The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a modest gain. In afternoon trade, the benchmark index is up 0.1% to 8,638.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

CAR Group Limited (ASX: CAR)

The CAR Group share price is down 3% to $24.47. The catalyst for this has been the auto listings company’s shares going ex-dividend this morning for its latest payout. Last month, CAR Group released its half-year results and declared a partially franked interim dividend of 42.5 cents per share. Eligible shareholders can now look forward to receiving this dividend next month on 13 April.

Immutep Ltd (ASX: IMM)

The Immutep share price is down a massive 89% to 4.4 cents. Investors have been selling this late-stage biotechnology company’s shares after it released an update on the TACTI-004 Phase III study. Immutep revealed that the Independent Data Monitoring Committee (IDMC) for the TACTI-004 Phase III study has recommended the discontinuation of the trial following a planned interim futility analysis in accordance with the study protocol. The company’s CEO, Marc Voigt, said: “We are very disappointed and surprised with the outcome of the futility analysis, in light of efti’s performance in every other clinical trial. […] We are currently conducting a comprehensive review of the available data to better understand the results and determine the appropriate next steps for the program.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down over 17% to $22.10. This morning, this gold miner downgraded its production guidance for FY 2026 a second time. Northern Star advised that it has been impacted by weaker-than-planned milling performance at the KCGM operation and reduced mining productivity across several operating areas. It now expects FY 2026 production to come in above 1.5 million ounces. This compares to its most recent guidance of 1.6 million to 1.7 million ounces, which was downgraded from 1.7 million to 1.85 million ounces.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down 28% to 17.25 cents. This has been driven by news that the US International Trade Commission (ITC) has reached a final negative determination in an antidumping and countervailing duty investigation. It was looking into whether graphite active anode material (AAM) imports into the United States from China are materially retarding the establishment of a domestic AAM industry. Syrah believes the decision may “delay AAM sales from the Vidalia AAM facility and limit near-term demand growth for AAM produced in the United States and Balama natural graphite as feedstock for natural graphite AAM facilities outside China.”

The post Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Syrah Resources shares tumble after major US tariff hit
• Game over? ASX biotech stock crashes 90% on big bad news
• Northern Star shares crash 16% on second guidance downgrade for FY26
• Northern Star trims FY26 guidance and updates on KCGM mill expansion
• 5 things to watch on the ASX 200 on Friday

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

When investors think about the Australian share market, one company almost always comes up in the conversation: Commonwealth Bank of Australia (ASX: CBA).

The banking behemoth has been one of the market’s standout performers for years, delivering strong returns and reliable dividends for shareholders. This is despite its shares rarely looking cheap.

Right now, though, the situation is slightly different. The bank’s share price has pulled back from recent highs, and that could be enough to catch the attention of long-term investors.

Here are three reasons I think CBA shares could still be worth considering today.

CBA shares pull back from record highs

CBA shares recently traded as high as $192.00, reflecting the market’s long-standing willingness to pay a premium for the bank.

Since then, the share price has slipped around 10% from that level.

To be clear, that doesn’t suddenly make the bank cheap. CBA shares have almost always traded at higher valuations than major bank peers. But history shows that the market has been willing to pay that premium because of its quality, consistency, and profitability.

For investors who have been waiting for even a modest pullback, the recent weakness could make the entry point a little more appealing than it was not so long ago.

A business built on consistency

One thing that stands out when I look at CBA is how consistently it delivers results.

Its latest results again highlighted steady operational performance across its core banking businesses, with profit supported by lending and deposit growth.

The bank also continues to generate strong profitability and returns, with return on equity remaining among the highest in the sector.

This sort of consistency is one reason investors have historically trusted the company to perform through different economic environments. While the banking industry can face competitive pressures, CBA’s scale, brand strength, and technology investments help reinforce its leadership position.

Reliable dividends and strong capital

Income is another major attraction for me.

Last month, CBA declared an interim dividend of $2.35 per share, fully franked, reflecting the bank’s continued ability to generate strong earnings and return cash to shareholders.

Importantly, the bank also maintains a strong capital position, with its common equity tier 1 ratio comfortably above regulatory requirements.

I believe that financial strength will help support lending growth, ongoing investment in technology, and sustainable dividends over the long term.

