Tag: Stock pick

Woolworths Group Ltd (ASX: WOW) shares are getting hammered today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $37.29. In earlier morning trade on Thursday, shares just crashed to $33.63, down 9.8%. After some likely bargain hunting, shares are currently changing hands for $34.74 apiece, down 6.8%.

For some context, the ASX 200 is down 0.5% at this same time.

This underperformance follows the release of Woolworths’ third quarter sales results (Q3 FY 2026).

Here’s what’s catching investor interest.

Woolworths shares sink on looming headwinds

For the 13 weeks to 5 April, Woolworths reported total sales of $18.1 billion, up 4.5% from Q3 FY 2025.

Up 5.9% year-on-year to $13.8 billion, Australian Food sales remain a cornerstone for the ASX 200 supermarket. The company noted that underlying trading momentum remained solid.

However, investors may be feeling jittery today with management noting they have seen “some signs of increased customer caution”.

Management expects that Australian Food earnings before interest and tax (EBIT) growth for FY 2026 will remain in the mid to high single digits, but no longer at the upper end of that range.

Woolworths shares also aren’t getting a boost today, despite eCommerce sales increasing by an impressive 20.2% to $2.7 billion. Woolworths eCommerce segment now represents 16.6% of all its Australian Food sales.

The supermarket had a more challenging quarter with its New Zealand Food sales, which decreased by 5.2% in Aussie dollar terms to $1.81 billion. (In New Zealand dollar terms, Food sales of NZ$2.15 billion were up 1.4% quarter-on-quarter.) Management said this reflected lower market growth and a highly competitive market.

Rounding off the company’s major segments, sales at its W Living division, which comprises BIG W and Petstock, were up 4.8% year on year to $1.27 billion. The company said that despite BIG W sales growth “remaining modest”, the store is on track to deliver positive EBIT and cash flow for FY 2026.

What did management say?

Commenting on the results that are pressuring Woolworths shares today, CEO Amanda Bardwell said:

In Q3 we made further progress on our strategic priorities with investment in value, fresh, convenience and execution delivering improved sales momentum in Australian Food which drove strong Group sales growth.

Looking ahead, Bardwell added:

The conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute. While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year…

The group has mobilised rapidly to respond to this environment, and we are engaging regularly with government as their response plans are developed.

With today’s intraday slump factored in, Woolworths shares remain up 10.0% over 12 months, not including dividends.

The post Why did Woolworths shares just crash 10%? appeared first on The Motley Fool Australia.

More reading

• Woolworths Group Q3 sales grow as shoppers turn to value and convenience
• Why I think Woolworths shares could beat the market over 10 years
• $250,000 to invest for passive income? Here’s how I would build a portfolio
• Is it time for investors to turn back to defensive ASX shares?
• If I had to build a simple ASX portfolio today, this is what I’d do

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

Shares in ASX Ltd (ASX: ASX) are edging higher on Thursday after the company announced a leadership change at the top.

At the time of writing, the ASX share price is up 3.01% to $59.59.

That comes off a solid run, with the stock up around 18% over the past month.

So, let’s take a closer look at the latest release.

Interim CEO steps in

Before the market opened, ASX confirmed that Darren Yip will take on the role of interim Chief Executive Officer.

Yip is currently Group Executive of Markets and Listings and will officially step into the position on 29 May 2026.

The move follows the earlier announcement that current CEO Helen Lofthouse is set to depart the business.

ASX said it is continuing its search for a permanent replacement.

Yip joined the company in 2023 and brings more than 20 years of experience across global financial markets.

His background includes senior roles in trading, derivatives, and equity markets, along with leadership experience across Asia Pacific.

What this means in the short term

There are no changes to the ASX’s earnings, guidance, or capital allocation in the update.

Instead, the focus is on maintaining continuity while the board looks for a long-term appointment.

Management noted that Yip’s experience across both markets and listings should help keep operations running smoothly through the transition.

That includes oversight of ASX’s core businesses, such as equities trading, derivatives, and clearing services.

