Tag: Stock pick

Shares in Worley Ltd (ASX: WOR) are edging higher on Tuesday after the company announced a new contract tied to a major energy project in the Middle East.

At the time of writing, the Worley share price is up 1.90% to $13.39. That extends a solid start to the year, with the stock now up around 7% in 2026 as investors respond to fresh contract momentum.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is up a modest 2% this year.

Let’s take a closer look at what management updated the market with.

What Worley announced today

In an ASX release, Worley said it has been selected by Samsung C&T Corporation to deliver detailed engineering services. The work relates to the QatarEnergy LNG Carbon Dioxide Sequestration Project in Qatar.

The project is designed to permanently store around 4.3 million metric tonnes of CO2 per year. Once operational, it will form a key part of Qatar’s broader push to reduce greenhouse gas emissions linked to LNG production.

Under the agreement, Worley will provide detailed engineering services, building on its earlier front end engineering design work for the project. Execution will be led out of Worley’s Qatar office, supported by its Global Integrated Delivery centre in India and additional teams in Australia.

Management described the award as a significant milestone and highlighted its growing credentials in carbon capture and storage.

Why Worley shares moved today

While no contract value was disclosed, the project is still an important win.

Carbon capture and sequestration is one of the fastest-growing areas of the energy transition. It is particularly important for LNG exporting nations looking to decarbonise existing assets without replacing them.

Securing follow-on work after front end engineering is also vital. It increases the likelihood of additional scopes as the project moves into later stages.

How this fits into Worley’s long-term strategy

Worley continues to operate across both traditional energy and decarbonisation markets.

The group remains heavily exposed to LNG, oil and gas, and chemicals, while steadily increasing its footprint in carbon capture, hydrogen, and sustainability-related projects. This mix has supported earnings through volatile capital spending cycles across the resources sector.

What investors should watch next

Focus now shifts to the pace of revenue and cash flow conversion from new and existing projects.

Backlog trends, margin performance, and capital management will remain the key variables to monitor through the remainder of the year. Any updates around project execution or further contract awards will help shape expectations heading into upcoming results.

The post Worley shares climb after Middle East contract win appeared first on The Motley Fool Australia.

More reading

• Argo Investments reports record profit and dividend
• This ASX 200 stock is dipping lower despite positive news. Here’s what’s behind it
• Here are the top 10 ASX 200 shares today

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.

ASX energy share Omega Oil & Gas Ltd (ASX: OMA) is off to the races today following news of a new joint venture with S&P/ASX 200 Index (ASX: XJO) oil and gas giant Beach Energy Ltd (ASX: BPT) and privately held Tri-Star E&P Ltd.

Omega shares up 14% in late morning trade on Tuesday, changing hands for 49 cents apiece.

Beach Energy shares are up 2.6% at this same time, trading for $1.175 each.

For some context, the ASX 200 is up 0.5% at the time of writing.

Here’s what’s piquing investor interest in the ASX energy shares today.

ASX energy share leaps on JV success

Omega and Beach Energy shares are both outperforming today after the companies announced the joint venture award of a 750 square kilometre land area in the Taroom Trough from the Queensland government.

The new land area, designated PLR2025-1-9, is situated immediately north of Omega’s existing Potentially Commercial Areas, offering a significant potential boost for the ASX energy share.

The new joint venture has Omega as the operator with a 45% interest, while Tri-Star has a 30% holding, and Beach Energy has a 25% interest.

The Queensland land award is part of the government’s efforts to secure longer-term gas supplies for the Aussie market, ensuring energy security and reducing gas prices. All of the gas produced in the awarded land will be sold into the domestic market.

What is management saying?

Commenting on JV land award sending the ASX energy share soaring today, Omega CEO Trevor Brown said, “Omega is an agile, well-funded, highly capable, Queensland-based explorer focused entirely on unlocking the resource potential of the Taroom Trough.”

Brown added:

Early indications are that the Taroom Trough may be host to internationally significant volumes of oil and gas and it shares many geological characteristics with the most prolific, unconventional producing basins in the USA.

He concluded, “We are pleased to be working alongside high-quality partners, Tri-Star and Beach Energy to rapidly determine the resource potential of our attractive new award area.”

As for today’s uptick in Beach Energy shares, Beach CEO Brett Woods said:

Beach Energy is excited to partner with Omega and Tri-Star in the Taroom Trough, an area we believe has the potential to become a meaningful new source of domestic oil and gas supply.

