Tag: Stock pick

The ASX dividend stock Hearts and Minds Investments Ltd (ASX: HM1) may not be one of the most famous passive income shares, but it offers numerous benefits.

The dividend yields of BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) are only around mid-single digits right now. Plus, both of those ASX blue-chip share heavyweights have reduced their payout to shareholders this decade.

Hearts and Minds Investments is a much better choice right now, in my view, than many other ASX dividend stocks.

Diversification

Firstly, let’s talk about how Hearts and Minds operates.

It’s a listed investment company (LIC), which means it uses shareholder money to invest in different shares (or assets).

Hearts and Minds is different from most other LICs because its portfolio is not decided by a single fund manager. Instead, a number of investment professionals are involved, all working so that the LIC can donate an equivalent amount to medical research – it’s a great setup.

The portfolio has a very significant slant to international shares, though in previous years some of its largest holdings have been ASX shares.

A majority of the portfolio is decided by a group of portfolio fund managers who bring their best picks into the picture. The rest of the portfolio is decided at an annual investment conference where investment professionals each pitch their best idea.

So, it’s a best-pick portfolio that can give investors broad exposure to international stocks, which I think most Australians could benefit from.

Volatility has hampered performance in recent times, but it has still delivered respectable returns over the last few years. Over the three years to July 2026, the ASX dividend stock’s portfolio has returned an average of 12% per year after expenses (but before taxes).

Reliable payouts

Given those investment returns, the LIC can pay investors a steadily growing dividend.

It started paying a dividend in 2021 and hasn’t reduced its payout in that time. Hearts and Minds started paying dividends every six months in 2023 and has increased its half-year payout each year since 2024.

The board of directors of the business have provided guidance that the LIC will increase its half-year dividend by 0.5 cents every six months for the foreseeable future.

Big dividend yield

Another reason to like this ASX dividend stock is its high dividend yield. Therefore, the business is providing a large and growing payout.

Assuming it does continue increasing its payout by 0.5 cents every six months, the business should pay 20.5 cents per share over the next 12 months.

At the time of writing, that translates into a grossed-up dividend yield of 9.6%, including franking credits.

The ASX dividend stock trades at a significant discount

One of the main reasons why the dividend yield is so large so because it’s trading at a significant discount to its underlying assets.

The business reported that its pre-tax net tangible assets (NTA) was $3.65 at 7 August 2026. That means the Hearts and Minds Investments share price is trading at a 16% discount (at the time of writing) to that pre-tax NTA.

Buying good ASX dividend stocks at a significant discount also means that we’re more likely to see capital growth.  

A $1,000 investment buys…

If someone were to invest $1,000 in this ASX dividend stock, they could buy 326 shares of it. I think that’d be a solid choice today, among other leading ideas for passive income.

The post $1,000 buys 326 shares in an incredibly reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth bank of Australia (ASX: CBA) share price has headed lower in the past couple of weeks, as the chart below shows. This is a good time to look at whether the ASX bank share is primed to deliver good returns for investors.

CBA recently released its FY26 results, and investors got a good look at the numbers. It wasn’t enough to support the CBA share price, and the drop in home loan applications could be challenging for earnings growth in the 2027 financial year.

But at this lower valuation, experts may feel more confident about the potential for capital growth from here. Let’s take a look at what a $15,000 investment in CBA shares could do, which could currently buy 90 CBA shares at the time of writing (with $150 change left over).

CBA share price projection

A share price target indicates where the analyst believes the share price could go over the next 12 months.

According to CMC Invest, there have been eight ratings on ASX bank share in the last three months. All of them were sell ratings.

The average price target across those eight ratings was $122.33, according to CMC Invest, suggesting a possible 26% decline (at the time of writing) over the next 12 months. The most optimistic price target suggests a 12% decline to $144.99, while the most pessimistic implies a 45% decline to $90.

Of course, share price targets are not guaranteed future movements of the valuation, but it certainly doesn’t suggest a rosy outlook for the business.

Analysts aren’t disputing the quality of the ASX Bank share. But there is a widespread view that the CBA share price trades at a relatively high price/earnings (P/E) ratio compared to its peers, ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB).