The exchange operator also flagged that planned projects and day-to-day operations will continue as expected during this period.

Pay details and timing

Alongside the appointment, ASX released details on Yip’s interim pay structure.

He will receive an additional fixed allowance of $600,000 per year on a pro rata basis while in the role.

There is also a lift to his short-term incentive opportunity, which is reflected from the added responsibility.

The interim arrangement will stay in place until a permanent CEO is appointed or the board decides otherwise.

Foolish Takeaway

The business is still doing what it has been doing, generating steady revenue from trading, listings, and clearing activity.

Short-term leadership changes can create noise, but they do not always change the underlying performance of a company.

With no financial impact flagged, this update is more of a transition.

I still see ASX as a solid, defensive-style holding that benefits from stable market activity and its position in Australia’s financial system.

From here, I would be watching trading volumes and listings activity much more closely than the CEO timeline.

The post ASX shares climb after CEO news. Here’s what investors are watching appeared first on The Motley Fool Australia.

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

The Regis Healthcare Ltd (ASX: REG) share price is in focus after the company announced FY26 underlying EBITDA is expected at about $135 million, hitting the top end of its guidance amid strong occupancy across mature homes.

What did Regis Healthcare report?

• FY26 underlying EBITDA expected to be approximately $135 million
• Average Q3 FY26 occupancy in mature homes reached 95.9%, up on the prior period
• Net refundable accommodation deposit (RAD) inflows of $223 million year to date (March FY26)
• Total paid-up RAD balance at $2.3 billion as at 31 March 2026
• One-off profit before tax of $25 million from divestment of two homes in Far North Queensland

What else do investors need to know?

Regis Healthcare’s ongoing momentum was supported by targeted sales initiatives and a tightening market for available beds. The company’s recent acquisitions, including Rockpool and OC Health, and room pricing adjustments also helped drive RAD inflows.

A structured cost-savings program is underway, focusing on streamlining management, improving operational efficiency, and adopting data analytics and AI tools to optimise workforce planning and automate processes. Regis is actively recycling capital, through both acquisitions and divestments, to strengthen its portfolio’s quality and earnings profile.

Regis is closely monitoring the Federal Government’s accommodation funding reforms and a new $3 billion package to support sector sustainability, with further details expected in the May 2026 Budget.

What did Regis Healthcare management say?

Managing Director and CEO Dr Linda Mellors said:

The release of the Accommodation Pricing Review and the Government’s initial funding response represent an important step toward improving the long-term sustainability of residential aged care. While further detail and consultation will be important, the direction of reform is positive and aligns with the sector’s need for a more sustainable funding and capital framework.

What’s next for Regis Healthcare?

Regis intends to keep investing in quality acquisitions and new developments in attractive locations, while continuing its efficiency and capital management push. Management will be watching the Federal Government Budget and aged care policy updates closely, considering their potential impact on funding and resident mix.

Over time, the progressive repricing of RADs is expected to deliver substantial operating cash inflows, supporting future growth and earnings.

Regis Healthcare share price snapshot

Over the past 12 months, Regis Healthcare shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Regis Healthcare expects FY26 EBITDA to hit top end of guidance 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.

South32 Ltd (ASX: S32) shares are sinking in early trade on Thursday after the mining giant released a detailed update on its Hermosa project in the United States.

At the time of writing, the South32 share price is down a massive 8.45% to $3.90.

Despite the stock trending lower since mid-April, it’s still up around 10% in 2026.

Here’s what the company released to the market.

Major update on Hermosa project

Most of the focus in this release sits with the Taylor deposit, and it gives a clearer picture of how the project is coming together.

South32 said the Taylor deposit continues to shape up as a long-life, low-cost operation with strong production potential.

One of the key changes is a longer expected mine life, which has been extended from 28 years to 33 years. That gives the project a much larger production window than previously planned by management.

The company also reported a 32% increase in mineral resources and a 52% lift in ore reserves at Taylor. Both upgrades were driven by ongoing drilling and a better understanding of the deposit.

