Tag: Stock pick

The Rio Tinto Ltd (ASX: RIO share price is in focus today after the company posted a 9% year-on-year lift in copper equivalent production for Q1 FY26, powered by copper and iron ore growth and a resilient aluminium performance.

What did Rio Tinto report?

• Copper equivalent production up 9% year-on-year across the portfolio
• Pilbara iron ore production jumped 13% YoY to 78.8 million tonnes (100% basis); sales up 2%
• Group copper production rose 9% to 229,000 tonnes; Oyu Tolgoi ramp-up on track
• Aluminium output increased 1%, with 835,000 tonnes produced
• Bauxite production was down 11% due to weather impacts
• 2026 production and unit cost guidance unchanged across key divisions

What else do investors need to know?

Rio Tinto maintained full-year production and cost guidance for 2026 across all major commodities, despite some weather-related disruptions. The Pilbara iron ore mines delivered their second-best Q1 production since 2018, even as two cyclones reduced shipments by around 8 million tonnes, with about half of the losses expected to be recovered later in the year.

The company reported strong progress on key capital projects. Mechanical completion was achieved at both Fenix 1B and Sal de Vida lithium projects, positioning Rio Tinto for first production in the second half of 2026. Investment in productivity initiatives has already yielded $650 million in annualised benefits, with further improvements underway.

What did Rio Tinto management say?

Rio Tinto Chief Executive Simon Trott said:

Operating excellence drove 9% YoY copper equivalent production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned and our integrated aluminium business, again, delivered a strong performance. Our Pilbara iron ore mines performed strongly, while shipments were impacted by two cyclones in the quarter.

What’s next for Rio Tinto?

Looking ahead, Rio Tinto is focused on extending mine life and expanding production across its core commodity assets. Major development projects in iron ore, copper, lithium and aluminium remain on track, with the company’s unique global portfolio providing supply chain resilience. The business is monitoring global geopolitical and commodity market developments closely, particularly in light of the Middle East conflict and its potential impacts in the second half of 2026.

Future-facing growth is supported by new projects in Guinea (Simandou iron ore) and Argentina (lithium), while sustainability and operational productivity remain key priorities. Guidance for 2026 output and costs remains unchanged at this stage.

Rio Tinto share price snapshot

Over the pat 12 months, Rio Tinto shares have risen 55%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism appeared first on The Motley Fool Australia.

More reading

• HUB24 grows Q3 inflows and funds under administration
• Cleanaway Waste Management shares in focus as strategy refresh targets margin growth
• RBA’s ‘worst nightmare’: What exactly is stagflation?
• 5 things to watch on the ASX 200 on Tuesday
• Worley flags $30–40m EBITA hit from Middle East conflict in FY26 outlook

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.

The HUB24 Ltd (ASX: HUB) share price is under the spotlight after the company delivered $4.0 billion in platform net inflows for Q3 FY26 and lifted total funds under administration (FUA) to $151.7 billion, up 22% on the prior corresponding period.

What did HUB24 report?

• Platform net inflows of $4.0 billion in Q3 FY26 (up 9% on pcp, excluding large migrations)
• Total FUA reached $151.7 billion as at 31 March 2026 (up 22% on pcp)
• Platform FUA of $127.8 billion (up 25% on pcp), PARS FUA of $23.9 billion (up 11% on pcp)
• Active advisers on the platform rose to 5,549 (up 11% on pcp)
• Awarded Best Platform Overall and Best in Platform Managed Accounts Functionality in industry reports
• Call option exercised to acquire HTFS Nominees Pty Ltd, trustee for the HUB24 Super Fund

What else do investors need to know?

HUB24’s momentum continued into Q3, despite challenging market conditions. Record net inflows were achieved, led by a strong rise in retail and adviser numbers, although there was a one-off outflow from an institutional client in March.

The company continued to innovate, launching new digital adviser solutions and enhancing its high-net-worth and managed portfolio offerings. HUB24’s Class and NowInfinity platforms also saw growth, with active account and document order numbers rising. Notably, NowInfinity has embarked on a multi-year enhancement program to improve user experience and compliance support for finance professionals.