And Tri-Star CEO Australia Andrew Hackwood noted:

This joint venture is well positioned to move quickly and accelerate exploration and appraisal… Tri-Star sees the Taroom Trough as a potential next major source of domestic oil and gas, and we commend the Queensland government for its leadership in supporting increased East Coast gas supply.

The post Guess which ASX energy share is rocketing 14% today on a JV deal with Beach Energy appeared first on The Motley Fool Australia.

More reading

• Are Beach Energy shares a buy after its results?
• 5 things to watch on the ASX 200 on Friday
• Why Beach Energy, Elders, Maas, and Neuren shares are dropping today
• Are Beach Energy shares a good buy for passive income today?
• Beach Energy H1 FY26 earnings: Profit drops as costs rise and volumes slip

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.

S&P/ASX All Ords Index (ASX: XAO) shares are 0.54% higher at 9,180.6 points on Tuesday.

The ASX All Ords has risen 4.9% over the past 12 months, while gold miner Catalyst Metals Ltd (ASX: CYL) has soared 95%.

This means if you’d invested $10,000 in this gold stock last year, your investment would be worth $19,500 today.

On Tuesday, the Catalyst Metals share price is $7.81, up 2%, as the gold price continues to recover from the late January rout.

Like all ASX gold shares, Catalyst has benefited from a skyrocketing gold price.

The gold price ripped 27% in 2024 and added another 65% last year.

Despite the recent rout, the gold price remains 17% higher in the year to date at US$5,020 per ounce at the time of writing.

UBS forecasts the gold price to reach US$6,200 per ounce in the first quarter of CY26, and to stay there through the September quarter.

What is Catalyst Metals?

The company owns the Plutonic gold mine in Western Australia and the Bendigo exploration project in Victoria.

Catalyst Metals expanded its Plutonic operations in 2025 with the aim of increasing its reserves from 1.5 Moz to 2 Moz.

The miner says this would allow it to increase its production rate from 100,000 ounces per year to 200,000 ounces per year.

In its 2Q FY26 update, Catalyst Metals announced record quarterly gold production of 28,176 ounces at Plutonic.

The average realised price was A$2,776 per ounce, and the average all-in sustaining cost (AISC) was A$2,565 per ounce.

Catalyst retained its FY26 production guidance of 100,000 to 110,000 ounces with an AISC of A$2,200 to A$2,650 per ounce.

Broker ratings on this ASX All Ords gold share

The consensus rating among five experts following Catalyst Metals shares on Trading View is a strong buy.

The share price target range is wide, at a minimum of $11.31 per share and a maximum of $18.90.

So, even if the gold miner only met the minimum expectation, an investment today would be worth 45% more this time next year.

If it met the average expectation of $14.30 per share, you’d be up 83%.

Morgans recommends buying Catalyst Metals shares. Last week, the broker raised its price target from $12.51 to $14.56 per share.

Bell Potter also has a buy rating with a recently increased target of $13.50.

Canaccord Genuity also says buy, with a raised target of $13.25 per share.

The post $10,000 invested in this ASX All Ords share a year ago is now worth $19,500 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares forecast to soar 100% (or more) in 2026
• Which ASX gold stock director has sold $10.8 million worth of shares?
• Why this ASX 200 gold stock jumped 8% to a record high today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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.

Large businesses, sometimes called ASX blue-chip shares, are capable of providing investors with stability and a good dividend yield.

The biggest companies have built their market position over many years. Their market share means they have advantageous scale advantages and can deliver stronger profit margins than competitors.

Additionally, those businesses are not expected to grow that much, considering how big they are, meaning they have a lower price/earnings (P/E) ratio. Let’s look at two interesting contenders.

Origin Energy Ltd (ASX: ORG)

Origin Energy isn’t normally one of the ASX blue-chip shares that I write about for dividends, but it could be a strong pick right now given how large the dividend yield is and its future potential.

The ASX blue-chip share is a provider of electricity and gas to households and businesses as well as solar, LPG and broadband. Its asset base includes power generation, gas exploration and renewables.

Pleasingly, the company’s payout has been increasing over the last five years and the dividends look promising for the coming period.

The broker UBS is predicting that the business could increase its annual payout to 61 cents in FY26, which would be a grossed-up dividend yield of 7.8%, including franking credits, at the time of writing. Pleasingly, the broker UBS is forecasting Origin could deliver a higher dividend per share in subsequent years, with a forecast of 62 cents per share in FY27, 64 cents per share in FY28 and 65 cents per share in FY30.

