On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a positive day and charged higher. The benchmark index rose 0.4% to 8,732.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for another good session on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.6% higher this morning. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1.15%, and the Nasdaq jumped 1.7%.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.15% to US$101.26 a barrel and the Brent crude oil price is down 1.55% to US$104.19 a barrel. This reflects more crude oil being brought to market.

Sell REA shares

The REA Group Ltd (ASX: REA) share price could be overvalued according to analysts at Bell Potter. This morning, the broker has retained its sell rating on the property listings company’s shares with an improved price target of $148.00. It said: “We retain our Sell recommendation. Despite REA’s ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.”

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.15% to US$4,380.8 an ounce. The precious metal has come under pressure this week after US interest rates were increased.

James Hardie shares upgraded

Morgans was pleased with the investor update from James Hardie Industries PLC (ASX: JHX) this week. In response, the broker has upgraded the building materials company’s shares to an accumulate rating with a $43.00 price target. It said: “…management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale.”

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

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Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. 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.

South32 vs Rio Tinto shares: which ASX mining stock is better?

When you think of big-name Australian mining shares, it’s hard to look past South32 Ltd (ASX: S32) and Rio Tinto Ltd (ASX: RIO). Both are resource powerhouses, but they’ve taken different approaches to growth, dividends, and the commodities they dig up. If you’re weighing up South32 vs Rio Tinto shares for your portfolio, here’s what stands out.

The case for South32

South32 emerged from BHP’s 2015 demerger and now runs mining operations across ten countries, extracting everything from bauxite and aluminium to copper, silver, zinc, nickel, and manganese. According to its most recent company description, it employs around 9000 people and provides the raw materials crucial for construction, energy, renewables, and consumer products worldwide.

Among South32’s fundamentals, a few things jump out. Its P/E ratio sits at 14.79, putting it in the reasonable valuation camp—neither super cheap nor stretched. The company’s year-to-date (YTD) return is a real eye-catcher: up 38.07%, a hefty gain for any mining stock. Its dividend yield is a modest 1.94%, but it comes fully franked—a plus for Aussie income hunters. Over recent years, dividends have been consistently franked at 100%, and recent payouts, while not the highest, have shown reasonable regularity.

The case for Rio Tinto

Rio Tinto needs little introduction: this is one of the world’s largest and oldest mining operations, tracing its roots to 1873. Listed on the ASX since 1962, Rio focuses on three major pillars—iron ore (its biggest earner), aluminium and lithium, and copper. The group also dabbles in other critical minerals through exploration and development, making it a true heavyweight in global resources.

Looking at Rio Tinto’s metrics, scale is the first thing that stands out. With a market cap of $61.82 billion, it dwarfs South32. Rio also offers a more generous dividend yield at 4.07%, again fully franked. Earnings per share are much higher (7.382 vs South32’s 0.235), consistent with its size and profitability. The P/E ratio is slightly higher at 15.94, but still sits in a similar band—a sign that you’re not paying a huge premium for the blue-chip name. YTD, Rio’s return is 16.56%: less blazing than South32’s, but still a solid result considering its scale.

Valuation comparison

There’s enough difference across important metrics to pop them into a table for an at-a-glance check:

Metric	South32	Rio Tinto
Market Cap	$22.48 billion	$61.82 billion
P/E Ratio	14.79	15.94
Dividend Yield	1.94% (100% franked)	4.07% (100% franked)
Earnings per Share	0.235	7.382
Dividend per Share	0.13	6.70
Year To Date Return	38.07%	16.56%

Rio commands a huge lead in size, dividends, and profit per share. South32 is a smaller, more diversified operator and has delivered outsized returns so far this year.

Recent share price performance

Let’s look at how the share prices have moved in recent weeks. Both companies’ price history data covers the same date range: from 18 August to 16 September 2026.

South32 started on 18 August at $4.82 and finished on 16 September at $5.01. That’s a gain of about 3.9% over this short period, consistent with its strong year-to-date performance. Rio Tinto started this period at $167.40 (18 August), ending at $166.25 on 16 September—a slight drop of roughly 0.7%. While Rio had some up days, the overall trend recently has been a touch negative.

It’s worth noting, South32 has enjoyed a positive burst inline with its year-to-date trend, while Rio has flattened out.

Which is the better buy?

If I had to pick between South32 and Rio Tinto right now, my lean would be toward South32. Here’s why: Its huge 38% YTD gain stands out—it’s been a clear outperformer, and the recent price momentum shows buyers remain enthusiastic. While its dividend isn’t as juicy as Rio’s, it’s fully franked and shows reasonable consistency.

Rio Tinto is a true blue-chip, offering scale, stability, and a far bigger dividend—great reasons for conservative, income-focused investors to be interested. But its recent share price has drifted sideways or down, and it lags South32 in YTD returns.

For those seeking growth and recent market momentum, South32 is my pick. But if you value big, steady dividends and market dominance, I can completely understand going with Rio. With both stocks offering 100% franking and trading at similar valuations, the edge for me goes to South32 on its current performance and uptrend.

The post South32 vs Rio Tinto: 2 popular ASX mining shares compared appeared first on The Motley Fool Australia.

More reading

• Woodside Energy vs Fortescue: Which ASX mining share is best for passive income?
• South32 shares fall 10% from all-time high: Is the rally over?
• 5 ASX shares I’d recommend to beginners
• Should I buy Rio Tinto shares for passive income?
• BHP vs Rio Tinto: What’s the better buy?

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 BHP 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 prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

When it comes to passive income, Telstra Group Ltd (ASX: TLS) shares are up at the top of my list.

As an ASX telecommunications business, the company is classically defensive. Which means that no matter how high inflation gets, or what state the Australian economy is in, its services will always be in strong demand.

After all, the telco owns and operates Australia’s largest mobile network, and is also a major home internet provider. Both of these are considered essential services.

The defensive nature of Telstra means the company has a strong competitive advantage over other ASX shares, and it also means it can generate stable earnings and revenue on a consistent basis.

As a result, it can pay reliable passive income to its shareholders through dividend payments.

How often does Telstra pay dividends to shareholders?

Telstra traditionally pays its shareholders two dividends every year, in March and September. Until FY26, these have been fully-franked. But in March this year, and again this month, the dividend payments have been partially franked at 90.48%.

How much has Telstra paid its shareholders in FY26?

Telstra paid its shareholders a partially franked 10.5 cent-per-share dividend in March, and a final 9.5 cent fully franked dividend this month. 

That totals 21 cents for FY26, giving a dividend yield of around 4.3%.

What’s the forecast for the telco’s dividend for FY27?

Based on the latest Commsec forecasts, the telco is also expected to pay a total dividend of 22 cents per share in FY27.

At the $4.87 share price at the time of writing, a 22 cent dividend translates to a forward dividend yield of around 4.5% for FY27.

So, how many Telstra shares do I need to generate $500 of monthly passive income in FY27?

Remember, Telstra doesn’t pay dividends on a monthly basis. So first you need to calculate what a $500 per month passive income is over the financial year. That’s $6,000.

In order to earn $6,000 per year in passive income from Telstra shares, at 22 cents per unit, you’d need to own around 27,272 shares.

To buy all of those shares right now, you’d need to invest just over $132,814.

Can Telstra’s dividend payout keep climbing higher?

Well, according to Commsec data, yes. In fact, Commsec forecasts that Telstra’s dividend will increase again to 22.5 cents in FY28. It’s not a huge increase, but the benefit of a defensive stock is stability, and that’s what Telstra shares can provide its shareholders. 

The post How many Telstra shares do I need to buy to earn $500 of passive income every month? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.