Additionally, the transaction to acquire trustee HTFS Nominees Pty Ltd is progressing, with integration expected by the end of 2026 pending regulatory approvals. This is anticipated to have no material financial impact on earnings.

What’s next for HUB24?

HUB24 is focused on maintaining momentum in its structurally growing markets, supported by demographic trends and compulsory superannuation. The business plans to further invest in product features and technology, deepen adviser relationships, and complete its acquisition of HTFS Nominees.

The company remains confident in its ability to deliver sustained growth over the longer term, with a strong pipeline of opportunities from both new and existing clients.

HUB24 share price snapshot

Over the past 12 months, HUB24 shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post HUB24 grows Q3 inflows and funds under administration appeared first on The Motley Fool Australia.

More reading

• Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism
• Cleanaway Waste Management shares in focus as strategy refresh targets margin growth
• RBA’s ‘worst nightmare’: What exactly is stagflation?
• 5 things to watch on the ASX 200 on Tuesday
• I think these are some of the best ASX 200 shares to buy now

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 positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX shares are a wonderful tool to unlock a significant dividend yield because of a combination of a generous dividend payout ratio and an attractive valuation.

Investors wanting to grow wealth relatively quickly may not necessarily want high levels of passive income because that could mean paying more of the return to the Australian Taxation Office. Capital gains aren’t taxed until an asset is sold.

However, for investors in retirement or who have a low tax rate, ASX dividend shares with a large dividend yield could be a rewarding pick.

Hearts and Minds Investments Ltd (ASX: HM1)

This is one of the high-yield ASX shares that I’ve added to my own portfolio because of the investment exposure and high levels of passive income.

It’s a listed investment company (LIC), meaning it doesn’t sell products or services. Instead, the business has an investment portfolio that it aims to make investment returns with.

Dividends are paid from the positive investment returns, which allows it to pay steadily growing passive income. The company is aiming to increase its payout every six months by 0.5 cents per share.

The next two dividends to be declared should come to a total of 20.5 cents per share, which would translate into a grossed-up dividend yield of 10.3%, including franking credits.

Hearts & Minds donates 1.5% of its portfolio to medical research, it’s able to do that because all of the investment picks are contributed for free by investment experts.

Some of the portfolio is decided by a core group of portfolio managers, while the rest is contributed at an annual investment conference, where some experts pick their best stock idea.

This process results in a largely global portfolio and the recent volatility could mean it’s a compelling time to invest.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is a leading ASX retail share that sells a variety of hair removal products. Considering how important hair removal is for many Australians, I think the business has relatively defensive earnings for a retailer.

The business has benefited from the steady growth of its store network, as well as the expansion of its own brand called Transform-U. Building its own brand can come with higher gross profit margin and stronger control of what products it sells.

But, the ASX dividend share also has a number of exclusive products from quality shaving brands, giving it a unique selling point (USP) for customers.

Pleasingly, the business has grown or maintained its dividend every year since 2017, so we’re almost at a decade of dividend reliability.

The last two half-year dividends come to a grossed-up dividend yield of close to 11%, including franking credits.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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• With a 10.7% yield, could this be the ASX’s best passive income stock?
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• 2 ASX dividend shares with yields above 7%
• These ASX dividend shares pay 7% and could jump 25%

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

ASX All Ords gold stock Aurum Resources Ltd (ASX: AUE) has delivered some outsized gains this past year.

Aurum Resources shares closed on Monday trading for 64 cents apiece. That sees shares in the African-focused gold miner up 67% in 12 months, smashing the 14.5% one-year gains delivered by the All Ordinaries Index (ASX: XAO).

Part of those gains have been spurred by the fast-rising gold price. On Monday, gold was fetching US$4,796 per ounce, up 40% since this time last year.

But the ASX All Ords gold stock has hardly been sitting idle over this time.

And following a significant resource upgrade at one of its core gold mines earlier this month, the team at Canaccord Genuity believe Aurum Resources shares are well-placed to deliver more outsized gains.

Here’s why.

ASX All Ords gold stock growing its resources

On 10 April, Aurum Resources reported a 34% increase in the mineral resource estimate (MRE) at its Napie Gold Project, located in Cote d’Ivoire.

