Tag: Stock pick

Yesterday, BCI Minerals Ltd (ASX: BCI) announced it had been awarded a construction contract for a new sulphate of potash (SOP) pilot plant at its flagship Mardie Salt Operation and Potash Project. This pilot plant marks a major step towards validating commercial-scale SOP production from the Mardie feedstock.

What did BCI Minerals report?

• Construction contract awarded for a 150 kg/hr SOP pilot plant at Mardie Salt Operation
• Pilot plant expenditure funded within the approved A$1.443 billion Mardie project budget
• Commissioning targeted for the start of Q2 FY2028, with 12-month piloting phase
• Approximately 1,000 tonnes of representative KTMS feedstock to be produced in Q2 FY2027
• Bluestar Lehigh Engineering Institute Co, Ltd engaged as lead designer and constructor

What else do investors need to know?

The new SOP pilot plant will allow BCI Minerals to test the value-adding potential of converting bitterns into high-value, premium fertiliser products onsite. This staged investment is intended to support continuous, end-to-end testing under operating conditions to refine technical and process design before any large-scale decisions are made.

The pilot initiative is fully funded from BCI’s existing project resources, meaning no change to the scope or schedule of the Mardie salt operation. The independent consultancy eXcellerate will provide oversight across design, risk, procurement, and commissioning, with a view to ensuring robust, reliable results.

What did BCI Minerals management say?

Managing Director David Boshoff said:

The SOP pilot plant is an important next step in BCI’s disciplined approach to maximising the value of the Mardie resource. It will allow us to assess the value-adding of bitterns into SOP, with the potential for Mardie to become Australia’s only operation producing both salt and SOP on one site. Piloting is the disciplined way to approach SOP. It gives us realistic, continuous end-to-end data on feed material in our own operating environment, which is exactly what we need to finalise a robust flowsheet and reduce technical and process uncertainty before any future full-scale investment decision. We are funding this entirely from within the existing approved project budget, and it does not change the scope or schedule of the Mardie salt operation.

What’s next for BCI Minerals?

BCI Minerals will now focus on producing and processing around 1,000 tonnes of feedstock for the pilot, aiming to commission the new SOP facility at the start of Q2 FY2028. Piloting will run for approximately 12 months, giving the company valuable operational data for refining its SOP process.

Any decision to proceed with a full-scale SOP facility will depend on successful piloting results, further feasibility work, and a separate investment decision. This staged approach supports BCI’s strategy to diversify Mardie’s earnings base and potentially establish a unique Australian operation.

BCI Minerals share price snapshot

Over the past 12 months, BCI Minerals shares have risen 31%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post BCI Minerals: SOP pilot plant contract awarded appeared first on The Motley Fool Australia.

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

WiseTech Global Ltd (ASX: WTC) shares finished Tuesday 3% higher at $43.35, extending their monthly gain to 25%. That’s an impressive rebound, but the ASX tech stock remains 37% lower year to date and down 62% over the past 12 months.

Now, investors are looking towards 26 August, when WiseTech is due to deliver its FY26 results. The numbers could determine whether this rally has genuine legs.

Is WiseTech’s comeback gathering momentum?

The recovery in WiseTech shares since late July has been eye-catching. But the collapse has been brutal, and investors still have plenty of reasons to remain cautious.

The interesting thing is that the underlying business hasn’t simply fallen apart.

WiseTech’s flagship CargoWise platform remains a major logistics software solution, used by the world’s top 25 freight forwarders, including Toll and DHL. The platform helps freight forwarders, customs brokers and supply-chain operators navigate increasingly complex global trade.

That leaves WiseTech exposed to powerful long-term trends, particularly the continued digitalisation of global trade and growing demand for sophisticated logistics technology.

Crucially, the sell-off hasn’t primarily reflected collapsing demand for CargoWise. Investor confidence, governance concerns and regulatory issues have played a major role.

That makes next week’s results particularly important.

What could WiseTech report?

Management has reaffirmed FY26 guidance for revenue of US$1.39 billion to US$1.44 billion, representing growth of 79% to 85%.

