The All Ordinaries Index (ASX: XAO) is up 0.3% in morning trade today, with ASX All Ords gold stock Brightstar Resources Ltd (ASX: BTR) charging ahead of those gains.

Brightstar Resources shares closed yesterday trading for 52.5 cents. At the time of writing, shares are changing hands for 53.5 cents apiece, up 1.9%.

That sees shares in the Aussie gold miner up 44.6% since the stock plumbed one-year closing lows of 37 cents on 20 August.

Here’s what’s catching investor interest today.

ASX All Ords gold stock leaps on regulatory approval

Investors are bidding up Brightstar Resources shares today after the company announced that the Department of Mines, Petroleum and Exploration (DMPE) has given the green light to commence mining operations at the Lady Shenton project.

The project, located in Western Australia, is an important part of the Menzies Hub resource package that Brightstar Resources is developing within the Goldfields Hub.

The ASX All Ords gold stock said that, having already received approval for the Native Vegetation Clearing Permit, the Lady Shenton deposit (estimated at 352,000 ounces of gold graded at 1.4 grams of gold per tonne) is ‘mine ready’ for production.

Brightstar plans to haul the gold ore it mines from Lady Shenton to its proposed CIL gold recovery processing plant in Laverton.

What did management say?

Commenting on the regulatory approval helping to boost the ASX All Ords gold stock today, Brightstar Resources managing director Alex Rovira said, “We are pleased to receive approval for the Mining Development and Closure Proposal for the open pit development of the Lady Shenton mine in Menzies.”

Rovira noted, “This signifies a key milestone for the development of our Menzies assets, which once in operation will represent the first mining to occur since the successful Selkirk mining JV in 2024.”

He added:

Lady Shenton is now ‘mine ready’ and represents a low capex, high-margin deposit for Brightstar that complements the broader Goldfields Hub development. We look forward to releasing the updated DFS2.0 and providing a development update and timeline for the Menzies and Laverton Gold Projects this quarter.

Rovira noted that as an unhedged gold producer, Brightstar “remains well placed in a strong gold price environment”.

The ASX All Ords gold stock owns and operates two underground mines, and is a near-term developer of the 1.6Moz at 1.6g/t Au Goldfields Hub. Brightstar Resources is targeting final investment decision (FID) in the March quarter.

Looking ahead, Rovira concluded:

With over 4 million ounces of Mineral Resources on granted mining leases, Brightstar has a strategic objective of developing both the Goldfields and Sandstone Projects in the coming years as part of our aspiration to be a multi-asset, mid-tier scale WA gold producer.

The post Up 45% since August, ASX All Ords gold stock jumps on key approval appeared first on The Motley Fool Australia.

More reading

• Why Brightstar, EVT, Monash IVF, and Pro Medicus shares are dropping today
• ASX gold share sinks 10% on Xmas Eve update

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 BlueScope Steel Ltd (ASX: BSL) share price is pushing higher again on Wednesday.

In morning trade, the steel products company’s shares are up almost 1% to $30.06.

Why is the BlueScope share price rising today?

Today’s rise has nothing to do with recent takeover interest and everything to do with capital returns.

According to the release, BlueScope has announced plans to return $438 million in surplus cash to shareholders through an unfranked special dividend.

BlueScope will be rewarding shareholders with $1.00 per share, which is the equivalent of a 3.3% dividend yield at current prices.

The company notes that the surplus cash that is being returned has been generated from recent initiatives. This includes the sale of BlueScope’s 50% interest in the Tata BlueScope joint venture for $167 million, the agreement to sell 33 hectares of land at West Dapto for $76 million, and the ongoing realisation of the residual projects in the BlueScope Properties Group. These are delivering a working capital release of around $200 million over FY 2025 and FY 2026.

Why is it returning capital?

The BlueScope board revealed that it has elected to return this surplus cash to shareholders through an unfranked special dividend because an on-market buy-back is currently not available due to corporate activity and regulatory settings.

It notes that its dividend decision is part of BlueScope’s established capital management framework and is independent of any prior or potential future proposals for the company.

Commenting on the capital return, BlueScope’s managing director and CEO, Mark Vassella, said:

This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders. With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business. The Board will continue to carefully balance investment in growth with shareholders’ returns as cash flows build.

There could be more returns to come in the future. BlueScope highlights that in addition to these recent cash generating initiatives, its free cash generation is set to ramp up over the next 12 to 18 months.

