BHP shares are pulling back from a record high, and after the year shareholders have enjoyed, a breather was probably overdue.

BHP Group Ltd (ASX: BHP) closed on Monday at $66.23, down from an all-time high of $68.77 last week.

That still leaves Australia’s largest listed company up roughly 44% in 2026 and close to 56% over the past twelve months.

With such strong results, is there space left for BHP shares to go further?

How the FY26 results impacted BHP shares

BHP handed down its full-year result in late August, and the numbers are behind much of the recent share price strength.

Attributable profit came in at US$9.8 billion, up 9% on the prior year. Revenue rose 15% to US$58.8 billion.

Underlying earnings before interest, tax, depreciation and amortisation landed at roughly US$33 billion, while net debt finished the year below US$9 billion.

The results become interesting when we look at the split between BHP’s divisions.

Copper contributed US$18.2 billion of underlying EBITDA, a 48% increase, and accounted for 54% of group earnings.

That is the first time copper has out-earned iron ore across a full financial year.

BHP produced around 2 million tonnes of copper for a second consecutive year, and it is now targeting roughly 40% production growth by FY35 through projects in Australia, Chile and Argentina.

Why brokers are cautious on BHP shares

Here is the awkward part.

The share price has run well past where most analysts think it should sit.

Consensus data puts the average twelve-month target at $58.68 across 14 analysts, roughly 10% below the current price.

There is one buy rating, twelve holds and a single sell.

Morgan Stanley is the most positive at $67.50, while Morgans sits at $55.30 and Deutsche Bank at $51.

Not everyone is bearish.

Morgans analyst Damien Nguyen still sees a clear case for owning the miner:

BHP offers exposure to a portfolio of high quality mining assets and remains well positioned to benefit from long term demand for copper and other critical minerals.

The stock trades on a price-to-earnings ratio of a little over 24, which is expensive by its own historical standards.

The dividend, and the September question

Income investors have a decision to make this week.

BHP declared a final fully franked dividend of 99 US cents per share, or about A$1.392.

The shares trade ex-dividend on Thursday 3 September, with payment due on 23 September.

Together with the interim payment, that takes FY26 distributions to $2.431 per share and the fully franked yield to about 3.7%.

There is also a seasonal wrinkle worth knowing about.

September has historically been the weakest month of the year for the Australian market, with the S&P/ASX 200 Index (ASX: XJO) averaging a 0.94% decline since 1992 and finishing higher only 32% of the time.

Foolish takeaway

I would not chase BHP shares at this level, but I would be equally reluctant to sell them.

The valuation is full, the broker targets sit below the share price, and this month being September could be a bad omen.

Against that, the copper transition is BHP’s next growth lever, the balance sheet is in good shape, and the cash keeps arriving.

Owning a world-class asset base at a fair price has usually worked out better than trying to time the last 10% of a rally.

As such, for long-term holders, BHP shares still look like a business worth owning rather than a trade worth exiting.

The post BHP shares are pulling back from a record high. What now for ASX investors? appeared first on The Motley Fool Australia.

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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 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 Liontown Ltd (ASX: LTR) share price is in focus after the company revealed a strategic farm-in agreement to acquire up to 100% of the Centenario lithium brine project in Argentina, bolstering its existing hard-rock lithium operations in Western Australia.

What did Liontown report?

• Entered a farm-in agreement with NEXT Lithium Corp. for the Centenario lithium brine project in Salta, Argentina
• Potential to earn up to 100% interest in the project by funding US$40 million (~A$56 million) over four years, plus milestone payments
• Initial payment will be US$5 million (~A$7 million) in cash and US$10 million (~A$14 million) in Liontown shares
• An initial work program of US$15 million is planned over the first 12–24 months, targeting early-stage exploration and drilling
• Staged structure allows Liontown to increase its project stake based on funding and exploration outcomes

What else do investors need to know?

The project is situated in a promising lithium brine district, close to established operations run by sector giants like Lithium Argentina, Ganfeng, and Eramet. This move offers Liontown a low-cost foothold in a globally significant lithium province and aligns with its strategy to diversify and grow its battery minerals portfolio.

