Tag: Stock pick

Superannuation is one of the best things about Australia’s retirement system. Both capital gains and passive income are taxed at a lower rate within superannuation compared to outside of superannuation for a full-time worker.

Tax changes announced earlier this year have made non-superannuation investments less attractive – capital gains are going to be taxed more, negative gearing’s appeal is being reduced, and trust distributions are under the spotlight.

With the lower tax rate during the accumulation phase and potentially a 0% tax rate in the retirement phase of superannuation (depending on the balance), it’s a very effective investment vehicle for people saving towards retirement and in retirement too.

Tax makes a big difference for passive income because it’s the after-tax income figure that investors can use.

Every household has a different tax position, so I’m not going to refer to tax for the rest of this article. Let’s talk about dividend yields.

The power of a dividend yield

Every investment that pays dividends comes with a dividend yield.

A dividend yield tells us how much passive income an investment pays.

The dividend yield is influenced by two factors.

First, there’s the dividend payout ratio – how much of a business’ profit is paid out as a dividend. Obviously, the more they pay out, the bigger the dividend yield.

The other factor is the valuation of the investment, which can often be measured by the price-earnings ratio (P/E) ratio. The more expensive an investment goes, the lower the dividend yield.

Investors can then look at the different dividend yields and decide what investments to choose. Higher dividend yields aren’t necessarily better, but they do mean an investor can receive more passive income for the same portfolio balance.

For example, someone with a $200,000 investment balance at a 3% dividend yield would have $6,000 in annual passive income. If that same person were invested in investments with a 5% dividend yield, it would be $10,000 of annual passive income. That’s 66% more income!

Generate $10,000 of monthly passive income from superannuation

To target $10,000 per month of income, we’re talking about an annual goal of $120,000. That’s a big goal, and would certainly unlock a pleasing retirement for whoever is receiving that level of money.

Targeting $120,000 of annual passive income would require a sizeable portfolio. The actual size depends on the dividend yield.

If the dividend yield was 3%, it would require a portfolio worth $4 million.

If the dividend yield was 5%, it would require a portfolio worth $2.4 million.

If the dividend yield was 7%, it would require a portfolio worth $1.71 million.

If I were looking to invest for a 3% dividend yield, I’d think about ideas like Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), and Vanguard Australian Shares Index ETF (ASX: VAS).

Investments with a dividend yield of around 5% that I’m a fan of include L1 Long Short Fund Ltd (ASX: LSF), APA Group (ASX: APA), and Coles Group Ltd (ASX: COL).

Finally, potential investments with a 7% dividend yield I’d consider for high dividend yields in superannuation include MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Telstra Group Ltd (ASX: TLS), and Medibank Private Ltd (ASX: MPL).

Overall, there are some great investments to consider, and I’ve filled my portfolio with a mix of the above ASX shares, each with different dividend yields.

The post How much is needed in superannuation to target a $10,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Own US ETFs like IVV or NDQ? Here’s why your dividends are so low
• 2 strong Australian stocks to buy now with $9,000
• I’d buy 99,010 shares of this ASX stock to aim for $10,000 of annual passive income
• How much do I need in ASX dividend shares to receive $15,000 passive income per year?
• Investors get defensive as ASX 200 drifts to a 15-week low

Motley Fool contributor Tristan Harrison has positions in Future Generation Global, L1 Long Short Fund, Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. 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) kicked off the trading week on a sunny note this Monday, recording a healthy rise that pushed up the value of many ASX shares.

After a bumpy week last week, investors seemed to come back from the weekend with a bit of pep in their steps. The ASX 200 stayed in green territory all session, and ended up closing 0.17% higher today. That leaves the index at 8,679.7 points.

This happy start to the week for the Australian markets followed an even bubblier close to the American trading week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) put on a heck of a show, gaining 0.93%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t quite as euphoric, but still managed a 0.48% rise.

But let’s return to this week and our local markets now for a closer look at what was happening amongst the different ASX sectors this Monday.

Winners and losers

Despite the broader market’s lift, there were still a few corners of the market that went backwards today.

Leading those losers were gold shares. The All Ordinaries Gold Index (ASX: XGD) was hit hard today, plunging 1.57%.

Broader mining stocks weren’t much better, with the S&P/ASX 200 Materials Index (ASX: XMJ) tanking by 1.34%.

Tech shares were also unlucky. The S&P/ASX 200 Information Technology Index (ASX: XIJ) saw its value cut by 0.74% today.

