Tag: Stock pick

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.

More reading

• KFC owner Collins Foods shares sliding today on class action news
• Should you buy Magellan shares before the Barrenjoey merger?
• Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today
• Guess which ASX 200 stock is rocketing 11% on big Euro news
• 5 things to watch on the ASX 200 on Thursday

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.

When people think about investing in miners, they often assume returns will be unpredictable.

And to be fair, that’s partly true. Commodity prices can move around a lot depending on the global economy, supply and demand, and geopolitical events. That means mining shares rarely deliver smooth returns year after year.

However, over longer periods of time, the best mining companies have still managed to deliver attractive total returns for investors.

With that in mind, what could a $10,000 investment in BHP Group Ltd (ASX: BHP) shares look like over the next decade?

A diversified mining powerhouse

BHP is one of the largest and most diversified miners in the world.

Its operations span multiple commodities and regions, which helps balance out the inevitable ups and downs of individual commodity cycles. Over time, that diversification has helped the company generate strong cash flow and return large amounts of capital to shareholders.

Iron ore has historically been its biggest contributor, but the mix is gradually evolving.

Copper could drive the next phase of growth

One of the reasons I believe BHP could continue delivering solid returns over the coming decade is its exposure to copper.

Copper demand is expected to increase significantly as the global economy electrifies. Electric vehicles, renewable energy systems, and expanding electricity grids all require large amounts of copper.

Because of this, many analysts expect the copper market to tighten over time as demand grows faster than new supply.

BHP has positioned itself well to benefit from this trend through its major copper operations, including the world-class Escondida mine in Chile. As copper demand grows, these assets could play an increasingly important role in the company’s earnings.

A new growth engine in potash

Another long-term opportunity comes from BHP’s Jansen potash project.

Located in Saskatchewan, Canada, production at Jansen is expected to begin in mid-2027. Once fully ramped up, the operation is expected to produce around 8.5 million tonnes of potash per year.

Potash is a key fertiliser ingredient used to improve crop yields. BHP believes demand for potash could increase substantially over the coming decades as the global population grows and agricultural land becomes more nutrient depleted.

If that thesis proves correct, Jansen could become a major new earnings contributor for the company over time.

A realistic long-term return assumption

Historically, the Australian share market has delivered total returns of roughly 9% per year over long periods.

If BHP shares were able to achieve something similar over the next decade, that return would likely come from a combination of share price growth and dividends.

However, it is very unlikely to happen in a straight line. Mining shares tend to move in cycles, meaning some years could be strong while others could be weaker.

But if we assume an average annual return of 9%, including dividends reinvested, the long-term result can become quite interesting.

So what could $10,000 become?

If $10,000 were invested in BHP shares and the investment compounded at an average total return of 9% per year, after 10 years it could grow to roughly $24,000.

That figure includes both capital growth and reinvested dividends.

Of course, there are no guarantees that BHP shares will deliver that return. Commodity prices, global economic conditions, and company performance will all play a role.

But given BHP’s scale, its growing exposure to copper, and the long-term potential of projects like Jansen, I think a return in that ballpark is certainly within the realm of possibility over the next decade.

The post What $10,000 invested in BHP shares could become in 10 years appeared first on The Motley Fool Australia.

More reading

• 5 incredible ASX 200 shares I’d buy with $10,000
• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• Should I invest $5,000 in BHP shares?
• How much do I need to invest in Woodside and BHP shares for $10,000 a year in passive income?
• BHP and Woodside linked in CEO race as top executive emerges as contender

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are trading higher after the company said it had secured two new unconditional orders for counter-drone systems worth a total of US$45 million, and flagged growing interest out of the Middle East following the conflict in the region

Anti-drone capability in demand

The counter-drone technology company said it had secured an order for its Slinger Remote Weapon System from a customer in the Middle East, under the understanding that the system would be used to strengthen defence systems in light of the ongoing conflict in the region.

The order includes the Slinger system, cannons, platform integration, psrae training, and other supplies.

The company added:

The EOS Slinger RWS is EOS’ market leading counter-drone cannon-based defence system. 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.

The systems are expected to be manufactured in Australia and delivered in 2026.

EOS added that this delivery program might require the company to reassess its production schedules during 2026 and 2027.

EOS also said it had secured a US$3 million order through its US division for the integration of a counter-drone system.

