Shares in KGL Resources Ltd (ASX: KGL) have soared more than 45% after the copper and gold project developer said it had secured a US$300 million funding package towards the construction of its Jervois project in the Northern Territory.

Major partner brought on

The company said in a statement to the ASX on Thursday that it had entered into a precious metals purchase agreement with Wheaton Precious Metals Corp, which will, in part, fund the construction and development of KGL’s mining project.

The funding agreement provides US$275 million as an upfront consideration and US$25 million as a contingent cost overrun.

The main lump sum will be provided as US$32 million available prior to any construction expenditure, and US$243 million available in four tranches following the achievement of certain construction milestones.

The company said regarding the agreement:

With the necessary development and mining permits in place, the precious metals purchasing agreement represents a major step forward towards development of the Project, positioning KGL to become the next meaningful Australian copper producer. This is Wheaton’s first streaming transaction in Australia and follows Wheaton’s entry into a streaming agreement in respect of BHP’s portion of the Antamina mine, announced in February 2026.

The company added that work on progressing towards mining was ongoing.

KGL is in the process of finalising the scope and cost of the process plant construction contract, updating the production schedule, providing for price escalation (where applicable) and incorporating changes resulting from movements in commodity prices. KGL expects its review of these items (which remains ongoing) to result in changes to the technical and economic framework for Project delivery, as set out in the 2025 Feasibility Study Update (announced 10 February 2025). Specifically, KGL expects both overall Project capital costs and revenue forecasts to increase. KGL’s expects to be able to provide an update by May 2026.

KGL said it remained in active dialogue with global metals traders and potential offtake partners, “as well as other capital providers and arrangers to finalise the full funding of the Project”.

Further equity raise potential

The company said that, in addition to the US$300 million funding package, Wheaton had also agreed to participate in any future equity raise to fund the Jervois mine.

KGL Chief Executive Officer Sam Strohmayr said regarding the new deal:

This is an exciting and significant milestone for KGL which supports the next phases of advancing the Jervois project towards production. The near-term availability of the early deposit ensures we can maintain our development schedule, and we are now on the cusp of breaking ground on Australia’s next major copper mine.

KGL shares were 45.2% higher at 30.5 cents in early trade.

The company was valued at $162 million at Wednesday’s close.

The post Why are shares in this ASX copper developer surging more than 45%? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 healthcare shares to buy amid sector rout
• 3 ASX defensive shares to buy in uncertain markets
• Why is this ASX stock crashing 60% today?
• What happened with ASX 200 bank stocks like CBA and Westpac in March?
• Up 33% in 2 weeks, Northern Star share price surging again today on $500 million news

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.

KMD Brands Ltd (ASX: KMD) shares are having a day to forget after returning from their suspension.

At the time of writing, the ASX stock is down over 60% to 6 cents.

Why is this ASX stock crashing?

Today’s decline has been driven by the Rip Curl and Kathmandu owner raising funds to help recapitalise.

According to the release, the ASX stock has successfully completed its $6.8 million underwritten placement and the institutional component of its fully underwritten entitlement offer.

The struggling retailer revealed that the placement and institutional entitlement offer raised combined gross proceeds of approximately $44.2 million. It notes that the placement was well supported by a number of existing and new institutional investors, raising the $6.8 million at the offer price of NZ$0.06 per new share.

KMD’s eligible institutional shareholders elected to take up approximately 79% of the entitlements available under the institutional entitlement offer.

Furthermore, all of the entitlements not taken up by eligible institutional shareholders and entitlements of ineligible institutional shareholders were sold in the institutional shortfall bookbuild at the same price as the offer price.

The retail component of the entitlement offer will open next week and is expected to raise gross proceeds of $21.1 million.

KMD’s CEO and managing director, Brent Scrimshaw, said:

We are pleased with the support for the institutional component of the equity raising. The raise will strengthen KMD’s balance sheet and position us to continue executing our Next Level transformation. We now look forward to inviting our retail shareholders to participate in the equity raising.

Results update

The ASX stock also released its half-year results along with its equity raising.

It posted a 7.3% increase in sales to $505.4 million but a statutory net loss of $13.1 million and an underlying loss of $11.5 million.