Foolish takeaway

CBA shares are unlikely to ever look like a bargain in the traditional sense. The market has consistently priced them at a premium for good reason.

But a quality business doesn’t necessarily need to be cheap to be worth buying.

With the share price down from its recent record high, a track record of consistent performance, and strong dividend payments, I think CBA remains one of the ASX’s most dependable long-term investments.

The post 3 reasons CBA shares could be worth buying today appeared first on The Motley Fool Australia.

More reading

• Here’s what CBA says the RBA will do with interest rates in 2026
• My 3 best ASX dividend-focused stocks to buy in March
• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• Here’s what experts think will happen with the RBA interest rate this month
• What I’d do as a beginner with $50,000 to invest in ASX shares

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

Shares in Rio Tinto Ltd (ASX: RIO) are pushing higher in Friday midday trade. This comes despite news of a workplace accident at one of the company’s major copper operations.

At the time of writing, the Rio Tinto share price is up 3.04% to $157.74.

The company has confirmed that a contractor died following an incident at its Kennecott copper mine in Utah, United States.

Here is what investors need to know.

Fatal incident halts operations at Kennecott

According to reports released overnight, a contractor passed away following an incident at Rio Tinto’s Bingham Canyon mine. The site forms part of the company’s Kennecott copper operation in Utah.

The company confirmed that all surface and underground mining activities have been temporarily suspended while authorities investigate the circumstances surrounding the accident.

Rio Tinto Chief Executive Simon Trott said the company was deeply affected by the tragedy and that its focus was on supporting the worker’s family and colleagues.

He also confirmed that counselling support is being provided to employees and contractors at the site.

The Kennecott operation is one of the most important copper assets in the United States and has been producing copper for more than a century. The site also produces gold, silver, and molybdenum as byproducts.

A major copper asset in Rio’s global portfolio

Rio Tinto is one of the world’s largest mining companies. It produces key commodities including iron ore, aluminium, copper, and lithium.

Copper is becoming increasingly important to the company as global demand grows for metals used in electrification, renewable energy, and electric vehicles.

The Kennecott mine is a significant contributor to the US copper market and produces a sizeable share of the country’s refined copper supply.

Any extended disruption could therefore attract attention from investors and commodity markets. However, the suspension is currently described as ‘temporary’ while investigations take place.

Why the Rio Tinto share price is still climbing

Despite the tragic news, the Rio Tinto share price is currently trading higher.

One reason may be that investors are focusing on broader commodity trends rather than the short-term operational disruption.

Copper prices have remained relatively strong in recent months amid expectations of tighter supply and growing demand.

Rio Tinto shares have also delivered solid performance over the past year. This has been supported by strength in iron ore prices and improving sentiment across the mining sector.

Rio Tinto has a market capitalisation of around $58 billion and is one of the largest resource companies on the ASX.

The post Rio Tinto share price rises despite incident at major US copper mine appeared first on The Motley Fool Australia.

More reading

• Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today
• 5 key drivers of the new commodities ‘supercycle’: experts
• Australia’s next great ASX mining boom: Are we already in it?
• This would be my $1 million ASX retirement portfolio
• Buy, hold, sell: Megaport, Mineral Resources, and Rio Tinto shares

Motley Fool contributor Aaron Teboneras 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.

It was only last month, on 3 February, that the Reserve Bank of Australia delivered the country’s first interest rate hike since November 2023.

Back then, the RBA lifted the official cash rate to 4.35% to combat inflation that was still running at around 4.9% in October 2023.

Since that high-water mark, the RBA delivered three interest rate cuts in 2025 as inflation began to ease off. This saw the cash rate drop to 3.60% last August. Which is where it stayed until February’s 0.25% increase.

Commenting on its decision to tighten on 3 February, the RBA noted:

The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures. As a result, the board considers that inflation is likely to remain above target for some time… and it was appropriate to increase the cash rate target.

And this was before the United States and Israeli strikes on Iran, and Iran’s retaliation, sent global oil prices surging above US$100 per barrel.

So, with the RBA set to release its latest interest rate decision on Tuesday, here’s what Commonwealth Bank of Australia (ASX: CBA) says ASX investors should expect.