There is also potential for future growth beyond Taylor, with the nearby Clark and Peake deposits offering additional upside over time.

Production outlook and timing

South32 is targeting first production from Taylor in the second-half of FY28.

Annual output is expected to average around 346,000 tonnes of zinc equivalent over the life of the mine. That includes zinc, lead, and silver production.

The operation is designed to ramp up to steady-state production by FY31.

From there, the project is expected to deliver consistent output for decades, supported by underground mining and a large processing facility.

Costs increase as the project moves forward

While the project is moving forward, there has been a notable increase in capital costs.

South32 now expects total growth capital expenditure of about US$3.3 billion. That is up from earlier estimates due to inflation, scope changes, and higher input costs.

Despite that, the company still sees strong economics.

At spot commodity prices, Hermosa is expected to generate around US$650 million in annual EBITDA at a steady state.

The project’s net present value is estimated at around US$3.1 billion, with solid margins built into the plan.

Foolish Takeaway

There is still a long runway before production begins, so timing and cost control will be important to watch from here.

Investors will also be looking at how quickly South32 can move through construction milestones and into commissioning.

Any further updates on capital spend or timelines could influence sentiment.

Keep in mind, this is still a multi-year build, so there is an execution risk along the way.

The post This ASX 200 mining stock is sinking 8% after a big project update. Here’s why appeared first on The Motley Fool Australia.

More reading

• South32 Hermosa project boosts reserves and mine life in FY26 update
• 5 ASX 200 shares with renewed buy ratings this week
• South32 shares are booming, but is the best still to come?
• South32 shares are rising again – what just happened?
• South32 lifts net cash and sets Brazil Alumina output record in March quarter

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

Despite all of the volatility this year, the ANZ Group Holdings Ltd (ASX: ANZ) share price has delivered positive returns for shareholders in the last five years, as the chart below shows.

According to CMC Invest, it has delivered an average total shareholder return (TSR) of 11% in the past five years.

A significant portion of those returns has been the dividend payments, but the ASX bank share has also delivered adequate capital gains for investors.

How many ANZ shares we could buy in 2021

Five years ago, Australia’s economy and the ASX bank share sector was still dealing with the fallout of the COVID-19 pandemic.

But, the ANZ share price had already recovered back to its pre-COVID levels as investors regained confidence following the significant market support by central banks.

So, five years ago, with $10,000 an Australian investor would have been able to buy 350 ANZ shares.

What about now?

Since April 2021, the ANZ share price has since risen to an all-time high of above $40, though it has since dropped back a bit amid the Iran war.

At the time of writing, in the last five years, the ANZ share price has climbed by 27%.

If someone were to invest $10,000 today into the ASX bank share, they’d only be able to buy 276 ANZ shares. In other words, approximately 25% less shares than before.

What caused the ANZ share price to rise?

There are two key factors that decide how a valuation moves – how much profit it generates and the multiple of earnings investors are willing to pay.

The most recent update from the ASX bank share was the FY26 first quarter update where it reported $1.87 billion of statutory net profit and $1.9 billion of cash net profit. That compares to the FY21 first quarter where it generated $1.6 billion of statutory net profit and $1.8 billion of cash profit.

In other words, over five years, its first-quarter statutory net profit has increased 16.9% and the cash net profit has increased just over 5%.

Therefore, it seems to me like investors are willing to pay a higher price/earnings (P/E) ratio for the ASX bank share.

According to the projection on Commsec, the ANZ share price is now valued at 14x FY26’s estimated earnings.

The post 5 years ago, $10,000 bought 350 ANZ shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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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.

Codan Ltd (ASX: CDA) shares have delivered incredible returns for investors over the past 12 months.

During this time, the technology company’s shares have risen approximately 170%.

That would have turned a $10,000 investment into $27,000.

Is it too late to invest? Let’s see what Bell Potter is saying about the company and its shares.

What is the broker saying?

