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

Microsoft (NASDAQ: MSFT) has been an OK stock pick in 2025. While it’s up around 15% so far in 2025, which would normally be considered successful, the S&P 500 is up more than 16%. This places Microsoft as a market loser, which nobody wants to own. However, the tides could shift in 2026, and Microsoft could be one of the best artificial intelligence (AI) stocks to own.

Two billionaires are incredibly confident in Microsoft’s potential and loaded up on its stock during the third quarter. Is there something they know that we don’t for 2026? 

Billionaires love Microsoft’s stock

The two billionaires I follow who loaded up on Microsoft stock during the third quarter were the legendary Peter Thiel and Daniel Loeb at Third Point. Thiel is a legend on Wall Street, as he was one of the founders of PayPal and Palantir Technologies. He was also one of the first outside investors of Facebook (now Meta Platforms). When he makes a move, investors should pay attention, as he has a phenomenal track record.

During Q3, Thiel sold off a hefty amount of Tesla stock and all of his Nvidia stock. He then used some of those proceeds to take a $25 million stake in Microsoft, now his second-largest holding. That’s a big deal, and could indicate that he believes Microsoft is due for a strong 2026.

Loeb at Third Point more than doubled its stake in Microsoft during Q3, and it now accounts for its third-largest position at 6.9% of the portfolio. That’s a huge move, and signals something big could be coming.

Other billionaires own Microsoft stock, like Chase Coleman at Tiger Global Management. Although he didn’t buy any Microsoft stock in Q3, it’s his portfolio’s largest position at a 10.5% weighting.

Clearly, Microsoft stock is incredibly popular among billionaires, but why is that the case?

Microsoft is an AI facilitator

Microsoft has delivered strong growth since the artificial intelligence arms race began. While it hasn’t developed its own generative AI model, it has partnered with others who have. None is more significant than OpenAI. Microsoft owns about a 27% stake in OpenAI, so an investment in Microsoft acts as a proxy investment in OpenAI — a company generally recognized as being one of the leaders of the generative AI movement.

That’s likely the biggest reason why Microsoft is a top investment among these funds, but its regular businesses aren’t too shabby either. During its fiscal 2026’s first quarter (ended Sept. 30), Microsoft’s revenue rose 18% year over year while diluted earnings per share (EPS) rose 13%. Those are impressive figures, and a key part of that is Microsoft’s top-tier cloud computing offering, Azure.

Azure grew 40% in the quarter, far outpacing some of its cloud computing peers. Azure has become a top spot to build AI applications in, as it offers access to multiple generative AI models — not just OpenAI’s ChatGPT. This makes it an attractive offering, and is a key reason why it’s growing so quickly. 

Microsoft may be doing well right now, but its market underperformance is something many investors are likely concerned about these days. Some of that value would be unlocked by OpenAI going public, as Microsoft’s stake in OpenAI would be easier to value. Still, Microsoft is fairly pricey as is.

At a price-to-earnings ratio of 35, it’s among the more expensive AI stocks on the market.

MSFT PE Ratio data by YCharts

While Microsoft’s growth has been strong, it’s nothing compared to what some others are proposing. This makes Microsoft’s stock look expensive with no future in sight, which will make returns difficult to come by. I think Microsoft will be a market-average stock next year, with the only help coming from an OpenAI IPO.

Microsoft is a great company, but it just doesn’t have the growth for me to recommend it over some other faster-growing AI stocks today.

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

The post 2 billionaires just loaded up on Microsoft stock. Do they know something we don’t 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.

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Keithen Drury has positions in Meta Platforms, Nvidia, PayPal, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Microsoft, Nvidia, Palantir Technologies, PayPal, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2027 $42.50 calls on PayPal, short December 2025 $75 calls on PayPal, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Meta Platforms, Microsoft, Nvidia, and PayPal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Tuesday. At the time of writing, the benchmark index is down slightly to 8,717.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 4% to $12.48. Investors have been selling this gold miner’s shares following a sharp pullback in the gold price overnight. This appears to have been driven by traders taking profit after the precious metal rose strongly and hit a new record high. It isn’t just Evolution Mining that is falling this afternoon. At the time of writing, the S&P/ASX All Ordinaries Gold index is down by a disappointing 2.75%.

