I think it’s always a good idea to look at ASX dividend shares because of how they can add pleasing passive income cash flow to our personal finances.

Share price growth is very useful but that doesn’t allow us spend to money unless we sell those shares.

Some people may be counting on their ASX dividend shares to fund living expenses, so I view two of the ones I’ll refer to as among the most reliable passive payers on the ASX. The last one is a higher-risk, higher-reward option.

APA Group (ASX: APA)

APA is one of the businesses with the longest dividend growth streaks on the ASX, having increased its payout every year for the last 20 years.

The business owns a portfolio of energy assets across the sector including gas pipelines, gas processing facilities, gas storage, gas-powered energy generation, solar farms, wind farms and electricity transmission.

Its steadily-rising payouts are funded from its growing cash flow as its portfolio of energy assets expands. It recently announced it’s involved in the new Brigalow Peaking Power Plant in Queensland – it will own 80% of the project. APA is targeting 2028 as the year it will be operational, providing firming capacity for peak electricity demand periods, complementing variable renewable energy.

It’s expecting to grow its FY26 distribution to 58 cents per security, translating into a forward distribution yield of 6.3%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX dividend share with the longest dividend growth streak, stretching back to 1998, meaning it has increased its annual dividend per share for 27 years in a row.

Its portfolio is invested across a number of areas including telecommunications, resources, swimming schools, industrial property, building products, agriculture, water rights, financial services and plenty of other areas.

The diversification, defensive assets and ongoing expansion of the portfolio have helped the business achieve reliable and ongoing cash flow with which to pay its dividends.

As the business with the most consistent dividend, I think it’s a great fit for investors aiming for reliable passive income. I think Soul Patts is as about as reliable as it gets when it comes to Australian dividend payers.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment business that targets small technology businesses that are growing quickly. In other words, these are some of the most promising companies in Australia today.

In FY25 alone, Bailador reported that its portfolio companies’ revenue grew by a (portfolio-weighted) 47%. These tech businesses are from areas like digital healthcare, volunteer management software, hotel management and online accommodation bookings, tours and activities booking software, and several others.

The ASX dividend share targets a dividend yield of 4% compared to the pre-tax net tangible assets (NTA). But, due to the huge discount the share price is trading compared to the NTA, it currently has a dividend yield of 6.6%. Including franking credits, that’s a 9.4% dividend yield.

With the ongoing strong revenue growth and the pleasing profit margins, I’m expecting the NTA and dividend payouts can grow over time.

The post 3 top ASX dividend share buys for passive income in December appeared first on The Motley Fool Australia.

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• Trading just under $38 now, the Soul Patts share price looks like a bargain to me anywhere below $35

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you look at the Woodside Energy Group Ltd (ASX: WDS) share price today, undoubtedly one of the first things that will catch your eye is this ASX 200 energy stock‘s monstrous dividend yield.

At yesterday’s close, Woodside shares ended up at $25.42 each. At this pricing, the oil and gas producer was trading with a trailing yield of 6.56%.

Now, that is objectively a rather hefty dividend yield in itself. But in the current climate? It’s downright mesmerising.

The stellar run that the S&P/ASX 200 Index (ASX: XJO) has been on over the past two years has been wonderful for investors. However, it has also pushed the dividend yields variable on many popular ASX dividend shares to historic lows. Prior to 2024, investors were probably used to seeing the major ASX banks, for example, trading on a fully franked yield of between 5-6%.

Today, Commonwealth Bank of Australia (ASX: CBA)’s yield is at just 3.2%, while the other majors are all between 4-5%.

It’s a similar story with Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL).

Yet Woodside is right at the front of the ASX 200 pack with that 6.56% yield.

So is this dividend yield ‘for real’, or is it too good to be true?

Should income investors bank on Woodside shares’ massive dividend 6.56% yield?

Well, yes, Woodside’s trailing yield of 6.56% is indeed legitimate. It comes from the two dividends that Woodside shares have paid out over 2025.

The first was the final dividend from April, worth 84.86 cents per share. The second, the interim dividend from September, worth 81.82 cents per share. Both dividends came fully franked.

That annual total of $1.60 per share gives Woodside that trailing yield of 6.56% that we see today.

However, buying Woodside shares right now doesn’t guarantee that investors will actually enjoy a 6.56% yield on their investment going forward. Trailing dividend yields only ever tell us about the past, not the future.

The future payouts from a stock like Woodside are particularly hard to anticipate, given how dependent they are on the price of energy. As an oil and gas stock, Woodside’s profit margins are highly vulnerable to movements in the global oil price.