Bell Potter was impressed with Codan’s trading update this week, noting that its guidance was comfortably ahead of consensus expectations. It said:

CDA has provided a FY26 trading update which came in well ahead of both BPe and consensus. FY26 guidance exceeds expectations: The company provided FY26 group EBIT guidance of ~[$235m], 10-11% ahead of BPe and VA consensus expectations and represents 76% YoY growth. CDA also guided to NPAT of ~[$170m], a +11% beat vs. VA consensus.

The broker was particularly pleased with the performance of Codan’s Communications segment, which is experiencing strong demand from defence customers. It adds:

Expected to hit the top end of the 15% to 20% growth range for FY26. DTC (unmanned segment) is seeing strong demand from defence customers for software-defined radios and unmanned systems. Zetron 2H26 revenue is tracking broadly in line with 1H26. Communications margins are expected to reach the 30% segment profit margin target in FY26, beating the original FY27 timeline. This is a step up from the 26% margin in FY25 and 1H26. The faster than expected margin expansion is driven by operating leverage with strong revenue growth being delivered, particularly in DTC.

This has led to the broker boosting its earnings forecasts through to FY 2028. It explains:

EPS changes are +11%/+8%/+5% over FY26/27/28e reflecting upgraded revenue in Communications and Minelab as well as expanded Communications margins across the forecast period.

Is it too late to buy Codan shares?

Bell Potter thinks that Codan’s shares are fairly valued following their significant rise.

According to the note, the broker has retained its hold rating with an improved price target of $41.30 (from $37.70). This is slightly below its current share price of $42.00.

Commenting on its recommendation, Bell Potter concludes:

We retain our Hold recommendation and increase TP to $41.30 in line with higher earnings. With relatively high levels of R&D spend strengthening CDA’s competitive advantages across its businesses, CDA is well positioned to benefit from increased demand for mission-critical connectivity solutions in both defence and public safety markets. We believe CDA shares trade at fair value on 33x FY26 EV / EBIT amidst improving operating momentum and improving outlook in both segments.

The post Up 170% in a year: Are Codan shares a buy? 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.

It’s been a tough 2026 for many ASX healthcare stocks. 

However, one exciting small-cap that is drawing attention from brokers is Alcidion Group Ltd (ASX: ALC). 

Company overview

Alcidion is a commercial healthcare IT company with a cloud-native, modular software platform aimed at improving efficiency in hospitals, supporting interoperability, and allowing for improved communication and task management. It also aims to deliver critical clinical decision support at the point of care to improve patient outcomes.

The key platform is known as Miya Precision, and under this platform, an increasing number of modules are available.

The team at Bell Potter has a buy recommendation on the company following its Q3 FY26 Quarterly Activities Report.

What did this healthcare stock report?

Yesterday, Alcidion announced: 

• Q3 FY26 positive operating cash flow of $1.7M driven by cash receipts of $14.5M
• Selected as preferred provider for University Hospital Sussex NHS Foundation Trust’s (UHSussex) new EPR solution – the contract remains on track for signing in May 2026
• As of 31 March 2026, FY26 contracted (sold & renewal) revenue of $43.8M (excluding UHSussex)

The company also reconfirmed FY26 financial guidance of:

• Revenue expected to exceed $50.0M with EBITDA in excess of $5.0M; and
• Operating cash flow to remain positive, in line with FY25 operating cash flow of $5.8M

Speaking on the results, Alcidion CEO and Managing Director, Kate Quirke, said: 

Q3 maintained the positive and sustained momentum for Alcidion, with contract expansions for our emergency department module, significant renewal contracts signed and importantly our first site in QLD for Miya Precision.

Investors were seemingly pleased with these results as the share price jumped 7% yesterday. 

Bell Potter’s updated view

Following the results, the team at Bell Potter said it views revenue and EBITDA guidance as readily achievable, assuming the UHSussex deal is executed in May and includes a ~$7.5m upfront capital license payment similar to prior UK deal structures.

The broker has maintained its buy recommendation on this ASX technology stock and reaffirmed its 16-cent price target. 

From yesterday’s closing price of just over 10 cents per share, this indicates an upside potential of approximately 49%. 

