Tag: Stock pick

Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) shares have delivered some benchmark smashing gains over the past year.

On Monday afternoon, Woodside shares were trading for $31.96 apiece. This sees the Woodside share price up 36.5% in 12 months, compared to the 1.9% one-year losses posted by the S&P/ASX 200 Index (ASX: XJO).

Atop those capital gains, Woodside also paid $1.631 a share in fully franked dividends over the year. The ASX 200 oil and gas stock trades on a fully franked trailing dividend yield of 5.1%.

And BHP shares have performed even better.

On Monday, shares in Australia’s biggest miner – and the biggest stock on the ASX – were changing hands for $60.41 each, up 44.1% in 12 months.

BHP also paid two fully franked dividends over this time, totalling $2.419 per share. BHP stock trades on a fully franked trailing dividend yield of 4.0%.

And looking ahead, Fairmont Equities’ Michael Gable forecasts more outperformance to come from both ASX 200 titans (courtesy of The Bull).

Here’s why.

Should I buy BHP shares today?

“I believe commodities markets are in the early stages of a bull run, leaving BHP’s share price in a prime position to move higher,” Gable said.

Among the reasons Gable issued a buy recommendation for BHP shares is the miner’s fast-growing exposure to copper. The price of the red metal has surged over the last year amid strong demand growth spurred by the global energy transition and a huge new pipeline of AI enabled data centre construction.

Gable noted:

Copper now generates most of BHP’s earnings after it produced almost 2 million tonnes in full year 2026. The company should also benefit from constrained global supplies of copper. Iron ore is also a significant contributor to full year earnings.

The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. We view any share price dips as a buying opportunity.

Woodside shares tapping into energy crisis

Atop his bullish outlook on BHP shares, Gable also issued a buy recommendation on Woodside shares.

“We turned bullish on crude oil prior to the war in Iran due to a looming imbalance between supply and demand,” he said. “The war has interrupted supplies, which has led to higher prices.”

Summarising his buy advice, Gable concluded:

I believe crude oil prices are likely to move higher in the absence of a peaceful and sustained resolution in the Middle East. I acknowledge some investors doubt crude oil prices will move higher.

However, as the largest energy stock on the ASX, buying support should continue to grow for WDS.

The post Expert names Woodside and BHP shares as top buys today appeared first on The Motley Fool Australia.

More reading

• Should I buy BHP shares in October?
• Buy, hold, sell: Xero, South32, Woodside shares
• Buy, hold, sell: CBA, BHP, CSL shares
• 5 things to watch on the ASX 200 on Monday
• Woodside vs Westpac: Which ASX share is better for passive income?

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.15% to 8,679.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to edge higher

The Australian share market looks set to edge higher on Tuesday despite a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points higher. On Wall Street, the Dow Jones fell 0.65%, the S&P 500 dropped 0.75%, and the Nasdaq tumbled 0.9%.

RBA meeting

The Reserve Bank of Australia is meeting on Tuesday and is largely expected to increase the cash rate. According to the latest ASX 30 day interbank cash rate futures contract, the market is pricing in a 90% probability of an interest rate increase to 4.60% at today’s meeting. Futures contracts are also predicting a rise to 5% by the middle of next year.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session on Tuesday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$93.29 a barrel and the Brent crude oil price is up 1.8% to US$106.18 a barrel. This was despite reports that Saudi Arabia’s pipeline is ramping back up.

Buy Minerals 260 shares

Minerals 260 Ltd (ASX: MI6) shares have risen 250% in just 12 months. The good news is that Bell Potter believes the run can continue. This morning, the broker has retained its buy rating on the gold developer’s shares with an improved price target of $1.45. It said: “MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works.”

Gold price sinks

ASX 200 gold shares such as Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a poor session after the gold price sank overnight. According to CNBC, the gold futures price is down 4% to US$4,148.5 an ounce. This appears to have been driven by a rise in US treasury yields to multi-year highs.

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

More reading

• 3 ASX shares tipped to return 38% to 60%
• Here are the top 10 ASX 200 shares today
• ASX 200 rallies from June lows. Is the worst over?
• Santos vs Viva Energy: Which ASX energy stock gets my vote today?
• 2 ASX 200 shares just upgraded to buy ratings

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.

The Northern Star Resources Ltd (ASX: NST) share price has started the week strongly.

The gold miner rose 6.5% to $23.55 on Monday following news of a rejected takeover approach from Gold Fields.

But putting that excitement to one side, does the Northern Star share price look cheap based on what the business could earn over the next few years?