Unsurprisingly, there was no dividend declared for the first half.

Nevertheless, Scrimshaw was pleased with the performance of the company. He said:

Since launching our Next Level strategy, we have accelerated the pace and quality of execution and returned each of our brands to growth in a short timeframe. Strong early progress has been made against our key initiatives, giving us further conviction in our potential.

We’re particularly encouraged by the improved performance of Kathmandu, which has delivered double-digit same store sales growth for the first time in over two years. It’s also pleasing to see consumers responding positively to our accelerated product freshness, flow and assortment, along with a renewed focus on innovation. While Rip Curl has navigated more volatile global trading conditions, we remain confident that the brand’s repositioning will drive long-term growth and youthful energy, connected to the next generation of core surf and beach consumers.

The post Why is this ASX stock crashing 60% today? appeared first on The Motley Fool Australia.

More reading

• KMD Brands shareholders to be stung with a hugely discounted capital raise
• What’s going on with KMD Brands shares?
• Trading halt, delayed results, and a capital raise: Why this ASX retail stock is under pressure
• Which ASX retail company just rejected a deal to buy its Rip Curl stores?

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 S&P/ASX 200 Index (ASX: XJO) slumped 7.8% in March, with two of the big four ASX 200 bank stocks outperforming those losses and two falling even harder.

March was a difficult month for most stocks following the onset of the Iran war at the end of February.

The resulting conflict in the Middle East saw the Brent crude oil price spike 48% over the month just past, soaring from US$72.50 on 27 February to US$107.50 on 31 March, according to data from Bloomberg.

That’s likely to push inflation significantly higher over the coming months, which in turn could pressure global central banks, including the Reserve Bank of Australia, into raising interest rates.

As you’re likely aware, the RBA already has hiked the official cash rate twice this year. The second interest rate rise was delivered on 17 March, with the 0.25% lift taking the benchmark rate to 4.10%.

Higher interest rates have the potential to support ASX 200 bank stocks by enabling a larger net interest margin (NIM). But if higher rates and rising inflation lead to a broader economic downturn in Australia, the banks – among other headwinds – could get hit with a material increase in non-performing loans.

With that picture in mind…

ASX 200 bank stocks retreat in March

Commonwealth Bank of Australia (ASX: CBA) was the best performing big bank stock last month.

CBA shares closed out February trading for $174.62 and finished March at $167.70 each. That put the CBA share price down 4.0% in March, significantly outperforming the 7.8% loss posted by the benchmark index.

Westpac Banking Corp (ASX: WBC) shares also outperformed the benchmark.

Barely.

Shares in the ASX 200 bank stock closed on 27 February trading for $42.54. When the closing bell sounded on 31 March, shares were changing hands for $39.47 apiece. This saw Westpac shares down 7.2% over the month.

That was a better performance than we saw from ANZ Group Holdings Ltd (ASX: ANZ).

ANZ shares ended February at $40.04 and closed out March trading for $35.97. The 10.2% decline in ANZ shares over the month underperformed the benchmark.

Which brings us to March’s laggard, National Australia Bank Ltd (ASX: NAB).

NAB shares closed out February trading for $49.02. On 31 March, shares ended the day changing hands for $41.44. That saw the NAB share price down 15.5% over the month, or almost twice the losses posted by the benchmark index.

Taking a step back

While March saw the big four ASX 200 bank stocks take a tumble, investors who bought any of the banks a year ago will still be sitting on some benchmark beating gains.

Here’s how they’ve performed (as at time of writing today) over the past 12 months, not including dividends:

• NAB shares are up 21.6%
• CBA shares are up 11.0%
• Westpac shares are up 25.6%
• ANZ shares are up 22.6%

The post What happened with ASX 200 bank stocks like CBA and Westpac in March? appeared first on The Motley Fool Australia.

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• Westpac warns the RBA may need to hike rates again
• ASX share market sell off: Buy in the dip or stay on the sidelines?

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 Northern Star Resources Ltd (ASX: NST) share price is charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $22.10. In early morning trade on Thursday, shares are swapping hands for $22.86 apiece, up 3.4%.

For some context, the ASX 200 is up 0.4% at this same time.

