There are a lot of ASX growth shares out there for investors to choose from.

To narrow things down, let’s take a look at five that brokers rate as buys. Here’s what you need to know about them:

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is a global leader in gaming content and technology. While it is best known for land-based gaming machines, the company has built a much broader business spanning social casino games and online gaming. This diversification gives Aristocrat multiple growth pathways and reduces reliance on any single market.

Bell Potter believes it is well-placed for long term growth. It has a buy rating and $80.00 price target on its shares.

Breville Group Ltd (ASX: BRG)

Another ASX growth share that has been named as a buy is Breville Group. It has carved out a premium position in the global small appliances market. Rather than competing on price, Breville focuses on design-led products and innovation, particularly in coffee machines. This strategy has allowed it to build strong brand loyalty and maintain attractive margins. As consumers continue to premiumise everyday products, Breville has room to keep scaling internationally.

Morgans has a buy rating and $36.05 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that could be a buy in January is Lovisa. It is a fashion jewellery retailer that is currently undertaking a major global expansion. At the last count, it was operating 1,075 stores across more than 50 markets.

Morgans has named it as one of its top picks in the retail sector. The broker has a buy rating and $40.00 price target on its shares.

Neuren Pharmaceuticals Ltd (ASX: NEU)

A fourth share to look at is Neuren Pharmaceuticals. It is focused on treatments for rare neurological disorders, which is an area of high unmet medical need. Success in this space can lead to significant earnings growth due to limited competition and strong pricing power. For growth investors comfortable with volatility, this growth share could be worth considering.

Bell Potter is a big fan and has a buy rating and $25.00 price target on its shares.

Web Travel Group Ltd (ASX: WEB)

Finally, Web Travel Group could be an ASX growth share to buy. Following the spin-off of its consumer-facing Webjet operations in 2024, the company is now focused on its WebBeds platform, which connects hotels with travel agents and tour operators worldwide. As travel demand continues to normalise and grow, Web Travel Group’s asset-light platform positions it to deliver strong earnings growth.

Macquarie has an outperform rating and $6.85 price target on its shares.

The post 5 top ASX growth shares to buy now with $5,000 appeared first on The Motley Fool Australia.

More reading

• Why I look at past performance of ASX shares to help think about the future performance outlook
• The best ASX stocks to buy in January 2026 if you want both income and growth
• 3 of the best ASX 200 shares to buy and hold until 2036
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• Why Develop Global, Imricor Medical, Light & Wonder, and PWR shares are storming higher today

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

After years of operational disruption, balance sheet repair, and reputational rebuilding, Qantas Airways Ltd (ASX: QAN) is starting to look like a very different business again.

Qantas is no longer the distressed turnaround story it once was. But I still think the market may be underestimating how much earnings power this airline now has, and how durable those earnings could be through 2026 and beyond.

Here’s why I’m bullish on Qantas shares from here.

Earnings power is back, and looks more sustainable

One of the biggest changes at Qantas over the past few years has been the reset of its cost base and network discipline.

Capacity is being deployed more rationally, fleet decisions are more measured, and management has been far more focused on returns rather than simply chasing volume. That matters in an industry where margins can disappear quickly if discipline slips.

Consensus estimates currently point to earnings per share of 117.5 cents in FY26 and 126.1 cents in FY27. Those are not peak-cycle numbers driven by one-off factors. They reflect a business that is operating more efficiently and extracting better economics from both its domestic and international networks.

Importantly, from my perspective, that suggests Qantas is no longer just benefiting from post-pandemic travel recovery, but from a structurally improved operating model.

The domestic position remains a key advantage

Qantas’ strength in the Australian domestic market continues to underpin the investment case.

It operates in a market with limited competitors, high barriers to entry, and rational pricing behaviour. That does not mean competition is absent; just ask Virgin Australia Holdings Ltd (ASX: VGN). However, it does mean that price wars are less likely to destroy industry profitability the way they have in the past.

Corporate travel is also an important piece of the puzzle. While volumes may fluctuate with economic conditions, Qantas’ position as the preferred carrier for many business travellers supports load factors, yield quality, and revenue stability.

This domestic dominance provides a solid earnings foundation that many global airlines simply do not have.

Loyalty and premium segments add resilience

Another part of Qantas that I think is often underappreciated is the contribution from its Loyalty division.