I think it does.

The valuation gets cheaper

On FY27 numbers alone, I would describe Northern Star as reasonably priced rather than obviously cheap.

Consensus forecasts point to earnings per share (EPS) of $1.35 in FY27. At $24.02, that puts the shares on a forward PE ratio of around 18 times.

That is not demanding, but it is what comes next that really catches my attention.

Northern Star’s EPS is expected to jump to $2.41 in FY28 and then $3.30 in FY29.

If those forecasts prove accurate, today’s share price represents less than 10 times FY28 earnings and only around 7 times FY29 earnings.

For a major gold producer, I think those multiples look cheap.

The dividend outlook also improves alongside earnings. Consensus estimates point to dividends per share of 51.6 cents in FY27, 73 cents in FY28, and 86.2 cents in FY29.

At the current Northern Star share price, that would see the dividend yield rise from a little over 2% in FY27 to around 3.6% by FY29.

Gold will decide how cheap Northern Star really is

There is an obvious catch.

Gold miners do not control the price of what they sell, so those earnings forecasts will depend heavily on where gold trades over the next few years.

Right now, gold is around US$4,268 an ounce.

A note out of Bell Potter shows that it is forecasting US$4,875 an ounce in 2027 and US$4,900 in 2028, before easing to US$4,607 in 2029.

If gold remains around those elevated levels, it is easier to see how Northern Star could generate the sharp earnings growth analysts currently expect.

But the reverse is also true.

A material fall in the gold price, potentially driven by higher interest rates or changing investor demand, could pull earnings estimates lower and make today’s apparently cheap forward multiples much less meaningful.

That is why I would not look at the 7 times FY29 PE ratio in isolation. It is attractive, but there is more uncertainty attached to it than there would be for a business with greater control over its selling prices.

Foolish takeaway

For investors looking for gold exposure, I think the Northern Star share price looks like a cheap buy at around $23.

There is plenty riding on the gold price, so I would expect the investment case to move with it. But with Northern Star potentially earning more than $3 per share by FY29, I think the current price justifies taking that commodity risk.

The post Is the Northern Star share price a cheap buy? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Northern Star shares on watch after major takeover approach rejected
• Northern Star Resources rejects $38.7bn Gold Fields takeover offer
• 5 things to watch on the ASX 200 on Monday
• Northern Star vs BHP: Which ASX share is better for passive income?

Motley Fool contributor Grace Alvino has positions in Northern Star Resources. 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.

Future Generation Global Ltd (ASX: FGG) shares look like they could be one of the top picks for retirees in FY27 and beyond.

The business is a listed investment company (LIC), which means it invests in other assets and shares on behalf of shareholders.

I’m going to run through what makes it such an attractive pick right now.

Excellent diversification

The business is invested in 15 different global fund managers, including Antipodes, Yarra Capital Management, Muncro, Halowesko Partners, Vinva, WCM, Cooper Investors, Life Cycl, GCQ, Ellerston Capital, Paradice, Fairlight and Morphic.

By being invested in so many fund managers, Future Generation Global is providing significant diversification. For starters it gives access to multiple investment styles, including ‘long’, ‘absolute bias’ and ‘quantitative’.

Those portfolios give more exposure to medium-sized global businesses and a lot more exposure to small companies.

I also like how the Future Generation Global portfolio gives global exposure across multiple markets including North America, the UK, Europe, Asia, other developed markets and emerging markets.

I think this is a really effective pick for retirees partially because of the huge amount of diversification that it can provide our portfolios with, which retiree portfolios may not otherwise have.

But, as a pleasing bonus, Future Generation Global gives diversification and a strong level of passive income.

As a bonus, it’s supporting a number of organisations include BackTrack, Big Hart, Prevention United, Project Rockit, Reach Out, Smiling Mind, Human Nature, I Can, Westerman Jilya Institute, Live 4 Life and WANTA Aboriginal Corporation.

Great dividends

There are not many businesses on the ASX that have increased their payout every year for the past eight years in a row.

There are plenty of ASX blue-chips that have cut their dividends this decade, whether that’s BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), Woodside Energy Group Ltd (ASX: WDS) or Fortescue Ltd (ASX: FMG).

Future Generation Global has given investors steady growth in the dividend, which makes it an appealing choice for passive income for retirees.

The business has provided guidance that it will grow its FY26 annual dividend by 5% compared to the FY25 payout.

At the time of writing, an annual payout of 8.4 cents per share translates into a dividend yield of 5.1% excluding franking credits and 7.3% including franking credits.