In Woodside’s August half-year report, the company revealed that its average realised price per barrel of oil (barrel of oil equivalent) was US$61.80. If this realised price drops over the present financial year, it will put pressure on the company’s 2026 payouts. Particularly given that Woodside is already investing heavily in new North American operations right now.

So the ability for this company to continue to fund its dividends at current levels next year mostly comes down to what oil might do. And predicting that is a difficult task indeed.

Investors should keep this in mind when they consider buying this ASX 200 energy stock for income today.

The post Do Woodside shares really have a 6.5% dividend yield right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 ASX 200 stock Sonic Healthcare Ltd (ASX: SHL) is marching higher. As of Tuesday afternoon, the $12 billion share is swapping hands for $23.62 apiece, up 1.2%.

Sonic Healthcare is still 13% lower in 2025. Many analysts believe now is the time to consider the seventh largest ASX 200 healthcare share by market capitalisation.

Growing demand for pathology

Sonic Healthcare is a global diagnostics and pathology powerhouse. The ASX 200 stock operates all over the world, with its main operations in Australia, Europe and North America.

Its underlying business is solid with a healthy balance sheet, it has a bright future fuelled by an ageing global population and it reported sound full year results. In FY 2025 the company delivered revenue of $9.6 billion, up 8% year-over-year. The net profit increased with 7% to $514 million and EBITDA rose 8%, while operating cash flow also surged by 21%.

The ASX stock has used its strong cash flows – bolstered during COVID – to fund acquisitions in Germany and the US and fund investments in digital pathology and AI. This could drive future growth.

Share price halved after COVID

Sonic Healthcare saw its share price nearly halved after the strong profits of the COVID-testing surge. Over the last month, the ASX 200 stock has recovered slightly, rising just over 11%. However, compared to the same time last year, it is still down by 18.8%.  

The recent sell-off means investors can now buy this ASX stock at a discount. For investors willing to hold through volatility and who believe in the long-term demand for diagnostics and pathology services, this could be a good time to buy.    

High dividend and upside

The ASX 200 stock continues to deliver dividends. In FY 2025 it declared a full-year dividend of $1.07 per share.

According to Bell Potter, Sonic is a good choice for investors seeking income opportunities. The broker expects Sonic Healthcare’s earnings to rise due to cost-cutting, recent acquisitions, and increased activity at its labs and clinics returning to pre-pandemic levels.

Bell Potter forecasts dividends of $1.09 per share in FY 2026 and $1.11 in FY 2027, with Sonic shares at $23.62, resulting in a dividend yield of 4.6% and 4.7%.

The broker has a buy rating and $33.30 price target on its shares. Based on the share price at the time of writing, this implies potential upside of 41% for investors over the next 12 months.

Bell Potter notes:

One can expect SHL to generate solid mid-high single digit organic EPS growth with addon benefit of acquisitions to drive double-digit growth on a normal basis. SHL is a sold compound generator, which is why it holds appeal in our view.

The post 3 reasons to buy this $12 billion ASX 200 stock today 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.

Harvey Norman Holdings Ltd (ASX: HVN) shares have flown more than 50% higher in 2025. 

This is partly thanks to continued strong aggregated sales in FY 2026. 

Aggregated sales for the period 1 July 2025 to 20 November, increased by 9.1% over the prior corresponding period. 

On a comparable store basis, its aggregated sales increased by 8.1% year-on-year.

As many investors are aware, the company is a leading Australian-based retailer selling electrical, computer, furniture, and entertainment goods.

Perhaps lesser known is the company also owns a considerable portfolio of properties, many housing its retail stores in Australia and New Zealand, as well as some overseas property holdings.

After strong returns this year, particularly in FY26, is there still upside for Harvey Norman shares?

Here is the latest guidance from Macquarie on Harvey Norman shares. 

Momentum continues for Harvey Norman shares

Citing proprietary High Frequency Consumer Data, Macquarie recently noted that the electronics and furniture categories are growing. 

The broker said consumer electronics has continued its momentum, with recent key product releases and laptop/small appliance replacements driving growth. 

In furniture, management noted tailwinds from replacements also being realised from the COVID-period. 

However, comparable sales growth has been broadly unchanged between the Jul-25 trading update and the year-to-date.

The report also indicated growth in three key international markets. 

Since July, there has been sequential improvement in the sales trajectory across New Zealand, Malaysia and the UK. 

According to the report, this bodes positively for earnings and potential network expansions. 

Real estate arm faces headwinds 

Despite growth in the Australian and international markets for electronics and furniture, the team at Macquarie sees increasing challenges for Harvey Norman for its real estate portfolio. 