ALC has a robust balance sheet position (>$20m cash expected at end-FY26) and is set to post a record full-year result which will benefit from the expected finalisation of one of the company’s largest ever contracts with UHSussex in Q4 FY26.

It’s also worth noting that small-cap stocks such as Alcidion Group can experience significantly more volatility than more established, blue-chip equities.

Therefore, investors should have appropriate risk appetite when considering these options.

The post This ASX healthcare stock could be set to rise 50% appeared first on The Motley Fool Australia.

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

It has been tough going in 2026 for ASX industrials stock Reliance Worldwide Corp Ltd (ASX: RWC). 

Reliance Worldwide is an Australian-owned company that designs and manufactures branded plumbing and heating products sold internationally.

Year to date, its share price has fallen almost 16%. 

After crashing to start the year, investors may be circling this ASX industrials stock as a bounce-back candidate. 

Fresh information was released from the company this week in the form of its FY26 Full Year Trading Outlook.

What did the company announce?

On Tuesday, the team at Reliance Worldwide reaffirmed all earnings guidance, including regional and group outlooks, for 2H26 and FY26. 

Based on nine months trading ended 31 March 2026, there is no material change to the FY26 second half and full year guidance issued on 17 February 2026. All guidance – including regional and Group outlook, FY26 net tariff impact, cash flow conversion, capital expenditure, D&A, net interest, effective tax rate and cost savings – is reaffirmed.

It appears investors were pleased with the announcement, as this ASX industrials stock has rebounded 7% across the last two days of trading. 

Following the announcement, the team at Morgans also provided updated guidance on the ASX industrials stock. 

Here’s what the broker said. 

Trading update better than feared

In a note out of Morgans this week, the broker said that against an uncertain global macro backdrop and the potential impact of higher oil prices stemming from the Middle East conflict, the trading update was better than feared. 

In relation to the expected impact from US tariffs, while there have been several changes since the 1H26 result in February, the anticipated impact on RWC’s earnings in FY26 and FY27 remains unchanged.

Target price increases

Morgans made no changes to FY26 earnings forecasts but reduced FY27 and FY28 underlying EBITDA by 2%, reflecting a more modest earnings growth profile amid ongoing subdued housing conditions. 

Despite the adjustments to earnings forecasts, our target price increases to $3.25 (from $3.00), reflecting an uplift in our PE valuation multiple to 12x (from 11x) following the better-than-feared trading update. HOLD rating maintained.

After increasing its price target, it now appears that this ASX industrials stock is trading at fair value. 

It closed yesterday at $3.24, right around the updated target from Morgans. 

Elsewhere, the average analyst price of 16 experts via TradingView sits at $4.09. 

This indicates a potential upside of 26%. 

The post Should you buy this ASX industrials stock after a 16% crash? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Bell 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.

If you are looking for market-beating returns, then it could be worth considering the ASX All Ords share in this article.

That’s because Bell Potter believes it has the potential to deliver outsized returns over the next 12 months.

Which ASX All Ords share?

The share that Bell Potter is bullish on is GenusPlus Group Ltd (ASX: GNP).

It is a service provider to mining, utilities, and other private customers who have needs across electrical plant and equipment, power, and telecommunications infrastructure.

Bell Potter has been running the rule over the ASX All Ords share and likes what it sees. It believes the company has the potential to deliver revenue growth well ahead of expectations in FY 2027 based on its current orderbook. The broker said:

Deconstruction of GNP’s current orderbook of ~$2.5b (includes the recent $110m Koolunga BESS contract award), the expectation of expanding recurring revenue and forecast sales from recent acquisitions indicates that the company could deliver revenue growth of 27.9% in FY27 (vs BPe 17.7% and consensus 14.8%).

The variance with BPe and consensus expectations suggests major upgrade potential in the short-term. The caveat is that unexpected project delays may extend this upside into FY28. Strong conversion of the company’s $2.6b tender pipeline (at end of CY25) would drive incremental upside to our forecasts.