Therefore, the CBA shares could become worth around $11,000, a drop of almost $4,000.

Commonwealth Bank dividend

The main positive for CBA shareholders is that the business could pay a slightly larger annual dividend per share in FY27.

According to the independent on Commsec, the ASX bank share could pay an annual dividend per share of $5.15 in FY27. At the time of writing, that translates into a dividend yield of 3.1%, excluding franking credits.

With 90 Commonwealth Bank shares, an investor could receive $463.50.

Potential shareholder return

Overall, those analyst projections imply the business could deliver a negative total shareholder return (TSR) of around 23%.

In other words, the starting $15,000 could decline in value to around $11,000 of CBA shares, $463 of dividend cash, and $150 of money not invested at the start.

At the current CBA share price, there seem to be better ideas out there.

The post By August 2027, CBA shares could turn $15,000 into… appeared first on The Motley Fool Australia.

More reading

• With $30 billion in FY26 income, should I buy CBA shares today?
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• Here’s the dividend forecast out to 2028 for CBA shares
• A200 vs NDQ: one Betashares ETF is the clear winner
• Experts name 3 popular ASX 200 shares to sell today

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and edged lower. The benchmark index fell 0.2% to 9,053.8 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rise

It looks set to be a good session for Australian investors on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.3% higher this morning. In the United States, the Dow Jones rose 0.2%, the S&P 500 climbed 0.2% and the Nasdaq pushed 0.15% higher.

ASX 200 result releases

Earnings season is going into overdrive on Thursday with a very large number of ASX 200 shares due to release their results. This includes Goodman Group (ASX: GMG), Medibank Private Ltd (ASX: MPL), Megaport Ltd (ASX: MP1), Super Retail Group Ltd (ASX: SUL), and Zip Co Ltd (ASX: ZIP).

Oil prices rise

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.85% to US$85.65 a barrel and the Brent crude oil price is up 0.5% to US$91.49 a barrel. This was driven by an escalation in Middle East tensions.

Buy Evolution Mining shares

Evolution Mining Ltd (ASX: EVN) shares are in the buy zone according to analysts at Bell Potter. This morning, in response to the gold miner’s record results, the broker has retained its buy rating with an improved price target of $15.55. It said: “EVN offers fully unhedged gold and copper exposure via a portfolio of high quality, long-life assets in Tier 1 jurisdictions, overseen by a high-quality management team. EVN has demonstrated its intention to increase shareholder returns and gold price exposure.”

Gold price jumps

It could be a very positive session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price jumped overnight. According to CNBC, the gold futures price is up 3.6% to US$4,581.1 an ounce. This was driven by a heavy decline in US bond yields and the US dollar.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Does the average superannuation balance at 60 generate enough passive income?
• 3 ASX growth shares brokers say could beat the market
• Why this ASX 200 stock is a buy after posting record results
• 3 ASX 200 shares I’d buy for the next decade
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Goodman Group, Megaport, and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Megaport, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The goal for most of us is to save enough in our superannuation such that we can fund a relatively comfortable retirement.

Whether that occurs at age 60, when we can access our superannuation, or later depends on various factors, but the amount of superannuation is, of course, important.

This begs the question: how much do you need to fund your retirement?

Australian superannuation amounts coming up short

It’s instructive to look at the statistics on how much superannuation Australians currently have.

At the moment, for men aged 60-64 the average amount is $395,852, while for women the amount comes in at $313,360.

For those aged 65-69 the numbers come in at $448,518 and $392, 274, with all of these figures calculated by the Association of Superannuation Funds of Australia (ASFA).

Meanwhile, ASFA has calculated that to have a comfortable retirement, using superannuation and a part pension, and assuming you own your own home, couples will need $730,000 in super while singles will need $630,000.

How much passive income will superannuation generate?

Now let’s look at what those aged 60-64 could expect to earn from their superannuation in passive income.

If a retiree had $395,852 in superannuation and earned 10% on their investments (a lofty sum to assume on a yearly basis), they would earn $39,585. This is well below the $55,923 per year which ASFA says would afford a comfortable retirement.