This is expected to be delivered as the company works through the balance of its major investment program, with a reduction in capex of at least $500 million expected in FY 2027 relative to FY 2026.

BlueScope shares will go ex-dividend for this special dividend on 20 January. After which, it is expected to be paid to eligible shareholders next month on 24 February.

The post BlueScope share price pushes higher amid $438m special dividend appeared first on The Motley Fool Australia.

More reading

• BlueScope returns $438m to shareholders with special dividend
• 3 ASX 200 stocks rocketing higher in the first full trading week of 2026
• What’s the real value of BlueScope shares? Jarden analysts weigh in
• AustralianSuper boosts its stake in takeover target BlueScope Steel
• Why Ansell, Elsight, Ramelius, and SGH shares are falling today

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.

Shares in Monadelphous Group Ltd (ASX: MND) are again hitting record levels after the company announced its fourth major contract win in less than two months.

The company said in a statement to the ASX that it had been awarded a “major long-term maintenance contract with Rio Tinto Ltd (ASX: RIO) valued at approximately $300 million in aggregate over five years”.

The company went on to say:

Under the contract, the company will continue to provide fixed plant and shutdown services, delivering generalist mechanical and access services across Rio Tinto’s iron ore operations in the Pilbara region of Western Australia.

Monadelphous Managing Director Zoran Bebic said the contract award reflected the company’s strong reputation for delivering safe and reliable maintenance services.

He added:

We are delighted to continue supporting Rio Tinto’s Pilbara iron ore operations, where Monadelphous has provided services for more than 30 years.

Latest in a series of wins

The new contract win follows a $110 million suite of contracts announced just last week, a $175 million contract win with BHP Group Ltd (ASX: BHP) also announced last week, and a $250 million contract win with Rio Tinto in December.

That contract with Rio was a major construction contract at the company’s Brockman iron ore project, also in the Pilbara.

Monadelphous said at the time:

The multidisciplinary contract, valued at approximately $250 million, includes fabrication and supply, detailed earthworks and concrete, structural, mechanical, piping and electrical and instrumentation works associated with the construction of a new primary crusher and overland conveyor, as well as modifications to existing plant. Work under the contract will commence immediately and is expected to be completed in 2027.

Set up for a strong year

At the company’s AGM in late November, chair Rob Velletri said the company had in 2025, secured about $2.3 billion in new contracts and contract extensions, which was a record, plus had added another $570 million since the end of the financial year.

Mr Bebic said at the time the company was forecasting revenue for the half-year ending December 30 of about $1.5 billion, with full-year revenue expected to be about 20% to 25% higher than the previous year.

Monadelphous shares traded as high as $29.51 on Wednesday morning, up 3.3% and a new record.

Monadelphous Group was worth $2.85 billion at the close of trade on Tuesday. The company has more than doubled in value over the past year.

The post A fourth contract win in under a month has this ASX 200 company’s shares at a new record high appeared first on The Motley Fool Australia.

More reading

• Monadelphous secures $300m Rio Tinto contract
• Why I look at past performance of ASX shares to help think about the future performance outlook
• Buy, hold, sell: ANZ Bank, Monadelphous, and Northern Star shares
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 materials sector dominates as scores of mining shares hit new highs

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

The RBC Capital Markets team has reviewed the Australian oil and gas sector and reiterated its positive outlook for the majors, while being less bullish on mid-tier company Beach Energy Ltd (ASX: BPT).

RBC has published a preview of fourth-quarter operating results for the sector and says shares in Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) look like good buys at current levels.

Over at Santos, the RBC team says they expect a “relatively strong” fourth quarter coming off a weaker result in the third quarter.

As they said in their note to clients:

We forecast fourth quarter sales revenue growth of 6% quarter on quarter supported by higher WA production volumes (third quarter downtime), solid PNG LNG and GLNG production, and a return to normalised Cooper Basin production more than offsetting weaker commodity pricing.

They added that Santos’ free cash flow generation has the potential to increase materially in 2026, assuming its Barossa and Pikka projects are delivered broadly as planned.

The RBC team stated that Santos aims to distribute at least 60% of its free cash flow to shareholders after 2026, which should support dividend payments.

Santos is currently sitting on a trailing dividend yield of 5.96%, franked to 10%.

RBC has a price target of $6.75 on Santos shares, compared with $6.14 currently.

