Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares are on the move on Tuesday.

In morning trade, the ASX 200 stock is up 9% to $30.07.

This follows the release of the medical device company’s FY 2026 results before the market open.

ASX 200 stock jumps on results day

For the 12 months ended 31 March, Fisher & Paykel Healthcare reported a 14% increase in total operating revenue to NZ$2.31 billion.

A key driver of this was its Hospital Products segment, which includes products used in respiratory, acute and surgical care. This side of the business reported revenue of NZ$1.51 billion, which is up 18% on the prior corresponding period. Sales of hospital consumables were up 16% over the prior financial year.

Commenting on the performance of its Hospital Products segment, the company’s managing director and CEO, Lewis Gradon, said:

Our Hospital business performed strongly across the portfolio of therapies globally. We were especially encouraged by consumables growth, given it occurred during a period in which hospital admissions for seasonal respiratory illnesses in the United States and other major markets appeared to be subdued compared to the previous year. This suggests that changing clinical practice continues to be a strong growth driver.

The ASX 200 stock’s Homecare Products segment, which includes products used in the treatment of obstructive sleep apnoea (OSA) and respiratory support in the home, delivered revenue of NZ$802.7 million. This was an 8% increase over the prior corresponding period. OSA masks revenue was up 7% for the full year.

Gradon commented:

Our latest mask ranges, the F&P Solo and F&P Nova, continued to drive OSA mask growth. Our newest offering, the F&P Nova Nasal, was launched in the United States this past January to a positive reception.

Fisher & Paykel Healthcare revealed that its gross margin improved to 63.7% during the year. This is an increase of 80 basis points or 122 basis points in constant currency. Management advised that this reflects the ongoing progress of its continuous improvement initiatives. It also includes the approximately 90-basis-point impact in constant currency of US tariffs on hospital products sourced from New Zealand.

This ultimately led to the ASX 200 stock delivering a 24% increase in net profit after tax to NZ$469.5 million for FY 2026.

Outlook

Management is expecting further growth in FY 2027.

It has provided guidance of FY 2027 operating revenue in the range of approximately NZ$2.45 billion to NZ$2.57 billion, and net profit after tax of NZ$500 million to NZ$550 million. This represents annual growth of 6% to 11% and 4.3% to 14.7%, respectively.

It notes that this guidance includes an estimated 50-basis point net impact to its gross margin from US tariffs and the Middle East conflict.

Commenting on its outlook, Gradon said:

The growth we have achieved is uncommon, and we do not take it for granted. The key now is to sustain that momentum – continuing to innovate, improve and work closely with our customers to create lasting value.

Our products and therapies supported the care of around 24 million patients last year. This impact reflects the efforts of many thousands of people working toward a common purpose of improving outcomes. We want to acknowledge the people of Fisher & Paykel Healthcare for their commitment, and we also want to thank our clinical partners, customers, suppliers and shareholders.

The post Guess which ASX 200 stock is jumping 9% on FY26 results appeared first on The Motley Fool Australia.

More reading

• Are these 4 ASX All Ords stocks a buy after rebounding from 52-week lows?
• This ASX 200 healthcare stock has crashed to a multi-year low: Here’s why and what’s next
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• These 4 ASX 200 shares have slumped to fresh 52-week lows: Buy, sell or hold?

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.

Retirement planning has a way of feeling more precise than it really is.

There are averages. There are benchmarks. There are calculators. There are projections that stretch neatly across 20, 30, or even 40 years.

But real life is rarely that clean.

Markets fall. Inflation bites. Healthcare costs rise. Plans change. Adult children may need support. A home may need repairs. A dream retirement may cost more than expected.

That is why the question is not simply whether Australians have enough superannuation to retire comfortably.

The better question may be: Have they built enough margin of safety?

The average balance may not be enough

According to figures cited by the Association of Superannuation Funds of Australia (ASFA), the average superannuation balance for Australians aged 55 to 59 is $319,743 for men and $242,945 for women.

That is a meaningful amount of money.

However, it is not obviously enough to fund a comfortable retirement by itself.

ASFA estimates that a comfortable retirement requires around $54,840 per year for a single person and roughly $77,375 per year for a couple. Its suggested lump sum is about $630,000 for singles and $730,000 for couples, assuming home ownership and some Age Pension support later in retirement.