The frequent flyer program is a high-margin business with strong cash generation, and it benefits from long-term partnerships across banking, retail, and travel. It adds a layer of earnings diversification that helps smooth the inherently cyclical nature of aviation.

At the same time, Qantas’ focus on premium travel, both domestically and internationally, supports higher yields. Premium passengers are typically less price-sensitive and more loyal, which can be valuable when economic conditions are mixed.

Shareholder returns are back on the table

Income investors are also starting to look at Qantas differently again.

Dividend estimates currently stand at 46.9 cents per share for FY26 and 44.5 cents for FY27. This means that at the current Qantas share price of $10.20, the market is forecasting a dividend yield of 4.6% this year before any franking credits.

While dividends can always change, these figures reflect a business that is now generating sufficient cash flow to reward shareholders, not just repair the balance sheet.

For investors who remember when dividends were completely off the agenda, that shift is meaningful.

Qantas shares look good value

Based on consensus forecasts, Qantas is trading on a forward P/E ratio of 9 times. That looks cheap to me, given the level of earnings being generated and the improvements in business quality.

Airlines will never be low-risk investments. Fuel prices, demand shocks, and operational issues are part of the landscape. But Qantas today looks better equipped to handle those challenges than it has been for many years.

Foolish Takeaway

I’m bullish on Qantas shares because I think the business has emerged from a difficult period leaner, more disciplined, and more focused on returns.

Investors are not buying a blue-sky growth story. They are buying an airline with restored earnings power, a strong domestic position, improving shareholder returns, and a more resilient operating model.

If management continues to deliver on its strategy and industry conditions remain broadly supportive, I believe Qantas shares could continue to reward patient investors as we move through 2026.

The post Why I would buy Qantas shares in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Codan Ltd (ASX: CDA) shares have been among the best performers on the ASX 200 index over the past 12 months.

During this time, the metal detector and communications products company’s shares are up almost 140%.

Is it too late to invest? Let’s see what analysts at Bell Potter are saying about this high-flying share.

What is the broker saying about this ASX 200 share?

Bell Potter highlights that Codan released a trading update which outlines its expectations for the first half of FY 2026.

Pleasingly, the ASX 200 share is expecting to report sales and profits comfortably ahead of the broker’s expectations. It said:

In 1H26e, CDA expects to report revenue of $394m, up 29% YoY (+4.8% beat on VA consensus of $376m) comprising: Metal Detection revenue of $168m up 46% YoY (+18.9% beat on VA); and Communication revenue of $222m up 19% YoY (-3.9% miss) consistent with company’s target growth range of 15-20%. CDA expects 1H26e underlying NPAT of “not less than $70m”, up >52% YoY (+13% beat on VA consensus of $62m), implying NPAT margin of 17.8% (15.1% 1H25a).

The strong revenue and NPAT print appears driven by growth in gold detector sales in the African region, and metal detector sales in other key rest of world recreational markets. Growth in Communications revenue included a full 6 months of the Kagwerks acquisition (vs. 1 month in 1H25a).

Should you buy Codan shares?

While Bell Potter has updated its earnings forecasts for the coming years and boosted its valuation, it feels that the ASX 200 share is fairly valued after its strong run.

According to the note, the broker has retained its hold rating with an improved price target of $36.70 (from $27.80). This is largely in line with its current share price of $37.00.

Commenting on its hold recommendation, the broker said:

We have increased our EV/EBIT multiple in our blended DCF / relative valuation methodology to 40.0x to reflect improving defence sector sentiment and improving Metal Detection outlook. Our updated PT is $36.70. We retain our HOLD recommendation.

We believe CDA shares trade at fair value on 33x EV / EBIT (59% above its 2-year average) amidst improving operating momentum and improving outlook in both segments. Given the seasonality evident in the Metal Detection business we see potential for a FY26e Metal Detection revenue upgrade if positive commentary is given at the 1H26e result.

The post What is Bell Potter saying about this high-flying ASX 200 share after its 140% rise? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Monadelphous Group Ltd (ASX: MND) share price is in focus today as the company announced it’s secured a new $300 million, five-year maintenance contract with Rio Tinto Ltd (ASX: RIO) for its Pilbara iron ore operations.

What did Monadelphous Group report?