This brought the ASX All Ords gold stock’s total resource base to 4.2 million ounces across its two Cote d’Ivoire gold projects, with 3.03 million ounces at its Boundiali project and 1.16 million ounces at Napie.

Encouragingly, the miner noted that only 13% of the 30-kilometre Napie Shear has been systematically drilled to date. And Aurum is well-funded to continue drilling, with a cash balance of $61 million as at 31 March.

Commenting on the upgraded MRE, Canaccord said:

In our initiation of coverage, our expectation was that AUE could deliver an unrisked addition of 279koz at Napie in the near term. To come within 4% at this juncture is very pleasing and bodes well for further updates

Looking to potential catalysts ahead, Canaccord noted:

Ongoing drilling programs, including 30,000m at Napie and 100,000m at Boundiali, are expected to drive further resource growth, with additional updates planned through 2026. A PFS [pre-feasibility study] for Boundiali is expected later this month.

As for what investors might expect from that PFS, Canaccord said, “We expect the 40.8Mt at 1.0g/t Au for 1.37Moz Indicated resource to underpin 10 years of production at a 6Mtpa run rate. At this scale, Boundiali could sustain 175kozpa.”

On the cost front, the broker estimates that Aurum Resources’ all-in sustaining cost (AISC) could be around US$1,500 per ounce at the current gold price.

Connecting the dots, Canaccord has a speculative buy rating on the ASX All Ords gold stock with a price target of $1.55 a share.

That’s more than 142% above Monday’s closing price.

The post Why this surging ASX All Ords stock is forecast to rocket another 142% appeared first on The Motley Fool Australia.

More reading

• Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism
• HUB24 grows Q3 inflows and funds under administration
• 2 ASX shares with dividend yields above 8%
• Cleanaway Waste Management shares in focus as strategy refresh targets margin growth
• Experts say this ASX financials stock could soar up to 40%

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 Cleanaway Waste Management Ltd (ASX: CWY) share price is in focus today as the company unveiled a refreshed 2026 strategy, aiming for margin expansion and stable cash flow, while highlighting a 60% lift in underlying EBIT since FY22.

What did Cleanaway Waste Management report?

• Underlying EBIT rose 60% between FY22 and FY25, with margin expanding 260 basis points to 12.5%
• Return on capital employed improved by 220 basis points to 9.1% from FY22 to FY25
• EBIT margin reached a record 12.5% in FY25
• Free cash flow is expected to strengthen from FY27 onwards as one-off costs wind down
• Dividend payout ratio maintained at 50–75% of underlying NPAT

What else do investors need to know?

Cleanaway’s new “Blueprint 2030 2.0” strategy is built around three pillars: delivering customer value, optimising its branch network, and leveraging advanced ways of working through digital and data capabilities. Management outlined plans to focus on high-value revenue growth, tighter cost controls, and further investment in automation and analytics to drive efficiencies.

Key highlights include a major upgrade to sales processes, with a centralised “One Sales Engine” model designed to lift customer retention and cross-sell rates. The company also flagged its ongoing digitisation program, targeting improved fleet utilisation, real-time tracking, and safety enhancements.

Cleanaway is actively reshaping its hazardous waste business, streamlining its site network while expanding high-margin technical services and decommissioning work—sectors where industry growth is forecast to continue.

What’s next for Cleanaway Waste Management?

Looking ahead, Cleanaway is targeting ongoing margin expansion of at least 260 basis points and 10–15% EPS growth in FY27 as cost-saving initiatives gain traction. The company expects to deliver stronger, more stable free cash flow through disciplined capital allocation and optimised asset utilisation.

Management is confident its integrated network and planned technology investments will continue to underpin Cleanaway’s leadership in sustainable waste management, providing a pathway for profitable growth in critical sectors such as hazardous waste and technical services.

Cleanaway Waste Management share price snapshot

Over the past 12 months, Cleanaway shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Cleanaway Waste Management shares in focus as strategy refresh targets margin growth appeared first on The Motley Fool Australia.

More reading

• Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism
• HUB24 grows Q3 inflows and funds under administration
• RBA’s ‘worst nightmare’: What exactly is stagflation?
• 5 things to watch on the ASX 200 on Tuesday
• Worley flags $30–40m EBITA hit from Middle East conflict in FY26 outlook

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

ASX financials stock Netwealth Group Ltd (ASX: NWL) is starting to win back investor attention after a rough stretch.