Firefly Metals Ltd (ASX: FFM)

The Firefly Metals share price is down 4% to $2.04. This has been driven by weakness in the gold industry and news the emerging gold miner has doubled the size of its recently announced share purchase plan (SPP) to $10 million. This decision was made following “extremely strong demand for the SPP and reflects the Company’s commitment to its supportive retail shareholders.” FireFly’s managing director, Steve Parsons, said: “We are delighted to have received such strong demand for the SPP. This reflects the outstanding upside at Green Bay and our aggressive strategy to continue creating value by using nine rigs. We have taken the opportunity to reward our loyal retail shareholders by doubling the total SPP provision to A$10m, increasing their ability to secure further exposure to this growth potential.”

Unico Silver Ltd (ASX: USL)

The Unico Silver share price is down 6% to 85.5 cents. Investors have been selling this silver miner’s shares following a drop in the silver price overnight. The precious metal tumbled 8% on Monday night to US$72.27 per ounce. This also appears to have been driven by profit taking from traders following a big gain in 2025.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down almost 10% to $5.24. This may have been caused by profit taking from some investors after a very strong gain on Monday. Investors were buying the semiconductor company’s shares after it revealed that it signed a licensing agreement for its ReRAM technology with Texas Instruments (NASDAQ:TXN). The company’s CEO, Coby Hanoch, said: “This agreement is another strong signal that the industry is moving towards ReRAM as the successor to flash memory in SoC designs.” Weebit Nano also released revenue guidance for FY 2026, revealing that it expects revenue of at least $10 million.

The post Why Evolution Mining, FireFly, Unico Silver, and Weebit Nano shares are tumbling today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Texas Instruments. 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.

For dividend-focused investors, there’s nothing better than a steady-as-she-goes business that pays out healthy amounts like clockwork.

I’ve run the ruler over a few companies on the ASX, and come up with three investment ideas which might fit the bill if a decent dividend yield is what you’re after.

Poised for broad-based growth

The first of these is McMillan Shakespeare Ltd (ASX: MMS), which, according to the ASX, is paying a trailing dividend yield of 8.7%, fully franked.

The company’s products include salary packaging, novated leasing, fleet management, and National Disability Insurance Scheme plans, with more than 500,000 customers on its books.

The company has been growing its earnings year on year for the past three years, while revenue for FY25 was up 3% to $541.6 million.

The company has a policy of paying out 70% to 100% of underlying net profit, and its guidance for the current financial year is for “customer growth across all segments”.

McMillan Shakespeare paid a 77-cent dividend in September, following a 71-cent payout in March.

Taking flight

Second cab off the rank is travel company Helloworld Travel Ltd (ASX: HLO), which is paying a trailing dividend yield of 7.67% fully franked.

The company has paid a consistent 6 cents per share final dividend over the past three years, while in March it paid an outsized interim dividend of 8 cents per share.

Managing Director Andrew Burnes told the company’s annual general meeting in October that the company increased its net profit by 4.1% to $33.2 million, despite an 8.7% decline in revenue to $192.8 million.

On the outlook, Mr Burnes said the company’s balance sheet was strong, with cash of $79.4 million and no external bank debt.

He added the company was “well-positioned for sustainable growth and long-term resilience”, while EBITDA was expected to grow from $60.6 million in FY25 to $64-$72 million this year.

Helloworld is also aiming to buy out fellow listed travel company Webjet Group Ltd (ASX: WJL) with a non-binding bid of 90 cents per share currently in the market.

Road to riches

Our third decent dividend player is toll road operator Atlas Arteria Ltd (ASX: ALX), which is paying a trailing, unfranked dividend yield of 8.24%.

In releasing its first-half results in August, the company said it was not only reaffirming its 40 cents per share dividend, but also said “Atlas Arteria is targeting future distributions of at least 40 cents per share, supported by growing free cash flow”.

Chief Executive Hugh Webby said while releasing the results that, “by staying disciplined on managing capital and costs efficiently and being relentless about performance, we’re setting ourselves up to keep delivering long-term value for our securityholders”.

The post Three under-the-radar dividend plays for your portfolio appeared first on The Motley Fool Australia.

More reading

• 2 billionaires just loaded up on Microsoft stock. Do they know something we don’t for 2026?
• Why Evolution Mining, FireFly, Unico Silver, and Weebit Nano shares are tumbling today
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• Why DroneShield, IPD, Mesoblast, and Woodside shares are charging higher today
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Motley Fool contributor Cameron England 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 McMillan Shakespeare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On the heels of a stellar year, ASX silver stocks are taking a beating on the last full trading day of 2025.

In late morning trade on Tuesday the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.2%.