It also highlights that there is potential for some major contract awards in the near term, which it believes could be a catalyst for driving its shares higher. It adds:

GNP is tendering on three large scale transmission projects: the Hunter Transmission Project; the Gippsland Offshore Wind Transmission Project; and the New England REZ Transmission Project (Stage 1). Announcement of preferred contractors for each project is expected in CY26, representing significant catalysts. Given the capital costs of these projects, GNP’s share of contract award could be consistent with the HumeLink East work package (~$350m) or greater.

Buy rating reaffirmed

According to the note, the broker has reaffirmed its buy rating on the ASX All Ords share with an improved price target of $10.50 (from $9.50).

Based on its current share price of $9.10, this implies potential upside of 15% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

GNP is a key beneficiary of Australia’s decarbonisation and electrification ambitions which is currently driving significant investment in renewable energy generation, storage and transmission infrastructure development. GNP’s financial flexibility allows the company to maintain an aggressive approach to inorganic growth.

The post Bell Potter is tipping this ASX All Ords share as a buy with 15% upside appeared first on The Motley Fool Australia.

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• This ASX stock just landed a $110 million battery project. Shares near record highs.
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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 positions in and has recommended GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Times of major market movements can open up unmissable buying opportunities, particularly with ASX dividend income stocks.

The recent worries about the Middle East conflict, fuel supply disruption, inflation, and interest rates have sent various share prices down.

When share prices drop, it pushes up the dividend yield on offer. So, I think it’s a great time to buy for brave investors.

JB Hi-Fi Ltd (ASX: JBH)

Let’s start with electronics retailer JB Hi-Fi, which has increased its annual dividend per share most years over the past decade and a half.

Australia’s growing population and the increasing number of devices in homes have given this market-leading business a strong earnings tailwind.

I admire how the ASX dividend income stock focuses on efficiency and costs, enabling the business to offer very competitive prices and deliver relatively strong margins.

Its JB Hi-Fi and The Good Guys businesses continue to perform solidly, while the E&S acquisition gives it another avenue for expansion. In the January 2026 trading update, JB Hi-Fi Australian sales grew 4%, and The Good Guys sales were up 2.7%.

Following the 31% decline of the JB Hi-Fi share price in the past six months, it now has a projected FY26 grossed-up dividend yield of 6.3%, including franking credits.

Nick Scali Ltd (ASX: NCK)

Nick Scali is a leading furniture business with its Nick Scali and Plush brands in Australia and, excitingly, a relatively small UK business too.

This ASX dividend income stock increased its payout every year between 2013 and 2023. Higher interest and inflation did impact the business, but I think the current Nick Scali share price valuation makes now a good time to buy, rather than when there’s a clear turnaround in economic conditions.

The company thinks it can add dozens more stores across Australia and the UK in the coming years, which can help drive both its revenue and profit margins. Increased scale is a powerful tailwind for the gross profit margin and operating profit (EBIT) margin, in my view.

The Nick Scali share price has dropped approximately 40% in the last six months, making it a lot cheaper. The projection on CommSec suggests the FY26 grossed-up dividend yield could be 7.4%, including franking credits.

Australian Ethical Investment Ltd (ASX: AEF)

The final ASX dividend income stock I want to highlight is Australian Ethical, a fund manager that aims to provide investors with investment products that align with their ethics.

I think a key earnings driver for the business is its superannuation segment, which has almost $10 billion of funds under management (FUM). I’m expecting the superannuation FUM to grow over time thanks to both regular member contributions and the investment returns.

As a funds management business, the company is able to deliver a pleasingly high dividend payout ratio and still achieve good growth. It’s not a capital-intensive sector.

According to the forecast on CMC Invest, the ASX dividend stock is forecast to pay an annual dividend per share of 17 cents in FY26. That translates into a grossed-up dividend yield of 5.8%, including franking credits. It has fallen 40% in the past six months.

The post 3 star ASX dividend income stocks for the rest of 2026 appeared first on The Motley Fool Australia.

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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 positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.