Energy stocks weren’t finding buyers either, illustrated by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 0.22% dip.

Industrial shares didn’t find much love. The S&P/ASX 200 Industrials Index (ASX: XNJ) slid 0.19% lower this session.

We could say something similar for consumer discretionary stocks, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slipping 0.02%.

That’s it for the losers, though.

Turning to the green sectors now, it was healthcare shares that played the starring role today. The S&P/ASX 200 Healthcare Index (ASX: XHJ) saw a 1.49% surge this Monday.

Utilities stocks ran hot as well, as you can see by the S&P/ASX 200 Utilities Index (ASX: XUJ)’s 1.17% jump.

Financial shares were also in demand. The S&P/ASX 200 Financials Index (ASX: XFJ) had roared 1.16% higher by the closing bell.

Consumer staples stocks didn’t miss out, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) vaulting up 0.83%.

Real estate investment trusts (REITs) saw some comfortable gains, too. The S&P/ASX 200 A-REIT Index (ASX: XPJ) added 0.57% to its tally.

Finally, communications shares slid home unscathed, evident by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.32% bump.

Top 10 ASX 200 shares countdown

Our top stock this Monday was gold miner Northern Star Resources Ltd (ASX: NST). Northern Star shares soared 56.15% higher this session to finish at $23.47 each.

This came after news that the company was approached for a takeover.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Northern Star Resources Ltd (ASX: NST)	$23.47	6.15%
Ingenia Communities Group (ASX: INA)	$4.76	5.78%
CSL Ltd (ASX: CSL)	$181.91	2.80%
Suncorp Group Ltd (ASX: SUN)	$19.06	2.69%
Macquarie Group Ltd (ASX: MQG)	$244.98	2.28%
Super Retail Group Ltd (ASX: SUL)	$12.62	2.27%
Reece Ltd (ASX: REH)	$16.59	2.16%
Mirvac Group (ASX: MGR)	$1.75	2.04%
Cochlear Ltd (ASX: COH)	$145.13	1.99%
Insurance Australia Group Ltd (ASX: IAG)	$7.98	1.79%

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.

More reading

• ASX 200 rallies from June lows. Is the worst over?
• 3 cheap ASX shares I would buy now
• Northern Star shares on watch after major takeover approach rejected
• Ingenia Communities receives further revised $5.25 takeover proposal
• Northern Star Resources rejects $38.7bn Gold Fields takeover offer

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

ASX investors who are used to owning exchange-traded funds (ETFs) that track Australian shares are probably used to receiving a hefty stream of dividend income as a byproduct.

Most ASX ETFs, including the popular market-wide index funds like the Vanguard Australian Shares Index ETF (ASX: VAS), routinely offer dividend yields between 3% and 5%. It’s sometimes more, and occasionally less, depending on investing conditions. But long story short, Australian-focused ETFs are usually generous income investments.

It is a wildly different story when it comes to US-centred funds, though.

Just this morning, my Fool colleague Bronwyn covered the latest payout from the popular iShares S&P 500 ETF (ASX: IVV). It is estimated that owners of this ASX ETF, which covers the S&P 500 Index (SP: .INX) over in the ‘States, will receive a quarterly dividend distribution of 17.35 cents per unit next month.

Together with July’s payout of 23.3 cents, April’s 13.95 cents, and January’s 20.14 cents, IVV units are set to sport an annual dividend distribution total of 74.74 cents per unit.

That would give the iShares S&P 500 ETF a rough dividend distribution yield of about 1.02% at current pricing.

The BetaShares Nasdaq 100 ETF (ASX: NDQ) is slightly more impressive with a current trailing yield of 1.43%.

Why do ASX ETFs pay higher dividends?

Unless you are looking at a US-based ETF that specifically targets delivering high levels of dividend income, chances are you won’t be able to secure an investment with a dividend yield above 2% in current circumstances. That contrasts notably with ASX ETFs.

But why? If the US houses many of the world’s highest-calibre companies, which it arguably does, where is the dividend income?

Well, the answer is a complex one. In my view, it comes down to a mix of structural and taxational differences between the United States and Australia.

Let’s go through them.

The US markets are structured in a very different manner from the ASX. Here in Australia, the top echelons of our market are dominated by banks and resources stocks. These companies tend to pay out a relatively high proportion of their earnings as dividends. As ASX index funds must hold more of these stocks than any other, they inherit this high-yield nature.