If they earned just 5%, this figure would drop to $19,792.

What this tells us is that many people do not have enough in their superannuation to sole-fund their lifestyle.

So, what can you do to prepare if you think your superannuation needs a top-up?

Strategies to boost your superannuation balance

Extra contributions can be made to superannuation in the form of concessional and non-concessional contributions.

Concessional contributions are taxed at just 15% and include money contributed by your employer, salary sacrifice contributions, and extra contributions you make up to a cap of $32,500.

If funds permit, and your superannuation balance was less than $500,000 in the last financial year, you can also carry forward any unused concessional contribution cap amounts from the previous five financial years.

The amount you are able to contribute in this way can be found in your myGov account.

A notice of intent to claim must be lodged with your super fund for concessional contributions so they know to deduct the 15% tax from the amount.

It is also possible to make non-concessional contributions up to an amount of $130,000, and it is also possible to contribute more than this amount using the bring forward rule.  

The post Does the average superannuation balance at 60 generate enough passive income? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• CSL shares surge 18% as ‘reset year’ points to a return to growth

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.

There have been many ASX shares that have delivered their latest numbers to investors so far this earnings season. Some have been impressive, others middling. But one report turned my head faster than any other. That would be the earnings from ASX tech stock and dividend share Pro Medicus Ltd (ASX: PME).

The medical imaging software company posted its earnings for the full 20206 financial year on Tuesday of this week.

As we covered at the time, there wasn’t much to turn one’s nose up at. Pro Medicus announced that its revenue for the 12 months to 30 June 2026 came in at $261.7 million, up a whopping 22.9% year on year.

Meanwhile, underlying earnings before interest and tax rose 24.4% to $$16.1 million. That helped to increase the company’s underlying net profits after tax (NPAT) by 24.1% to $144.7 million.

On the bottom line, Pro Medicus reported a statutory NPAT of $265.3 million, up 130.3%.

Those metrics are all well and good, pointing to a company whose growth engine is firing on all cylinders. But it was the dividend that Pro Medicus revealed that really drew my eye.

A massive pay rise from a stellar ASX dividend share

Pro Medicus unveiled a final dividend of 37 cents per share for FY2026. That alone represents a 23.33% hike over the final dividend of 30 cents per share from 2025.

Together with the interim dividend of 32 cents per share from March, it takes Pro Medicus’ 2026 payouts to 69 cents per share. That’s a 25.45% increase over 2025’s total of 55 cents per share.

As is this ASX dividend’s habit, all of those dividends came with full franking credits attached.

If this ascension from 55 to 69 cents per share for Pro Medicus’ payouts was a one-off, that would be one thing. However, this latest increase is just the latest in a long line of dramatic payout rises from this ASX dividend share.

Pro Medicus delivered a dividend hike almost every year of the past 15 years. The last time investors saw a cut was back in 2011. Since 2018, this stock has gone from paying out 6 cents a share to 2026’s 69 cents. That’s a compounded annual growth rate of 35.7%. Wealth-making stuff.

This incredible trajectory exemplifies why I’ve always wanted to own this ASX dividend share. Hopefully, I’ll get my chance before the next dramatic dividend hike.

The post This ASX dividend share just blew me away appeared first on The Motley Fool Australia.

More reading

• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?
• Here are the top 10 ASX 200 shares today
• Why are Pro Medicus shares surging more than 10%?
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• Pro Medicus FY26: Strong earnings growth and higher dividend

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

The Australian Strategic Materials Ltd (ASX: ASM) share price will be suspended from quotation after today’s close, following news that all ASM shares will be acquired by EFR Critical Minerals Pty Ltd, a wholly owned subsidiary of Energy Fuels Inc (NYSE: UUUU) This move comes after the Federal Court approved the scheme of arrangement.

What did Australian Strategic Materials report?

• ASM shares will be suspended from quotation as of the close of trading on 19 August 2026
• The Federal Court of Australia approved the scheme by which EFR Critical Minerals will acquire ASM
• Energy Fuels Inc. becomes the new indirect owner of ASM
• All outstanding ASM securities will transfer under the scheme

What else do investors need to know?