EBITDA is expected to reach US$550 million to US$585 million, which would represent growth of 44% to 53% over FY25.

If WiseTech delivers on those numbers — and provides an encouraging FY27 outlook — investors in WiseTech shares may become more willing to look past the governance drama and refocus on the company’s underlying growth opportunity.

What do brokers think?

The broker community appears relatively bullish on WiseTech shares.

According to TradingView data, 11 of 14 analysts have a buy or strong-buy rating. The average price target of $60.61 implies potential upside of roughly 40% from Tuesday’s close.

The most bullish target is a remarkable $114.11, suggesting potential upside of approximately 163%.

Bell Potter has a buy rating and $71.75 price target. Its analysts believe some of the headwinds weighing on WiseTech could begin to fade, particularly following the appointment of Raelene Murphy as chair.

Macquarie is also bullish, with a buy rating and $47.10 price target. The broker has suggested WiseTech could “surprise to the upside” with FY27 guidance, although tariffs and regulatory issues remain risks.

Could WiseTech shares really rebound?

The bull case for WiseTech shares is certainly becoming harder to ignore. A strong FY26 result, combined with upbeat FY27 guidance, could give investors the catalyst they’ve been waiting for to reassess WiseTech’s battered valuation.

But this isn’t a risk-free recovery story. Governance, regulatory and execution risks remain, while the company must prove that it can translate its powerful long-term growth opportunity into sustainable earnings growth.

The post WiseTech shares are up 25%. Could this be the start of a huge comeback? appeared first on The Motley Fool Australia.

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• Down 65%! Are WiseTech shares now a bargain buy?

Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

A decade gives businesses plenty of time to grow, new industries to develop, and investment returns to compound.

For investors looking towards 2036, these are three Vanguard exchange-traded funds (ETFs) I think could be worth considering.

Vanguard Diversified All Growth Index ETF (ASX: VDAL)

The VDAL ETF is one of the newer additions to Vanguard’s Australian range, and I like how much it can cover in a single investment.

The fund invests entirely in shares and provides exposure to more than 6,000 stocks across over 50 markets. That includes Australian shares, large international companies, emerging markets, and global small caps.

For me, the attraction is the sheer number of places growth can come from.

The businesses leading global markets in 2036 may look quite different from those dominating today. New companies will emerge, existing leaders will expand, and some industries could become far more important.

The VDAL ETF does not require investors to predict all of those changes beforehand. Its broad exposure allows the portfolio to evolve alongside global share markets.

I think it could be an attractive Vanguard ETF for investors who want broad share market exposure over a long timeframe.

Vanguard Global Technology Index ETF (ASX: VTEK)

Technology is one area where I expect the world to look considerably different by 2036.

Artificial intelligence is already changing how businesses operate, while cloud computing, cybersecurity, semiconductors, automation, and digital services should continue developing over the coming decade.

The VTEK ETF provides exposure to around 300 global technology stocks across developed and emerging markets. It also caps individual positions, helping prevent the portfolio from becoming completely dominated by its largest holdings.

I like this approach because the next decade of technology growth may spread well beyond the companies currently receiving the most attention.

The fund can participate as new technology leaders emerge while retaining exposure to established businesses benefiting from continued digital investment.

There will be periods when technology shares struggle, particularly after valuations become stretched. However, over a decade, I think continued innovation gives this Vanguard ETF an exciting long-term opportunity.

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

The VISM ETF looks further down the size spectrum.

It invests in smaller companies across major developed markets, with its largest country exposure currently coming from the United States, followed by markets including Japan, the United Kingdom, Canada, Sweden, and Germany.

I think small caps can be particularly attractive over a 10-year timeframe because many are still relatively early in their growth journeys.

Some will expand into new countries, develop new products, or grow into much larger businesses. An ETF provides a way to participate in that potential across a broad collection of companies rather than needing to identify the eventual winners individually.

Smaller companies can experience greater volatility, and plenty will inevitably disappoint. But I think the chance to capture growth across hundreds of businesses makes the fund worth considering for a long holding period.

Foolish takeaway

Ten years is long enough for markets to change in ways that are difficult to predict today.