When you put all those elements together, I think they can create a strong mix of positives for retiree portfolios, including the appealing philanthropy.

The post Why Future Generation Global shares are a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $10,000 monthly passive income?
• 2 ASX passive income share ideas I’d use to generate $500 a month in 2027
• How much do I need to retire on $75,000 a year at 45?
• The ASX share I just bought for my child
• How much is needed in superannuation to target a $60,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in Future Generation Global. 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.

Brokers have released new research reports on three very different companies this week, but the common thread is a forecast of solid share price appreciation.

Let’s see who the brokers like.

Alliance Aviation Services Ltd (ASX: AQZ)

Morgans has belatedly run the ruler over Alliance’s FY26 results and has increased their price target on the company as a result.

The broker said the company achieved its FY26 guidance despite a mixed set of numbers, including second-half revenue coming in $19 million below their expectations.

This was due to weaker-than-expected wet lease revenue, partially offset by a strong performance from contracts, with contract revenue 9% ahead of Morgans’ estimates.

Looking forward, Alliance has resigned its largest wet lease contract, securing more favourable terms.

Morgans said:

While the fleet commitment reduces from 30 to 23 aircraft through FY27, AQZ expects materially improved profitability, margins and cash generation from the revised contract.

The broker said the company’s strategic reset had “materially improved the investment case”.

They added:

The renegotiation of its largest wet lease contract, fleet transition and renewed focus on balance sheet repair provide a clearer pathway to improved profitability, cash flow generation and deleveraging over the next 12-24 months. That said, FY27 remains a critical execution year. Delivery of margin guidance, restructuring benefits, fleet optimisation initiatives and leverage targets will be key to rebuilding investor confidence and supporting share price appreciation.

Morgans has a price target of 85 cents on Alliance shares compared to 51 cents at the time of writing.

Premier Investments Ltd (ASX: PMV)

Premier recently reported its full-year results, with revenue slipping 2.8% to $808 million and net profit falling 10.3%.

The retailer maintained a strong dividend payout, however, and said the start to FY27 had been steady with sales within 1% of the same period the previous year.

Macquarie analysts said in a new research note on the company that the result was in line with recently lowered profit guidance and that sales were broadly in line with their expectations.

The analysts said they were positive about Smiggle repositioning itself in the market to focus on older tweens and said the Peter Alexander store rollout program was strong.

Macquarie has a price target of $15.70 for Premier shares, compared with $11.82 at the time of writing.

Minerals 260 Ltd (ASX: MI6)

Macquarie said in its research note on Minerals 260 that the company’s Bullabulling Gold Project was the third-largest undeveloped project in Australia and the only large-scale, long-life asset not owned by a producer.

Macquarie added:

MI6 currently trades on an Enterprise Value to Resource ounce of $321/oz, a 31%/41% discount to ASX listed gold developers/ producers. We see scope for the stock to re-rate as the project is de-risked through FID, construction, commissioning and steady state production.

Macquarie has a price target of $1.30 on Minerals 260 shares compared to 85 cents at the time of writing.

The post 3 ASX shares tipped to return 38% to 60% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Premier Investments vs Myer: Which ASX Retail Stock is Best?
• This ASX 200 share offers 30% upside and a 7% yield
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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

RBC Capital Markets has initiated coverage of Macquarie Group Ltd (ASX: MQG) shares, with a bullish price target, saying the financial giant is “reinventing itself”.

Macquarie tipped for steady growth

The broker has issued a new research note on Macquarie, and said they expected the company to deliver mid-to-high single-digit earnings growth into FY29, “underpinned by operating leverage across asset management and personal banking”.

RBC said on the outlook for Macquarie:

Our ~6.5% FY26-29 earnings compound annual growth rate (CAGR) sees us ahead of consensus. What’s more, we think earnings risks are skewed to the upside given ongoing volatility in commodity markets, and potential for large asset sales. Macquarie is reinventing itself – pivoting towards recurring private markets asset management and domestic banking growth, while building out global energy trading and capital markets capabilities that provide earnings upside. The shift is away from balance sheet-intensive asset development and towards capital-light private credit and funds management.

RBC said the recent changes at Macquarie had been substantial, with the company refocusing on higher return on equity divisions and prioritising recurring revenue growth.

The commodities and global markets division would account for 39% of FY27 profit, RBC said, with the broker expecting about 8% commodity revenue CAGR from FY26 to FY29.