US funds, franking and returns

In contrast, the US markets are spearheaded by tech giants, companies like Apple, Alphabet, NVIDIA, and Microsoft. Whilst enormously profitable, these companies tend to retain most of their earnings for reinvestment, rather than passing them onto shareholders as dividends.

When it comes to tax, ASX companies are incentivised to pay out a dividend to shareholders thanks to our unique system of franking. Franking is intended to prevent double taxation of dividend cash, but is highly advantageous for investors. Particularly those on high incomes. As such, ASX companies tend to start paying their shareholders dividends as soon as they are able to do so. However, in the US, tax treatment of dividends is far less generous. As such, those companies have more of an incentive to retain their cash for reinvestment.

This combination is why US-based ETFs tend to provide less income than their ASX counterparts. Investors shouldn’t mind, though. US-based index funds have delivered far better overall returns over the past decade or two than their ASX counterparts. Only time will tell if that paradigm holds up going forward. But sometimes, a higher dividend yield doesn’t mean a better investment.

The post Own US ETFs like IVV or NDQ? Here’s why your dividends are so low appeared first on The Motley Fool Australia.

More reading

• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• 10 top ASX ETFs to watch in 2027
• How many VAS ETF shares do I need to buy for $10,000 per year of passive income?
• Own VAS, VHY, VGS, or other Vanguard ETFs? Here’s your next dividend
• Want to invest in AI? Here are the best ASX ETFs for 2027

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

What a difference a few days can make.

After falling to its lowest level since June on Friday, the S&P/ASX 200 Index (ASX: XJO) has bounced back on Monday.

The benchmark is currently up 0.46% to around 8,705 points, with the major banks helping drive the recovery.

It’s a welcome change after another difficult week, which saw the ASX 200 finish Friday at 8,665 points after falling as low as 8,639 points.

The index is still down around 3.7% over the past month, so there’s plenty of ground to make up.

But the next few days could determine whether today’s rebound has further to run.

Here’s what’s happening.

Banks lead the way

A big part of today’s recovery is coming from the banks, with all four major lenders trading higher.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.92% to $152.21, while National Australia Bank Ltd (ASX: NAB) has climbed 1.97% to $39.30.

It’s a similar story elsewhere, with Westpac Banking Corp (ASX: WBC) up 1.45% to $34.99 and ANZ Group Holdings Ltd (ASX: ANZ) gaining 1.71% to $38.485.

Macquarie Group Ltd (ASX: MQG) is also having a good session, rising 2.16% to $244.70.

Healthcare is lending a hand as well, with CSL Ltd (ASX: CSL) shares climbing 2.18% to $180.80.

But despite the ASX 200 moving higher, it’s actually a fairly mixed session across the market.

At the latest check, 95 stocks are rising, while 101 are falling and 4 remain unchanged.

Northern Star takes off

Away from the banks, one of Monday’s biggest movers is Northern Star Resources Ltd (ASX: NST).

The gold miner’s shares are up 7.69% to $23.81 after rejecting a takeover approach from South African giant Gold Fields.

That hasn’t been enough to lift the rest of the mining sector, however.

BHP Group Ltd (ASX: BHP) shares are down 0.63% to $60.34, while Rio Tinto Ltd (ASX: RIO) has fallen 1% to $163.21.

Several other gold miners are also moving lower as the gold price retreats.

Evolution Mining Ltd (ASX: EVN) shares are down 2.15% to $13.65, and Newmont Corporation (ASX: NEM) has dropped 2.74% to $123.93.

What happens next?

Monday’s rebound is encouraging, but the biggest test for the ASX 200 will come over the next few days.

The RBA will announce its latest interest rate decision tomorrow, with economists widely expecting another 25-basis-point increase.

That would take the cash rate to 4.60% and mark the fourth rate hike this year.

Investors will then turn their focus to Wednesday’s inflation figures, which should provide another update on where prices are heading.

For me, the key level to watch is 8,600 points, with Friday’s low providing a useful reference for the market’s recent weakness.

If the benchmark can hold above that level, it could give investors some confidence heading into October.

The post ASX 200 rallies from June lows. Is the worst over? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Investors get defensive as ASX 200 drifts to a 15-week low
• Here are the top 10 ASX 200 shares today
• ASX 200 sinks to June lows as investors brace for another RBA rate hike
• 5 things to watch on the ASX 200 on Friday

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

Santos vs Viva Energy shares: Which ASX energy stock stands out?