That is why I like ETFs that either spread their exposure widely or give investors access to areas where I can see substantial growth ahead.

I would be comfortable buying any of these Vanguard ETFs now and giving the investment plenty of time to work.

The post 3 Vanguard ETFs I’d buy and hold until 2036 appeared first on The Motley Fool Australia.

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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 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.

When it comes to retirement, it’s good to have a handle on how much income you can expect to have on hand to get by on.

How much do you need for a comfortable retimrent?

The Association of Superannuation Funds of Australia (ASFA) calculates a retirement standard each year which is a guide to how much money you need for what they deem to be a comfortable retirement.

A “comfortable retirement” includes the ability to afford top level private health cover, to own and maintain a reasonable car, to maintain your home, and to travel occasionally, among other things.

The figures for a comfortable retirement are currently calculated at $730,000 for couples and $630,000 for singles.

ASFA also assumes that the retiree will draw down all of their capital over time and receive a part Age Pension.

For simplicity’s sake, I am going to assume a retiree is living off of dividends alone and not drawing down any capital.

In that case, what sort of income stream can you expect from a $630,000 lump sum?

The figures are pretty simple. If you can achieve a 10% dividend stream you would receive $63,000 per year, and for 5% it would be $31,500.    

I would argue that a 10% dividend yield from shares each year is unrealistic, while 5% is achievable.

Franking credits boost your earnings

You have to remember that once you are retired, you will get the benefit of franking credits from shares which have them attached.

In simple terms franking credits allow you to claim back the tax a company has already paid on their profits, which can be quite lucrative for retirees who are on a zero per cent tax rate.

In practice this means that if you have a full franked share paying a 5% dividend, the actual return will be 7.14%.

There are plenty of shares which will generate these sort of returns.

For steady dividend returns I am a fan of real estate investment trusts, which often hold a large number of diversified assets, therefore reducing risk.

The Charter Hall Social Infrastructure REIT (ASX: CQE) is paying a trailing dividend of 6.88%, while at the smaller end 360 Capital REIT (ASX: TOT) is paying 7.31%.

Among the banks Bendigo and Adelaide Bank Ltd (ASX: BEN) is paying 5.65% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.22%.

Among the resources stocks Fortescue Ltd (ASX: FMG) is paying 6.87% while Woodside Energy Group Ltd (ASX: WDS) is paying 5.03%.

Given these sorts of returns, I’d argue a yield of 7.5% on your superannuation investments is realistic, which would equate to $47,250 per year from a balance of $630,000.

The post How much passive income could I earn from a $630,000 superannuation balance? 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a great way for Australians to build wealth for their retirement.

But it’s not just a savings pot.

Did you know that you can also earn a passive income off your balance once you transition to the pension phase?

But how much do you need in your super to be able to get the passive income you want when your retirement years arrive?

And how achievable is a $10,000 per month passive income?

Let’s investigate.

How much do I need in my superannuation to get a passive income of $10,000 every single month?

First, you need to work out what $10,000 in passive income every month equals over the entire year. 

So, $10,000 x 12 = $120,000.

Then you need to divide your annual passive income by the dividend yield of your overall portfolio. 

For example, $120,000 ÷ 5% = $2.4 million (that’s the portfolio size you’d need).

The catch is that the answer varies depending on your dividend yield.

That means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Break it down for me

Say your overall portfolio has a yield of around 2% or 3%. You’ll need a balance of around $6 million or $4 million to earn your $10,000 per month ($120,000 per year) passive income.

Of course, these are huge figures and this level of superannuation balance is out of reach for the majority of Australians.

But the good news is, as your yield goes up, the amount you need to earn the same $10,000 per month passive income, goes down.

So, if your portfolio yields closer to 4%, you’d need around $3 million.

Then if your portfolio yields a little higher, around 5%, you’d need more like $2.4 million to earn the same amount.

At 6%, you’d need a superannuation balance of around $2 million to earn the same amount.

Increase that to a 7% or 8% yield, and you’re looking at closer to $1.7 million or $1.5 million, respectively.