Trading in ASM’s securities will halt at the close today. This follows the official lodgement of the Court’s orders with ASIC. The suspension wraps up a process that began when ASM and EFR Critical Minerals proposed the acquisition deal to shareholders.

ASM shareholders will receive consideration according to the scheme’s terms as Energy Fuels Inc. takes ownership. The delisting of ASM means that existing shareholders will soon see their holdings converted as specified by the scheme documentation.

What’s next for Australian Strategic Materials?

With the scheme now approved and ASM securities suspended, EFR Critical Minerals will complete the acquisition process. Energy Fuels Inc. is expected to integrate ASM’s critical minerals operations into its global business.

Shareholders can expect final communication regarding payment and transfer details soon. The company is poised for a fresh chapter under new ownership with a focus on continued resource development.

Australian Strategic Materials share price snapshot

Over the past 12 months, ASM shares have risen 109%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post ASM share price suspended as EFR Critical Minerals completes takeover appeared first on The Motley Fool Australia.

More reading

• Australian Strategic Materials confirms scheme effectiveness as takeover completes
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX growth shares have spent much of 2026 out of favour, but a few brokers are starting to change their tune.

The ASX 200 has been dragged higher by miners, banks and healthcare, while technology has largely been left behind.

However, things may change going forward.

Here are three names worth watching into the back half of reporting season.

Why brokers are warming to ASX growth shares again

Two things have shifted this year.

Earnings downgrades across the technology sector appear to have bottomed, and several companies have reset their guidance to levels they can realistically beat.

Valuations have also come a long way down from their 2024 peaks.

When a quality business trades at half its old multiple, the risk and reward equation starts to look very different.

WiseTech Global: the comeback candidate

WiseTech Global Ltd (ASX: WTC) has been the most heavily punished technology stock on the ASX.

The shares fell roughly 80% from their November 2024 peak of $141.61 to a low of $28.76 in late June.

They have since rebounded into the mid-$40s.

Macquarie has upgraded the logistics software group to an outperform rating ahead of results, which land on 26 August.

Management has guided to revenue of US$1.39 billion to US$1.44 billion and EBITDA of US$550 million to US$585 million.

The company also hit its US$50 million annualised cost synergy target from the e2open acquisition ahead of schedule.

Delivering inside those ranges would go a long way towards rebuilding credibility with the market.

Megaport: recurring revenue is compounding

Megaport Ltd (ASX: MP1) has had a quieter but more consistent run.

Group annual recurring revenue reached $338 million in the first half of FY26, a 49% increase.

Revenue rose 26% to $134.9 million and EBITDA came in at $35.3 million.

The company added 167 net new customer logos, double the prior corresponding period.

Chief executive Michael Reid highlighted where that growth is coming from.

Our global business continues to scale, with the United States delivering exceptional momentum, pushing the Americas to 24% YoY ARR growth.

Megaport upgraded its outlook after securing $254 million in new contracts and now guides to FY26 revenue of $302 million to $317 million.

The shares recently pushed through the $5 billion market capitalisation mark.

DroneShield: a backlog the market is ignoring

DroneShield Ltd (ASX: DRO) is the most speculative of the three.

First-half revenue jumped 74% to $125.8 million, whilst the counter-drone specialist has also locked in contracts that lifted its backlog to $206 million by late July.

Full-year guidance sits at $250 million to $270 million. Yet the share price has fallen roughly 13% over the past month.

Heavy short interest explains part of that disconnect.

The other part is that defence spending is lumpy, and a signed backlog is not the same thing as revenue recognised.

DroneShield reports on 26 August, and its margins in particular will be in focus.

What could derail these ASX growth shares

Each of these businesses is priced for flawless execution.

WiseTech needs to show its artificial intelligence restructuring has not disrupted customers.

Megaport is spending heavily, with FY26 capital expenditure guided at $90 million to $100 million.

DroneShield has to convert its pipeline while protecting its margins.

Any stumble over the coming fortnight is likely to be punished hard.