CBA forecasts RBA interest rate to return to 4.35%

For much of 2025, most analysts were telling ASX investors to expect lower lending costs in 2026.

But those expectations have taken a sharp U-turn.

In a media release on Thursday, CBA said it expects not just one, but two interest rate increases from the RBA this year.

CommBank expects the RBA will hike by 0.25% on Tuesday and lift rates by another 0.25% at its May meeting. That would see the official Aussie cash rate back at 4.35%.

To put that into some context, you’d have to go back to November 2011 to find rates at a higher level.

CBA noted that Aussie inflation “remains stubborn” while the economy continues its strong performance.

Commenting on the outlook, CBA head of Australian economics Belinda Allen said:

The debate at the March meeting will be a close one. But with inflation still above target and the economy running above trend, we expect the board will choose to lift rates again and follow up with another move in May.

Allen noted that the rapidly changing global picture has shifted the bank’s interest rate outlook. The Middle East conflict, in particular, has increased uncertainty alongside the risk of higher energy prices, which could further fuel inflation.

“While global uncertainty has increased, the domestic economy is still proving resilient. Inflation remains too high and the labour market is tight, which keeps pressure on the Reserve Bank to act,” Allen concluded.

The post Here’s what CBA says the RBA will do with interest rates in 2026 appeared first on The Motley Fool Australia.

More reading

• My 3 best ASX dividend-focused stocks to buy in March
• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• Here’s what experts think will happen with the RBA interest rate this month
• What I’d do as a beginner with $50,000 to invest in ASX shares
• 3 Australian shares to buy if the ASX pulls back 10%

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.

Sometimes brokers upgrade a company’s price target because of interesting, market-moving news, but in this case, Morgans has a buy rating on Dalrymple Bay Infrastructure Ltd (ASX: DBI) despite a complete lack of news flow.

Shares looking cheap

The analyst team at Morgans has published a research note to their clients this week, simply noting that shares in the ports operator have fallen from their peak of $5.43 when the company’s results were published in late February to $4.65 when their report was published.

The shares have made up a bit of that loss on Friday morning, trading 5.2% higher at $4.89, but the thesis still holds, with Morgans having a price target of $5.35 on the shares, which also pay a healthy dividend yield of 6.2%.

The Morgans team said of the stock:

We endorse a Buy rating for DBI, with a $5.35 discounted cash flow-based target price and dividend per share guidance of 26.375 cents (paid quarterly) for the 12 months to June 2026 (and a target to grow dividend per share by 3-7% per year over the foreseeable future). We believe DBI may appeal to investors seeking dependable and growing yield and defensive elements for their portfolio. Key risk is a value dilutive capital raising and/or M&A.

Steady as she goes

Having a look at the recently announced full-year profit, it was a solid outcome for the company.

Dalrymple Bay reported terminal infrastructure charge revenue of $307.6 million, up 3.9% on the previous year, and EBITDA of $294.3 million, up 5.2%.

The total dividend payout of 24.625 cents for the year was an 11.9% increase.

Dalrymple Bay Managing Director Michael Riches said of the result:

Dalrymple Bay Infrastructure’s FY-25 performance reflects the continued resilience of the business and the consistency of its earnings profile. Financial performance was underpinned by the stability of DBI’s take-or-pay contracts, growth in the underlying terminal infrastructure charge and the continued delivery of revenue-enhancement and cost-efficiency initiatives. The December refinancing has improved balance sheet flexibility and reduced funding costs, while preserving substantial debt capacity to fund committed NECAP projects at a lower cost of capital. The refinancing has demonstrated the strong credit profile of DBI and that there are other low cost sources of debt capital open for DBI to access for future refinancings. This should continue to allow DBI to improve its balance sheet, lower interest costs and reduce refinancing risk.

The ASX 200 infrastructure company was valued at $2.32 billion at the close of trade on Thursday.

The post Recent share price weakness makes this ASX 200 infrastructure stock a buy, Morgans says appeared first on The Motley Fool Australia.

More reading

• Should you add this rising ASX 200 stock to your portfolio?
• Here are the top 10 ASX 200 shares today
• Buy, hold, or sell? 3 ASX 200 shares at record highs
• Dalrymple Bay Infrastructure lifts revenue and distributions for FY25

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.