Then if you have the appetite for higher yielding and riskier shares, around the 9% or 10% mark, you’d need around $1.33 million or $1.2 million in your super to earn the same level of passive income.

Remember, most ASX dividend shares pay dividends on a semi-annually or yearly basis. Which means that while you could target the equivalent of $10,000 per month in passive income, you won’t actually receive the money on a month-by-month basis, but instead in a lump sum every six or 12 months.

Why can’t I invest in the highest yielding ASX shares available so I can earn the same passive income off a lower balance?

Technically this is possible, but it comes with a significant amount of risk.

When it comes to ASX dividend shares, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or they have discounted share prices. 

It doesn’t mean high-yield shares should be avoided, but rather, they should be part of a diversified portfolio rather than account for the entire portfolio.

Rather than trying to get rich quick, it’s best to concentrate on a diverse range of good-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

Ok, so what does a diversified portfolio look like?

If you plan to earn $10,000 per month off a 5% yielding portfolio, you’d need a balance of around $2.4 million.

That doesn’t mean that every investment in that superannuation portfolio has to be 5%. It can be a variation which equates to a combined overall 5% yield.

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compounding do some of the hard work for you.

I’d look at splitting my superannuation portfolio into different yielding stocks, across different sectors.

You could look to have around 10% of your portfolio invested in 3% yielding ASX shares, 20% into 4% yielding, 35% into 5% yielding, 25% into 6% yielding, and 10% into 7% yielding. Overall, this would give a total overall portfolio yield of just over 5%.

Alternatively, you could split it down far more simply and allocate 20% equally to 2%, 3%, 4%, 5%, and 11% yielding shares. Again, overall, this would total a 5% yield and you’d benefit from a range of exposures.

The post How much superannuation do I need to earn $10,000 per month in 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.

The PEXA Group Ltd (ASX: PXA) share price will in focus on Wednesday after the company updated investors on its response to IPART’s draft report into ELNO service fees.

Key highlights include confirmation of 4.2 million Australian Exchange transaction volumes for FY26 and expectations for a fall in volumes in FY27 due to macroeconomic conditions.

What did PEXA Group report?

• PEXA recorded 4.2 million Exchange transaction volumes in FY26, comprising 2.67 million transfers, 0.97 million refinances, and 0.55 million other transactions.
• July 2026 transfer volumes reached approximately 192,000.
• PEXA has not yet confirmed its FY26 financial results or FY27 guidance; these are due to be released on 28 August 2026.
• PEXA expects transaction volumes to decline in FY27 as a result of recent macroeconomic changes.

What else do investors need to know?

PEXA has formally lodged its submission in response to the Independent Pricing and Regulatory Tribunal (IPART)’s draft report on ELNO service fees. This response includes several independent expert reports commissioned by PEXA, offering alternative methodologies for assessing digital platform service fees and rates of return.

The outcome of the IPART review could impact how electronic lodgment service fees are set in future, with the NSW Government expected to receive the final report by the end of September 2026. Once received, the report will be referred to ARNECC, which will conduct additional consultations and determine next steps—a process that may take several months.

What’s next for PEXA Group?

PEXA will release its full FY26 results and provide guidance for FY27 on 28 August 2026. Management also plans to discuss the ongoing review of ELNO service fees and other strategic priorities on its investor call. The company’s volume outlook remains cautious into FY27 as it navigates macroeconomic headwinds and regulatory changes.

Longer term, PEXA continues its strategy of expanding its digital property settlement platform both domestically and in the UK, building on recent launches and capabilities.

PEXA Group share price snapshot

The PEXA Group share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of around 50%.

View Original Announcement

The post PEXA Group updates market on FY26 volumes and responds to fee review appeared first on The Motley Fool Australia.

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

It was a bumpy, but ultimately negative Tuesday session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares today. After spending almost the entire session in green territory, investors seemed to get cold feet in the late afternoon. By the time the markets closed, the ASX 200 had choked, closing 0.035% lower. That leaves the index at a flat 9,070 points.