The ASX financials stock has jumped 20% over the past month, a sharp turnaround after a difficult period that saw it fall 23% over the past six months.

The recent rebound suggests confidence is returning, with investors warming again to Netwealth’s ability to keep attracting adviser and client funds, even in volatile market conditions.

So, what’s behind the renewed optimism?

Netwealth operates an investment platform that allows financial advisers to manage client portfolios, superannuation, and wealth accounts in one place. In simple terms, the $6 billion ASX financial stock sits at the centre of adviser-client relationships, providing the infrastructure that powers modern wealth management.

That positioning is a major strength. Once advisers and their clients are onboarded, they tend to stick around. Switching platforms can be complex and disruptive, which gives Netwealth strong customer retention and a steady stream of recurring revenue.

Its latest quarterly update reinforced that strength. The company reported funds under administration (FUA) of $125.8 billion, up 20.9% on the prior corresponding period. Importantly, this growth isn’t just being driven by rising markets. Netwealth also continues to win adviser market share, highlighting the competitiveness of its platform.

Stable margins, predictable cash flow

Growth is one thing, but profitability is where this ASX financials stock really stands out. Netwealth benefits from a recurring fee model, high adviser retention, and a sticky client base. That combination supports stable margins and predictable cash flow. Attributes that long-term investors tend to value highly.

It’s a model designed to compound steadily over time rather than rely on short-term bursts of performance. That strength is also flowing through to shareholders. Netwealth recently lifted its interim dividend by around 20%, reinforcing its appeal as a reliable income and growth hybrid.

Innovation is key

Of course, there are risks to consider. Competition in the platform space is intense, with rivals constantly pushing on fees and features.

Pricing pressure is an ongoing challenge, and maintaining a technological edge requires continuous investment. Fall behind on innovation, and market share gains can quickly reverse.

It’s also worth noting that while Netwealth has strong growth credentials, the ASX financials stock tends to trade at more conservative valuations than some high-flying tech names. That can limit upside during market rallies, but it also reflects a more measured, consistent growth profile.

What do the experts think?

According to TradingView data, most brokers rate the ASX financials stock as a buy or strong buy. The average 12-month price target sits at $28.22, implying potential upside of around 11% from current levels. The most bullish forecast sits at $35.40, which suggests a 40% upside at the time of writing.

Bell Potter just retained its buy rating with a $30.00 price target, while Morgans has an accumulate rating and a $29.00 target following the latest quarterly update. That points to a 18% and 14% upside respectively.

The post Experts say this ASX financials stock could soar up to 40% appeared first on The Motley Fool Australia.

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

Xero Ltd (ASX: XRO) shares are starting to turn, with momentum building after a period of heavy selling across the tech sector.

The stock is now lifting off recent lows, and the price action is beginning to look more stable.

At the time of writing, the Xero share price is up 1.29% to $83.04. That move comes after the stock hit a multi-year low of $67.93 on 30 March, before rebounding and holding above that level in April.

The shares later came close to that low again, dipping to $69.11 on 13 April, but buyers stepped in before it was retested.

That kind of price action usually points to selling pressure easing.

Here’s what this setup could be telling investors.

Why the sell-off went too far

The weakness over the past year has been very clear. Most of it has been driven by a broader de-rating across global growth stocks, not a change in Xero’s core business.

The company continues to expand its global subscriber base and lift revenue, supported by its position as a leading cloud accounting platform for small businesses.

The platform is deeply embedded in day-to-day operations. Once it is in place, it is difficult to replace, which supports recurring revenue and pricing over time.

There are also signs the cost side is improving. Hiring has slowed, which points to better discipline after a period of investment and should support margins into FY26.

The chart is starting to shift

The technical setup is becoming harder to ignore.

Xero hit a low in late March and has since held above that level. That is normally where things start to change. More recently, the stock has started to push higher, with short-term buying starting to pick up.

This pattern has also been showing up across the sector. Several ASX tech names such as Wisetech Global Ltd (WTC) have rebounded after trading near oversold levels earlier in the year.