Macquarie said a meaningful improvement in detached housing creation is key to seeing additional momentum in the AU business, with recent inflation prints tempering the outlook for potential cuts.

Our house view is the RBA cutting cycle has finished. While replacements are supporting current comps, we see the potential for further upside surprises as more limited.

Neutral view 

Based on this guidance, Macquarie has downgraded its view on Harvey Norman shares to a neutral rating. 

Despite a more subdued housing outlook, HVN is performing well, with tech and furniture exposure benefiting from replacements. However, with the stock having re-rated ~30% on a P/E basis and share price rising >50% over last 12-months, we see risk/reward as more balanced.

Yesterday, Harvey Norman shares closed at $7.14. 

Macquarie has a price target of $7.60. 

This indicates modest upside of 6.44%. 

The post Does Macquarie rate Harvey Norman shares a buy, hold or sell? appeared first on The Motley Fool Australia.

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

Many investors may have heard of Wesfarmers Ltd (ASX: WES) stock. After all, it’s the company behind popular Australian names like Kmart, Bunnings, Officeworks and many other businesses.

I think it has proven to be one of the most effective ASX blue-chip shares to own over the long-term. Wesfarmers has been especially effective at growing its businesses to be some of the leaders in the country at what they do.

But, there’s much more to Wesfarmers stock than just owning large retail businesses with a strong focus on value products. Let’s get three things that make it very compelling.  

High return on equity

One of the best ways to measure the quality of a business is with its return on equity (ROE). That tells us how much profit it’s making compared to the amount of shareholder money that is retained within the business.

It’s great to see a high ROE percentage because that shows how effective the company has been at using shareholder funds to grow the business.

I think the ROE is particularly useful to see how much a return (in percentage terms) additional retained profit could make for the company. Retained profit should help send Wesfarmers stock higher in the long-term as it’s utilised.

The business reported that in the 2025 financial year its underlying ROE was 31.2%. If Wesfarmers can continue earning a ROE of at least 30% as it becomes bigger, it has a very promising future for profitable growth.

Kmart’s global plans

Kmart is already an impressive business with a very strong retail presence in Australia thanks to its low-cost products which have improved in quality thanks to its increasing scale.

But, the company has unlocked another growth avenue for its Anko products – international markets. This could be the next major step for profitable growth.

It’s selling furniture and home products in Canada and wooden toys in the US. Perhaps most excitingly, Anko is selling a broad general merchandise range in the Philippines through Anko stores. It currently has five Anko stores operating in the Philippines, with good prospects for more.

Big healthcare plans

Healthcare is a major sector of the Australian economy. I think Wesfarmers has a very promising outlook thanks to the businesses it already owns and how it can bring its scale and expertise. Over time, it could become an important contributor in Wesfarmers stock.

Some of the businesses it already owns include Priceline, skincare clinics and digital health (including InstantScripts).

In the FY25 result, the company said:

Wesfarmers Health is well positioned to improve long-term earnings and returns by capitalising on growing customer demand for health and wellness, and by executing its transformation program, which includes ongoing investment in systems and capabilities.

The focus is on growing share and scale in the higher-margin and less capital-intensive Consumer segment and improving performance in the Wholesale segment.

The outlook for growth in the division’s profit looks positive with ongoing expansion of the Priceline network, expanding its range of exclusive brands and private label products, potential further acquisitions and the ageing demographics of Australia.

In ten years, I wouldn’t be surprised if this was the third most important segment for Wesfarmers stock (behind Kmart and Bunnings).

The post 3 things about Wesfarmers stock every smart investor knows appeared first on The Motley Fool Australia.

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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.

AMP Ltd (ASX: AMP) shares closed at $1.72 apiece, up 0.29% on Tuesday, while the S&P/ASX 200 Index (ASX: XJO) rose 0.17%.

With the countdown to the Christmas break now on, ASX 200 companies are getting organised and releasing their 2026 calendars.

Here are the important dates for AMP shareholders next year.

Key dates for AMP investors in 2026

AMP will announce its FY25 results and final dividend on 12 February.

The annual general meeting will be held on 10 April.

AMP will drop its first quarterly update for FY26 on 16 April.

The second update will be released on 16 July.

The wealth manager will release its 1H FY26 results and announce the interim dividend on 6 August.

A third quarter update will follow on 16 October.

What’s the latest news from AMP?

At the last update, AMP revealed a 3.6% increase in total assets under management (AUM) to $159.5 billion for the September quarter.