On those numbers, many Australians in their mid-to-late 50s may still have a sizeable gap.

And that is before adding a buffer.

Why a margin of safety matters

In investing, a margin of safety means allowing room for things to go wrong.

That same idea applies to retirement.

A person who reaches retirement with just enough may be vulnerable if the numbers shift against them. A person who retires with more than enough has options.

That margin can matter in three big ways.

The first is investment returns. A retirement plan based on strong returns may look fine on paper. But returns do not arrive in a straight line. A poor run of markets early in retirement can have a major impact if retirees are drawing from their portfolio at the same time.

The second is inflation. Even modest inflation can steadily reduce purchasing power over time. A retirement income that feels comfortable today may feel tighter 10 years from now if living costs rise faster than expected.

The third is behaviour. When people feel behind, they can disengage. That may mean ignoring super, leaving money in unsuitable investments, or failing to use available contribution rules before retirement.

None of that is ideal.

The late 50s can still be powerful

The optimistic part is that 55 is not necessarily too late.

For many Australians, the decade from 55 to 65 could be one of the most important wealth-building periods of their lives.

Income may still be strong. The mortgage may be smaller. Children may be more independent. And the super balance may finally be large enough for investment returns to make a meaningful difference in dollar terms.

That is why this period should not only be viewed as the final lap before retirement. It may be the decade where the retirement outcome is most improved.

Continued employer contributions can help. Salary sacrifice may help some Australians boost their super in a tax-effective way. Catch-up concessional contributions may also be available for some people with total super balances below the relevant threshold.

For eligible homeowners, downsizer contributions may also become part of the picture later in life. That can potentially allow proceeds from selling a family home to be contributed into super, subject to the rules.

Investing well matters

One of the biggest risks may be becoming too conservative too early.

At 55, many Australians could still have a decade or more before retirement, and potentially 25 to 35 years of life after that. That is still a long investment horizon.

Cash and defensive assets have a role. But if returns fail to keep pace with inflation over long periods, the real value of retirement savings can fall behind.

That does not mean taking reckless risks. It means understanding what the superannuation balance is invested in, whether the asset allocation suits the timeframe, and whether the portfolio has enough growth potential to support a long retirement.

Foolish takeaway

Retiring comfortably is not just about reaching a number.

It is about building enough flexibility to handle the things that do not appear neatly in a spreadsheet.

The average superannuation balance of a 55-year-old may not be enough to retire comfortably today. But for many Australians, the window is not closed.

The next decade could still provide time to contribute more, invest thoughtfully, review strategy, and build a stronger buffer.

In retirement, “just enough” can be fragile.

A margin of safety may be what turns retirement from a financial balancing act into something closer to genuine peace of mind.

The post Why your superannuation may need a bigger buffer in 2026 appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Fortescue shares 12 months ago is now worth…
• Down 32% this year, why are Flight Centre shares sinking again today?
• Why are Goodman shares tumbling 5% today?
• Guess which ASX 200 stock is jumping 9% on FY26 results
• This ASX 300 share trades at 6x FY27 earnings and has 70% upside: Broker

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 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.

If you are on the hunt for undervalued ASX 300 shares, then Bell Potter thinks it has found one.

Let’s see what the broker is recommending to its clients.

Which ASX 300 share?

The share that Bell Potter thinks is dirt cheap is energy exploration and development company Amplitude Energy Ltd (ASX: AEL).

It highlights that the ASX energy share has just signed a deal to acquire 50% of the Artisan discovery from ASX 200 energy producer Beach Energy Ltd (ASX: BPT). It appears to see this as a good transaction for the company, de-risking the East Coast Supply Project (ECSP). It said:

AEL will acquire 50% of the Artisan discovery (62PJ gross 2C Contingent Resource, VIC/L35 Production Licence granted) from Beach Energy (BPT, Hold, TP$1.15/sh) for $58m in upfront cash consideration plus a $3.75/GJ royalty. The acquisition is fully funded from existing cash and available debt. O.G. Energy will lift its 40% stake in Artisan to 50% on the same terms, aligning interests; OGE is JV partner in AEL’s existing Otway Basin assets.