But you’re unlikely to find any of the Aussie silver miners in the green today.

Here’s how these top ASX silver stocks are tracking at time of writing:

• Silver Mines Ltd (ASX: SVL) shares are down 4.4% at 21.5 cents
• Investigator Silver Ltd (ASX: IVR) shares are down 6.7% at 14.0 cents
• Sun Silver Ltd (ASX: SS1) shares are down 4.7% at $1.925
• Unico Silver Ltd (ASX: USL) shares are down 7.7% at 84.0 cents
• South32 Limited (ASX: S32) shares are down 2.8% at $3.49. (South 32 has significant silver exposure from its Cannington silver mine.)

Now, despite today’s losses, you shouldn’t feel too sorry for stockholders of the above companies.

That’s because the silver price hit new record highs of US$80 per ounce last week, putting the precious metal up 176% over 12 months.

And that’s helped send the Aussie silver miners soaring.

Here’s how these same ASX silver stocks have performed over the past full year, inclusive of today’s intraday slide:

• Silver Mines shares are up 165.0%
• Investigator Silver shares are up 600.0%
• Sun Silver shares are up 193.9%
• Unico Silver shares are up 322.5%
• South 32 shares are up 2.9% (reflecting its more diverse mining operations)

Here’s what’s happening today.

ASX silver stocks flattened on silver sell-down

After the historic rally to US$80 per ounce last week, the silver price tumbled 8% overnight to currently be trading for US$72.27 per ounce.

But that sell-off shouldn’t have come as any great surprise.

Matt Maley, chief market strategist at Miller Tabak + Co said that precious metals (the record setting gold price also has slipped more than 4%) “had become quite overbought on a short-term basis, so the fact that they’re seeing some outsized declines this morning is not the end of the world at all”.

Commenting on the pullback in international mining stocks, Maley added (quoted by Bloomberg), “We believe that any weakness in these names over the next week or two should create another good buying opportunity.”

David Meger, director of metals trading at High Ridge Futures noted (quoted by Reuters), “All the metals moved up to recent and all-time highs. We are seeing profit-taking pullbacks off of those spectacularly high levels.”

But ASX silver stocks could keep shining bright in 2026.

“I believe that the underlying fundamentals of (silver) supply constraints remain factors in the market and we still have positive prospects going into 2026,” Meger concluded.

The post Why are ASX silver stocks getting hammered today? appeared first on The Motley Fool Australia.

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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.

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory on Tuesday afternoon. At the time of writing, the benchmark index is up slightly to 8,726 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 4% to $3.25. This follows the announcement of its third contract win in as many weeks. This morning, DroneShield announced that it has received a contract for $8.2 million from an in-country reseller for delivery to a western military end-customer. The contract is for handheld counter-drone systems, associated accessories and spare kits, and software updates. DroneShield advised that it has this stock on the shelf. As a result, it expects to complete the delivery prior to end of 2025 or early in the first quarter of 2026.

IPD Group Ltd (ASX: IPG)

The IPD Group share price is up 5% to $4.42. Investors have been buying the electrical solutions provider’s shares after it signed an agreement to acquire Platinum Cables for $37.5 million upfront. It is a leading Australian provider of high-performance cable solutions for the mining and resources sector. IPD’s CEO, Michael Sainsbury, commented: “The acquisition of Platinum Cables is a continuation of our growth strategy that reinforces our leadership in the mining sector and delivers immediate earnings accretion for shareholders.”

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up almost 2% to $2.86. This morning, the allogeneic cellular medicines developer revealed that it has repaid in full its existing senior secured loan from Oaktree Capital Management and in part its subordinated royalty facility from NovaQuest Capital Management. This was achieved by drawing down US$75 million from a new five-year facility provided by existing Mesoblast shareholder and director, Dr Gregory George. The new credit line has a fixed interest rate of 8% per annum, which is a substantial reduction from Mesoblast’s current debt facilities, with a five-year interest only period.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up 1.5% to $23.46. Investors have been buying this energy producer’s shares following a rise in oil prices overnight. Traders were bidding oil prices higher in response to tensions in Yemen. It isn’t just Woodside shares that are rising today. The S&P/ASX 200 Energy index is up approximately 1.2% at the time of writing.

The post Why DroneShield, IPD, Mesoblast, and Woodside shares are charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Ipd Group. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Mesoblast Ltd (ASX: MSB) are trading higher today after the company released an update on its debt and funding arrangements.