While shares in the Aussie gold mining giant remain down 6.5% in 2026, the Northern Star share price has now surged 32.8% since the recent closing lows on 23 February.

Here’s what’s grabbing investor interest today.

Northern Star share price jumps on buyback news

The ASX 200 gold stock released two price-sensitive updates before market open this morning.

Turning to the one that’s likely giving the Northern Star share price the biggest boost today first, the miner announced plans to undertake an on-market share buyback of up to $500 million.

When a company repurchases its own shares, it leaves fewer for sale on the market, which tends to increase the value of its remaining shares.

Management expects the buyback to start around 23 April, with an aim to complete it within 12 months.

Commenting on the buyback, Northern Star managing director Stuart Tonkin said:

Today’s announcement reflects our confidence in the strength of our business, the structural uplift in cash generation expected from the commissioning of the KCGM Mill Expansion and the compelling value we see in our share price.

The on-market buy-back, representing up to 1.6% of issued share capital, is an efficient way to return capital to shareholders while also being immediately earnings and value accretive. We believe current share prices do not fully reflect the quality and future potential of our assets.

Northern Star noted that the buyback is subject to prevailing share price and market conditions, with no guarantee that any shares will be repurchased. The buyback does not require shareholder approval.

What else did the ASX 200 gold stock report?

In a separate update this morning that could also be offering support to the Northern Star share price, the miner reported that it’s on track to meet its revised full-year FY 2026 guidance of at least 1.5 million ounces of gold.

Over the March quarter, the company sold 381,000 ounces of gold. That brought its year-to-date gold sold for the nine months to 1.11 million ounces.

With the Iran war crimping global fuel supplies, the miner noted that while it is not currently experiencing any diesel supply issues, this remains a key risk for the broader mining industry in Australia.

Despite the sharp sell-down in the first three weeks following the outbreak of the war, Northern Star stock is up 26.5% over 12 months, not including dividends.

The post Up 33% in 2 weeks, Northern Star share price surging again today on $500 million news appeared first on The Motley Fool Australia.

More reading

• Northern Star Resources posts Q3 gold sales, on track for FY26
• Should you buy the dip on gold shares? Expert
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• These were the worst-performing ASX 200 shares in March

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.

ASX exchange-traded funds (ETFs) are a popular choice among investors because it’s a simple and low-cost way to get access to a wide range of assets, without needing to buy individual stocks.

ASX ETFs offer instant diversification, they traditionally have low fees, and because they usually track an index they tend to grow consistently and steadily over time.

Just as importantly, ASX ETFs are a great way to earn passive income because they pay a dividend. Unlike stocks which pay dividends directly to shareholders, ASX ETFs would have a portfolio of dividend-paying shares which the fund collects and passes onto its investors.

Like any ASX dividend-paying stock, this is usually paid out quarterly or annually. But then there are the rare few ASX ETFs that pay income to investors monthly.

The monthly-paying ASX ETF on my radar right now is the Betashares Dividend Harvester Active ETF (ASX: HVST).

Here’s a rundown of how it works and what it pays.

What’s the fund’s investment strategy?

The Betashares HVST is an ASX-listed ETF that invests in 40 to 60 dividend-paying companies. 

These are selected from the 100 largest companies listed on the ASX based on their dividend forecasts, franking credits, and expected future gross dividend payments.

The fund does not track an index; instead, it targets exposure to high-dividend stocks.

The fund is created in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next opportunity.

What does HVST ETF pay its investors?

HVST ETF pays its investors a regular, partially-franked dividend income every single month.

Its annual dividend yield is around double the annual income yield of the broader ASX. 

As of the 27th of February 2026, the HVST ETF pays a 12-month gross distribution (dividend) yield of 7%, and a net yield of 5.5%. Its franking level is 64.7% and it has an annual management fee of 0.72%.

Its most recent dividend payment was in mid-March when it paid out 6 cents per share to investors. The fund also paid out $0.06 per share to investors in late February and in January. 

HVST shares have trailed the S&P/ASX 200 Index (ASX: XJO) index over the past 12 months. At the time of writing, the ASX ETF’s share price has climbed 1.4% over the past 12 months, compared with the ASX 200’s 9.3% annual gain.