Pick of the bunch

But for even bigger gains, the RBC team is recommending investors take a look at Woodside shares, with an outperform rating on the shares and a price target of $31.50 compared with $23.31 currently.

In their research note, the RBC team said they like the company’s long-term outlook, but were expecting a decline in sales revenue over the most recent quarter of 13% due to lower sales and production volumes.

Woodside has a trailing dividend yield of 7.15%, fully-franked, and if the RBC price target were achieved, that would represent a return of 35.1%.

Among the smaller oil and gas companies, Amplitude Energy Ltd (ASX: AEL) is the preferred RBC pick.

As they said:

We see improved Orbost operating performance, solid domestic gas price and higher priced spot gas sales supporting sales revenue growth of 4% quarter on quarter. Orbost has achieved record quarterly production.

RBC said new drilling in the Otway Basin starting this year also had the potential to add value.

RBC has a price target of $3.25 on Amplitude shares, compared to its current price of $2.90. The company does not currently pay dividends.

Risks to the downside

Meanwhile, the RBC team expect Beach Energy shares to fall to $1.05 compared with $1.14 currently.

They expect Beach’s sales revenue to decline by 21% quarter over quarter and noted that production at Beach’s Otway gas plant was 31% lower quarter over quarter.

Beach has a trailing dividend yield of 7.86%, fully franked.

The post Three oil stocks to buy and one to sell appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• The perfect retirement stock with a 4.4% payout each month
• 5 things to watch on the ASX 200 on Monday
• Santos, Beach Energy, or Woodside shares. Which ASX energy share paid the most passive income in 2025?

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 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.

I’m always on the lookout for wonderful S&P/ASX 200 Index (ASX: XJO) blue-chip shares that could deliver market-beating performances.

The best businesses in an industry may have the potential to continue delivering great returns because of the economic moats and impressive economics.

Both of the businesses below have fallen by more than 10% in recent times. With that decline, this could be a smart time to look at these ASX 200 blue-chip shares.

Goodman Group (ASX: GMG)

Goodman Group is a large, global industrial property business that owns, develops and manages real estate. It’s best known for its logistics properties and data centres in major global cities that are important for the digital economy.

It has a presence in Australia, New Zealand, Asia, Europe, the UK and the Americas. Goodman is one of the largest listed specialist investment managers of industrial property globally.

Goodman is benefiting from growing demand in areas like e-commerce and data centres, giving the business a pleasing outlook for its work in progress (WIP), the assets under management (AUM) and rental earnings.

For example, at 30 September 2025, the ASX 200 blue-chip share had $12.4 billion of WIP with data centres representing 68% of WIP. The projected WIP for June 2026 is more than $17.5 billion.

The rental side of the business is also performing strongly – in its latest quarterly update, it reported 4.2% like-for-like annual net property income (NPI) growth on properties in its partnerships. It has an occupancy rate of 96%.

Goodman is forecasting operating earnings per security (EPS) growth of 9% in FY26. It looks good value after falling 17% in the past year.

Breville Group Ltd (ASX: BRG)

Breville is one of the world’s largest coffee machine businesses, with a number of brands.

The company has suffered a loss of some investor confidence during the past year following the US – a key market for Breville – applying tariffs to products made in China. The Asian powerhouse was responsible for manufacturing a significant portion of the Breville-made products for the US market.

So, the ASX 200 blue-chip share is hard at work changing where products bound for the US are made, particularly utilising production in Mexico.

Over time, Breville has significantly grown its revenue and net profit and this has helped improve its underlying value.

I’m confident the company can continue growing thanks to increasing levels of coffee consumption at home globally and that Breville is expanding in markets that have much lower levels of home coffee consumption (offering growth). Some of the company’s newer expansion markets are China, South Korea and the Middle East.

The ASX 200 blue-chip share looks much better value after falling 12% in the past year. At the time of writing, it’s trading at 29x FY27’s estimated earnings, according to Commsec.

The post 2 great ASX 200 blue-chip shares I’d buy right now! appeared first on The Motley Fool Australia.

More reading

• BlueScope returns $438m to shareholders with special dividend
• Deep Yellow welcomes new CEO as part of ongoing uranium growth strategy
• 5 top ASX growth shares to buy now with $5,000
• Monadelphous secures $300m Rio Tinto contract
• Is this the best ASX 200 share to buy today?