Investors looking at Santos Ltd (ASX: STO) and Viva Energy Group Ltd (ASX: VEA) are sizing up two heavyweights in Australia’s energy sector. Both play a vital role in supplying the fuel and energy keeping the nation running, but their businesses and financial profiles are quite different. Here’s how Santos and Viva Energy stack up for the everyday Aussie looking to buy into the local energy scene.

The case for Santos

Santos is a major oil and gas producer, based in Adelaide but operating across Australia, Papua New Guinea, Timor-Leste, and as far afield as Alaska. With decades of experience, it boasts one of Australia’s largest resource acreages and substantial infrastructure, especially for natural gas. The company’s reach covers both domestic supply and Asian export markets, and it’s busy developing big-ticket LNG projects.

Looking at the numbers, Santos commands a market cap of $27.77 billion, which makes it one of the largest ASX-listed energy names. Its shares are currently on a price-to-earnings ratio (P/E) of 26.58 and the stated dividend yield is 3.66%. EPS comes in at $0.225, and the declared dividend per share is $0.31. Santos has delivered an impressive year-to-date return of 41.1%.

When it comes to dividends, Santos’s record shows regular payouts, but recent dividends have been unfranked—so investors in higher tax brackets may not get the full benefit. According to its most recent company profile, Santos continues to expand its LNG portfolio with projects like PNG LNG and Barossa LNG, supporting future growth, although it’s worth noting specific project updates weren’t available in the data supplied here.

The case for Viva Energy

Viva Energy is Australia’s second-largest refined fuel supplier and the exclusive Australian licensee of the Shell brand. It manages a major chunk of the nation’s fuel logistics: making, importing, blending, and distributing about a quarter of Australia’s demand. Viva owns the Geelong Refinery—one of just two left in the country—and supplies over 1,300 branded service stations. In recent years, the business expanded into convenience store retailing after acquiring Coles Express and is eyeing new frontiers with natural gas and hydrogen technology.

Viva’s market cap sits at $5.26 billion—smaller than Santos, but nothing to sneeze at for a company focused mainly on fuel distribution and refining. Its P/E ratio is 23.58, slightly lower than Santos, and its dividend yield is 3.69%. The latest EPS is $0.134, with a dividend per share of $0.15. Franking is a standout point here: every recent dividend is fully franked, which increases their appealing yield for local investors. Viva shares have also soared this year, posting a massive year-to-date return of 59.8%.

Dividend history is solid, with consistent, fully franked payouts across both interim and final periods. According to its current public description, Viva is buying into energy transition themes, including hydrogen and EV charging opportunities, though again, specific revenue figures weren’t available for this piece.

Valuation comparison

There are some clear differences between these energy stocks in both scale and capital structure—which can matter depending on what you’re after as an investor.

Metric	Santos	Viva Energy
Market Cap	$27.77 billion	$5.26 billion
P/E Ratio	26.58	23.58
Dividend Yield	3.66%	3.69%
Dividend Franking	0–6.6% (recent unfranked)	100% fully franked
Earnings Per Share (EPS)	$0.225	$0.134
Dividend Per Share	$0.31	$0.15
YTD Return	41.1%	59.8%

Note: Santos’ reported P/E ratio and EPS figures may reflect differences in accounting measurement (e.g. underlying vs. statutory earnings), so they might not correspond exactly.

Recent share price performance

Let’s compare both shares’ price action as of 24 September 2026:

• Santos closed at $8.55, gaining 1.79% for the day. Over the year to date, its shares are up 41.1%.
• Viva Energy closed at $3.20, rising 1.27% on the same day. Viva’s year-to-date return is a standout 59.8%.

These moves reflect a period of strength for both, but especially for Viva Energy, which has left most of the sector in its rear-view mirror.

Which is the better buy?

Both Santos and Viva Energy offer exposure to the backbone of Australia’s energy economy, but for me, the more compelling case is with Viva Energy right now. Here’s why: Viva’s shares have surged even further than Santos’s in 2026, but their P/E ratio is actually a touch lower, so investors aren’t paying up dramatically more for that growth. The dividend yields are virtually identical, but Viva’s dividends are fully franked—which is a direct win for Aussie investors, as it means those payouts go further after tax.