The post This monthly income ASX ETF yields 7%, and every ASX investor should take note appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Wesfarmers shares today
• Northern Star Resources posts Q3 gold sales, on track for FY26
• Want to retire at age 65? This is how much superannuation you need
• Here’s what I consider to be the very best ASX 200 share to buy in April
• 5 things to watch on the ASX 200 on Thursday

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 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.

Pexa Group Ltd (ASX: PXA) shares took a big tumble this week after the release of a consultation paper on pricing in the New South Wales market, which could affect how much they can charge for their services.

The stock fell 17.3% on Wednesday, prompting the ASX to issue a speeding ticket to the company, asking for an explanation of why it had been sold down so heavily.

Macquarie sees this as an opportunity to buy into the stock and has a bullish price target on the company’s shares, although it’s worth noting that UBS has a differing opinion.

The review into pricing is still underway, however, it could have large implications for what Pexa is able to charge for e-conveyancing services.

In its own words, the company said in its statement to the ASX:

As part of its Pricing review process, yesterday IPART released a consultation Paper titled ‘Methodology Paper – Initial Asset Base for an Electronic Lodgment Network Operator’. The Paper sets out a proposed approach to calculating an initial asset base and seeks submissions and feedback on the proposed and alternative methodologies prior to developing draft recommended prices for the Draft Report, which they expect to be published in June 2026. IPART’s methodology paper contains information which does not constitute a decision, is open to change and contains illustrative examples which should not be read as guidance. There is no certainty at this point in time that the proposed approach will be used by IPART and, if the proposed approach is used to develop draft recommended prices, the numerical components remain uncertain and open to discussion. While the initial asset base is a key element in the ‘building block’ method IPART will use in their price recommendation, there are multiple other inputs including return of capital, return on capital, operational expenditure, tax adjustments and other adjustments as determined by IPART.

Pexa Group shares looking cheap?

The analyst team at Macquarie said it was difficult to discern IPART’s outcome.

They ran the numbers using some assumptions, however, and said that even if price cuts of 5% to 10% were implemented, there was sufficient cost-out opportunity within the business.

Macquarie maintained its $19.60 price target on Pexa shares, compared with its current $12.97. This would constitute a 51.1% return if achieved.

Conversely, UBS has downgraded Pexa from a buy to neutral and lowered its price target for the shares from $17.50 to $15.70.

Pexa does not currently pay dividends.

Pexa Group was worth $2.28 billion at the close of trade on Wednesday.

The post After their big fall is it time to buy the dip on Pexa? appeared first on The Motley Fool Australia.

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• Why Pexa shares are sinking 16% today
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• PEXA goes live with NatWest in the UK. Is this the breakthrough investors have been waiting for?
• PEXA Group shares in focus as NatWest goes live on UK platform
• Brokers rate these 2 top ASX shares as buys in March

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

The ASX share market is one of the best places to find passive income, in my view. But, there are some businesses that could be a better source of dividends than others because of how they source their revenue.

Sometimes it’s difficult to predict how much demand a business is going to see for its offering.

Companies like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Adairs Ltd (ASX: ADH) can see revenue bounce around.

Wouldn’t it be great to know you have revenue locked in for a number of years? Normally, I’d write about Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), when it comes to long-term passive income, but there are two other businesses I really want to highlight.

Rural Funds Group (ASX: RFF)

Rural Funds has been one of my favourite real estate investment trusts (REITs) and I expect it will continue to be that way in the coming years.

Food is an exceptionally important commodity, so the farmland that Rural Funds owns is an important part of the national and global picture.

It owns various types of farmland including almonds, cattle, macadamias, vineyards and cropping, but it leases that land to agricultural tenants, ensuring the Rural Funds doesn’t carry major operational risks.

What makes it an effective pick for long-term passive income? It’s because it has a long weighted average lease expiry (WALE) with its tenants of approximately 13 years. In other words, the average tenancy rental agreement the ASX share has will expire in more than a decade, even if it didn’t sign any other long-term leases or renewals in that time.

That’s an extremely long time and suggests to me that the business has also largely locked in paying good passive distribution income in the coming years as well.

The business continues to invest in its farms to help maximise their rental income potential. But, rent is also growing organically, with most rental agreements having an indexation of either a fixed annual increase or a rise linked to inflation, plus market reviews.

