Peter Alexander brand, while Smiggle sales declined as the company continued rationalising its store network. The board has reaffirmed a two-brand retail structure, with clear leadership now in place—Judy Coomber at Peter Alexander and newly appointed Georgia Chewing at Smiggle.

Premier has also made progress with its capital management initiatives, maintaining $360.1 million in cash and confirming a $100 million on-market share buyback announced in December 2025. The company’s strong balance sheet positions it well to pursue further growth and manage ongoing volatility in the retail environment.

What did Premier Investments management say?

Chairman Solomon Lew said:

Today, we have a leaner business. The Premier Investments Board is keen to see our brands operate with the speed and agility required to keep pace with consumer trends and spending volatility… In Judy Coomber (Managing Director – Peter Alexander), Georgia Chewing (Managing Director – Smiggle) and John Bryce (Premier Retail CFO) we have proven retailers to drive the business forward.

What’s next for Premier Investments?

Looking forward, Premier Investments expects continued strong performance from Peter Alexander, with the first seven weeks of 2H26 already tracking ahead of the previous half’s growth rate. The company will focus on expanding the Peter Alexander brand locally and internationally, including potential new store formats and wholesale partnerships.

For Smiggle, 2H26 will be a transition period focused on product innovation and repositioning the brand to its core customer group of 6-12 year olds. Management is targeting a return to growth for Smiggle in 1H27, supported by refreshed leadership and strategy.

Premier Investments share price snapshot

Over the past 12 months, Premier Investments shares have declined 40%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Premier Investments posts $101.7m half-year profit and lifts dividend appeared first on The Motley Fool Australia.

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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 recommended Premier Investments. 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.

Plenty of ASX shares have taken a beating this year because of worries about various impacts like AI, energy prices, inflation, interest rates and so on. During times like this, I think we can find great opportunities.

I think one of the easiest ways to invest during difficult periods is to invest in growing businesses where the price/earnings (P/E) ratio has reduced but earnings are likely to climb in the medium-term.

So, let’s dive into two of the most attractive S&P/ASX 300 Index (ASX: XKO) shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia’s largest enterprise software company, with a global presence. It has more than 1,300 leading subscribers across corporations, government agencies, local councils and universities.

Since October 2025, the TechnologyOne share price has dropped around 35%, despite the company continuing to very pleasing financial growth as it expands its offering with additional modules, AI inclusions and so on.

In FY25, it reported revenue growth of 18% to $610 million and net profit after tax (NPAT) growth of 17% to $137.6 million. It also reported its research and development (R&D) investment was $153.7 million, 25% of total revenue.

The R&D spending is a key driver for the ASX share to unlock additional revenue growth from its subscribers, helping it deliver its targeted revenue growth of 15% from its existing client base each year.

It’s winning new clients, with UK growth particularly exciting because of the large market and similarities to Australia.

In FY26, it’s expecting to grow its profit before tax by between 18% to 20% in FY26. That’s a great tailwind for sending the TechnologyOne share price higher.

According to the forecast on Commsec, the TechnologyOne share price is valued at 52x FY26’s estimated earnings.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia’s leading ethical investment managers. The company said it aims to provide investors with investment management products that align with their values and provide long-term returns.

With funds under management (FUM) of $14 billion, the business is exposed to share market movements. But, the 45% decline of the Australian Ethical share price over the last six months seems harsh considering the good numbers it’s reporting and long-term growth tailwinds.

Historically, asset prices have climbed over the long-term, which is a tailwind for the company’s earnings. Plus, it offers superannuation to Australians, so the company is experiencing regular net inflows from members.

In the FY26 half-year result, the business reported underlying revenue growth of 13% to $65.8 million, while underlying profit after tax increased 25% to $14.4 million.

I’m expecting the ASX share can continue to deliver rising profit margins because of how scalable funds management businesses are. As an example, it doesn’t take 10% more staff or a 10% bigger office to manage 10% more FUM.

It’s now trading at just 24x FY25’s earnings, which looks like great value to me considering how fast its profit is rising.

The post These valuations are too good to ignore! I’d buy these ASX shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment and Technology One. The Motley Fool Australia has recommended Australian Ethical Investment and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now could be a good time to invest in the ASX 300 stock in this article.

That’s the view of analysts at Bell Potter, who are tipping market-beating returns over the next 12 months.