Artisan derisks the ECSP through adding scale and blending opportunities to the existing Annie discovery (65PJ gross 2C Contingent Resource) and less reliance on exploration success (at Juliet and Nestor). Artisan more than doubles ECSP gas reserves, enabling 60TJ/day gross production over an initial 5-year period. Artisan gas with low inerts (less than 2%) can blend Annie gas (7.6% inerts) to within pipeline specifications without material processing capex.

Potentially undervalued

Based on Bell Potter’s current earnings estimates, Amplitude Energy’s shares are trading at just 6.4x FY 2027 earnings.

It sees this as undervaluing its shares and has put a buy rating and $2.90 price target on them. Based on its current share price, this implies potential upside of approximately 70% for investors over the next 12 months.

Commenting on its investment thesis for the ASX 300 share, Bell Potter said:

Debottlenecking at Orbost should incrementally lift near-term production. AEL’s realised prices should incrementally lift as new Gas Sales Agreements are signed. Spot gas prices in peak seasons provide some upside. AEL’s ESCP is fully funded and should lift group production from 2028, with the development of two existing discoveries and at least one relatively low-risk exploration prospect. The ESCP utilises latent capacity in existing pipeline and processing infrastructure.

The post This ASX 300 share trades at 6x FY27 earnings and has 70% upside: Broker appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 energy stock just announced a major Beach Energy gas acquisition
• This beaten-down ASX 200 energy share is slipping despite a major update
• Top 10 ASX shares bought and sold in April

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.

After a sharp sell-off across the ASX real estate sector in 2026, investor attention has begun to shift toward the possibility of opportunity emerging from the downturn. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) is down over 10% year to date. 

Real estate investment trusts (REITs) and property-linked stocks have been heavily affected by higher interest rates, tighter credit conditions, and reduced property valuations, leading to significant share price declines. 

However, for long-term investors, these periods of weakness can also signal potential value, particularly in high-quality assets with strong rental income and solid balance sheets. 

Why invest in REITs

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

These companies can focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Many investors see REITs as a way to gain exposure to property markets without directly buying physical real estate, while receiving regular income and potential long-term capital growth.

A new report from Bell Potter has identified several REITs with long-term upside. 

Here are three options that received buy recommendations from the broker. 

Goodman Group (ASX: GMG)

Goodman Group is an integrated property group with operations in 14 countries. It specialises in industrial and commercial properties, owning, developing, and managing a global portfolio worth around $80 billion.

After falling significantly to start the year, it has been on a steady recovery. 

Bell Potter currently has a buy recommendation and $36.45 price target on the real estate stock. 

This indicates an upside potential of more than 18%. 

It has been receiving plenty of positive attention from other brokers too. 

Morgan Stanley put an overweight rating and $36.15 price target on this property company’s shares last week. 

Aspen Group Ltd (ASX: APZ)

Aspen Group engages in property investment and development. 

Its share price has dipped more than 12% year to date, however Bell Potter also sees upside for this real estate stock. 

In its weekly REIT report, the broker placed a buy recommendation and $6.50 price target on the company. 

From yesterday’s closing price of $4.80, this indicates an upside potential of 35%. 

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods is an Australian property development company. Its principal interests are in urban land subdivisions and built-form development for residential, commercial, and retail purposes.

Its share price has fallen 20% year to date, but is also tipped to recover. 

Bell Potter currently has a buy recommendation and $9.65 price target on this real estate stock. 

From current levels, this implies a 40% upside. 

It’s worth noting the company also offers an attractive dividend yield projected to be over 5% in the future. 

The post Why these ASX real estate stocks could be sleeping giants appeared first on The Motley Fool Australia.

More reading

• Why are Goodman shares tumbling 5% today?
• Goodman Group reports $87.1 billion portfolio value as data centre demand grows
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX growth shares that could be long-term winners
• 2 high-quality ASX 200 shares experts rate as buys

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

Looking for big potential returns and have a high tolerance for risk? If you answered yes, then it could be worth getting acquainted with the ASX tech share in this article.

That’s because if the team at Bell Potter is on the money with its recommendation, this tech stock could be destined to deliver big returns over the next 12 months.

Which ASX tech share?

The share that has caught the attention of Bell Potter is Alcidion Group Ltd (ASX: ALC).

It is a commercial healthcare IT company with a cloud-native, modular software platform aimed at improving efficiency in hospitals, supporting interoperability, allowing for improved communication and task management, and delivering critical clinical decision support at the point of care to improve patient outcomes.