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

This S&P/ASX 200 Index (ASX: XJO) resources stock caught a strong bid on Tuesday as investors piled back into anything even remotely tied to rare earths and critical minerals.

Iluka Resources Ltd (ASX: ILU) was one of the highflyers during Tuesday’s trade, finishing 6.2% higher at $6.68. That brings the total gain in 2026 to 15.4%, while the ASX 200 resources stock has soared by 35% in the past 6 months.

Let’s take a closer look.

Strategic rare earths player

This wasn’t about quarterly numbers or a surprise announcement from the company itself. Global markets woke up bullish on the idea of building rare earths supply chains outside China. That optimism washed straight onto the ASX, and Iluka fits neatly into that picture.

While best known for mineral sands like zircon and titanium, the ASX 200 resources stock also owns a strategically important rare earths refinery project. One that suddenly looks a lot more valuable in a world scrambling for secure supply.

Iluka’s strengths are clear. It controls some of the world’s highest-quality mineral sands deposits, has deep processing expertise, and enjoys strong government backing for its rare earths strategy.

The ASX 200 miner operates major assets in Western and South Australia and owns the Sierra Rutile business in West Africa. Its next phase of growth is taking shape in Western Australia, where Iluka is building the Eneabba rare earths refinery.

From side hustle to growth engine

The project aims to position Australia as a reliable supplier of critical minerals to global markets and reduce reliance on China. If successful, the Eneabba refinery could reshape the company.

The ASX 200 resources stock would move beyond mineral sands into vertically integrated rare earths production. It would supply oxides used in electric vehicles, wind turbines, and advanced electronics. These are markets with strong long-term demand.

If demand for electric vehicles, defence technology, and clean energy infrastructure continues to accelerate, Iluka’s exposure to critical inputs starts to look less like a side hustle and more like a growth engine.

However, risks remain. Mineral sands prices are cyclical and closely tied to global manufacturing conditions, with Chinese supply playing a major role. Recent production pauses underscore Iluka’s exposure to demand swings. Eneabba is also capital-intensive and relies on securing long-term offtake agreements. Delays or cost overruns could pressure valuations.

What’s next for Iluka shares?

There is also a dose of broker enthusiasm driving the current rally. Recent upgrades have reminded the market that the ASX resources stock combines solid cash flows today with leverage to a structural trend tomorrow. That’s a rare and appealing mix in the resources space.

It’s no surprise that analysts and investors are warming up to Iluka’s rare earths strategy. That long-term optionality is powerful.

Most brokers see the ASX 200 resources stock as a buy or strong buy. They have a 12-month average price target at $7.44, which points to a potential gain of 11%.  

The post Why this ASX 200 resources stock is off to a flying start in 2026 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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 BlueScope Steel Ltd (ASX: BSL) share price is in focus today after the company announced it will return $438 million to shareholders via a $1.00 per share unfranked special dividend, following several recent asset sales and cash flow initiatives.

What did BlueScope report?

• Declared an unfranked special dividend of $1.00 per share, totalling $438 million
• Surplus cash generated from sale of 50% Tata BlueScope joint venture for $167 million
• Agreed sale of 33 hectares at West Dapto for $76 million
• Continued realisation of BlueScope Properties Group projects, releasing $200 million over FY25–FY26
• Dividend record date: 21 January 2026; payment date: 24 February 2026
• Dividend reinvestment plan not active for this special dividend

What else do investors need to know?

BlueScope’s board opted for a special unfranked dividend rather than a buy-back due to ongoing corporate activity and regulatory settings. The company’s capital management framework aims for a balanced approach, distributing at least 50% of free cash flow to shareholders through dividends and buy-backs.

In the past decade, BlueScope has invested more than $3.7 billion in growth projects and delivered over $3.8 billion in shareholder returns since FY17. The latest asset sales and working capital initiatives add to its disciplined capital management record.

What did BlueScope management say?

BlueScope MD & CEO Mark Vassella said:

This special dividend demonstrates BlueScope’s ability to generate and distribute returns to its shareholders. With a clear line of sight to the completion of our current significant capital investment program, BlueScope is positioned to not only return to the robust cash generation it has been known for, but to strengthen it further with the enhanced earnings of the business. The Board will continue to carefully balance investment in growth with shareholders returns as cash flows build.

What’s next for BlueScope?

BlueScope expects to ramp up free cash generation over the next 12–18 months as it completes its major investment program. Notably, capex is set to reduce by at least $500 million in FY27 compared to FY26 as these projects wind down.