Its guided FY26 payout translates into a distribution yield of 5.9%.

Charter Hall Long WALE REIT (ASX: CLW)

The other ASX share I want to highlight is this diversified REIT that owns properties across an array of commercial real state categories including pubs and hotels, telecommunication exchanges, service stations, distribution and logistics centres, manufacturing and so on.

I like the diversified strategy because it reduces risks and ensures the business can look across a wide range of areas for potential opportunities.

The one part of the strategy that all these properties have in common is that the ASX share has signed on tenants for years, providing appealing long-term income.

This ASX share has a WALE of around nine years, which is also a long time to have rental income locked in.

The business expects to grow its FY26 annual distribution by 2% to 25.5 cents per security, translating into a distribution yield of 7.6%, at the time of writing.

The post Looking for long-term passive income? Try one of these ASX shares appeared first on The Motley Fool Australia.

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• Is it time to load up on these high-yielding ASX dividend shares?
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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Adairs, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. 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.

Nine Entertainment Co Holdings Ltd (ASX: NEC) has this week finalised the $805 million acquisition of QMS Media, a major outdoor advertising company, which it bought from Quadrant Private Equity.

The analyst team at Macquarie took the opportunity to run the ruler over the company following the deal being bedded down, and has a bullish stock price on Nine Entertainment shares, which we’ll get to later. Firstly, what did Nine buy?

Major new business division

Nine said, on announcing the deal in January, that:

QMS is a leading digital outdoor media platform with operations in Australia and New Zealand. With a footprint concentrated in metro areas, QMS adds a digitally focused and growing media platform that complements Nine’s existing media assets, whilst also benefiting from being part of the broader Nine Group.

They also noted that the outdoor advertising category had been a “standout performer” in the Australian advertising market, growing by about 9% annually from 2014 through to 2025, and expanding its share of the market from 10% to 18% over that period.

QMS itself was also estimated to have grown its share of the market from about 10% in 2019 to about 15% in 2025, Nine said, “through a combination of high-profile tender wins, new site builds and digitisation of billboards”.

Nine said this week that it expects the acquisition of QMS to hit the bottom line immediately.

The company said:

Nine continues to expect QMS to contribute $92m of EBITDA in FY26 on a pro forma … basis (inclusive of outdoor lease expenses). Inclusive of full run-rate cost synergies of $20m, and adjusted for current interest rates, this equates to mid single digit earnings per share accretion. Following completion, Nine’s digital growth assets (Stan, 9Now, digital mastheads and Outdoor) are estimated to contribute more than 60% of Group revenue in FY27, up from approximately 45% in FY25.

Nine Chief Executive Officer Matt Stanton said it was a “defining moment” for Nine.

QMS is a high-growth, digitally-led business that complements our existing premium content and data capabilities. With the addition of QMS, we can offer advertisers an unparalleled cross-platform reach, while diversifying our revenue streams towards structural growth areas. Now the acquisition is complete, we are finalising the alignment of the Nine and QMS go to market sales strategies which will allow clients to capitalise on this powerful combination.

Nine Entertainment shares looking cheap

The Macquarie team said following the QMS acquisition, that Nine “should be better placed to deliver more consistent growth, although broadcast challenges need to be tamed with cost-out”.

Macquarie has a price target of  $1.15 per share on Nine shares, compared with 97 cents currently.

Nine is also expected to pay a dividend yield of 6.3% this year. The company is valued at $1.51 billion.

The post After a big acquisition what are Nine Entertainment shares worth? appeared first on The Motley Fool Australia.

More reading

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

4DMedical Ltd (ASX: 4DX) shares have jumped another 8% in Wednesday afternoon trade. At the time of writing, the shares are changing hands at $6 a piece.

Today’s uplift means the shares are now 32% higher for the year-to-date and up an enormous 2,208% over the past 12 months.

The healthcare technology company’s shares have enjoyed an incredible run, but now I’m concerned that investors who are chasing the shares higher and higher could be taking a big gamble.

Why do 4DX shares keep soaring?

4DX is an ASX healthcare technology company that develops imaging software for healthcare providers to analyse airflow through the lungs. It helps identify and treat lung and respiratory diseases ranging from asthma to lung cancer.