Bell Potter notes that the company has signed a major seven-year contract with UHSussex. It said:

ALC have confirmed the signing of the previously announced EPR contract with UHSussex. Financial details are largely in line with guidance from the Jan 2026 announcement when ALC was confirmed as the preferred supplier.

Key details are: (1) ~$35m total contract value (TCV) over initial 7-year period; (2) Includes rights to extend term from 7 to 10 years, which would add $14m TCV (i.e. totalling $49m over 10 years); (3) Includes option to add further modules, which would further increase TCV; (4) $8.5m revenue of the ~$35m TCV will be recognised within FY26 (an upfront capital license fee and part of the implementation fees); and (5) Implementation will take ~18 months in total with initial go live targeted for June 2027.

The broker believes that this positions the ASX tech share to deliver on its earnings guidance for FY 2026. It adds:

UHSussex is the third UK customer to adopt ALC’s EPR offering, providing further credibility and ‘referenceability’ in the UK for future competitive tenders. The $8.5m upfront/implementation component increases FY26e contracted revenue to $52.3m based on the prior Q3 FY26 update and provides increased confidence the EBITDA guidance of >$5.0m will be achieved.

Big potential returns

According to the note, Bell Potter has retained its buy rating and 16 cents price target on the ASX tech share.

Based on its current share price of 11 cents, this implies potential upside of 45% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The changes to FY26 forecasts have negligible impact on valuation outputs, hence our $0.16 PT and Buy recommendation remain unchanged. Upcoming catalysts are most likely to come from any new additional contracts announced over the coming months, whether in the usual quarterly updates or out of cycle.

The post Why this growing ASX tech share could have 45% upside appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this small-cap ASX share could rise 50%
• This ASX healthcare stock could be set to rise 50%

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

There are many strategies and themes that can guide an investor. One area that investors may have considered this year is defensive shares. 

Investors may choose to invest in ASX defensive stocks during periods of global uncertainty because these companies tend to generate more stable earnings and dividends even when economic conditions weaken. 

Why investors are targeting defensive shares in 2026

The current conflict involving Iran has increased concerns about disruptions to global oil supplies, which has pushed energy prices higher and contributed to renewed inflation fears. 

Higher inflation can lead central banks to maintain or increase interest rates, which we have already seen in 2026. 

This can place pressure on growth-oriented sectors such as technology and consumer discretionary stocks. 

In contrast, defensive sectors on the ASX – including utilities, healthcare, consumer staples, and telecommunications – often perform more steadily. 

This is because demand for their products and services remains relatively consistent regardless of economic conditions. 

As geopolitical tensions and rising oil prices continue to create market volatility, many investors view defensive stocks as a safer option for preserving capital and generating reliable income in an uncertain environment.

While these economic conditions seem to point towards a case for defensive options, some well-known defensive shares are receiving mixed views from experts. 

Here’s the latest guidance on three defensive options. 

Suncorp Group Ltd (ASX: SUN)

Suncorp shares are considered defensive because insurance demand tends to remain steady even in weaker economic conditions.

However this hasn’t translated to growth in 2026 for Suncorp shares. 

Its share price is down 2.4% in 2026 compared to a flat performance from the S&P/ASX 200 Index (ASX: XJO). 

Based on recent estimates from brokers, it is hovering around fair value. 

These defensive shares closed last week at $17.37 each, right around Morgan’s recent target of $17.79. 

Woolworths Group Ltd (ASX: WOW)

Woolworths dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions. 

This has led to an 18% rise in share price year to date for Woolworths shares. 

The team at JP Morgan still sees modest upside in the short term for these defensive shares, recently placing a $37 price target on the company. 

From yesterday’s closing price of $34.75 this indicates an upside of roughly 6%. 

Transurban Group (ASX: TCL)

Transurban is one of the world’s largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

The company develops, operates, maintains and finances toll-road networks. 

This places the company firmly in the defensive theme as revenue is supported by long-term transport infrastructure usage.

It has risen a modest 2% in 2026, however much of its value lies in its consistent dividend payments.

Recent price targets from experts are hovering around $16.10, indicating a modest capital growth potential from the current price of $14.49. 

Foolish takeaway

Defensive shares on the ASX may not deliver the same high-growth returns as more cyclical or speculative stocks.