It seems the weekend wasn’t enough to bring some optimism to investors’ minds, with the ASX 200 opening sharply lower this morning and staying in red territory all day. By the time trading wrapped up, the index had lost 0.46% and finished at 9,073.2 points.

This miserly finish for the Australian markets this Tuesday followed a rough start to the American trading week on Wall Street last night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was not feeling Monday-fresh, dropping 0.51%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared slightly better, but still fell 0.32%.

But let’s get back to our local markets now and take stock of what the various ASX sectors were up to this session.

Winners and losers

With the market’s falls, there were unsurprisingly more red sectors than green ones today.

Leading those red sectors were gold stocks. The All Ordinaries Gold Index (ASX: XGD) had a rough one, cratering by 1.57%.

Communications shares weren’t popular either, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) plunging 1.26%.

We could say the same for consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) saw a 1.16% dive this session.

Financial shares weren’t much better, evident from the S&P/ASX 200 Financials Index (ASX: XFJ)’s 1.1% wipeout.

Consumer discretionary stocks came next. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) suffered a 1.03% reduction this Tuesday.

Tech shares were right behind that, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) dipping 1.02%.

Industrial stocks had a day to forget, too. The S&P/ASX 200 Industrials Index (ASX: XNJ) endured a 0.75% dip today.

Let’s turn to the winners now. Leading the charge were healthcare shares, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s whopping 7.81% surge. We can thank CSL Ltd (ASX: CSL) for that.

Energy stocks enjoyed some time in the sun too. The S&P/ASX 200 Energy Index (ASX: XEJ) jumped up 0.99% today.

Utilities shares also got a reprieve, with the S&P/ASX 200 Utilities Index (ASX: XUJ) advancing 0.89%.

Mining stocks were another safe haven. The S&P/ASX 200 Materials Index (ASX: XMJ) rose 0.15% by the closing bell.

Finally, real estate investment trusts (REITs) got in under the wire, as you can see by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.05% inch higher.

Top 10 ASX 200 shares countdown

Our winner this session was manufacturing stock Reliance Worldwide Corporation Ltd (ASX: RWC).

Reliance shares exploded 24.65% higher today to close at $4.50 each. This came after the company posted its latest earnings, which included the revelation that it had received a takeover offer.

Here’s how the other winners pulled up at the kerb:

ASX-listed company	Share price	Price change
Reliance Worldwide Corporation Ltd (ASX: RWC)	$4.50	24.65%
CSL Ltd (ASX: CSL)	$157.82	17.25%
Judo Capital Holdings Ltd (ASX: JDO)	$1.07	16.94%
Pro Medicus Ltd (ASX: PME)	$196.75	11.88%
SRG Global Ltd (ASX: SRG)	$3.96	9.39%
A2 Milk Company Ltd (ASX: A2M)	$7.09	8.58%
Cochlear Ltd (ASX: COH)	$10.32	6.50%
Challenger Ltd (ASX: CGF)	$10.32	6.50%
Beach Energy Ltd (ASX: BPT)	$0.905	3.43%
Deterra Royalties Ltd (ASX: DRR)	$4.35	3.08%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Challenger, Cochlear, Pro Medicus, and Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When you see a popular ASX dividend stock trade with a dividend yield of almost 10%, you might be tempted to rush out and buy it straight away. After all, a 10% yield represents phenomenal cash flow potential. You could get nearly $10 back every single year for each $100 invested. That’s twice what a good term deposit is paying right now (even with our currently high interest rates). And it’s more than two what most other blue chip ASX dividend stocks are yielding.

The popular ASX dividend stock I am referring to is none other than WAM Capital Ltd (ASX: WAM). Yep, WAM Capital shares are, at the time of writing, asking $1.58 a share. At this price, the listed investment company (LIC) is trading on a dividend yield of 9.84%. Today, let’s discuss this dividend yield, and why yields at this height are usually a waving red flag.

As a LIC, WAM Capital owns and manages a portfolio of underlying investments on behalf of its shareholders. In WAM Capital’s case, this portfolio is made up of “undervalued growth companies”, usually of the small- to mid-cap variety, that WAM Capital has identified as possessing some kind of pricing catalyst that will see their value rise in the near future.