The broader ASX market is also moving higher, which has helped support the share price.

At the time of writing, Mesoblast shares are swapping hands for $2.90, up 3.20%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is slightly up around 0.1%.

So, what did Mesoblast announce?

Old debt removed and replaced

According to the release, Mesoblast advised it has fully repaid its existing senior secured loan with OakTree Capital Management.

That loan has now been replaced with a new five-year credit facility worth up to US$125 million. The new funding comes with a fixed interest rate of 8% per year, which the company says is lower than the cost of its previous debt.

The new facility also gives Mesoblast financial flexibility. An initial US$75 million is available immediately, while a second tranche of up to US$50 million can be drawn at the company’s option before June 30, 2026.

No new shares issued

One important point for shareholders is that this funding does not dilute ownership.

Mesoblast did not issue new shares as part of the deal. The company also said the facility does not place any claims over its key assets or intellectual property.

The facility can also be repaid early without penalty and does not include ongoing commitment fees. Management said this materially lowers the company’s overall cost of capital while preserving strategic flexibility.

No new shares issued

Even though the update improves Mesoblast’s balance sheet, it does not change the company’s short-term earnings outlook.

There is no immediate revenue boost tied to this announcement. As a result, some investors may be waiting for progress on regulatory approvals, commercial launches, or partnerships before becoming more optimistic.

It is also worth noting that Mesoblast shares have already risen in recent months, which can limit how strongly the market reacts to positive news.

What investors should watch next

This update reduces funding risk and gives Mesoblast more breathing room over the next few years.

From here, investors will be watching how the company uses this financial flexibility. Key areas of focus include clinical progress, regulatory decisions, and any moves toward commercialisation.

While today’s share price move was modest, the debt update puts Mesoblast on firmer footing heading into 2026.

That said, I’ll be watching Mesoblast from the sidelines for now, as I focus on more developed biotech companies.

The post This ASX healthcare stock just changed its debt. Here’s why it matters appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Technology changes quickly, but great technology businesses tend to compound value over very long periods of time.

The trick isn’t necessarily trying to predict the next big trend; it’s backing companies that solve real problems, adapt as markets evolve, and keep finding ways to grow.

That said, here are five ASX tech shares I’d be happy to buy and hold for the long term.

Catapult Sports Ltd (ASX: CAT)

Catapult sits in a niche that’s only becoming more important: elite sports performance and athlete monitoring. Its wearable technology and analytics software are now embedded across many of the most popular professional teams worldwide. This includes Manchester United, Kansas City Chiefs, the NSW State of Origin team, Golden State Warriors, and the Brazil national soccer team. Once adopted, these systems are hard to replace, creating strong customer stickiness. This can be seen in its high retention rates. As sports continue to become more data-driven, Catapult is well-positioned to expand its footprint, not just in new teams, but also through deeper usage with existing customers.

DroneShield Ltd (ASX: DRO)

DroneShield is an ASX tech share I rate highly. It operates in a market that didn’t exist a decade ago but is now mission-critical. Counter-drone technology is becoming essential for military, government, and critical infrastructure protection. DroneShield’s mix of software, sensors, and electronic warfare solutions gives it exposure to a structural, not cyclical, growth trend. While its shares can definitely be volatile, the long-term relevance of its technology is difficult to ignore.

Life360 Inc (ASX: 360)

Life360 is a family safety app provider that has 90 million+ monthly active users worldwide. What I like most about this ASX tech share is its ability to monetise engagement over time through subscriptions and upsells, without undermining the core user experience. As location-based services and digital safety become more important, Life360 stands to benefit as the clear market leader.

Gentrack Group Ltd (ASX: GTK)

Gentrack may not be well-known, but it’s exactly the kind of tech share long-term investors should be acquainted with. The company provides mission-critical billing and operational software to utilities and airports. These are the types of customers that value reliability over experimentation. With global energy systems becoming more complex and decentralised, demand for Gentrack’s software should only increase. In addition, its recurring revenue and long customer contracts position it for robust long-term earnings growth.

TechnologyOne Ltd (ASX: TNE)

I think that TechnologyOne is one of the ASX’s highest-quality companies. It focuses on enterprise software for government, education, and large organisations. These are customers who tend to be loyal and long-lived, as it can be hard for them to move to new providers. TechnologyOne’s shift to a SaaS model has improved revenue visibility and quality, as well as margins, while its international expansion offers further growth. Its shares are not cheap, but businesses with its high level of consistency rarely are.