Management highlights a focus on balancing investment in profitable growth with consistent shareholder returns, signalling further distributions as cash flows improve.

BlueScope share price snapshot

Over the past 12 months, BlueScope shares have risen 52%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has lifted 7% over the same period.

View Original Announcement

The post BlueScope returns $438m to shareholders with special dividend appeared first on The Motley Fool Australia.

More reading

• Deep Yellow welcomes new CEO as part of ongoing uranium growth strategy
• Monadelphous secures $300m Rio Tinto contract
• Is this the best ASX 200 share to buy today?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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 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. 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.

The silver price has exploded higher over the past 12 months, more than doubling in value during the period.

This means that miners with exposure to silver are printing money every time they pull an ounce of the precious metal out of the ground.

But how can investors position their portfolio to benefit from this? Let’s find out what Morgans is saying about one ASX silver stock.

Broker tips ASX silver stock as a buy

Morgans has been running the rule over BMC Minerals Ltd (ASX: BMC) shares following its IPO last month.

BMC is the 100% owner of the Kudz Ze Kayah (KZK) Project. It is an advanced polymetallic development project located in Canada’s Yukon territory. It comprises 372km2 of under-explored, resource rich tenure and is host to two deposits. It will produce three concentrates: silver/gold, copper, and zinc.

Morgans, which helped with the ASX silver stock’s IPO, believes its shares are still significantly undervalued despite rising over 40% since listing.

According to a note, the broker has initiated coverage on BMC Minerals’ shares with a speculative buy rating and $4.90 price target.

Based on its current share price of $2.82, this implies potential upside of 74% for investors over the next 12 months.

Morgans believes the company is positioned to generate significant EBITDA from its KZK project once it reaches steady state production. It commented:

We initiate coverage of BMC Minerals with a SPECULATIVE BUY rating and a target price of A$4.90ps. The Kudz Ze Kayah (KZK) project is a high grade undeveloped polymetallic deposit, with high silver equivalent reserve grades of 597g/t AgEq and an indicative ~32Moz Ag per annum production profile. Indicative economics of KZK are solid.

We model steady state average annual financials of US$780m revenue, US$435m EBITDA at a 52% EBITDA margin, US$287m FCF and FCF yields of 29% based on precious and base metals price assumptions well below current spot prices. With BMC, we see parallels to past prolific polymetallic/base metals assets which generated strong returns for shareholders: Vares for Adriatic, Nova-Bollinger for Sirius and De Grussa for Sandfire.

How else can you gain exposure to the booming silver price?

There are other ways for investors to get access to the silver boom.

One way is through the Global X Physical Silver Structured (ASX: ETPMAG).

Global X notes that this fund offers a low-cost and secure way to access physical silver via the stock exchange. This means investors can avoid the need to personally store their own bullion.

The post Want silver exposure? Morgans says this ASX silver stock is a buy appeared first on The Motley Fool Australia.

More reading

• The best performing Global X ASX ETFs this year
• Forget gold! Meet the 2 metals up by +150% in 2025 and the ASX ETFs riding the wave

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.

Building passive income is often made to sound far more complicated than it needs to be.

Many Australians assume it requires years of saving, deep knowledge of stock selection, or the ability to predict interest rates and economic cycles. That belief alone stops plenty of people from starting.

In reality, building a passive income portfolio can be remarkably simple. 

With a small starting balance, a handful of diversified ETFs, and a commitment to consistency, investors can begin today — even with as little as $500.

Keep it simple

One of the biggest advantages of exchange-traded funds (ETFs) is diversification. Rather than relying on the fortunes of a few individual companies, an ETF provides exposure to dozens or even hundreds of businesses in a single investment.

That diversification helps smooth returns and typically reduces volatility compared to holding a concentrated portfolio of individual shares. It also removes the pressure to “get it right” by picking winners.

For passive income investors, this means fewer decisions, less stress, and a smoother ride over time.

Low cost, easy to buy, easy to stick with

ETFs are also designed for simplicity.

They tend to have low management fees, keeping more of your money invested and compounding. Buying an ETF is no more difficult than purchasing a single share, and most brokers allow investors to start with relatively small amounts.

Crucially, ETFs encourage good behaviour. By spreading risk and reducing complexity, they make it easier to stay invested and avoid reacting emotionally to short-term market movements.