Which ASX 300 stock?

The stock that Bell Potter is recommending to clients is Propel Funeral Partners Ltd (ASX: PFP).

It is the second largest provider of funeral, cemetery, crematoria, and related services in the ANZ market.

Bell Potter notes that the company has a strong presence in regional areas and an emerging metropolitan presence.

While the ASX 300 stock underperformed expectations during the first half, the broker believes that better times are coming, especially given the weaker comparable period it is about to cycle. It explains:

PFP’s recent 1H26 result from saw revenue led misses given the weaker than expected average revenue per funeral (ARPF) vs market expectations and BPe. However good cost control saw broadly similar EBITDA margins vs pcp. While no guidance was provided for FY26, a -3% in comparable volumes in the pcp (2H25) including a material contraction in 3Q26 and upcoming favourable demographics arising from the ageing of the baby boomer population were reiterated as catalysts for 2H26 and ahead.

The M&A pipeline was noted as conducive, in addition to PFP’s ~10% collective ANZ market share, while the funding facility of $275m was refinanced ahead of expiry on more attractive terms (maturity in Oct-29).

Should you invest?

According to the note, Bell Potter sees plenty of value on offer here despite trimming its valuation.

This morning, the broker has retained its buy rating on the ASX 300 stock with a lowered price target of $5.00 (from $5.90).

Based on its current share price of $4.14, this implies potential upside of 21% for investors over the next 12 months.

In addition, Bell Potter is expecting an attractive 3.4% fully franked dividend yield over the 12 months, which boosts the total potential return to almost 25%.

Commenting on its buy recommendation, the broker said:

Our Price Target decreases ~15% to $5.00/share given our earnings changes and as we factor in a higher risk-free rate within our DCF valuation. With ~$135m debt capacity together with long maturity, we expect M&A activity to be supported by a healthy pipeline. As a less discretionary exposure within our Consumer Discretionary sector coverage, we remain optimistic on both PFP’s underlying business & acquisition opportunity and see M&A as driving overall revenue growth above midsingle digit organic revenue growth.

Within the underlying business, we see relatively less challenging comps in 2H26 as PFP cycles organic volume declines (particularly in Feb-Apr), while we expect the demographic tailwinds from an ageing baby boomer population to be a sizable catalyst from 2026 onwards. We see the trading update in May as a potential catalyst. We also view the freehold property portfolio valued at cost less depreciation of ~$246m as a strong hedge to the net gearing level of 2.3x.

The post This ASX 300 stock could deliver a 25% return 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.

The team at Morgans has been busy running the rule over a number of ASX dividend stocks.

Two that have fared well and been given buy ratings are listed below. Here’s what the broker is recommending to clients:

Collins Foods Ltd (ASX: CKF)

This quick service restaurant operator could be worth considering according to Morgans.

It was pleased with the company’s recent announcement of plans to make a bolt-on acquisition for its KFC business in Germany. Morgans described it as “sensible” and highlights that it is expected to be immediately accretive to earnings.

In response, the broker has upgraded this ASX dividend stock to a buy rating with a $12.70 price target. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

As for income, Morgans is forecasting fully franked dividends of 29 cents per share in FY 2026 and then 35 cents per share in FY 2027. Based on its current share price of $9.79, this would mean dividend yields of 3% and 3.6%, respectively.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock that Morgans is recommending is online lottery ticket seller Jumbo Interactive.

It responded positively to the company’s half-year results and put a buy rating and $14.90 price target on its shares. The broker said:

Jumbo Interactive (JIN) reported a solid 1H26 result, with most headline metrics pre-released. While Lottery Retailing was impacted by a softer jackpot cycle, offshore segments delivered encouraging growth and margin expansion. Managed Services continues to build momentum, with Canada EBITDA guidance upgraded and the UK tracking nicely. Underlying SaaS trends remain healthy ex-Lotterywest.

Following the update, we believe JIN can delever by FY27F, assuming a normalisation in Australian jackpot activity and continued offshore earnings growth. We have updated our model to reflect upgraded Managed Services and Prize Draw guidance, alongside refreshed FX assumptions. Our underlying EBITDA increases +1%/+5% across FY26-27F. We maintain our BUY recommendation with an unchanged $14.90 target price.