The S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher on Friday. In afternoon trade, the benchmark index is up 0.25% to 8,650.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Cobram Estate Olives Ltd (ASX: CBO)

The Cobram Estate Olives share price is up 3% to $3.05. Investors have been buying the olive producer’s shares following the release of an update on its proposed acquisition of US-based California Olive Ranch. It is the leading producer and marketer of Californian extra virgin olive oil. The company revealed that it has successfully completed the United States Department of Justice anti-trust review and may proceed with the acquisition. As a result, completion of the transaction is expected to occur on or before 26 March, with integration to commence immediately thereafter.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 14% to $11.27. This has been driven by the announcement of new counter-drone orders from the Middle East. The two new unconditional orders for counter-drone systems have a total value of US$45 million (A$64 million). It stated: “This sale is to an established customer country in the Middle East and the customer is a large, established defence prime contractor with several large-scale government and export contracts. The customer has requested that EOS do not disclose the customer identity due to national security considerations.”

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 4.5% to $10.23. This may have been driven by a broker note out of Morgans. As we covered here, the broker has upgraded the fund manager’s shares to a buy rating with an improved price target of $12.43. It said: “We think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways to growth. MFG also retains a strong balance sheet (~A$690m of liquidity, post deal). Move to a BUY.”

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up 3% to $157.99. Another broker note from Morgans could also be helping this mining giant’s shares today. It has upgraded Rio Tinto’s shares to a hold rating with a $147.00 price target. It said: “The recent share price pullback closes the valuation stretch, while a lift in our medium-term iron ore assumption from US$80/t to US$85/t provides a firmer earnings floor. RIO remains a top-tier diversified miner. Not cheap enough for a BUY, but the pullback removes the overshoot that justified TRIM.”

The post Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price rises despite incident at major US copper mine
• Buy, hold, sell: Collins Foods, Endeavour, and Magellan shares
• Electro Optic Systems shares jump on new Middle East contract win
• Should you buy Magellan shares before the Barrenjoey merger?
• Why EOS, GQG, Liontown, and Temple & Webster shares are tumbling today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

One of the biggest attractions of investing in ASX shares is the potential to earn passive income.

Instead of relying solely on capital gains, many investors build portfolios designed to generate regular dividend payments. Over time, these payments can become a meaningful source of income.

But how much income could a portfolio realistically produce?

Let’s look at what a $500,000 ASX share portfolio might generate in dividends.

What is a dividend?

Before diving into the numbers, it helps to understand what a dividend actually is.

A dividend is a payment a company makes to its shareholders from its profits. When a business earns money, it can choose to reinvest it in the company, pay down debt, or distribute some of it to investors.

Many established ASX shares regularly pay dividends. These payments are usually made twice a year and can provide investors with a steady stream of income.

Some Australian dividends are also franked, which means they come with tax credits attached. This can make them particularly attractive for income-focused investors.

What does dividend yield mean?

When people talk about dividend income, they often refer to the dividend yield.

Dividend yield is simply the annual dividend divided by the share price. It tells investors how much income a stock generates relative to its value.

For example, if a share pays $4 in annual dividends and trades at $100, the dividend yield is 4%.

When building an income portfolio, investors often aim for a target yield across their holdings.

A 4% dividend yield

Let’s start with a relatively conservative example.

If a $500,000 ASX share portfolio generated an average dividend yield of 4%, the annual income would look like this:

$500,000 × 4% = $20,000 per year

That works out to roughly $1,667 per month before tax.

A 4% yield is often considered achievable with a diversified portfolio of established ASX shares, such as Telstra Group Ltd (ASX: TLS) and exchange-traded funds (ETFs) like the Vanguard Australian Shares High Yield ETF (ASX: VHY). Many investors build portfolios around reliable dividend payers across sectors like banks, infrastructure, retail, and telecommunications.

A 5% dividend yield

Now let’s look at what happens if the portfolio produced a 5% dividend yield.

$500,000 × 5% = $25,000 per year

That equates to about $2,083 per month before tax.

A higher yield obviously increases income, which can be appealing for investors looking to fund their lifestyle or supplement other sources of income.