What could drive the next leg higher

The macro environment is still creating noise, particularly around geopolitical developments and changing expectations for global growth.

But these conditions tend to move quickly. When sentiment turns, it often turns fast.

If markets begin to stabilise, the focus is likely to return to earnings and growth, where Xero still has clear levers. That includes subscriber expansion, pricing, and further development of its payments and ecosystem strategy.

With the share price still well below previous highs, even a modest improvement in conditions could have a strong impact.

Foolish takeaway

The recent price action suggests the worst of the selling may already be behind Xero shares.

The stock has found a low, held above it, and is now pushing higher, while the broader tech backdrop is starting to improve.

For me, this looks like the early stages of a recovery.

If that trend continues and is supported by Xero’s upcoming results on 14 May, the re-rating could still have further to run.

The post Is the worst over for Xero shares? Here’s what the chart is showing appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are surging again, is it too late to buy now?
• Buy, hold, sell: Xero, Woolworths, CBA shares
• 5 things to watch on the ASX 200 on Tuesday
• Want to double your money in 2026? This is what I’d buy
• I think these are some of the best ASX 200 shares to buy now

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

Do you have room in your income portfolio for some more ASX dividend shares?

If you do, then it could be worth checking out the three shares in this article that have recently been recommended as buys by analysts.

Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

The team at Bell Potter thinks Cedar Woods could be an ASX dividend share to buy now.

It is one of Australia’s leading property companies, owning a high-quality portfolio that is diversified by geography, price point, and product type.

Bell Potter believes that this leaves it well-positioned to be a big winner from Australia’s chronic housing shortage.

It also expects this to support fully franked dividends per share of 39 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $7.27, this equates to 5.35% and 5.6% dividend yields, respectively.

The broker has a buy rating and $10.20 price target on its shares.

Charter Hall Retail REIT (ASX: CQR)

Another ASX dividend share that analysts are tipping as a buy is Charter Hall Retail REIT.

It is a property company that owns a diversified portfolio of convenience-based retail centres that are anchored by supermarkets, service stations, and essential services.

These assets tend to be highly defensive. That’s because shoppers continue to spend on groceries and everyday essentials regardless of economic conditions. In addition, it boasts long leases and high-quality tenants, which provide visibility over rental income.

The team at Citi is positive on the company and has a buy rating and $4.50 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 25.5 cents in FY 2026 and then 26 cents in FY 2027. Based on its current share price of $3.86, this would mean dividend yields of 6.75% and 6.7%, respectively.

Premier Investments Ltd (ASX: PMV)

A final ASX dividend share to consider for an income portfolio is Premier Investments.

It is the owner of popular retail brands Smiggle and Peter Alexander, as well as a sizeable stake in appliance manufacturer Breville Group Ltd (ASX: BRG). These assets are consistently generating strong free cash flows, which is usually returned to shareholders in the form of dividends.

Bell Potter is also positive on this one. It expects Premier Investments to pay fully franked dividends of 79.7 cents per share in FY 2026 and then 93.4 cents per share in FY 2027. Based on its current share price of $12.93, this equates to dividend yields of 6.15% and 7.2%, respectively.

The broker currently has a buy rating and $18.00 price target on its shares.

The post 3 excellent ASX dividend shares with 5% to 7% yields to buy appeared first on The Motley Fool Australia.

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• 1 ASX dividend stock down 43% I’d buy right now
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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 positions in and has recommended Charter Hall Retail REIT. The Motley Fool Australia has recommended Premier Investments. 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 are usually a solid choice for passive income and I expect that to continue to be the case. However, it’s not one of the ASX dividend shares that I’d choose to buy today if I were picking a handful.

Part of the reasoning for that caution about the ASX mining share is that, at the time of writing, it has risen more than 50% in the last year. Normally, I like to consider investing in ASX mining shares when there’s weakness surrounding resource demand. That’s not looking like the case with the BHP share price today.

Instead, there are other ASX dividend shares that could be a more consistent and potentially provide more passive income.

L1 Long Short Fund Ltd (ASX: LSF)

This business is a listed investment company (LIC) which usually invests in businesses that have relatively low price/earnings (P/E) ratios. Of all the sectors it has generated returns from, mining shares has been the sector that has generated the most return for the strategy, of around 200%. Industrials and communication services are the other two areas that have generated a return of more than 100%.