On top of that, Viva is visibly leaning into the future of fuel—whether it’s hydrogen, EV infrastructure, or importing natural gas—at a time when legacy oil and gas-focused models are facing longer-term questions. The company’s smaller market cap might mean less institutional following, but that can also present extra room for re-rating if execution continues.

Santos remains a cornerstone exposure with its global LNG and oil exposure—and it’s not a poor choice, especially for those seeking oil and gas project leverage. But purely on the numbers and strategy shown here, my pick would be Viva Energy for its franking advantage and stronger share momentum.

The post Santos vs Viva Energy: Which ASX energy stock gets my vote today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?

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.

Oil prices are climbing again on Monday, continuing a rally that has seen crude gain almost 50% over the past year.

And there’s little sign of things slowing down just yet.

West Texas Intermediate (WTI) crude is currently up 1.15% to US$93.47 per barrel.

Meanwhile, Brent crude has climbed 1.68% to US$106.07, bringing the US$110 mark back into focus.

And after another eventful weekend in the Middle East, there could be more volatility ahead.

Let’s take a closer look.

Trump rejects Iran peace proposal

The latest increase comes after US President Donald Trump rejected Iran’s proposal to end the conflict and reopen the Strait of Hormuz.

According to Reuters, Tehran offered to reopen the strategic waterway within 7 days in exchange for sanctions relief and a ceasefire.

However, Trump refused to accept the terms over the weekend, although negotiations are expected to resume this week.

The situation has been complicated by further attacks across the region.

Saudi Arabia has faced additional missile and drone attacks from Yemen’s Houthi forces, threatening the security of its energy infrastructure.

This has added to concerns about further supply disruptions, helping push oil prices higher.

Russia’s oil infrastructure takes another hit

The conflict in Ukraine is creating further problems, with another Russian refinery forced to suspend operations.

Last Friday, a Ukrainian drone attack damaged Russia’s Novoshakhtinsk refinery in the Rostov region.

The refinery has the capacity to process approximately 110,000 barrels of crude oil per day.

The attack follows several strikes on Russian refining facilities, including sites near Moscow and Yaroslavl.

Russia has also been restricting diesel exports as it attempts to rebuild domestic fuel reserves ahead of cold winter.

Trump has reportedly urged Ukrainian President Volodymyr Zelensky to halt further strikes on Russian oil facilities.

Where could oil prices go next?

Saudi Arabia’s efforts to restore its East-West pipeline could play an important role in where oil prices head next.

The pipeline restarted last week following a drone attack, but it’s still operating below full capacity.

And it could take another 6 to 8 weeks before it returns to its full capacity of 7 million barrels per day.

The pipeline allows Saudi Arabia to transport crude to the Red Sea, bypassing the Strait of Hormuz.

But with operations still limited, the country could struggle to make up for the oil lost through Hormuz.

I’ll be closely watching whether Brent pushes past US$110 this week, especially if the pipeline’s recovery takes longer than expected.

The post Oil prices surge as Trump rejects Iran peace deal. What’s next? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Investors get defensive as ASX 200 drifts to a 15-week low
• Here are the top 10 ASX 200 shares today
• ASX 200 sinks to June lows as investors brace for another RBA rate hike
• 5 things to watch on the ASX 200 on Friday

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.

Finding a cheap ASX share is not simply a matter of looking for the biggest decline.

For me, the best opportunities are when the valuation looks modest compared with what a business could earn over the next few years.

Here are three ASX shares I think fit that description today.

Zip Co Ltd (ASX: ZIP)

Zip is probably the most obvious value opportunity of the three.

The buy now, pay later company’s shares have fallen heavily and were recently trading around $1.99, well below their 52-week high of $4.94.

What I think makes that decline interesting is the earnings outlook.

Consensus forecasts point to earnings per share (EPS) of 15 cents in FY27, rising to 18 cents in FY28 and 22.4 cents in FY29.

At $1.99, that puts Zip shares on a PE ratio of roughly 13.3 times forecast FY27 earnings. If the company reaches the FY29 estimate, the multiple falls to just under 9 times.

That looks inexpensive for a business expected to grow earnings meaningfully over the same period.

Zip still needs to deliver on those forecasts, and I would expect plenty of volatility along the way. But I think the current valuation leaves enough upside to make the shares worth buying.

CSL Ltd (ASX: CSL)

CSL shares have already staged an impressive recovery. The healthcare giant is now trading around $177.67, almost double its 52-week low of $90.