Some current holdings (as of 31 July) include Eagers Automotive Ltd (ASX: APE), Codan Ltd (ASX: CDA), DigiCo Infrastructure REIT (ASX: DGT), and Zip Co Ltd (ASX: ZIP).

WAM passes on any profits made from its arbitrage trades, as well as any dividends it receives from its holdings, on to investors in the form of its own dividends.

Why this ASX dividend stock’s near-10% yield is a red flag

A company’s dividend yield is a function of its share price just as much as its underlying dividend per share. As such, anyone who spots a company with a yield this high must ask themselves why the market is pricing it that way. The answer is usually that there is a high level of risk associated with that yield.

So where does the risk come from in the case of this particular ASX dividend stock? Well, let’s go through some numbers.

Since 2018, WAM Capital has paid out two dividends a year, each worth 15.5 cents per share. However, the company tells us that, again as of 31 July, it had just 13.3 cents per share in its profit reserve. That’s the pot where its dividends are funded from. There’s clearly not much left in the tank. If WAM Capital doesn’t replenish those profits soon, investors are at serious risk of a dividend cut. If that does eventuate, that 9.84% yield wouldn’t be long for this world.

This company doesn’t exactly have a glowing history either. For whatever reason, WAM no longer lists its recent performance figures on its site. However, a quick look at its share price will tell you all you need to know. Today, WAM Capital shares are trading at the same level they were way back in early 2002. Over the past decade, its share price has lost about a third of its value, probably not assisted by the company’s rather hefty 1% per annum management fee.

Foolish takeaway

That tells us that its dividends are the only real source of shareholder returns. Given the apparent precariousness of these payouts, it’s not hard to see why the market is pricing in so much risk to that yield.

Sometimes, a yield that looks too good to be true just might be that. Investors should always tread with extreme caution when red flags this large are waving in the wind.

The post This popular ASX dividend stock has a 10% yield. That’s a problem appeared first on The Motley Fool Australia.

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• This fund manager thinks these ASX shares are buys and have big potential!

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. 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) has jumped over 3% over the past month amid a surge in investor confidence.

Here are three undervalued ASX 200 shares which could be primed to storm higher over the next 12 months.

The A2 Milk Co Ltd (ASX: A2M)

A2 Milk shares are jumping higher in afternoon trade on Tuesday. At the time of writing, the milk company’s shares are up around 8% and changing hands at $7.04 a piece. 

Today’s share price spike follows the company’s FY26 results announcement on Monday morning. It reported a 12.4% increase in revenue but a 2.5% decline in full-year statutory EBITDA and a 5.8% drop in statutory NPAT.

Investors were initially hesitant but then many quickly bought into the shares.

Monday’s results announcement comes off the back of a difficult start to the year for A2 Milk. 

The shares crashed around 20% in early April after it lowered its FY26 guidance amid supply chain challenges, and the shares continued tumbling to an 18-month low in early-June.

The ASX 200 shares have recovered around 35% of their value from early-June to the time of writing, but the rebound still hasn’t brought the share price back to early-2026 levels. They’re still down around 24% for the year-to-date.

It’s clear that the company’s FY26 results weren’t as bad as many were expecting. Even after today’s 8% share price increase, it looks like the ASX 200 shares are still trading well below fair value.

Market Index data shows the majority of brokers have a buy rating on the shares. The $8.04 average target price implies a potential 19% upside, at the time of writing.

Lendlease Group (ASX: LLC)

Lendlease also posted its FY26 results early yesterday morning. The ASX 200 international property developer reported earnings at the top end of guidance but also posted a statutory loss after tax of $749 million.

Investors were spooked, and the shares crashed 11% by the end of the day. Today, ASX 200 property shares are back in the green, trading 1% higher at $2.90. The shares are also down around 44% year-to-date.

The announcement followed a disappointing first-half update earlier this year. 

The company has undergone a major strategic reset this year, which has seen it simplify its structure, exit international construction, and refocus its efforts on the Australian market. 

Investors aren’t sure, but it looks like analysts are more bullish that the company can pull off the new strategy.