The company said this was mainly due to the platforms business, with net cashflows increasing by an impressive 61.6%.

However, the superannuation and investments division had a net cash outflow of $214 million.

On the bright side, this was less than the $334 million outflow in the prior corresponding period.

AUM in the superannuation and investments division increased 3.4% to $60.5 billion.

AMP Bank reported a 1.3% rise in the value of its total loan book to $23.8 billion, and total deposits of $20.8 billion.

What do the experts think of AMP shares?

The AMP share price has increased 7.2% over the past 12 months.

AMP shares hit a five-year high of $2.01 in October.

Macquarie has a neutral rating on AMP with a 12-month share price target of $1.92.

The broker issued a new note last month after APRA released its authorised deposit-taking institutions (ADIs) data for September.

Macquarie said:

AMP’s Gross Loan and Acceptance (GLAA) balance was +2.3% from Dec ’24 vs market at +5.2%.

GLAAs are ~45bps below closing balances expected by MRE at Dec ’25 and ~84bps below VA expectations.

The broker said the data was consistent with AMP’s previously flagged expectations of slower than market growth for FY25.

Macquarie said the next catalyst for AMP shares would be the FY25 results on 12 February.

The broker added:

To become more bullish we need to see a live walk-through of the “best in class technology platform”.

Jeffries reiterated its buy rating on AMP shares following the third quarter update.

Analyst Simon Fitzgerald gave AMP shares a 12-month price target of between $2.02 and $2.20 apiece.

Citi downgraded AMP shares to a hold rating after the 3Q FY25 report with a price target of $2 to $2.10.

The post Own AMP shares? Here’s your financial calendar for 2026 appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fresh analysis from VanEck has shed light on the “AI Euphoria” sweeping the US. 

But there might be another market set to benefit long term. 

Alice Shen, Portfolio Manager at VanEck said in a recent report that Nvidia Inc (NASDAQ: NVDA) posted gravity-defying earnings in its most recent October quarter. 

This came as the AI economy increasingly looped back on itself and the major players invested in each other’s technologies.

Ms Shen said giants like OpenAI and Oracle Corp (NYSE: ORCL) are locking in the chip supply needed to scale their models. This means demand for Nvidia hardware could soar even more.

How does China fit into the AI puzzle?

AI euphoria isn’t limited to the US. 

The Chinese market has also been focussed on homegrown AI technology and chipmaking. 

Subsequently, valuations for pure-play AI stocks have soared.

While China is a global leader in semiconductor production, it isn’t limiting its AI participation to this segment. 

Ms Shen believes China may be taking a different, more holistic approach compared to the western world.

The tremendous amounts of electricity, cooling, metal-intensive data centres, and resilient power supply required by AI have been the focus of many Chinese companies that have been specialising in these systems for decades.

For investors, this means there could be more reasonably priced opportunities across the broader supply chain that powers the physical backbone of AI: metals producers, energy storage leaders, and optical fibre manufacturers.

The AI boom isn’t just digital 

When you think of AI, the first thing that comes to mind might be cloud computing, Chat AI tools, etc. 

But the truth is, the data centres fuelling these AI solutions require huge amounts of copper and aluminium in servers and heatsinks. 

Data indicates global copper demand could surge as much as 24% by 2035, with data centre expansion being one of the key drivers. 

According to VanEck, China may have an advantage is its integrated value chain across mining, refining and manufacturing.

Several Chinese copper and aluminium miners have been outperforming the CSI 300 Materials Index this year. In our view, investing in these metals may offer a more cost-effective and direct way to participate in China’s AI capex cycle.

Chinese companies engaged in battery manufacturing and Graphics Processing Units (GPUs) have also been soaring this year as a result of the Chinese AI boom. 

How do investors gain exposure?

For investors here in Australia, the most important question is how to gain exposure to this market. 

There are a few ASX ETFs directly targeting Chinese technology and AI: 

• VanEck China New Economy ETF (ASX: CNEW) – Invests in 120 fundamentally sound and attractively valued companies with growth prospects in China’s New Economy, targeting technology, healthcare, and consumer staples and consumer discretionary sectors.
• VanEck Ftse China A50 ETF (ASX: CETF) – Invests in a diversified portfolio comprising the 50 largest companies in the mainland (A-shares) Chinese market.
• Global X China Tech Etf (ASX: DRGN) – designed to track the performance of 20 leading technology companies listed in Mainland China and Hong Kong. The index selects across 15 innovation-linked sectors, including semiconductors, automation, industrial software, and internet platforms.

The post How to target China’s AI rush through ASX investing appeared first on The Motley Fool Australia.

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