RBC said:

Near-term potential catalysts include the historically low EU gas storage levels and Qatar LNG outages, and longer-term potential catalysts include 1.5 million tonnes per annum of LNG offtake agreements (Texas LNG and AMIGO LNG) coming online from FY28E and data centre energy demand across constrained US power grids. We estimate every additional 10% commodity revenue growth adds ~3.5% to group FY27 earnings.

Macquarie Asset Management, which will account for about 28% of FY27 profit, “has lagged other divisions”, but is pivoting to private credit to unlock growth, RBC said.

Meanwhile, banking and financial services had been the most consistent compounder in the group, RBC said.

They added:

We forecast BFS divisional profit contribution to grow 15% in FY27E and then ease to 8-10% in FY28-29E as Australian mortgage system growth slows. However, given options to further reduce it cost-to-income ratio (54% in FY26, potentially heading 40% over time), we think BFS earnings growth may be able to surprise on the upside. MQG holds just 7.1% of Australian housing loans and 6.5% of deposits.

Macquarie shares looking like good value

RBC said the release of Macquarie’s first-half results on November 6 should be a catalyst for the stock, “as we see upside risks to consensus forecasts”.

RBC has a price target of $300 on Macquarie shares, compared with $244.60 at the time of writing.

Macquarie is valued at $91.89 billion.

The post How high could Macquarie shares go? RBC Capital Markets has its say appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Soul Patts vs Macquarie Group: Best ASX dividend stock for retirees?
• Here are the most popular ASX share superannuation investments in SMSFs
• Macquarie Group vs Commonwealth Bank: Which ASX bank is the better buy?
• Why brokers think Xero shares could surge 130% from here

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

It hasn’t been a great year for The Lottery Corp Ltd (ASX: TLC) shareholders.

Its shares finished Monday down 0.62% at $4.78, leaving them just above their 52-week low of $4.75.

The stock has now fallen around 18% over the past 12 months and is down more than 7% in 2026.

Yes, that might have some investors wondering whether the recent weakness has created a buying opportunity.

After all, the company owns some of Australia’s best-known lottery brands and currently offers a fully franked dividend yield of around 3.5%.

But despite the lower share price, I won’t be buying.

Here’s why.

Higher rates are a concern

My biggest concern is what happens to consumer spending over the next 12 months.

The Reserve Bank of Australia (RBA) has already lifted interest rates 3 times this year, taking the cash rate to 4.35%.

And another increase looks likely today, with all 29 economists surveyed by Bloomberg expecting a 25-basis-point hike to 4.60%.

That’s not great news for households already dealing with higher mortgage repayments and rising living costs.

And this is where I see a potential problem for the company.

Lottery tickets are ultimately a discretionary purchase.

If households have less money after paying their mortgage and other bills, I think spending on lottery tickets could come under pressure.

With rates potentially staying higher into 2027, that’s a risk I’m not willing to ignore.

FY26 wasn’t exactly exciting

The company’s latest results haven’t given me much reason to rush in either.

FY26 revenue fell 2.7% to $3.58 billion, while underlying net profit after tax (NPAT) dropped 6.3% to $342.5 million.

Statutory net profit fell even further, declining 22.1% to $284.6 million.

To be fair, weak jackpot activity played a big part in the softer result.

There were no $100 million Powerball jackpots during the year, compared with 4 in FY25, while Oz Lotto had no $50 million jackpots.

Base games performed better, with turnover increasing 5.6%, while Keno revenue climbed 3% to $364.3 million.

But looking ahead, there are still a few things that concern me.

Lottery Corp expects operating expenses of between $305 million and $315 million in FY27, up from $296 million last year.

It also has a $1.145 billion payment coming up for its new Victorian lottery licence, which could put further pressure on the balance sheet.

None of this is enough to get me excited about buying the shares just yet.

Would I buy?

At $4.78, Lottery Corp shares are certainly more attractive than they were a year ago.

And there are still plenty of things to like about the business.

It owns some of Australia’s biggest lottery brands, generates strong cash flow, and maintained its fully franked 16.5-cent annual dividend.

But I don’t think the current economic environment is particularly favourable.

With earnings already moving backwards and household spending facing more pressure, I think there are better opportunities elsewhere.

For me, this is one ASX dividend share I’d stay away from for now.

The post This ASX dividend share is near a 52-week low. Would I buy? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy and hold these ASX passive income shares
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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 positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares tumbled lower in September.