That discipline often matters far more than clever strategy.

Two ETFs that show how passive income investing works

To see how this approach can look in practice, it helps to consider a couple of well-known income-focused ETFs.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) takes a straightforward approach to passive income. It invests in Australian companies with higher-than-average forecast dividend yields, resulting in a portfolio dominated by established blue-chip businesses such as banks, miners, and large industrial companies. Income is generated through dividends, often with the added benefit of franking credits. For many investors, this makes VHY a simple way to access reliable income from familiar Australian companies.

The BetaShares S&P 500 Yield Maximiser Fund (ASX: UMAX) uses a different strategy. It provides exposure to the 500 largest US companies while employing a covered-call strategy to generate additional income. This approach aims to deliver higher regular distributions and reduce portfolio volatility. The trade-off is that returns may be capped during strong market rallies, making UMAX more suitable for investors focused on income rather than maximum growth.

Together, these ETFs highlight how different income strategies can be packaged into simple, easy-to-buy investments without requiring investors to manage the complexity themselves.

Time and discipline do the heavy lifting

The real driver of passive income success is not trying to outsmart the market. It is time.

By investing regularly through dollar-cost averaging, investors spread their purchases across different market conditions. Reinvesting dividends compounds the effect by steadily increasing the number of units owned, which in turn generates more income over time.

At first, progress can feel slow. Over the years, however, compounding begins to accelerate, and the portfolio increasingly does the work on your behalf.

Foolish Takeaway

Building passive income does not require perfect timing, deep expertise, or large sums of money.

By automating regular investments into diversified ETFs, reinvesting income, and staying disciplined, investors can turn time into their most powerful ally. Starting small is not a disadvantage — it is simply the first step.

The post Want passive income? This simple ETF strategy makes it easier than most people think appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX ETFs to buy for passive income
• Vanguard reveals next lot of dividends for VAS and other ASX ETFs
• The ASX dividend portfolio I’d build for financial independence
• The three ETFs I’d buy to set up a starter portfolio
• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Deep Yellow Ltd (ASX: DYL) share price is in focus today after the company announced the confirmed start date for its new Managing Director and CEO, Greg Field. The board highlighted ongoing progress on Deep Yellow’s strategy to become a leading global uranium producer and gave thanks to outgoing Acting CEO Craig Barnes.

What did Deep Yellow report?

• Confirmation of Greg Field’s commencement as Managing Director and CEO on 2 February 2026
• Craig Barnes to return to his role as Chief Financial Officer after serving as Acting CEO
• Continued dual-pillar growth strategy focused on uranium production and development
• Portfolio includes advanced projects: Tumas (Namibia) and Mulga Rock (Western Australia)

What else do investors need to know?

The Deep Yellow board expressed confidence in Greg Field’s experience, noting his leadership comes as the company nears key decisions for its flagship Tumas Project and wider asset portfolio. Executive Chair Chris Salisbury highlighted a smooth leadership transition, thanking Craig Barnes for his work as Acting CEO.

Deep Yellow continues to pursue growth with exploration at Alligator River and Omahola, alongside merger and acquisition opportunities that align with its strategy. The company remains focused on positioning itself as a reliable, long-term producer in a sector responding to growing demand for clean, baseload power.

What did Deep Yellow management say?

The Board’s Executive Chair Chris Salisbury said:

The Board is pleased to have Greg start earlier in the role. We are looking forward to Greg’s considerable experience and his leadership as we move towards critical decisions for our Tumas Project and other developments in our portfolio.

What’s next for Deep Yellow?

Looking ahead, Deep Yellow will finalise its executive leadership transition and continue progressing development decisions for its advanced uranium projects. The company’s dual-pillar growth plan remains unchanged, with attention on project approvals, expansion opportunities, and sector developments in uranium supply and demand.

Deep Yellow’s trajectory is anchored by both project advancement and ongoing exploration activity. Management also signals interest in further M&A should opportunities align with the company’s long-term vision.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have surged 58%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Deep Yellow welcomes new CEO as part of ongoing uranium growth strategy appeared first on The Motley Fool Australia.

More reading

• BlueScope returns $438m to shareholders with special dividend
• Monadelphous secures $300m Rio Tinto contract
• Is this the best ASX 200 share to buy today?
• These 3 ASX 200 shares led their sectors last year. Are they still good buys?
• 5 things to watch on the ASX 200 on Wednesday

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 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. 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.