With respect to dividends, Morgans expects fully franked payouts of 28 cents per share in FY 2026 and then 38 cents per share in FY 2027. Based on its current share price of $7.71, this would mean dividend yields of 3.6% and 4.9%, respectively

The post 2 ASX dividend stocks Morgans rates as buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Collins Foods and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building passive income from ASX shares is something I think a lot of investors aim for.

But one of the most common questions is how much capital you actually need to get there.

Let’s break it down using BHP Group Ltd (ASX: BHP) shares as an example.

Starting with the income goal

A $100 monthly income might not sound like a lot, but it’s a great place to start.

Over a year, that works out to $1,200 in dividend income.

That’s the key number to keep in mind, because once you know your annual income target, you can start working backwards.

What BHP shares currently offer

BHP is one of the ASX’s largest and most established dividend payers.

According to CommSec, consensus estimates show that the miner is expected to pay fully franked dividends of $1.87 per share in FY26 and $1.73 per share in FY27.

Using the current share price of $48.35, that puts its forward dividend yield at roughly 3.6% to 3.9%.

Of course, it’s worth remembering that BHP’s dividends can fluctuate. As a miner, its payouts are influenced by commodity prices, particularly iron ore and copper.

So while it can deliver strong income, it won’t be perfectly consistent every year.

How much do I need to invest?

Now for the key part.

If we aim for $1,200 in annual dividend income and assume a yield of around 3.8%, we can estimate the investment required.

At that yield, you’d need roughly $31,500 invested in BHP shares to generate $1,200 per year in dividends. That equates to roughly 650 shares.

While this gives a useful estimate, there are a couple of important things to keep in mind.

First, dividends are not guaranteed. If commodity prices fall, BHP’s earnings and dividends could decline as well.

Second, putting all your money into a single stock carries risk. Even a high-quality company like BHP shouldn’t be your only source of income.

A long-term perspective

What I like about BHP for income is that it also offers growth potential.

It has significant exposure to commodities like copper, which is expected to play a major role in global electrification.

It is also investing in future-facing projects like its Jansen potash development in Canada, which could become a major earnings contributor over time.

So while the income may fluctuate, the long-term outlook could support both dividends and capital growth.

Foolish takeaway

To generate $100 per month in income from BHP shares, you’d likely need to invest in the region of $30,000 to $32,000 at current prices and forecasts.

That might sound like a lot, but it certainly could be worth it for investors looking to build a balanced income portfolio.

The post Here’s how much I’d need to invest in BHP shares to generate a $100 monthly income appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

Megaport Ltd (ASX: MP1) shares have fallen to a 52-week low.

That alone doesn’t make it a buying opportunity. Plenty of stocks hit new lows for good reasons.

But every now and then, a company gets caught in broader market weakness despite continuing to execute well. That’s when I start to take a closer look.

And in this ASX 200 tech stock’s case, I think there’s a strong argument that this could be one of those moments.

This ASX 200 tech stock is still gaining momentum

When I look at Megaport, I don’t see a company slowing down.

In its latest half-year result, it delivered record performance, with group annual recurring revenue (ARR) jumping 49% year-on-year to $338 million.

Even stripping out acquisitions, the core network business is still growing strongly, with ARR up 19% in constant currency and net revenue retention improving to 111%.

That tells me customers are not only sticking around, but spending more over time.

And that’s exactly what you want to see in a subscription-style business.

A much bigger opportunity is emerging

What I find most interesting is how Megaport is evolving.

Historically, it has focused on network-as-a-service. But with the acquisition of Latitude.sh, it is now expanding into compute-as-a-service as well.

That might sound like a small shift, but I think it’s significant.

It effectively brings network and compute together into one platform, allowing customers to deploy infrastructure globally, on demand.

Management describes this as the next logical step in automating IT infrastructure at scale, particularly as demand grows for cloud, AI, and data centre services.

To me, this expands Megaport’s total addressable market meaningfully and strengthens its long-term growth story.

The numbers are starting to reflect scale

Another thing that stands out is improving business quality.

Customer lifetime has extended from 10 to 13 years, while customer lifetime value has increased significantly.

That combination suggests the platform is becoming more valuable and more embedded in customer operations.

And importantly, the company is generating EBITDA of $35.3 million, showing that it is moving further along the path toward sustained profitability.