The mining giant’s shares are $59.80 at the time of writing. That’s around an 11% decline over the past month, but it is still roughly 31% higher year-to-date.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 5% over the past month and 1% higher year-to-date, at the time of writing.

What happened to BHP shares in September?

BHP was pushed into the spotlight in early September after news that China’s biggest steelmaker, China Baowu Steel Group, is reportedly considering buying into one of BHP’s largest iron ore mines. 

Australia’s Federal opposition has already objected. The Coalition has said that Labor must not allow foreign entities to buy one of Western Australia’s top iron ore mines.

Just last week, mining activities at BHP’s Escondida copper mine in Chile were suspended after a fatal accident. There is no indication when production might resume. 

Under Chilean mining regulations, operations cannot restart following a fatal accident until safety inspectors have confirmed that conditions are safe. 

The halt raised concerns about the miner’s output, and also raised safety concerns, which has contributed to the latest share price slide.

And all this has happened amid a broad market downturn, driven by rising oil prices and interest rate concerns, which have also dampened investor sentiment. 

So, what’s ahead for BHP shares in October? 

Is the ASX mining stock primed for a rebound? Or are there more headwinds coming?

Here’s what the experts think.

Broker forecasts for BHP shares

It looks like the experts are reserved about the outlook for the miner’s shares over the next 12 months.

Market Index data shows that most analysts rate BHP shares as a hold. The $61 average target price suggests a hold rating for BHP shares, with about 2% upside at the time of writing.

TradingView data shows something similar. Again, the majority have a hold rating on the shares. The average target price is a little higher, at $62.13 a piece, which implies a potential 4% upside at the time of writing.

Morgan Stanley has a buy rating and a $68 target price on BHP shares.

Red Leaf Securities has a hold rating on the mining shares. The broker warns that a softer global growth outlook and uncertainty surrounding Chinese commodity demand limits the case for aggressively buying the stock right now.

Dylan Evans from Catapult Wealth also has a hold rating on the shares. He said that the miner’s full-year results were impressive. But added that future earnings will be influenced by the copper price.

The post Should I buy BHP shares in October? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, BHP, CSL shares
• How much do I need in ASX dividend shares to receive $15,000 passive income per year?
• Why I’d invest $50,000 of superannuation in New Hope, Mineral Resources and BHP shares
• Northern Star vs BHP: Which ASX share is better for passive income?
• How I’d build a $50,000 ASX share portfolio today

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

The notion of the ASX’s perfect dividend stock is obviously subjective and a little unrealistic. No ASX stock can be absolutely perfect, offer guaranteed returns, or carry no risk.

However, I think that possessing the ASX’s best streak of dividend growth, boasting a track record of market-crushing gains, and offering a diversified portfolio of high-quality underlying investments gets a stock pretty close.

That’s exactly what Washington H. Soul Pattinson and Co Ltd (ASX: SOL) has on the table today.

Soul Patts is a company I have owned for many years, and have written about (in gushing terms) before. My enthusiasm for this top ASX dividend stock has not waned, particularly in light of its latest earnings report.

Last week, Soul Patts dropped its full-year earnings for FY2026, and they were very pleasant indeed to go through. The company reported a 96% spike in revenues from continuing operations to $1.87 billion, as well as a 12% hike in net cash flow from investments to $572 million. Much of that can be attributed to Soul Patts’ recent takeover of Brickworks. But even so, it was an impressive report.

Another record tumbles for this ASX dividend stock

Saving the best until last, the star metric was the final dividend of 63 cents per share. Yes, this represented a 6.8% rise over 2025’s final dividend, and made sure that the company’s 2026 dividend total would come in at a record $1.11 per share (up 7.8% on 2025’s total). Like all Soul Patts dividends, these came with full franking credits attached.

All hearty numbers, but not exactly an ASX record. But what makes this very special, and a record to boot, is the fact that 2026 marks Soul Patts’ 27th annual dividend hike in a row.

Yep, this company has now delivered an annual dividend pay rise to shareholders every single year since 1998 – a record unmatched by any other ASX dividend stock.

Additionally, Soul Patts also confirmed in those earnings that its shareholders enjoyed a total return of 16.8% over the 12 months to 31 July 2026, easily beating the broader S&P/ASX 200 Index (ASX: XJO) by 6%. Over the 25 years to 31 July, shareholders have bagged an average of 12.8% per annum, again well above the 8.4% that the broader market delivered.

No ASX dividend stock is perfect. But adding all of this up for Soul Patts, I think this company is about as close as we can get.