The company said:

Due to the sensitive nature of the order, the customer has requested that the final product, the customer and the end-user not be named. The customer is a large established US Defence contractor. The product will be manufactured in Australia and the order is expected to be fulfilled during 2026.

Conflict driving interest

Regarding the ongoing conflict in the Middle East, EOS said the situation had caused heightened interest among potential buyers.

The company added:

During March 2026 EOS has continued discussions with several Middle Eastern governments and related representatives regarding the provisions of advanced counter-drone systems. Those systems include the established cannon-based Slinger RWS product; our High-Energy Laser Weapon APOLLO product range; and other related products for infrastructure protection. EOS views that the current military conflict may accelerate those opportunities albeit there is no guarantee that any additional orders will be secured.

EOS shares were trading 3.3% higher on Friday at $10.25. The company was valued at $2.06 billion at the close of trade on Thursday.

EOS shares have been under pressure this week after the company said in a statement to the ASX that it had been compelled to disclose more information about a previously announced US$80 million high-energy laser contract.

EOS did not initially disclose the identity of the buyer, which it has now done, while also furnishing more details about conditions relating to the contract.

The post Electro Optic Systems shares jump on new Middle East contract win appeared first on The Motley Fool Australia.

More reading

• Why EOS, GQG, Liontown, and Temple & Webster shares are tumbling today
• Why are EOS shares crashing 10% today?
• What are experts saying about EOS and DroneShield shares after yesterday’s recovery?
• Got $5,000? 2 top ASX growth stocks to buy that could double your money
• These 2 ASX shares have the booster power to rocket higher in 2026

Motley Fool contributor Cameron England has positions in Electro Optic Systems. 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.

If you are looking to add to your income portfolio this month, then read on.

That’s because listed below are two ASX dividend shares that Morgans rates as buys. Here’s what it is saying about them and what sort of dividend yields it is forecasting:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans is bullish on this travel agent giant and sees it as an ASX dividend share to snap up this month. It has a buy rating and $18.05 price target on its shares. It thinks its shares are cheap based on its FY 2027 forecasts. It said:

FLT’s 1H26 NBPT was up 4.1%, a beat on guidance for a flat result. The Corporate result was the highlight with NPBT was up 20%, while Leisure was better than feared down only 4%. The 3Q26 is off to a strong start and importantly Leisure is back in growth. FY26 guidance was reiterated. We have made minor upgrades to our forecasts. FLT’s fundamentals remain attractive (FY27 PE of 10.6x) and we retain a Buy recommendation with a new A$18.05 price target.

As for income, the broker is forecasting fully franked dividends of 47 cents per share in FY 2026 and then 54 cents per share in FY 2027. Based on its current share price of $11.40, this would mean dividend yields of 4.1% and 4.7%, respectively.

Iress Ltd (ASX: IRE)

Another ASX dividend share that Morgans is positive on is financial technology company Iress. The broker recently upgraded its shares to a buy rating with a $10.95 price target. It said:

IRE delivered a solid FY25 result with underlying EBITDA of A$136.2m, +4.7% ahead of our estimate, and the group’s FY25 guidance range. Divisionally each segment delivered solid EBITDA growth half on half, with APAC Wealth up +24.5%, UK Wealth +46%, and GTMD +8.6%. FY26 Cash EBITDA guidance (underlying EBITDA less capex) was provided at A$116-126m (representing 15-26% growth YoY).

IRE flagged that capex for FY26 will remain in line with FY25, which implies further operating leverage is expected. We upgrade our underlying EBITDA forecasts by +5-6%, which sees our price target increase to $10.95 from $10.50. With over 50% implied TSR, we move to a BUY rating from ACCUMULATE.

With respect to income, the broker is forecasting dividends of 28 cents per share in FY 2026 and then 33 cents per share in FY 2027. Based on the current Iress share price of $6.90, this would mean dividend yields of 4.1% and 4.8%, respectively.

The post Morgans names 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• 2 ASX stocks to buy and 1 to sell
• 5 ASX dividend stocks to buy with $25,000 in March
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX stocks to buy and 1 to sell
• 32 ASX shares about to go ex-dividend

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

Collins Foods Ltd (ASX: CKF) shares are slipping today.

Shares in the S&P/ASX 300 Index (ASX: XKO) KFC fast food restaurant operator closed yesterday trading for $9.92. In morning trade on Friday, shares are changing hands for $9.87 apiece, down 0.5%.

For some context, the ASX 300 is down 0.4% at this same time.