Foolish takeaway

Reporting season will settle a lot of arguments over the next two weeks.

Brokers see upside in all three of these ASX growth shares, though none of them is a low-risk proposition.

Personally, I would want to see the numbers before adding to any of them.

For investors with a high tolerance for volatility, these ASX growth shares still deserve a place on the watchlist.

The post 3 ASX growth shares brokers say could beat the market appeared first on The Motley Fool Australia.

More reading

• Why did WiseTech shares just crash 10%?
• Is the DroneShield share price now too cheap to ignore?
• By August 2027, $8,000 invested in WiseTech shares could turn into…
• WiseTech shares are up 25%. Could this be the start of a huge comeback?
• Down 50% – Are these the best value ASX 200 shares right now?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Megaport, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX gold stock Astral Resources Ltd (ASX: AAR) has had a big week for news at its Mandilla gold project in Western Australia, and according to the analysts at Shaw and Partners the company is one to watch.

They have a buy recommendation on the stock, albeit with a high-risk warning, and a bullish share price target, which I’ll get to shortly.

First let’s look at what the company has announced.

Solid drilling results from WA gold prject

Earlier this week, Astral released the latest drilling from the Theia deposit at the Mandilla project, saying further broad zones of mineralisation had been intersected.

The best results included 52.7m at 4.67 grams per tonne of gold from a depth of 445m, and 21m at 1.61 grams per tonne from 321m.

To date 13 holes of a total of 21 have been drilled.

Commenting on the result, Astral Resources Managing Director Marc Ducler said:

The Theia Deeps drill program, which has now been extended to 21 holes for 11,000m, continues to show tremendous potential for additional growth at Theia, with the program targeting further high-grade extensions to the Theia resource at depth and along strike. These latest assay results … have all demonstrated broad zones of high-grade gold mineralisation beyond the base of the current April 2026 Mineral Resource shell. These programs position Astral for a very active second half of 2026 as we continue to both de-risk and grow the Theia deposit, advance the Mandilla Project definitive feasibility study (DFS) and kick-off a series of very promising exploration programs to test for growth opportunities at Kamperman and across our highly prospective Spargoville tenure.

In addition to the new exploration results, Astral announced it had struck a land-use agreement with the Marlinyu Ghoorlie Native Title Claimant Group for the project.

The company said the agreement covers protocols for heritage surveys, activities to protect identified sites and clearance procedures to facilitate mining activities at the Mandilla project.

This ASX gold company’s shares are looking cheap

Shaw and Partners said the land use agreement was an important hurdle for the company.

They also said they saw good prospects for a mineral resource upgrade from the company either accompanying or following the DFS.

They added:

We maintain Buy rating on Astral Resources and $0.30 price target. The combination of continued high-grade extensional drilling at Theia and the completion of native title agreements across the Mandilla DFS tenement package both support the de-risking thesis into DFS completion in MarQ’27. Next key catalysts include further Theia Deeps assays, the Spargoville and Kamperman follow-up drilling in SepQ, and delivery of the Mandilla DFS itself.

Astral shares are currently changing hands for 18.5 cents. The company is valued at $297.2 million.

The post This ASX gold stock could jump in value by 60%: Broker appeared first on The Motley Fool Australia.

More reading

• This ASX dividend share just blew me away
• ASM share price suspended as EFR Critical Minerals completes takeover
• 3 ASX growth shares brokers say could beat the market
• Solvar earnings: NPAT up, commercial lending grows, dividend rises
• How many Brambles shares do I need to buy for $5,000 per year of passive income?

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 Solvar Ltd (ASX:SVR) share price is in focus today after the company reported a 7.5% lift in normalised NPAT to $36.1 million, as well as continued progress in scaling its commercial lending and an increased fully franked dividend for FY26.

What did Solvar report?

• Normalised Net Profit After Tax (NPAT) up 7.5% to $36.1 million
• Statutory NPAT down 6.2% to $29.5 million
• Normalised earnings per share rose 14.7% to 19.0 cents
• Total FY26 fully franked dividend of 19.5 cents per share (including special dividend)
• Loan book in continuing operations up 10.5% to $920.3 million
• Commercial loan book now $109.8 million, with Bennji reaching $49.7 million

What else do investors need to know?