The post 5 ASX tech shares to buy and hold until 2035 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, DroneShield, Gentrack Group, Life360, and Technology One. The Motley Fool Australia has positions in and has recommended Catapult Sports, Gentrack Group, and Life360. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As 2025 draws to a close, all eyes are on the best ASX stocks to buy in 2026. These are my top picks.

Xero Ltd (ASX: XRO)

Xero shares have faced a couple of headwinds in 2025, but I think the latest investor sell-off was unwarranted and overdone. The New Zealand-based cloud-based accounting software company looks like a great buying opportunity at the current trading price. Analysts also expect the shares to double in value next year. Seems like a no-brainer to me.

Weebit Nano Ltd (ASX: WBT) 

Weebit develops and licenses a new memory technology (Resistive Random-Access Memory, or ReRAM), which is designed to replace traditional Flash memory. The company has had an exceptionally strong start to the financial year, and given that there are very few businesses that can replicate its technology in-house, it looks like Weebit could quickly become a dominant market player. 

CSL Ltd (ASX: CSL)

It’s no secret that CSL shares have been through the wringer this year, suffering not one, but two brutal sell-offs. But I think we could be beginning to see green shoots of recovery. But CSL’s core business remains robust, and demand for its products continues to grow globally. I think there is now an opportunity to buy the biotech company’s shares at a rare discount.

Mesoblast Ltd (ASX: MSB)

If you’re unsure about CSL shares, Mesoblast is another Australian clinical-stage biotech company that has exceptional potential for strong growth. The company is also well-funded and won’t be subject to the US 100% tariff on pharmaceuticals. What’s not to like?

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares have stormed higher over the past 6 weeks following a promising trading update in November. The company said it is off to a positive start for FY26 and expects more growth over the next 12 months. I think that the current share price dip presents a great opportunity for investors to buy into the stock for cheap.

Judo Capital Holdings Ltd (ASX: JDO)

The outlook for ASX bank stocks doesn’t look very promising right now, with the exception of Judo Bank, of course. Unlike its larger peers, the bank has had a strong start to FY26, and it looks set to continue. At its latest AGM, it said lending momentum was strong over the first quarter and that it’s confident it can achieve FY26 guidance of $180-$190 million.

Megaport Ltd (ASX: MP1)

The software-defined network (SDN) service provider is another favourite of mine. The ASX stock has suffered amid the tech-sector-wide investor sell-off over the past couple of months, but I’m very optimistic that there is a huge share price upside ahead. Megaport is rapidly expanding and reinvesting into growth plans.

Woolworths Group Ltd (ASX: WOW)

Woolworths’ oligopoly, with supermarket rival Coles, means the two ASX stocks have significant power over the Australian grocery sector. It’s this dominance that gives Woolworths a competitive advantage in the retail space. The business is huge, it is defensive, and Woolworths is well-known for its lengthy history of paying consistent, and sometimes generous, dividends.

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

Soul Patts is Australian dividend royalty. The diversified Australian investment house pays its fully-franked dividends twice per year and has offered a consistent yield of 2.3% to 2.4% since 2016. In FY25, it paid a total $1.03 per share, 100% fully franked. Any investors which don’t have Soul Patts in their portfolio should buy the ASX stock in 2026.

Plato Income Maximiser Ltd (ASX: PL8) 

Investors looking for a reliable passive income but want the payouts to be more regular should look into Plato. It’s a perfect ASX retirement stock that pays out around 4.58% every single month. The ASX dividend stock is focused on delivering high, reliable monthly income with franking credits from an actively managed, diversified portfolio of Australian shares.

The post My top 10 ASX stocks to buy for 2026 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 positions in and has recommended CSL, Megaport, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited, Woolworths Group, and Xero. The Motley Fool Australia has recommended CSL and 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.

FireFly Metals Ltd (ASX: FFM) shares are in focus on Tuesday.

At the time of writing, the copper and gold developer’s shares are trading at $2.02, down 5.16%.

The company has had a busy end to the year, raising fresh funds and strengthening its balance sheet as it prepares for further work at its Canadian project.

With copper sentiment improving and funding remaining tight across the sector, FireFly’s recent progress has caught investors’ attention.

Here’s what the company has been working on.

Retail demand comes in well above expectations

According to the release, FireFly has doubled the size of its Share Purchase Plan (SPP) to $10 million after receiving far more interest than expected.