• Won a major long-term maintenance contract with Rio Tinto, valued at around $300 million over five years
• The contract covers fixed plant and shutdown services for multiple iron ore sites in the Pilbara
• Monadelphous will deliver mechanical and access services for Rio Tinto’s Pilbara operations
• Strengthens Monadelphous’ position as a leading maintenance service provider to the resources sector

What else do investors need to know?

This significant contract win means Monadelphous will continue its long-standing relationship with Rio Tinto, building on over 30 years of service to its Pilbara iron ore sites. The company highlighted the safety and reliability of its workforce as key factors in securing the new work.

With this contract, Monadelphous boosts its already strong pipeline of resources sector projects. The company operates widely across Australia and the Asia-Pacific, with business spanning mining, energy, and infrastructure industries.

What’s next for Monadelphous Group?

Management expects this new contract to support stable, long-term revenues in the years ahead and deepen its partnership with Rio Tinto. The company remains focused on safe project delivery and exploring further opportunities in the resources and energy sectors.

Looking forward, Monadelphous will continue to leverage its specialist skills and reputation for reliability to seek out new work. Its ongoing investment in workforce capability is expected to underpin future growth.

Monadelphous Group share price snapshot

Over the past 12 months, Monadelphous Group shares have risen 97%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Monadelphous secures $300m Rio Tinto contract appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

I really like owning growing ASX shares. However, if those businesses don’t pay a dividend then our bank account doesn’t see the benefit of that growth unless we sell a portion, or all, of the holding. Wouldn’t it be great to own a growing business that also pays dividends?

Given how many ASX shares generate franking credits when they pay Australian company income tax, it does make sense for a number of businesses to unlock those credits for shareholders through dividend payments.

Therefore, if we pick the right businesses, it could provide revenue growth, earnings growth, a good dividend yield and payout growth.

Wesfarmers Ltd (ASX: WES)

This company is the parent of a number of leading businesses including Bunnings, Kmart, Officeworks, Priceline and Target. It also has a number of small healthcare businesses, the chemicals, energy and fertiliser (WesCEF) segment and industrial and safety businesses.

It’s very diversified, with exposure to a number of different sectors and I think this gives the business pleasing growth avenues.

The quality of Bunnings and Kmart has been clearly demonstrated over the last six years, with growing earnings and expansion of product ranges. Kmart’s Anko products are now being sold in significant quantities in North America and the Philippines.

FY25 was a perfect example of the company’s ability to grow earnings and the dividend, despite the difficult trading conditions. Underlying earnings per share (EPS) grew by 3.7% and the full-year dividend grew by 4% to $2.06 per share. That’s a grossed-up dividend yield of 3.6%, including franking credits, at the time of writing.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a leading business in the funds management space.

The ASX share owns a minority stake in a number of fund managers including Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah Capital, Aikya, Five V, Life Cycle and Pacific Asset Management.

It offers those fund managers a number of services including compliance, finance, legal, fund administration, distribution and client services, technology, seed funds under management and working capital.

Pinnacle grew its FY25 EPS by 37% to 62.4 cents, the FUM rose 63% to $179.4 billion and the dividend per share was hiked by 43% to 42 cents. Excitingly, FUM grew by another 10% in the first quarter of FY26.

Ongoing FUM growth for the fund managers and new fund managers added into the portfolio could help drive earnings higher in the coming years. The FY25 payout translates into a grossed-up dividend yield of approximately 3.5%, including franking credits.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is a large healthcare business, with its earnings largely coming from pathology. It has a presence in a number of countries including Australia, New Zealand, the UK, the US, Germany and Switzerland.

The company’s revenue is benefiting from multiple tailwinds including ageing populations and growing populations in its core markets.

The business is expecting to grow its operating profit (EBITDA) by up to 13% year-over-year in FY26, with both organic growth and acquisitions helping the company’s financials.

On the dividend side of things, over the last 30 years, it has grown its payout almost every year, except for a couple of years where it was maintained in the early 2010s.

Excluding franking credits, its FY25 payout translates into a dividend yield of 4.8%.

The post 3 ASX shares that I rate as buys for both growth and dividends appeared first on The Motley Fool Australia.

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

Experts look at a wide range of S&P/ASX 200 Index (ASX: XJO) shares for opportunities. There’s one investment in particular that has attracted a lot of positive attention: Flight Centre Travel Group Ltd (ASX: FLT) shares.