However, there are trade-offs to consider.

The risks of chasing higher dividend yields on the ASX

Higher dividend yields can sometimes signal higher risk.

In some cases, a very high yield may simply reflect a falling share price rather than strong underlying performance. If a company’s earnings weaken, there is also the risk that its dividend could eventually be reduced.

Because of this, many experienced investors focus on dividend sustainability rather than simply chasing the highest yield available.

A slightly lower yield from a strong and reliable business can sometimes be the safer long-term option.

Foolish Takeaway

Dividend income on the ASX can become particularly powerful when combined with long-term investing.

Many investors reinvest their dividends for years or decades while they are still building their portfolios. Over time, that reinvestment can accelerate compounding and help grow both the portfolio value and the income it produces.

Eventually, those dividends can shift from being reinvested to becoming a source of passive income.

And as you can see above, even a moderate dividend yield from a sizeable portfolio can generate a meaningful stream of cash flow each year.

The post How much could a $500,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price rises despite incident at major US copper mine
• Here’s what CBA says the RBA will do with interest rates in 2026
• Recent share price weakness makes this ASX 200 infrastructure stock a buy, Morgans says
• Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today
• Could a management dream team do it again at this ASX gold explorer?

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Torque Metals Ltd (ASX: TOR) shares have piled on hefty gains over the past year, but it’s the announcement of a new management team with a proven track record that has the analysts at Morgans sitting up and taking notice.

Proven track record

Earlier this week, the company announced that the former Spartan Resources management team had joined the company and would be driving its gold exploration and development strategy.

Those joining the company were Simon Lawson as Chair-Elect, Craig Jones as Chief Executive Officer, and David Coyne as a Non-Executive Director.

The company added:

Collectively, the incoming team played key roles at Spartan Resources Limited during the exploration success that led to the high-grade Never Never and Pepper gold discoveries at the Dalgaranga Gold Project, widely regarded as one of the most significant high-grade gold discoveries in Western Australia in recent years. The discovery ultimately transformed Spartan from a junior gold explorer with a poorly performing low-grade open pit operation into a major high-grade gold developer, culminating in its $2.5 billion merger with Ramelius Resources Limited in July 2025. The incoming directors and management team bring deep technical, operational and capital markets experience across the Western Australian gold sector.

The current board said they believed the new management team would bring the skills and experience needed to unlock the “significant exploration potential” of the company’s Paris gold project and its broader tenement package across the Kalgoorlie district.

Mr Jones said he believed the company “presents a compelling opportunity”.

He added:

The company holds a highly prospective project portfolio, and we are now enhancing with individuals who have a proven track record of delivering discovery and development success in Western Australia. With the projects located on granted mining leases just one hour from Kalgoorlie — one of the world’s major gold mining hubs — we are well positioned to accelerate the development of any new discoveries in this infrastructure-rich region.

Skin in the game

Torque said the incoming trio had also agreed to be the cornerstone investors in a $3 million capital raise at 27 cents per share, “demonstrating strong alignment with shareholders and confidence in the Company’s exploration potential.”

The analyst team at Morgans issued a research note to clients this week, rating the ASX gold company a speculative buy and setting a price target of 90 cents per share.

They added:

Our valuation remains conservative, based solely on a toll-treated mining scenario underpinned by the existing Paris resource. As exploration success and resource growth continue, we see potential for material valuation uplift beyond our current assumptions.

Torque shares were changing hands for 47.5 cents on Friday, not far off their 12-month high of 52.5 cents, and well above the low of 7.3 cents over the same period.

The company was valued at $299 million at the close of trade on Thursday.

The post Could a management dream team do it again at this ASX gold explorer? appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price rises despite incident at major US copper mine
• Here’s what CBA says the RBA will do with interest rates in 2026
• Recent share price weakness makes this ASX 200 infrastructure stock a buy, Morgans says
• Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today
• How much could a $500,000 ASX share portfolio pay in dividends?

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.

Qantas Airways Ltd (ASX: QAN) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $8.67. In late morning trade on Friday, shares are changing hands for $8.64 apiece, down 0.3%.

For some context, the ASX 200 is also down 0.3% at this same time.

Here’s what the company just reported.