The SPP was originally capped at $5 million. However, applications came in at around $31 million, which is more than 6 times that amount.

Because of this, the company decided to lift the cap while still using scale-back rules to limit dilution.

In total, 1,558 eligible shareholders took part. That represents about 27% of those eligible. The average investment was just under $20,000, showing support came from a wide range of retail investors.

The SPP closed on 19 December. New shares were issued on 30 December and are expected to start trading on 31 December, subject to normal ASX processes.

More funding secured

The expanded SPP follows a much larger capital raising completed earlier in December.

FireFly raised $139 million before costs through a mix of institutional and Canadian placements. This included an $85 million placement at $1.70 per share, alongside two Canadian raisings.

Following completion of the raisings, FireFly reported a pro forma cash balance of around $246.9 million before costs. That leaves the company with a strong cash position heading into the new year.

Importantly, the SPP was priced at the same level as the institutional placement. This allowed retail investors to participate on the same terms as larger investors.

What the money will be used for

FireFly plans to use the funds to move its Green Bay Copper-Gold Project in Newfoundland forward.

Work will include underground development, early construction activities, mining and economic studies, and more drilling. The goal is to grow and improve the project’s resource base and prepare it for future development.

Management has said 2026 will be a busy year, with several parts of the project progressing at the same time.

What investors should watch next

FireFly shares have had a strong run over the past year, helped by better sentiment around copper and steady progress at Green Bay.

While raising new money increases the number of shares on issue, this funding reduces financial risk and gives the company time to focus on getting work done.

From here, investors will be watching how FireFly uses its strong cash position to deliver progress on the ground over the next 12 months.

The post Why this ASX mid-cap stock is back in the spotlight today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 All Ordinaries Index (ASX: XAO) is up 0.1% in morning trade on Tuesday, with plenty of help from this soaring ASX All Ords share.

The fast-rising stock in question is IPD Group Ltd (ASX: IPG).

Shares in the distributor of electrical equipment and industrial digital technologies closed yesterday trading for $4.20. At the time of writing today, shares are swapping hands for $4.43 apiece, up 5.5%.

This now sees IPD shares up an impressive 58% since plumbing one-year closing lows on 23 June.

Here’s what’s catching ASX investor interest.

ASX All Ords share jumps on strategic acquisition

Investors are piling into IPD shares after the company announced that it has agreed to the terms of a binding agreement to acquire Platinum Cables.

Platinum Cables provides high-performance cable solutions for the Aussie mining and resources sector. In FY 2025, Platinum reported revenue of $44.8 million. The company achieved FY 2025 earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.2 million, with a margin of 18.2%.

The ASX All Ords share will pay $37.5 million upfront for the acquisition, which it said equates to 5.2 times Platinum Cables’ FY 2025 earnings before interest and tax (EBIT).

The payment consists of $37 million cash and $500,000 in newly issued IPD shares. There’s also a contingent cash consideration of up to $7.5 million. That’s based on EBIT growth through to 31 December 2026 (5 times multiple on EBIT growth).

IPD reported it will fund the acquisition with both cash and debt. The ASX All Ords share said it has agreed to an expanded core debt facility with Commonwealth Bank of Australia (ASX: CBA) with a $56.1 million limit. It’s also agreed to a new $10 million working capital facility.

Investors are also responding enthusiastically to news that Platinum’s current management team will stay aboard and operate the business as a stand-alone entity.

What did management say?

Commenting on the acquisition that’s boosting the ASX All Ords share today, IPD CEO Michael Sainsbury said, “The acquisition of Platinum Cables is a continuation of our growth strategy that reinforces our leadership in the mining sector and delivers immediate earnings accretion for shareholders.”

The company anticipates pro forma FY 2025 earnings per share (EPS) accretion of around 11.5%, excluding synergies and one-off transaction costs.

Sainsbury continued:

The Platinum Cables business is highly complementary to our combined IPD and CMI business units and is leveraged to the same tailwinds, including the electrification of the Australian economy.

With their strong track record of organic growth and the potential for significant revenue synergies, we look forward to the Platinum Cables team joining IPD Group.

Platinum Cables founder David Bambach added, “We look forward to further growing the Platinum Cables business within the broader IPD Group”.

The ASX All Ords share expects to complete the acquisition tomorrow, 31 December.

The post Guess which ASX All Ords share is leaping higher today on acquisition news appeared first on The Motley Fool Australia.

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• Bell Potter names three engineering companies to buy

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