The ASX travel share has consumer-focused and business-focused divisions. It’s currently rated as a buy by 13 different analysts, making it one of the most popular businesses among brokers right now.

Of course, being popular doesn’t necessarily mean it’s going to generate the biggest returns, but numerous buy ratings could be a positive sign. Let’s take a look at why Flight Centre shares look so positive.

Rising earnings expected for the ASX 200 share

One of the most important factors in sending a share price higher is rising earnings.

Flight Centre recently increased FY26’s underlying profit before tax (PBT) guidance by $10 million to a range of $315 million to $350 million, up from a range of $305 million to $340 million.

The broker UBS expects the ASX 200 share to generate $230 million of net profit in FY26. UBS expects Flight Centre to increase its net profit to $281 million in FY27, $330 million in FY28, $361 million in FY29 and $385 million in FY30.

If net profit does rise 67% between FY26 and FY30, it would be a great tailwind for shareholder returns.

UBS noted after seeing the FY26 first quarter that ongoing productivity initiatives in the corporate division is “driving efficiency improvements”, with a 7% rise of total transaction value (TTV) alongside a 5% reduction of the headcount.

In the leisure segment, the business is seeing some “greenshoots” emerging in US bookings from Australia. October was the first month of growth since the quarter of the three months to March 2025.

UBS is also expecting a recovery of Asia losses, with a more stable trading climate and ongoing cost reduction and productivity benefits.

Overall, UBS is seeing signs of improvement, combined with its cruise agency acquisition.

Acquisition

The ASX 200 travel share recently announced the acquisition of Iglu, with $200 million upfront and $54 million in performance-based targets. It’s the leading cruise agency in the UK.

This has diversified the leisure segment, both from increasing the northern hemisphere exposure and a bigger shift into the cruise subsegment (which now represents around $2 billion of total transaction value (TTV)).

The acquisition could boost earnings per share (EPS) by around 5% to 6% in FY27 and FY28, assuming the cruise division grows at 7% per annum.

While the negative shift in the outlook for Australian interest rates is a negative for leisure, new business wins for the corporate segment has arguably increased, according to UBS, and ongoing productivity initiatives “should continue to drive efficiency improvements”.

The acquisition is expected to deliver synergies for Flight Centre, including supplier leverage, procurement and operational efficiencies.

Low valuation

According to UBS, the ASX 200 share could generate $1.08 of EPS in FY26 and $1.37 in FY27.

That means the business is currently trading at 14x FY26’s estimated earnings and 11x FY27’s estimated earnings.

UBS currently has a price target of $16.45 on the ASX travel share, implying a possible rise of close to 10% within the next year.

The post Is this the best ASX 200 share to buy today? 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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.

Owning an investment property sounds great in theory. Regular rental income. Long-term capital growth. A tangible asset you can touch.

In reality, many landlords discover that property investing comes with far more stress — and physical cost — than expected. Maintenance issues never arrive at convenient times. Tenants move out. Interest rates rise. Insurance premiums climb. And a large chunk of “rental income” quietly disappears into repairs, rates, and ongoing upkeep.

The good news is that Australian investors don’t need to own a physical property to benefit from property investing. The ASX offers simpler, more diversified ways to gain exposure to real estate — without fixing taps, chasing rent, or answering late-night calls.

How property investing works on the ASX

Investing in property through the share market allows investors to gain exposure to real estate assets without owning or managing them directly.

Two common options are property-focused exchange traded funds (ETFs) and listed real estate investment trusts (REITs).

These vehicles typically own diversified portfolios of commercial property such as shopping centres, office buildings, industrial warehouses, healthcare facilities, and logistics hubs. Income is generated through rent paid by tenants, which is then distributed to investors.

Importantly, the day-to-day management, maintenance, and capital expenditure are handled by professional managers — not individual investors.

Property ETFs: diversification made easy

Property ETFs provide broad exposure to the real estate sector in a single investment.

For example, the Vanguard Australian Property Securities ETF (ASX: VAP), tracks a basket of Australian listed property companies and REITs. This gives investors exposure to dozens of property assets across multiple sectors, rather than relying on the fortunes of one residential property.