However they can play an important role in preserving capital.

In periods of volatility these stocks tend to be more resilient, meaning they are more likely to hold their value and provide steady dividends even when broader markets decline.

The post Should investors still be thinking defensive in today’s market? appeared first on The Motley Fool Australia.

More reading

• ASX 200 consumer staples shares outperformed again last week
• How to turn $500 a month into $500,000 with ASX shares
• How to build a $52,000 annual passive income
• This ASX 200 dividend share could be a quiet winner for the next decade
• Buying Woolworths shares? Here’s the yield you’ll get today

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

The Australian Age Pension is one of the most generous in the world, but I’d rather rely on quality high-yield ASX dividend stocks.

I like the idea of owning businesses that are able to offer a pleasing level of passive income and payout growth over time.

APA Group (ASX: APA) is one of the ASX dividend stocks I’d happily rely on, but not the only one. I think it’s important to have a diversified portfolio when it comes to dividends.

There are a few reasons why APA is an appealing option.

Defensive earnings

If I’m relying on an ASX dividend stock to continue paying passive income across all economic conditions, I’d want to choose a business with resilient earnings, since that’s what funds the passive income.

ASX bank shares and ASX mining shares can see their profits materially drop when an economic cycle or resource cycle goes through a low point, which we’ve seen this decade.

APA’s business model is about owning energy assets, including a large gas pipeline network, gas processing and storage facilities, gas-powered energy generation, solar power, wind power, energy storage and electricity transmission.

Energy is always in demand and APA plays a key part in that for Australia’s economy. APA actually transports half of Australia’s gas usage. Additionally, most of its revenue is linked to inflation, so it’s able to act somewhat as a long-term hedge against inflation.

High-yield ASX dividend stock

One of the more appealing aspects of APA is the pleasing level of passive income it provides straight away.

It expects to pay a distribution of 58 cents per security for FY26, which translates into a forward distribution yield of approximately 5.6%, at the time of writing. In my view, that’s competitive with the very best savings accounts right now, with payout growth potential.

Rising payout

APA has an excellent record of consistent distribution growth. For me, this is one of the absolute key reasons I prefer the ASX dividend stock compared to the Age Pension.

The business has increased its annual payout every year since 2024 – more than two decades of continuous passive income growth.

I’m not expecting huge payout growth in the shorter-term, but APA’s steady progression is a real positive for income-focused investors.

How many APA shares would it take to match the Age Pension?

Currently, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive that much from APA, an investor would need 53,794 shares based on the FY26 payout, though I’m expecting the FY27 payout to be a bit larger, so fewer shares would be needed for the next financial year.

I’d suggest having more than just one high-yield ASX dividend stock in a portfolio, but APA would certainly be an effective inclusion, in my opinion.

The post 53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares keep giving investors a pay rise
• 2 rock-solid ASX dividend shares to buy this May
• How to build a $52,000 annual passive income
• Passive income investors: These 3 ASX dividend shares yield 5% (or more)
• These ASX dividend shares could power your retirement income

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

ASX dividend stocks are a great way for savvy Australian investors to earn a regular passive income. 

And thanks to sharemarket volatility so far in 2026, several good-quality dividend stocks are now offering shareholders a very attractive dividend yield.

While chasing the highest yield ASX stock isn’t always the best strategy, there are some reliable earners out there. 

The goal should be to find a financially sound dividend-paying business that pays a reliable dividend at a good rate.

Here’s one that has caught my attention recently.

My high-yield ASX dividend stock of choice

IPH Ltd (ASX: IPH) is an international intellectual property (IP) services group. Essentially, the business acts as a holding company for a network of IP firms. Its major subsidiaries include global IP brands AJ Park, Griffith Hack, Pizzeys, Smart & Biggar, and Spruson & Ferguson, as well as IP business Applied Marks.

These subsidiaries protect, commercialise, enforce, and manage clients’ IP rights worldwide. IPH services cover everything from patent filing and trademarks to prosecution, portfolio management, and enforcement. 

The group covers 10 jurisdictions across 25 countries, including Australia, New Zealand, Southeast Asia, and the US, making it the largest IP services provider in the Asia-Pacific region. This means that a significant share of its revenue comes from the Asia-Pacific market.