This isn’t just growth for the sake of growth anymore. It’s starting to scale.

So why is the share price falling?

Despite all of this, the share price is down.

In my view, that may say more about market sentiment than the business itself.

Tech stocks have been under pressure, particularly those exposed to infrastructure, AI, and global growth themes.

There’s also some short-term noise around integration of acquisitions and currency movements.

But none of that changes the long-term direction of the business.

Is this a buying opportunity?

This is where I think things get interesting.

This ASX 200 tech stock is growing strongly, expanding into new markets, and improving the quality of its revenue.

At the same time, its share price has been pushed down to a 52-week low.

That combination doesn’t come along all that often.

I’m not expecting a straight-line recovery. Volatility is likely to continue, especially in the tech sector.

But when I see a business executing well while its share price moves in the opposite direction, I tend to pay attention.

Foolish takeaway

Megaport isn’t without risk. It’s still investing heavily, integrating acquisitions, and operating in a competitive, fast-moving industry.

But I think the bigger picture matters more.

This is a company that is growing, evolving, and expanding its opportunity at a time when its share price has fallen significantly.

For me, that looks like a setup worth considering. At a 52-week low, I’d be leaning toward buying rather than waiting on the sidelines.

The post Should I buy this ASX 200 tech stock at a 52-week low? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Megaport. 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.

S&P/ASX All Ords Index (ASX: XAO) shares finished 1.77% lower yesterday as the Iran war and higher oil prices worried investors.

More than 400 companies in the ASX All Ords fell yesterday, with some hitting new 52-week lows.

Brokers say these ASX All Ords shares are good buys in today’s market.

Here are their 12-month share price targets on each stock.

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price fell to a 52-week low of $11.68 on Thursday.

The ASX All Ords tech share is down 29% in the year to date (YTD), and down 22% over the past 12 months.

Following the stock’s recent fall, Morgans upgraded its rating from accumulate to buy.

However, the broker reduced its 12-month price target from $20 to $16.70.

Morgans said:

We see tailwinds remaining supportive of OCL’s long-term growth momentum.

Generation Development Group Ltd (ASX: GDG)

The Generation Development Group share price fell to a 52-week low of $3.71 yesterday.

The ASX All Ords financial share is down 35% YTD, and down 21% over the past 12 months.

Morgans recently retained its buy rating but reduced its 12-month price target from $7.97 to $6.66.

The broker said:

We believe GDG has a great story, and management has executed well over time.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo Interactive share price dropped to a 52-week trough of $7.66 yesterday.

This ASX All Ords gaming share has fallen 32% YTD, and is down 25% over the past 12 months.

Jarden has a buy rating on Jumbo Interactive shares with a price target of $12.70.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway Waste Management share price fell to a 52-week low of $2.31 on Thursday.

The ASX All Ords industrials share has fallen 11% YTD, and dropped 9% over 12 months.

Morgans has a buy rating with a 12-month price target of $3.11.

The broker commented:

1H26 was a mixed bag, with a minor bottom-of-the-range EBIT guidance upgrade.

Next catalyst is the investor strategy day planned for 21 April.

Earnings forecast adjustments are minimal, cashflow downgrades more material.

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price fell to a 52-week low of $20.50 on Thursday.

The ASX All Ords healthcare share has deteriorated 8% YTD and 20% over the past year.

Macquarie has an outperform rating on Sonic Healthcare with a price target of $27.50.

Saluda Medical Inc (ASX: SLD)

Fellow ASX All Ords healthcare share, Saluda Medical, dropped to a 52-week low of 80 cents yesterday.

The Saluda Medical share price has tumbled 42% YTD, and is down 35% over 12 months.

Morgans has a speculative buy rating with a 12-month price target of $3.07.

The broker said:

1H26 showed solid revenue momentum, improving margins, and continued expansion of the US sales force, supporting confidence in a stronger 2H.

Reiteration of FY26 revenue guidance (US$85m) added further comfort and now expects to exceed IPO metrics for gross margin, adjusted EBITDA and cash burn.

The post 6 ASX All Ords shares at 52-week lows: Experts say buy appeared first on The Motley Fool Australia.