Solvar has been simplifying its operations and investing in scalable growth platforms, with commercial lending through Bennji now a key strategic pillar. The continued rise in the commercial loan book has helped diversify the group’s earnings and underpins a shift towards sustainable long-term growth.

Funding remains robust, with the company securing a new $488 million warehouse facility for Money3 and expanding overall funding capacity to around $1.1 billion. These moves bring over $400 million in available capacity, positioning Solvar for further loan book growth and expected funding cost savings in FY27.

Solvar also completed its exit from the New Zealand market, selling its written-off loan book and reducing future complexity. The group resolved historical ASIC proceedings this year and highlighted improvements made in credit assessment and compliance frameworks.

What did Solvar management say?

Mr Scott Baldwin, CEO and Managing Director of Solvar, said:

FY26 was an important year for Solvar as we continued rebuilding the foundations of the business to create a platform delivering sustainable growth.

What’s next for Solvar?

Solvar expects to see continued growth in both its consumer and commercial lending portfolios heading into FY27. The group will focus on expanding its commercial offering through Bennji, driving productivity through technology, and keeping capital allocation disciplined.

Management believes that Solvar’s strengthened funding platform, scalable operations, and focus on responsible lending leave it well placed to deliver sustainable growth and attractive returns for shareholders.

Solvar share price snapshot

Over the past 12 months, Solvar shares have risen 6%, outperforming the All Ordinaries Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post Solvar earnings: NPAT up, commercial lending grows, dividend rises appeared first on The Motley Fool Australia.

More reading

• This ASX dividend share just blew me away
• ASM share price suspended as EFR Critical Minerals completes takeover
• 3 ASX growth shares brokers say could beat the market
• This ASX gold stock could jump in value by 60%: Broker
• How many Brambles shares do I need to buy for $5,000 per year of passive income?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Brambles Ltd (ASX: BXB) shares are a popular choice for ASX investors looking for passive income.

The ASX blue-chip company is the world’s largest supplier of reusable wooden pallets and crates used for storing and transporting goods. It has a huge global footprint and operates in more than 60 countries, primarily under the Chep brand. 

The company has been operating for over 150 years and has a strong competitive position in the market.

Brambles’ scale, strong cash generation, recurring revenue and long operating history mean it is a classic defensive stock. And these qualities also mean the Australian blue chip is able to pay a regular passive income to its shareholders.

But what if you wanted to generate $5,000 of passive income from Brambles shares every single year? Is it even possible? And if so, what would it entail?

Let’s investigate.

What’s the latest out of Brambles shares?

At the time of writing, Brambles shares are trading for $19.47 a piece. That’s about 15% lower year-to-date and a 16% decline from this time last year.

Brambles shares jumped to an all-time high in September last year, and they stayed relatively consistent for around the next nine months. 

But in mid-May, Brambles shares crashed roughly 26% within a couple of days after the company scaled back its guidance figures for FY26. 

What dividend does Brambles pay its shareholders?

Brambles historically pays its shareholders two partially franked dividends per year, in April and October.

The company most recently paid shareholders a 32.74 cent interim dividend, with 14.05% franking, in April. Assuming Brambles will pay around the same amount for the second half of FY26, a 65 cent total dividend implies a forward dividend yield of around 3.4%.

How many Brambles shares do I need to generate $5,000 per year in passive income?

Assuming Brambles pays a total FY26 dividend of 65 cents per share, investors would need to buy around 7,692 shares in order to earn around $5,000 per year in passive income.

How much would that cost me?

Based on the current share price of $19.47, in order to buy the 7,692 shares needed for the $5,000 passive income in FY26, you would need to invest around $150,000.

It’s not a small amount of money, but if a regular and reliable passive income is your goal, it could be a worthwhile investment over the long-term.

And remember, you don’t have to invest the full $150,000 at once. You can slowly build your investment over time and let compounding do the rest.

The post How many Brambles shares do I need to buy for $5,000 per year of passive income? 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 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.