The appeal is simplicity. Investors can buy or sell units on the ASX, reinvest income automatically, and scale their exposure over time — all without dealing with tenants or maintenance.

Listed REITs: owning slices of quality property

Investors can also choose individual listed property companies.

One example is Goodman Group (ASX: GMG), which owns and develops industrial and logistics property globally. Its assets include data centres, warehouses and distribution centres that support e-commerce and global supply chains.

Another is Charter Hall Long WALE REIT (ASX: CLW). It stands out for broad exposure across the property market rather than relying on a single sector. Its portfolio spans everything from government-leased assets and data centres to service stations, hotels and pubs, grocery distribution hubs, food manufacturing sites, waste and recycling facilities, telecommunications exchanges, and large-format retail properties such as Bunnings.

These investments generate income from long-term leases and are required to distribute a large portion of their earnings to investors, making them popular with income-focused portfolios. The added level of diversification helps REITs smooth income streams and reduces reliance on any one tenant type or property segment.

The Foolish takeaway

Property investing does not have to involve physical ownership, leverage, or hands-on management.

ASX-listed property investments allow Australians to benefit from rental income and long-term property trends, while avoiding many of the hidden costs and stresses of being a landlord. They also offer greater diversification, liquidity, and flexibility than owning a single residential property.

The post Skip landlord stress with these ASX property shares appeared first on The Motley Fool Australia.

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

If you have $1,000 to invest in Australian stocks, but can’t decide where to put it, then read on!

That’s because listed below are two popular stocks that analysts rate highly and could be no-brainer buys right now.

Here’s what they are recommending to clients this month:

NextDC Ltd (ASX: NXT)

The first Australian stock that could be a no-brainer buy is NextDC. It develops and operates data centres that support cloud computing, enterprise IT, and increasingly, artificial intelligence workloads.

As more data is created, stored, and processed, demand for secure, high-performance data centre capacity continues to grow. You only need to look at its recent updates to see this. NextDC revealed that its pro forma contracted utilisation increased to 412MW during the first half of FY 2026. This is up 68% from 245MW at the end of June.

What makes NextDC compelling is that it is still in a build-out phase. Many of its facilities are yet to reach maturity, meaning earnings can grow as utilisation rises without a proportional increase in costs. Over time, this operating leverage could be powerful.

Morgans is bullish on the company’s outlook and has put a buy rating and $19.00 price target on its shares. Based on its current share price of $12.48, this suggests that upside of over 50% is possible between now and this time next year.

Pro Medicus Ltd (ASX: PME)

Another Australian stock that is highly rated is Pro Medicus. Through its Visage imaging platform, the company provides mission-critical software to hospitals and healthcare networks, particularly in the United States.

Once installed, the software becomes deeply embedded in clinical workflows, making it difficult and risky to replace.

It appears well-placed for growth over the long term given its global market opportunity and favourable industry trends. Medical imaging volumes continue to rise, datasets are becoming larger and more complex, radiologists are in short supply, and hospitals are under pressure to improve efficiency. Pro Medicus addresses all of these challenges with a capital-light, high-margin model.

It is partly for this reason that the team at Bell Potter is so bullish on Pro Medicus. The broker currently has a buy rating and $320.00 price target on its shares. Based on its current share price of $209.66, this also implies potential upside of over 50% for investors over the next 12 months.

The post 2 no-brainer Australian stocks to buy with $1,000 right now appeared first on The Motley Fool Australia.

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

This ASX dividend share might be hard to ignore for Income investors, but it comes with material risk attached.

Toll-road operator Atlas Arteria Ltd (ASX: ALX) is trading near its 52-week low at $4.87, pushing its forecast dividend yield above 8.2%. As a result, the $7 billion company sits comfortably in the top tier of Aussie dividend payers.

On the surface, the ASX 200 dividend share looks like a classic cheap and cheerful income play. Dig a little deeper, though, and the shine starts to dull.

Dividend with a warning

In a market where reliable income is getting harder to find, that sort of yield can make even cautious investors start doing mental maths. But as always, the real story isn’t the size of the dividend, it’s whether it can last.

First, that headline yield comes with a warning label. The ASX dividend share is paying out more in dividends than it generates in reported earnings. That’s not automatically fatal – infrastructure stocks often smooth income over time – but it does raise eyebrows.