While this means it isn’t as cheap as it was, I still see a lot of value in this ASX share.

Consensus forecasts point to EPS of $8.98 in FY27, rising to $9.47 in FY28 and $10.07 in FY29.

At today’s price, that puts CSL on a forward PE ratio of around 20 times FY27 earnings, falling to less than 18 times FY29 earnings if those forecasts are achieved.

For a global healthcare business with strong positions in plasma therapies, vaccines, and specialised medicines, I think that valuation still looks attractive.

The sharp rebound from the lows means some of the recovery has already been recognised by the market. But with earnings expected to keep growing, I still think CSL offers enough value at current levels to remain on my buy list.

Goodman Group (ASX: GMG)

Goodman is my third pick. The shares were recently trading around $26.49, down from a 52-week high of $34.78.

What I like here is that the share price decline has happened despite its earnings growth outlook remaining positive.

Goodman generated EPS of 129.9 cents in FY26. Consensus forecasts point to 142 cents in FY27 and 151 cents in FY28.

That leaves the shares trading on around 18.6 times forecast FY27 earnings.

I think that looks reasonable given Goodman’s growth opportunities, particularly its increasing exposure to data centres.

The enormous investment being made in AI and cloud infrastructure is creating demand for sites with access to land, power, and major population centres. Goodman has positioned itself to participate in that development pipeline.

Foolish takeaway

Cheap can mean different things in the share market, and I think that is what makes these three ASX shares worth another look.

None of them needs everything to go perfectly for today’s prices to make sense to me. If earnings broadly move in the direction analysts expect, I think there is still room for patient investors to do well.

The post 3 cheap ASX shares I would buy now appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares set to soar 39% to 135%
• Buy, hold, sell: CBA, BHP, CSL shares
• These are the 10 most shorted ASX shares
• $10,000 invested in Pro Medicus and CSL shares 3 years ago is now worth…
• Will Goodman shares reach $30 in 2027?

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

New Hope Corporation Ltd (ASX: NHC) shares have delivered investors some seriously outsized returns over the past year.

How seriously?

Well, in late morning trade on Monday, shares in the S&P/ASX 200 Index (ASX: XJO) coal stock are trading for $5.68 apiece. This sees the share price up 41.7% since this time last year, smashing the 2% 12-month losses posted by the ASX 200.

And that’s not including the two fully-franked New Hope dividends, totalling 40 cents per share, that the coal miner paid out (or shortly will pay out) over this period. If we add those back in, then the accumulated value of New Hope shares has surged 51.6% in a year.

New Hope stock traded ex-dividend on 21 September. If you held shares at market close on 21 September, you can expect the final fully-franked 30-cent-per-share dividend to land in your bank account on 15 October.

At current prices, New Hope stock trades on a fully-franked trailing dividend yield of 7%. That equates to a grossed-up yield of 10.1%, once we account for those franking credits.

Atop its own operational successes on and below the ground, New Hope has been benefiting from resurgent global coal prices.

At US$144 per tonne, thermal coal (primarily used for energy production) prices are up approximately 35% in 12 months. And thermal coal prices have lifted more than 21% since the end of February, amid the worldwide energy crunch following the outbreak of the Iran war.

But following on this strong run, is the ASX 200 coal stock now a buy, hold, or sell?

New Hope shares: Buy, hold, or sell?

Fairmont Equities’ Michael Gable recently ran his slide rule over the ASX 200 coal miner (courtesy of The Bull).

“I remain bullish about this thermal coal producer, as the war in Iran is leading other countries to lift demand for thermal coal to offset instability in gas markets,” Gable noted.

Commenting on the miner’s recent performance and passive income appeal, Gable said:

The company generated saleable coal production of 11.5 million tonnes in full year 2026, up 7.6 per cent on the prior corresponding period. Production was above market expectations as was the final, fully franked dividend of 30 cents a share.

Along with lifting production, New Hope also increased its total coal resources over the year, which grew to 2.96 billion tonnes as at 31 May, up from 2.55 billion tonnes year on year.

Summarising his hold recommendation on New Hope shares, Gable concluded, “The share price uptrend since early July is sustainable, in my view.”

The post Up 42% and paying a 7% dividend yield, should I buy New Hope shares today? appeared first on The Motley Fool Australia.

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

The Dateline Resources Ltd (ASX: DTR) share price is flying on Monday morning.