Not only is the company huge and sprawling, but it also has a long history of generating consistently strong cash flow from its operations. 

IPH posted its first-half FY26 results in mid-February, revealing a 6.5% increase in revenue compared with the prior corresponding period.

Its underlying EBITDA rose 6.6%, and its statutory NPAT climbed 10.5%. IPH also announced a 101% cash conversion. 

The company’s strong financials and robust cash flow mean it is able to position itself as a reliable dividend payer. And one that can gradually increase its dividend payment over time, too.

What dividend yield does it pay its shareholders?

IPH has historically paid two partially or fully franked dividends each year, in March and September. 

Its latest payment, in March this year, was an interim dividend of 19 cents per share, up 11.8% on the prior period. The dividend was 20% franked and represented an 81% payout of cash-adjusted NPAT.

The consensus estimate is that IPH will pay a fully-franked 37.6 cents per share dividend for FY26. Based on the share price of $3.86 at the time of writing, this equates to a dividend yield just under 10%, excluding franking credits. 

It also means that $1,000 invested in IPH shares will buy you 259 shares in the high-yield ASX dividend stock, at the time of writing.

What’s next for the IPH share price?

Analysts are mostly bullish about the outlook for the ASX dividend stock over the next 12 months.

According to TradingView data, the majority (5 out of 7) have a buy or strong buy rating on the stock.

The average $4.79 target price implies a 24% upside at the time of writing. Meanwhile, the $6 maximum target price implies a potential 55% price surge for the shares over the next 12 months. 

The post $1,000 buys 259 shares in this high-yield ASX dividend stock appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy for 5% to 10% yields
• 3 high-yield ASX dividend shares paying 9% (or more)
• 3 ASX dividend shares to buy with 5%+ yields

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

When a company agrees to a takeover at a fixed price, you might expect its shares to trade at exactly that price.

In practice, they almost never do.

Qube Holdings Ltd (ASX: QUB) is a textbook example of this phenomenon right now.

Macquarie Asset Management has made a binding offer of $5.20 per share for Qube, valuing Australia’s largest integrated logistics provider at approximately $11.7 billion.

Yet today, Qube shares trade at approximately $5.02, a discount of around 3.5% to the offer price.

That gap is the price investors pay for the uncertainty that surrounds any takeover before it formally completes.

What is merger arbitrage?

The strategy of buying shares in a takeover target below the offer price and waiting to receive the full consideration at completion is known as merger arbitrage.

It is a well-established investment approach used by professional fund managers and sophisticated investors around the world.

The return profile is asymmetric.

If the deal completes as planned, investors who bought Qube at $5.02 today will receive $5.20 per share, delivering a return of approximately 3.5%.

If the deal collapses for any reason, the share price will likely fall sharply back toward its pre-offer level of $4.07, delivering a loss of approximately 19% from today’s price.

That asymmetry is the reason the discount exists.

The market is pricing in a small but material probability that the deal does not proceed.

Why does the discount exist?

Several factors explain why Qube trades below the $5.20 offer price despite the board’s unanimous recommendation and the deal being fully funded with no financing condition.

The first is regulatory risk.

The deal requires approval from the Australian Competition and Consumer Commission, the Supreme Court of New South Wales, and the Foreign Investment Review Board.

While none of these approvals is expected to be a major hurdle given Macquarie’s long track record of completing similar transactions, the process takes time and carries a non-zero risk of complication.

The second is shareholder vote risk.

Qube’s shareholders must vote to approve the scheme at a meeting expected around June 2026.

The deal requires approval from 75% of votes cast, excluding UniSuper, which is rolling its stake into the new structure.

While the board’s unanimous recommendation makes approval highly likely, it is not guaranteed.

The third is the time value of money.

Even if the deal completes exactly as planned by December 2026, investors tying up capital for six to seven months at a 3.5% return are earning a modest annualised return.

The shareholder vote is expected in June 2026, which annualises the 3.5% gain to approximately 10%.

This is a more attractive number, though investors should note that annualised figures assume a clean and timely completion.

The franking credit kicker

One detail that makes the Qube situation particularly interesting for Australian investors is the dividend component.

Qube is permitted to pay up to $0.40 per share in dividends before and immediately after the deal closes, which will be deducted from the $5.20 cash consideration.