This modest underperformance comes amid news that the company has agreed to settle a long-standing class action.

Here’s what we know.

Collins Foods shares slide on $9 million settlement

Collins Foods shares are in the red this morning after the KFC operator announced that it has entered into a binding heads of agreement with the applicants of the proceedings to settle the employee class action.

The legal action, which regards 10-minute employee rest breaks, was commenced against Collins Foods and other respondents in December 2023.

The company reported that it has agreed to pay up to $9 million to settle the matter, subject to approval by the Federal Court of Australia.

Collins Foods made no admission of liability.

What else has been happening with the ASX 300 fast food stock?

Yesterday was a big day for the KFC operator, with Collins Foods shares closing up 5.2%.

Investors responded favourably to the company’s announcement, released after market close on Wednesday, revealing its expansion plans in Germany.

Collins Foods said it has inked an agreement with JJ Restaurant to acquire eight KFC restaurants near Munich for approximately $50 million, plus working capital.

As for the return on that investment, management forecast around $46 million in revenue over the first full year of ownership. The company expects to deliver earnings before interest, taxes, depreciation and amortisation (EBITDA) of around $9 million over the first 12 months.

“There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner,” Collins Foods CEO Xavier Simonet said.

Having secured an expansion of its German development agreements, the company is now aiming to open 45 to 90 new restaurants in the next four years.

Simonet noted:

The KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald’s. Despite lower restaurant density, KFC enjoys strong brand awareness and consumer appeal in Germany, supporting a compelling opportunity to expand our market presence.

How have Collins Foods shares been performing?

Collins Foods shares are up 19.8% over the past 12 months, outpacing the 11.1% gains delivered by the benchmark index.

The post KFC owner Collins Foods shares sliding today on class action news appeared first on The Motley Fool Australia.

More reading

• Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today
• Guess which ASX 200 stock is rocketing 11% on big Euro news
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• ASX retail shares: Experts rate 2 to buy and 2 to sell

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

Shares in Australian graphite producers have fallen on Friday after the US International Trade Commission (ITC) disallowed major tariffs on products out of China, reversing a previous determination.

Shares in Syrah Resources Ltd (ASX: SYR) and Novonix Ltd (ASX: NVX) fell on the news on Friday, trading 22.9% and 5% lower, respectively.

Early win stoked hopes

Syrah Resources shares got a boost in early February after the US Department of Commerce confirmed it would place huge tariffs of between 160% and 170% on graphite active anode material (AAM) coming out of China, in a bid to protect the local US industry.

Syrah is part of a lobby group, the North American Graphite Alliance, which had petitioned the US government to investigate whether Chinese graphite active anode material (AAM) producers were being subsidised by the Chinese government.

Syrah said in February that the Department of Commerce (DOC) had determined this was the case.

In its final determination, DOC confirmed that major Chinese battery and graphite AAM producers are “de facto” controlled by the Chinese government and therefore subject to the China-wide dumping rate. The antidumping and countervailing duty (AD/CVD) measures will apply to all natural and synthetic graphite AAM products and AAM contained in blended materials, components (e.g. anode slurries) and subassemblies (e.g. electrodes) imported into the United States from China.

This decision has now been overturned by the ITC.

Syrah stands by earlier statements

Syrah said on Friday it still believed that AAM from China was being sold and imported into the US at “unfairly low and subsidised prices for use in lithium-ion batteries and that this has been detrimental to the establishment and operations of a domestic AAM industry in the US”.

The company added:

There remain existing and potential US import tariffs on Chinese natural graphite and synthetic graphite AAM, including tariffs effective under Section 301 and Section 122 of the Trade Act, and tariffs being considered under Section 232 of the Trade Expansion Act. Further policy implementation under the US Administration’s critical minerals and national security agenda continues to encourage ex-China and domestic US sourcing strategies for AAM.

Syrah said the ITC determination could delay sales from its Vidalia facility in the US and limit near-term demand growth for AAM produced in the US.

The company added:

Syrah’s Vidalia AAM facility is producing high-quality AAM and has full readiness for commercial ramp-up. The facility is cost competitive with Chinese and Indonesian when producing at commercial AAM volumes. The Company will continue to pursue the ramp-up of production at Vidalia and commercial AAM sales with customers.

Syrah said it was also considering whether there were grounds for appeal.

The post Syrah Resources shares tumble after major US tariff hit appeared first on The Motley Fool Australia.

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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 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.