The gold explorer’s shares are currently up 46.03% to 9.2 cents, after finishing Friday’s session at just 6.3 cents.

It’s a welcome change for shareholders, with the stock having lost almost 60% of its value in 2026, and more than 80% over the past year.

Much of that decline has come amid legal troubles surrounding its flagship US gold project.

But today’s announcement has given investors another reason to get excited.

So, let’s take a closer look at see what happened.

Why are Dateline shares rocketing 46%?

In its latest announcement, Dateline revealed that the US Government has stepped in to support the company in its ongoing legal battle.

The US Department of Justice (DOJ) has filed a motion asking the court to lift the injunction preventing work at its Colosseum project in California.

The restriction has been in place since 10 August, following legal action brought by environmental group National Parks Conservation Association (NPCA).

The group is challenging the project’s approved plan of operations, leaving Dateline unable to continue work at the site.

But the US Government wants the company to be able to get back to work while the appeal continues.

In its filing, the DOJ argues that the court got its original decision wrong and that the injunction is harming US national security interests.

And the project’s rare earth potential is also playing a part.

Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy, has provided a sworn declaration highlighting Colosseum’s potential to produce rare earth elements.

These minerals are considered critical to US national security, especially as the country looks to reduce its reliance on China.

The Asian superpower currently controls around 90% of the world’s rare earth processing.

What’s next for Dateline shares?

The next big date to watch is 26 October, when the court is scheduled to hear the applications to suspend the injunction.

Both Dateline and the US Government have filed separate motions, although the NPCA has already indicated it will oppose them.

If the applications are successful, Dateline could resume work at Colosseum while the appeal continues.

The company’s feasibility study outlined a 10.4 year mine life, with approximately 573,000 ounces of gold production.

The study also forecasts US$1.08 billion in undiscounted pre-tax free cash flow, based on a gold price of US $4,200 per ounce.

However, I’ll be watching the next month’s hearing very closely before getting too excited about today’s massive share price rally.

The post Guess which ASX stock is rocketing 46% today 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.3% to 8,692.5 points on Monday.

The market fell to a 15-week low last week as bond yields soared and expectations of an interest rate rise increased.

The Reserve Bank of Australia will announce its next cash rate decision tomorrow at 2:30pm.

Meanwhile, if you’re looking for buy-the-dip inspiration, experts say these ASX stocks have big potential upside.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2, up 0.76% on Monday.

Over the past month, this ASX 200 financial share has fallen 21%.

UBS renewed its buy rating on Zip shares with a 12-month price target of $4.70.

This suggests a potential 135% upside ahead.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.08, down 3.7% today.

Over the past month, this ASX healthcare share has fallen 16%.

Bell Potter has a buy recommendation on Mesoblast shares with a $4.45 target.

This implies the Mesoblast share price could double over the next 12 months.

Analyst John Hester issued an updated note following news of the T-Cell Proliferation Inhibition Assay (TIBA).

He said:

Mesoblast has announced FDA approval of an additional potency assay for Ryoncil.

MSB had not previously disclosed the development of this assay, however, it collaborated with the FDA on the project.

The assay will be equally applicable to the manufacture of rexlemestrocel-L.

MSB has extensive IP around both Ryoncil and Rexlemestrocel-L (aka Revascor).

Ryoncil carries Orphan Drug Designation and long life patents.

The development of the new TIBA assay further extends the moat around future revenues.

Xero Ltd (ASX: XRO)

The Xero share price is $57.79, up 0.75% today. 

Over the past month, this ASX 200 tech share has fallen 33%.

UBS renewed its buy rating on Xero shares with a $127 target.

This suggests a potential 120% upside ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $31.91, up 1.85% today.

Over the past month, this ASX 200 tech share has fallen 21%.

UBS has a buy rating with a $56 target on WiseTech shares.

This suggests a potential 75% upside ahead.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.82, down 1.29% today.

Over the past month, this ASX 200 gold mining share has edged 4% lower.

Canaccord Genuity upgraded Ramelius Resources shares to a buy call with a $6.15 target.

This indicates potential capital gains of 61% over the next year. 

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $161.81, up 0.5% today. 

This ASX 200 healthcare share has fallen 11% over the past month.

Citi renewed its buy rating on Pro Medicus shares with a $225 target.

This implies potential capital growth of 39% over the next year.

The post 6 ASX shares set to soar 39% to 135% appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.