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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 positions in and has recommended Jumbo Interactive, Macquarie Group, and Objective. The Motley Fool Australia has positions in and has recommended Macquarie Group and Objective. The Motley Fool Australia has recommended Generation Development Group, Jumbo Interactive, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX investors are a patriotic lot. We tend to prioritise buying shares on our local stock market. Stocks like Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW) and Westpac Banking Corp (ASX: WBC) can be found in many ASX share portfolios around the country.

Thanks partly to our unique system of franking, as well as some good old fashioned love of country, it’s fair to say that ASX investors have a strong local bias.

When we do branch out to invest beyond our shores, it is usually a direct flight to the US markets. As I’ve written here before, the US is, as it should be, the first port of call for ASX investors seeking international diversification. No one can deny that the US is home to the vast majority of the world’s best and most dominant businesses. No other country’s share market constituents can match the size, scope and scale of top US stocks like Amazon, Alphabet, Microsoft, Netflix, Mastercard, Procter & Gamble, Apple, and countless others.

However, that doesn’t meaning investing in US stocks isn’t without risk. The US-Iran war that has been raging all month proves that. As such, I think the prudent investor might wish to consider diversifying beyond just Australia and America. The easiest way to do this, by far, is by using exchange-traded funds (ETFs).

Let’s go through some of the best options for stocks outside Australia and the US.

3 ASX ETFs that can help diversify a portfolio

First up, there’s the Vanguard All-World ex-US Shares Index ETF (ASX: VEU). This ETF, as its name implies, throws a whole bunch of different countries’ stock markets together, with the notable exception of the US. The largest contributors to VEU’s portfolio include Japan, the United Kingdom, China, Canada, India, and Taiwan. A healthy mix of advanced and developing economies there. ASX do feature in this ETF as well, although they make up just 4.3% of the entire portfolio.

Another option to consider is the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE). VGE focuses exclusively on emerging economies, so you won’t find European, British or Japanese stocks here. Instead, VGE’s largest contributors are countries like China, Taiwan, Brazil, South Africa and Saudi Arabia.

Finally, investors can consider the iShares MSCI EAFE ETF (ASX: IVE). This fund covers markets from Europe, Asia and the Far East (EAFE). It offers exposure to countries ranging form Japan, Spain and the UK to Germany, Singapore and Israel. Again, Australia is included as well, but contributes just over 6% to IVE’s holdings.

Foolish takeaway

All three of these ASX ETFs offer Australian investors an easy way to add exposure to stocks from Europe, Asia and Africa to their portfolios. These regions are under-represented in the vast majority of ASX portfolios, and can help insulate investors from adverse movements on the American or Australian markets.

The post These 3 ASX ETFs can help protect your portfolio in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Mastercard, Microsoft, Netflix, and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Mastercard, Microsoft, Netflix, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Mastercard, Microsoft, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors have a lot of choice on the Australian share market.

To narrow things down, let’s take a look at two ASX dividend shares that Morgans is forecasting to offer 7% and 8% dividend yields in 2027.

Here’s what it is recommending to clients:

Accent Group Ltd (ASX: AX1)

Morgans is positive on this footwear retailer. It believes a return to growth is coming in FY 2027, which could make it a good time to snap up shares.

The broker has a buy rating and $1.30 price target on its shares. It said:

AX1 reported 1H26 EBIT which was down 30% yoy to $56.5m, in line with the revised guidance range provided in November ($55-60m). The decline was driven by soft comp sales and significant operating de-leverage from lower gross margins. AX1 has made the unsurprising decision to cease operations of loss-making Glue store, which contributed $8.4m EBIT loss in 1H26.

On an underlying basis, EBIT fell 10%. We see this providing incremental benefit on group earnings in FY27. We have increased our EBIT by 1.5% in FY26 and by 11% in FY27. Our blended valuation lifts to $1.30 (from $1.10). We have upgraded to a BUY (from HOLD). We see significant earnings growth in FY27, driven by underlying FY26 run-rate (ex-Glue), this makes the stock look inexpensive at ~10x FY27 P/E and ~5.6% yield.

Morgans is forecasting fully franked dividends of 4.3 cents per share in FY 2026 and then 6.3 cents per share in FY 2027.  Based on its current share price of 88 cents, this would mean dividend yields of 4.9% and 7.2%, respectively.

Regal Partners Ltd (ASX: RPL)

Another ASX dividend share that Morgans is positive on is investment company Regal Partners.