Partnering with NEXT Lithium gives Liontown access to the expertise of a team with a strong track record in Argentinian lithium brine assets. Liontown retains capital discipline through the staged investment and maintains Kathleen Valley as its core focus.

The agreement includes standard conditions precedent, such as the release of security interests over the project and the repayment of certain intercompany loans. If these are not satisfied within six months, either party may walk away without further liability.

What did Liontown management say?

Managing Director and CEO Tony Ottaviano said:

This transaction gives Liontown a low-cost entry into lithium brine. Brine is one of the two primary sources of the world’s lithium, and this is our first step in building real understanding and capability in it. Structuring the deal as a staged farm-in ties our capital to results, so we invest more only as the project proves itself. Kathleen Valley remains our priority, and we will keep pursuing value-accretive growth where it fits our strategy. NEXT Lithium knows lithium, knows brine, and knows Argentina. That depth of expertise is exactly what we want alongside us as we build our own capability.

What’s next for Liontown?

Liontown plans to launch initial exploration at Centenario, with a US$15 million program over the first two years, including drilling and geophysical testing. As results come in, the company can opt to boost its ownership through further staged investments, up to full control of the project.

The Centenario farm-in is designed to complement Liontown’s hard-rock operations, providing diversified growth options and access to both major sources of lithium worldwide. Management remains committed to carefully scaling exposure in step with exploration outcomes and market conditions.

Liontown share price snapshot

Over the past 12 months, Liontown shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the sme period.

View Original Announcement

The post Liontown enters Argentina lithium brine farm-in, diversifying future growth 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.

The team at Betashares has released three new ASX ETFs this week. 

The diversified multi-asset ETFs provide professionally constructed exposure across equities, fixed income, cash and infrastructure. 

The three new funds offer balanced, growth and high-growth risk profiles.

What are diversified ASX ETFs?

ASX ETFs are fast becoming one of the most popular assets for Aussie investors. 

Traditionally, investors used ETFs to track broad indexes like the S&P/ASX 200 Index (ASX: XJO) or the S&P 500 Index (SP: .INX). 

However providers are now developing more sophisticated and thematic options. 

One such sector of ASX ETFs is diversified funds. 

Diversified ETFs have become an increasingly popular route for investors to access professionally constructed portfolios in a single trade. 

By combining multiple asset classes and thousands of underlying securities within one fund, they can offer a simple and scalable alternative to constructing and maintaining a multi-asset portfolio.

In simple terms, it can combine Australian shares, international shares, emerging markets and fixed income, growth etc in one trade. 

Betashares has expanded its Diversified ETF range to provide a simple, low-cost way to implement strategic asset allocation across a range of investor risk profiles.

The three new funds from Betashares

Yesterday, Betashares announced three new diversified funds: 

• Betashares Diversified High Growth ETF (ASX:DVHG) – 90% Growth / 10% Defensive allocation. 
• Betashares Diversified Growth ETF (ASX:DVGR) – 75% Growth / 25% Defensive allocation. 
• Betashares Diversified Balanced ETF (ASX:DVBA) – 60% Growth / 40% Defensive allocation. 

The Funds provide exposure to approximately 2,500 Australian and global companies and 12,000 bonds, with broad diversification across asset classes, regions and sectors. 

According to Betashares, this can reduce the administration associated with managing multiple holdings, while providing either a simple standalone solution or a passive core to which smart beta or active strategies can be added.

The Diversified Balanced ETF leans more heavily into cash and fixed income for their defensive characteristics, while the All Growth ETF invests only in equities, targeting long-term capital appreciation.

All three funds come with a management fee of 0.19% p.a.

More information about the funds can be found here. 

What other diversified ASX ETFs are available?

According to Betashares, Together with the existing Betashares Diversified All Growth ETF (ASX: DHHF), the range now provides investors with diversified portfolio options spanning balanced through to all growth profiles.

For investors looking to compare the new funds with existing ETFs, there are others to consider, including: 

• Vanguard Diversified High Growth Index ETF (ASX: VDHG)
• Vanguard Diversified All Growth Index Etf (ASX: VDAL). 

The post Betashares launches 3 new diversified ASX ETFs appeared first on The Motley Fool Australia.

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