The ASX dividend share also has the ability to short-sell shares that it thinks are overvalued, so it can outperform the market even if a lot of shares are going down.

The LIC has a goal to deliver regular dividend growth for shareholders and it pays a dividend each quarter.

At the rate it’s increasing its dividend, it seems likely that the FY26 annual dividend will be approximately 14.6 cents per share, which translates into a grossed-up dividend yield of around 5% at the time of writing, including franking credits.

I think the LIC is more likely than BHP to deliver regular dividend growth each year, compared to the cyclical nature of resource prices.

APA Group (ASX: APA)

APA is a large energy infrastructure business that has a number of compelling assets including a huge national gas pipeline network that supplies half of the country’s gas usage.

The business also owns gas storage, gas processing, gas-powered energy generation, solar farms, wind farms and electricity transmission.

By having a diversified portfolio, it can search for the best opportunities in the energy sector to generate the strongest returns.

The ASX dividend share pays for its distribution from the cash flow of its energy portfolio, with underlying earnings steadily growing over the long-term.

APA has increased its annual distribution every year for the past 20 years, making it one of the most reliable ASX dividend shares around.

With how the business is regularly expanding its portfolio, I think the business still has plenty of growth years of ahead. Energy is an important aspect of Australian life, of course.

It’s expecting to hike its FY26 annual distribution to 58 cents per security, translating into a distribution yield of 5.8%, at the time of writing.

The post Forget BHP shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

More reading

• Where I’d invest on the ASX for passive income right now
• BHP vs Coles shares: Which is the better buy this week?
• 3 ASX dividend shares to buy for 5.8%, 7%, and 10% yields
• Are BHP shares a strong buy this month?
• 3 ASX dividend shares raising dividends like clockwork

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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 Apa Group. 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.

If I’m looking for passive income from the share market, I would focus on businesses that can generate steady cash flow and return it to shareholders consistently over time.

That would likely lead me toward companies with strong positions in their industries and earnings that can support reliable dividends.

Here are four ASX shares I would look at right now.

BHP Group Ltd (ASX: BHP)

BHP is one of the first names that comes to mind for passive income.

It generates significant cash flow from its large-scale mining operations and that flows through to dividends when conditions are supportive.

I also like the direction the business is heading. Copper is becoming a bigger part of the story, which ties into long-term demand from electrification and infrastructure.

There is also future growth from potash, which could add another layer to earnings over time.

Overall, I think this makes the mining giant a great option for an income portfolio.

Telstra Group Ltd (ASX: TLS)

Telstra is another ASX share that could be a good candidate for a passive income portfolio.

The telco leader operates in an essential industry, with customers relying on its network every day. That creates recurring revenue, which helps support its dividend.

In addition, the business continues to invest in its network, which supports its position and earnings over time.

As a result, I see this as one of the steadier income options on the ASX.

Macquarie Group Ltd (ASX: MQG)

Macquarie adds something different to the mix.

Its earnings come from a range of activities, including asset management, infrastructure, and financial services. That diversification can support income over time, even as different parts of the business move through cycles.

I also like how the company allocates capital. It has a long history of identifying opportunities and building new earnings streams, which can support both growth and dividends.

Coles Group Ltd (ASX: COL)

Coles is a business I associate with consistency.

People continue to spend on groceries regardless of the broader environment, and that helps support steady revenue and earnings.

The company is also busy investing in its supply chain and operations, which can improve efficiency over time.

I think that combination makes it a reliable and defensive option when I’m thinking about income.

Foolish takeaway

If I were building a passive income portfolio, I would focus on businesses that can keep generating cash and returning it to shareholders over time.

These companies each bring something different, but they all have the ability to support income through a range of conditions, which is what I would look for in this part of the market.

The post Where I’d invest on the ASX for passive income right now appeared first on The Motley Fool Australia.

More reading

• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• Up 22%, are Telstra shares still worth a buy?
• 3 ASX shares I’d feel comfortable holding for the next decade
• 3 reasons to buy Coles shares today
• Forget CBA shares — here are 2 ASX bank shares I’d rather own right now

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. 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.