The company saw its share price explode in 2025 after its flagship product, CT:VQ, received regulatory approvals. It was quickly implemented and adopted through partnerships and commercial contracts with healthcare organisations.

The company has already signed contracts with hospitals and medical providers across the US. These include Stanford University, the University of Miami, Cleveland Clinic and UC San Diego Health.

It’s this business shift from a research and development business to a globally commercial business which has attracted interest from investors.

There is no price-sensitive news out of the company to explain the share price hike today. 

But it looks like investor interest has continued to keep climbing. 

Here’s why it feels like a gamble

I’m concerned that after such a strong price rally over the past 12 months, the 4DX share price could begin to run away.

While a lot of the price increase is driven by company development and contract wins, it is also being driven by investor expectations and sentiment.

It’s worth remembering that 4DX is still in a loss‑making, growth and commercialisation phase, which means the company is not yet a profitable business.

For the half-year ended 31st December, 4DMedical reported a revenue of $2.9 million, but an adjusted net loss of $16.2 billion, meaning it is far from making money.

This means it also doesn’t pay any dividends to its shareholders.

These types of companies often attract momentum and speculative trading and price increases feed more price increase. Essentially, investor optimism can drive gains.

The problem is that if developments or results don’t live up to expectations, the share price can tumble just as quickly. 

This isn’t to say that could happen. But to assume that it won’t, or that it’ll continue at the same rate, is a gamble I won’t be taking.

The post Are investors taking a big gamble chasing 4DX shares higher and higher? appeared first on The Motley Fool Australia.

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• Up 2,075% in a year, why is the 4DMedical share price rocketing again on Friday?
• Why is everyone talking about 4DX shares this week?

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 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.

Wesfarmers Ltd (ASX: WES) shares closed 0.7% higher on Wednesday afternoon, at $73.43 a piece.

Global volatility and concern about inflation rates and the rising cost of living has smashed the retail giant’s shares recently. After initially climbing 9% through the first few weeks of the year, Wesfarmers shares have crashed nearly 18% since mid-February.

Now, Wesfarmers shares are down 10% for the year-to-date and 0.3% lower than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.6% lower year to date and 9.3% higher over the year.

It’s clear Wesfarmers shares have come off the boil recently as Australians tighten their purse strings and prepare for ongoing instability.

But I still think there are compelling reasons why investors should buy into the stock. Here are three of them.

1. Wesfarmers is a high-quality blue chip stock

Wesfarmers is a leading Australian blue-chip company. The business is the 6th largest company listed on the ASX with a market cap of around $823 billion. It is well-established, and financially sound with a history of reliable growth and stability.

The diversified company has broad retail operations in home improvement and outdoor living, apparel, general merchandise, office supplies, health and wellbeing. It also has a health division, and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

2. The business has had consistent earnings growth

Wesfarmers has demonstrated consistent, long-term net profit growth and a track record of delivering solid earnings despite challenging economic conditions.

For the first half of FY26, the conglomerate posted a 9.3% increase in NPAT, to $1.6 billion.

And while the company acknowledges that inflation and higher operating expenses could remain as headwinds going forward, it is confident that earnings growth will continue.

Analysts at UBS think that Wesfarmers could achieve $2.86 billion in net profit in FY26. The broker forecasts earnings to keep climbing in FY27 and beyond. It expects $3.07 billion in net profit in FY27, $3.1 billion in FY28 and a hike to $4 billion by FY30. That implies Wesfarmers earnings could jump 40% between FY26 to FY30. 

3. Wesfarmers shares offer a reliable passive income

The retail conglomerate is well-known for its reliable and consistent passive income payment. In February, the Kmart and Bunnings owner declared a fully franked interim dividend of $1.02 per share, up 7.4%.

And as the company’s earnings climb, its payout is expected to rise too.

UBS predicts that the business could deliver an annual dividend per share for FY26 of $2.13. 

The broker expects Wesfarmers to pay an annual dividend per share of $2.31 in FY27 and $2.56 in FY28. By FY30, the broker expects the dividend to hike to $3 per share. That would be a 41% increase from FY26. 

The post 3 reasons to buy Wesfarmers shares today 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.