When payouts consistently outstrip profits, the margin for error shrinks fast. Investors may be enjoying generous cheques today, but they’re doing so without a thick earnings cushion underneath.

Wobbling cash flows

Then there’s the business of the ASX dividend share itself. Atlas Arteria owns toll roads across France, Germany and the United States. These are assets that are long-life, inflation-linked and generally predictable. But predictable doesn’t mean immune.

Traffic volumes, interest rates, inflation and political decisions all feed into earnings. In calm conditions, toll roads hum along nicely. In rougher macro environments, cash flows can wobble and dividends are often the first thing analysts put under the microscope.

Finally, the share price tells its own story. Atlas Arteria hovering close to a year low suggests the market is either baking in higher risk or rotating away from yield-heavy stocks altogether. Sometimes that creates opportunity. Other times, it’s a quiet warning that investors should tread carefully.

So where does that leave income seekers?

If you’re a yield chaser with a strong stomach and a long-term view on toll-road resilience, this ASX dividend share might look interesting at these levels. But if you prioritise dependable, well-covered income over eye-catching yields, this could be a case of spectacle over substance.

The analysts‘ view on Atlas Arteria is also mixed, with most of them seeing the toll-operator as a hold. The average 12-month price target is set at $5.26, which suggests an 8% upside.

The most optimistic broker predicts a potential plus of 21%, while the most pessimistic one sees a possible loss of 3%.

The post This high-yield ASX dividend stock is near its 52-week low – is it a buy? 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 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.

Droneshield Ltd (ASX: DRO) was the best performer on the S&P/ASX 200 Index (ASX: XJO) and one of the fastest-growing stocks on the planet in 2025.

The counter drone technology company’s shares opened at 76 cents per share on the 3rd of January 2025 and closed for the year at $3.08 a piece 12 months later on the 31st of December. That’s an enormous 305.26% increase in just 12 months.

That means that $10,000 invested at the start of the year would have exploded to over $40,000 by the end of 2025.

For context, the ASX 200 Index increased a healthy 6.16% over the same period. 

So, what’s next?

The ASX 200 share price will keep climbing higher

After a couple of setbacks this year, it looks like Droneshield‘s share price has hit the bottom and will keep climbing higher in 2026.

Droneshield shares closed 1.3% higher on Tuesday afternoon, at $3.90 a piece. The latest increase means the shares have already climbed an impressive 26.62% so far in 2026.

We’re still a long way from the $6.36 all-time peak seen last October, but I’m confident that the company’s growth strategy this year will put Droneshield shares back on track this year.

Analysts are incredibly bullish that there is plenty more upside ahead for the ASX 200 company’s shares in 2026, too.

TradingView data shows that analysts consensus is a strong buy rating on the stock. The maximum target price is $5.00, which implies another 28.21% upside for the shares this year, at the time of writing.

Bell Potter has a buy rating on this ASX All Ords share with a 12-month price target of $4.50. The broker said that it expects 2026 will be an inflection point for the global counter-drone industry with countries poised to spend more on their defence.

The business will benefit from an explosion of demand

Droneshield has a strong growth strategy ahead for 2026. It plans to scale its manufacturing capacity, expand its global footprint and continue converting its huge sales pipeline into secured contracts. The company is early on in its growth cycle too, which means there is a great upside if its customer base and technology keeps growing at the current rate.

The growth strategy should be an easy feat for the counter-drone business, especially against the backdrop of continued geopolitical uncertainty.

Late last week, defence stocks enjoyed an uptick in their share prices after US President Donald Trump said that he’d like to see a massive increase in defence spending. He said that the 2027 US defence budget should be US$1.5 trillion, well above the US$901 million so far approved. President Trump’s comments come off the back of the latest US-Venezuela situation. Investors think recent developments will translate to higher demand for counter drone solutions.

DroneShield has significant business in the US. In December, DroneShield announced an new $8.2 million contract from an in-country reseller for delivery to a western military end-customer. It also announced a new $49.6 million contract with a European reseller that is contractually required to distribute the products to a European military end-customer.

As global tensions continue rising, I can only see demand for AI-operated drone technology to continue to increase this year. Perhaps Droneshield will be the best-performing stock of 2026 too?

The post What’s next for the best-performing ASX 200 stock of 2025? 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 DroneShield. 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.