Market Index data shows brokers are split between a buy and hold rating. But the $3.49 average target price implies a potential 22% upside, at the time of writing.

Nickel Industries Ltd (ASX: NIC)

Nickel Industries shares spiked to a three-year high of $1.10 in early May. But they’ve now lost around 25% of their value. At the time of writing, the shares are down another 1% and are changing hands for 83 cents each. That’s an 8% decrease year-to-date.

The ASX 200 company owns a portfolio of mining and downstream nickel processing assets in Indonesia. It has a controlling interest in the Hengjaya nickel mine and four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry and materials for EV batteries. 

Its shares enjoyed a very strong start to 2026, including a new acquisition and strong financial results. But a weaker nickel price and higher costs have put pressure on the shares over the past couple of months.

But there is plenty of expansion potential ahead for the ASX 200 nickel shares, and brokers appear bullish that the share price can rally higher this year.

Market Index data shows that the majority have a buy rating on Nickel Industries shares. The $1.29 average target price implies a potential 56% upside over the next 12 months, at the time of writing.

The post 3 oversold ASX 200 shares trading for cheap right now appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Are A2 Milk shares a buy, hold or sell following results?
• Why Lendlease, A2 Milk and JB Hi Fi shares are turning heads on Monday
• Lendlease FY26 earnings: Top-end IDC result but statutory loss hits share price
• The A2 Milk Company posts higher FY26 revenue and increased dividends

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.

The WAM Leaders Ltd (ASX: WLE) fund is paying a dividend yield of 7.2%, fully franked, after its investment portfolio returned 14% for the year.

The 4.8 cent per share final dividend brings the total shareholder return for the year to 24.7%, while the grossed up dividend yield including franking credits comes in at 10.3%.

Fund has been performing well

Lead Portfolio Manager Matthew Haupt said it was a solid year.

He added:

The 2026 financial year was characterised by changing interest rate expectations, geopolitical tensions, global trade disruption and evolving views on the sustainability of artificial intelligence-led growth. These conditions created periods of volatility and meaningful shifts in market leadership, generating opportunities for active investors. The investment team and I adjusted portfolio positioning as conditions evolved, including maintaining exposure to areas of the market where we saw attractive risk-adjusted opportunities, while remaining disciplined on valuation. This approach enabled the investment portfolio to outperform the S&P/ASX 200 Accumulation Index during the year.  

Mr Haupt said the fund would remain focused on high-quality companies trading at attractive valuations.

He added:

Periods of market volatility can create opportunities for active managers, and the investment portfolio is positioned to take advantage of these opportunities as they emerge.

Chair Geoff Wilson said the strong investment performance contributed to a 153.5% increase in operating profit after tax of $161.8 million.

WAM Leaders has increased in value by 12% per year since listing in 2016, while also paying out dividends.

Resources and financials paying off

The fund’s investments include materials at 24.8%, financials at 20.9%, real estate at 13.6%, and consumer discretionary at 10.9%.

In terms of stocks, its largest holdings are in BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Wesfarmers Ltd (ASX: WES).

The fund also on August 10 announced a share purchase plan, allowing shareholders to subscribe for up to $30,000 in new shares.

The fund added:

The Board also announced the successful completion of a placement to professional and sophisticated shareholders. Bids exceeded the initial target raise which resulted in the placement bookbuild closing early and allocations being subject to scale back. The final placement size was increased to $225 million in response to the excess demand. The additional capital will enable the investment team to take advantage of investment opportunities for the benefit of all WAM Leaders shareholders.

WAM Leaders shares were changing hands for $1.33. The fund is valued at $2.06 billion.

The post This investment fund is paying a 7.2% dividend yield after solid results appeared first on The Motley Fool Australia.

More reading

• WAM Leaders lifts dividend as portfolio outperforms in FY26
• These ASX 200 shares could generate $10,000 per year in passive income
• How much is needed in superannuation to target a $2,000 monthly passive income?
• 2 ASX blue-chip shares offering big dividend yields
• WAM Leaders wraps $225m placement, lifts FY26 dividend

Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.