The post Is this the ASX’s perfect dividend stock? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $10,000 monthly passive income?
• Soul Patts vs Macquarie Group: Best ASX dividend stock for retirees?
• Why I think Soul Patts shares are even more attractive after the FY26 result
• Here are the top 10 ASX 200 shares today
• Everything you need to know about the Soul Patts dividend

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PEXA vs REA Group shares: Which stands out?

Investors eyeing the property technology space might find themselves comparing PEXA Group Ltd (ASX: PXA) and REA Group Ltd (ASX: REA) shares. Both companies are key players behind the digital platforms transforming Australian real estate, but they approach the market in starkly different ways. Let’s break down each case and see which business shines brightest based on the latest available numbers.

The case for PEXA

PEXA Group leads Australia’s digital conveyancing market, enabling property settlement electronically—making transactions faster, more reliable, and less error-prone. The company’s core strength lies in its world-first technology that allows almost real-time settlement and fund clearance. It earns revenue predominantly from transaction fees as lawyers, conveyancers, and banks process properties on its network. According to its company profile, PEXA is dominant in Australia and pushing into the UK and other international markets.

Looking at the fundamentals, PEXA has a market cap of $1.17 billion, placing it well below giants like REA but still substantial in the local tech sector. Its recent numbers reveal:

• P/E Ratio: 60.86 — reflecting a hefty valuation relative to reported earnings, typical for a tech platform in expansion mode.
• Earnings per share (EPS): $0.109
• Dividend yield: 0.00% — it isn’t currently paying dividends, choosing instead to reinvest and grow.
• Year-to-date return: -50.6%, a dramatic drop suggesting recent heavy selling or market disappointment.

PEXA’s ambition and early mover advantage can be exciting, but there’s clear risk attached to momentum and profitability at this stage.

The case for REA Group

REA Group is best known as the operator of Australia’s leading property portals, realestate.com.au and realcommercial.com.au. These platforms dominate online real estate advertising, making REA essential for property sellers and advertisers nationwide. The group also owns mortgage broking and property data businesses, giving it a broad footprint across digital property services in Australia and select global markets.

REA’s scale is on another level:

• Market cap: $19.32 billion — this is a blue-chip business with massive reach and entrenched network effects.
• P/E ratio: 28.92, less lofty than PEXA’s and reflecting far higher profit generation at this maturity stage.
• EPS: $5.106 — showing strong earnings power compared to PEXA.
• Dividend yield: 2.01% (fully franked at 100%) — with a reliable record of dividend growth, as seen in its consistent payment history.
• Year-to-date return: -17.9%, which is a notable decline but less severe than PEXA’s drop.

For those seeking established profitability, scale, and regular income, REA Group clearly ticks the boxes.

Valuation comparison

With both companies trading in the property tech space, let’s stack up three key metrics side-by-side:

	PEXA	REA Group
Market Cap	$1.17 billion	$19.32 billion
P/E Ratio	60.86	28.92
Dividend Yield	0.00%	2.01% (100% franked)
EPS	0.109	5.106

Note: PEXA Group Ltd’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

The contrast is stark — REA Group trades on a much lower earnings multiple for the sector, pays a growing dividend, and generates stronger profits. PEXA carries a higher valuation multiple, reflecting big growth expectations rather than current earnings. For income-focused investors, REA also delivers with franked dividends.

Recent share price performance

Looking at recent share price history until 25 September 2026 — here’s how the two stack up:

• PEXA: Closed at $6.64, down 2.2% on the day. Year-to-date, shares are down 50.6%.
• REA Group: Closed at $147.66, down 2.9% on the day. Year-to-date, shares are down 17.9%.

While both have suffered in 2026, PEXA’s sell-off has been much heavier, suggesting the market’s patience for its growth story is wearing thin—or that risk levels look substantially higher right now.

Which is the better buy?

If I had to choose between PEXA and REA Group based on the numbers above, my pick would be REA Group. Here’s why: it’s a clear industry leader with far stronger earnings, an attractive dividend that’s fully franked, and more reasonable valuation for its scale and recurring profit streams. REA is down in 2026, but not nearly as battered as PEXA, whose shares have been cut in half this year.

PEXA does have an exciting platform and international ambitions, but the lack of dividend, a very high P/E ratio, and ongoing heavy share price declines make it a riskier bet. Unless I was explicitly seeking high-risk, early-stage tech exposure, I wouldn’t look past REA’s combination of stability, income, and dominant market share in the Australian property sector.

The post PEXA vs REA shares: Which property tech company is the better buy? 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 draft. 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.