The first instalment, a regular fully-franked interim dividend of $0.0535 per share, was already paid on 9 April 2026 and has been deducted from the offer price accordingly.

The more interesting component is a potential special fully-franked dividend that Qube’s board intends to declare following scheme effectiveness, a structure made possible by a special ASX waiver granted on 22 April 2026.

For eligible Australian taxpayers who can utilise franking credits in full, those credits are worth approximately $0.17 per share for every $0.40 in dividends paid, effectively pushing the total economic return above the headline $5.20 figure.

Furthermore, if the deal extends past December 2026, Macquarie has agreed to pay a ticking fee of two cents per share per month, compensating investors for any delay and ensuring the annualised return does not deteriorate if the timeline slips.

The risks worth knowing

Merger arbitrage is not risk-free, and investors should approach it with clear eyes.

The biggest risk in the Qube situation is not regulatory or shareholder approval but rather a material adverse change to the business.

The deal contains a standard material adverse change clause, meaning Macquarie could walk away if Qube’s business deteriorates significantly before completion.

Qube has already flagged a $10 to $20 million EBITA impact from Middle East conflict disruptions and a further $3 to $5 million from weather events in its most recent trading update, though management maintained its expectation of full-year earnings growth.

Whether those impacts rise to the level of a material adverse change is a judgement call, but on current evidence, they appear well within normal business variation.

Foolish Takeaway

Qube Holdings trading at a 3.5% discount to its takeover price is not an oversight by the market.

It reflects real, if modest, uncertainty about whether a deal that looks highly likely to proceed will actually do so on the expected timeline.

For investors who understand merger arbitrage and are comfortable with the asymmetric risk profile, the current gap between Qube’s share price and the $5.20 offer price could represent an interesting low-risk return opportunity, particularly when the franking credit kicker and ticking fee protections are factored in.

For those who are not, simply understanding why the discount exists is a valuable lesson in how financial markets price risk.

The post Qube Holdings is trading below its takeover price. Here is what investors need to know appeared first on The Motley Fool Australia.

More reading

• 53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• $1,000 buys 259 shares in this high-yield ASX dividend stock
• Goodman Group reports $87.1 billion portfolio value as data centre demand grows
• Greatland Resources secures Havieron approvals, eyes next steps
• The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom

Motley Fool contributor Mark Verhoeven 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 Goodman Group (ASX: GMG) share price is in focus after the company reported a total portfolio value of $87.1 billion and work in progress across development projects of $14.5 billion as at 31 March 2026.

What did Goodman Group report?

• Total portfolio value: $87.1 billion
• Development work in progress (WIP): $14.5 billion
• Annual like-for-like net property income growth: 4.1% (6.1% excluding Greater China)
• Portfolio occupancy: 95.7% (97% excluding Greater China)
• Yield on cost for current WIP: 8.0%
• 3.3 million square metres leased over the past 12 months, generating $491 million in annual rental income

What else do investors need to know?

Goodman is positioned at the centre of the global digital economy, with a development pipeline focused on infrastructure-scale industrial properties and data centres in major cities worldwide. AI adoption is driving increased demand for data centres in metropolitan locations, but supply remains constrained by energy availability and grid capacity.

The company’s global power bank for data centres now totals 6.4 gigawatts, with 3.6GW secured and further expansion underway. The majority of current developments (73% of WIP) are dedicated to data centre assets, responding to strong customer demand across multiple regions and with a focus on flexibility and urban locations.

What’s next for Goodman Group?

Goodman expects its work in progress to reach roughly $18 billion by June 2026, with ongoing focus on securing power and advancing its capital partnerships. The board has approved a target of 9% operating earnings per security (EPS) growth for FY26, and management reports the group is on track to deliver at least this level.

Looking ahead, Goodman plans to redeploy capital into large-scale sites to capture the growth in AI, automation, and urban logistics. Securing additional power and progressing customer commitments in the data centre segment remain a strategic priority.

Goodman Group share price snapshot

Over the past 12 months, Goodman Group shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Goodman Group reports $87.1 billion portfolio value as data centre demand grows appeared first on The Motley Fool Australia.

More reading

• Greatland Resources secures Havieron approvals, eyes next steps
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX growth shares that could be long-term winners
• Here are the top 10 ASX 200 shares today
• ASX 200 hits 2-week high as miners lead the charge

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 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 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.