Qantas shares dip amid $105 million class action news

In a release labelled non-price sensitive for Qantas shares, the airline said it has reached an agreement to settle the class action regarding flight credits during the global COVID pandemic.

The legal action was launched against Qantas in August 2023.

It relates to flights between 1 January 2020 and 1 November 2022 that were cancelled by Qantas. The class action includes allegations that the airline was in breach of its obligations regarding customer refunds.

Qantas said it has agreed to pay $105 million to settle the matter, with no admission of liability. The settlement remains subject to approval by the Federal Court of Australia.

As for the potential impact on Qantas shares, the ASX 200 airline reported that it has previously made a provision for the refund-related lawsuit. Management said an increase reflecting the $105 million settlement will be recognised outside of underlying earnings in the second half of the 2026 financial year (H2 FY 2026).

Qantas noted that in August 2023, it removed the expiry date on flight credits issued during COVID, meaning customers can request a cash refund indefinitely.

What else has been happening with the ASX 200 airline?

Qantas reported its first-half results (H1 FY 2026) on 26 February.

Highlights included a 6% year-on-year increase in revenue to $12.9 billion. And on the bottom line, underlying profit before tax of $1.456 billion was up by $71 million.

But the ASX 200 airline disappointed passive income investors by cutting its fully-franked interim dividend by 25% to 19.8 cents per share. This could help explain the 9.2% decline in the Qantas share price on the day of the results release.

Looking ahead, Qantas CEO Vanessa Hudson said, “By consistently delivering strong earnings growth we’re able to continue investing in the largest fleet renewal in our history.”

Hudson added:

Around 60% of Jetstar’s increase in profitability in the half was driven by its new aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes.

This gives us confidence in the benefits that will flow once Qantas’ new aircraft reach scale.

The post Qantas shares flying through $105 million legal turbulence appeared first on The Motley Fool Australia.

More reading

• How many Qantas shares do I need to buy for a $10,000 annual passive income?
• 5 ASX shares I’d buy with $5,000 today
• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Tuesday
• Nosedive: Why did Qantas shares crash 9% today?

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 team at Morgans has been busy this week looking at a number of popular ASX shares.

Does the broker think they are buys, holds, or sells? Here’s what Morgans is recommending to clients:

Collins Foods Ltd (ASX: CKF)

The broker was pleased with news that this KFC restaurant operator is expanding its footprint in Germany with an attractive acquisition.

In response to the news, the broker has reaffirmed its buy rating on Collins Foods shares with a slightly improved price target of $12.70. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

Endeavour Group Ltd (ASX: EDV)

Another ASX share that Morgans has been looking at is Dan Murphy’s owner Endeavour Group.

It was relatively pleased with its half-year results. However, for now, the broker thinks its shares are fairly valued and has retained its hold rating with a $3.65 price target. It said:

There were no major surprises in EDV’s 1H26 result following the company’s trading update in January. While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained.

Management also noted that they will continue investing in Dan Murphy’s to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements. We decrease FY26-28F underlying EBIT by between 0-1%. Our target price falls to $3.65 (from $3.70) and we retain our HOLD rating.

Magellan Financial Group Ltd (ASX: MFG)

Morgans has also been looking at Magellan shares. It notes that the company is planning to merge with Barrenjoey.

And while it feels the deal is more favourable to Barrenjoey, it thinks it has created a buying opportunity for investors. It has upgraded its shares to a buy rating with an improved price target of $12.43. It said:

MFG has entered into an arrangement to merge with Barrenjoey. We think the deal makes strategic sense and will reinvigorate the MFG story. Nevertheless, deal pricing appears tilted in Barrenjoey’s favour (in our view). We assume the merger closes at the end of FY26. Changes to our MFG FY26F/FY27F/FY28F EPS are -27%/+10%/~+25% reflecting the incorporation of the deal and upgrades to our assessment of Barrenjoey’s earnings profile (based on new disclosures).

Our price target is set at A$12.43 (previously A$9.80). We think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways to growth. MFG also retains a strong balance sheet (~A$690m of liquidity, post deal). Move to a BUY.

The post Buy, hold, sell: Collins Foods, Endeavour, and Magellan shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Collins Foods and Endeavour Group. 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 Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.