It was pleased with its performance in 2025 and believes it is well-placed to build on this in 2026. As a result, it has put a buy rating and $5.00 price target on its shares.

Commenting on the company, the broker said:

Underlying fund performance, along with offshore and product expansion has seen RPL grow FUM 16% in CY25, driving management fee growth of 25%. Performance fees, up 108% (vs pcp), are a clear leading indicator for future FUM growth and sets the business up for continued growth in the higher multiple recurring income streams.

Despite record growth, RPL trades at an undemanding multiple and attractive dividend yield, on this basis we reiterate our BUY rating with a $5.00/sh target price.

As for income, Morgans expects fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $2.48, this would mean dividend yields of 8% and 8.5%, respectively.

The post These buy-rated ASX dividend shares offer 7% to 8% yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Accent 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the broader market is currently questioning capital expenditure and return on investment from hyperscalers like Amazon.com Inc (NASDAQ: AMZN), Meta Platforms Inc (NASDAQ: META), and Alphabet Inc (NASDAQ: GOOG), looking elsewhere for beneficiaries of structural tailwinds could present opportunities over the long run.

In Australia and globally, several powerful themes are driving investment. Electrification is reshaping energy systems, requiring significant spending on transmission infrastructure, renewable generation, and storage. At the same time, strong commodity prices are supporting mining companies, while large-scale infrastructure projects — including those linked to the Brisbane 2032 Olympics — are lifting activity domestically.

Against this backdrop, two ASX-listed companies, Wagners Holding Company Ltd (ASX: WGN) and NRW Holdings Ltd (ASX: NWH), have delivered standout share price performance over the past 12 months, rising over 157% and 94%, respectively.

But after such strong gains, are the fundamentals keeping pace?

Riding the infrastructure and construction wave

Wagners is a construction materials and infrastructure business with exposure to concrete, cement, composite materials, and aviation services. The company generates revenue by supplying essential inputs into infrastructure, civil construction, and mining projects — sectors that are currently benefiting from elevated investment levels.

Recent updates suggest Wagners has been experiencing strong trading momentum, supported by higher demand across its key divisions. In particular, infrastructure activity in Queensland and major project pipelines have been contributing to increased volumes and improved pricing outcomes.

The company has also continued to invest in its proprietary composite technologies, which offer lighter and more durable alternatives to traditional materials. This positions Wagners to benefit not only from near-term construction demand but also longer-term structural shifts in how infrastructure is built.

Looking ahead, the outlook appears supported by sustained infrastructure spending and population growth, particularly in regions such as southeast Queensland. If project activity continues to ramp up, Wagners could see further earnings growth, provided cost pressures remain controlled.

NRW Holdings: Leveraged to mining services growth

NRW Holdings operates as a mining services contractor, providing civil, mining, and drill and blast services to resource companies. Its revenue is largely tied to contract work across mine development, production, and infrastructure.

The company has benefited from strong commodity prices, which have left many miners with robust balance sheets and the ability to fund expansion projects and exploration programs. This has translated into a growing pipeline of work for contractors like NRW.

Recent results highlight solid profit growth and a healthy order book, with the company securing new contracts and maintaining strong utilisation across its fleet. Importantly, NRW’s diversified exposure across commodities and clients helps mitigate reliance on any single project or resource.

The outlook remains favourable as mining investment continues, particularly in bulk commodities and critical minerals linked to the energy transition. As long as commodity markets remain supportive, demand for mining services is likely to stay elevated.

What could drive the next leg of growth?

Both ASX shares are benefiting from trends that appear durable rather than cyclical in nature.

Electrification requires significant capital investment in infrastructure. Mining companies are expanding to meet demand for key resources. And government-backed infrastructure pipelines remain strong.

However, after such significant share price appreciation, future returns may depend more heavily on continued earnings growth rather than multiple expansion.

For Wagners, this means maintaining margins while scaling production and delivering on project demand. For NRW, it comes down to converting its order book into sustained revenue and profit growth while managing costs.

If both companies can continue to grow revenue and earnings, maintain or expand margins, and avoid valuation compression, there is potential for further upside over time.

As always, the key will be execution.

The post 2 ASX shares booming on electrification and mining. Is there more upside ahead? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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 Alphabet, Amazon, and Meta Platforms. The Motley Fool Australia has recommended Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.