Finally, I want to highlight the company’s stake of close to a quarter of the European businesses, Kraken Technologies and Octopus Energy. At the end of December, Origin said Kraken was rapidly closing in on its 100 million customer target, well ahead of plan. I think both businesses could grow rapidly, driving value for the ASX blue-chip share.

Telstra Group Ltd (ASX: TLS)

Telstra has proven itself as an appealing ASX blue-chip share over the last few years, as it provided a large and growing dividend.

Its market-leading mobile network is allowing it to generate strong profits. A rising average revenue per user (ARPU) and growing subscriber base is helping drive its mobile division’s revenue higher. Operating leverage enables operating profit (EBITDA) to rise at a faster pace than revenue.

The business paid an annual dividend per share of 19 cents in FY25 and I’m expecting the business to increase its FY26 payout to 20 cents per share. That would be a grossed-up dividend yield of 5.8%, including franking credits, at the time of writing.

With Australia’s growing population and increasing digitalisation, I think Telstra is an effective investment to consider for the long-term, as long as its subscriber base continues rising.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares to buy: experts
• Is this the right time to invest in ASX defensive shares?
• Forget this ASX 200 share and buy Telstra and Zip shares: Experts
• Are Origin Energy shares a buy, hold or sell before earnings results?
• Passive income: How much do you need to invest to make $500 per month?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. 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 0.5% higher at 8,917.5 points as earnings season continues on Tuesday.

On The Bull this week, experts reveal three ASX 200 shares with buy ratings, and why they recommend investing in them.

Let’s take a look.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2.51, up 1.4% on Tuesday and down 23.6% over the past six months.

Tony Paterno from Ord Minnett has a buy rating on this ASX 200 financial share.

Paterno commented that “there’s a lot to like” about the buy now, pay later platform provider’s 1Q FY26 results.

Total transaction volume (TTV) growth in the US was up 47.2 per cent and revenue was up 51.2 per cent. 

Consequently, Zip’s management has increased TTV guidance in the US to more than 40 per cent in full year 2026, which is up from 35 per cent.

Margins were strong across the board, highlighted by an operating margin of 19.5 per cent in the first quarter, which is above the guidance range of between 16 per cent and 19 per cent for full year 2026.

Margins are usually stronger in the second half.  

Zip will release its 1H FY26 results next Thursday, 19 February.

CSL Ltd (ASX: CSL)

CSL shares are $182.15 apiece, up 1% on Tuesday and down 31% over the past six months.

The CSL share price has struggled since the company released its FY25 report last August.

CSL’s next big report, covering the first half of FY26, will be out tomorrow.

Jabin Hallihan from Family Financial Solutions has a buy rating on this ASX 200 healthcare share.

Hallihan said:

The share price has fallen from $271.32 on August 18, 2025 to trade at $181.48 on February 5, 2026.

Our fair value is $295 a share.

Short term earnings noise obscures a high quality plasma franchise with structural demand growth.

In a bull market, valuation normalisation and quality should deliver strong upside moving forward. 

Telstra Group Ltd (ASX: TLS) 

Telstra shares are $4.88 apiece, down 0.1% today and down 2.1% over the past six months.

Hallihan also has a buy rating on this ASX 200 telecommunications share, noting strong cash flows and a 31% profit lift in FY25.

Family Financial Solutions values Telstra shares at $5.40 apiece, implying a potential 11% upside from here.

Hallihan said:

Cost discipline, share buy-backs and resilient mobile earnings support steady upside in a market that still rewards defensiveness.

On top of this, Telstra pays reliable, fully franked dividends.

Its full year dividend of 19 cents a share in fiscal year 2025 was up 5.6 per cent on the prior corresponding period.

TLS was recently trading on a dividend yield of 3.85 per cent.  

Telstra will release its 1H FY26 results next Thursday, 19 February.

The post 3 ASX 200 shares to buy: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX blue-chip shares offering big dividend yields
• 5 ASX stocks that are still good value at over $100 a share
• Buy, hold, sell: Wesfarmers, Woolworths, CSL shares
• Where I would invest $10,000 in ASX 200 shares in February
• Argo Investments reports record profit and dividend

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

S&P/ASX 300 Metal & Mining Index (ASX: XMM) shares are 1.3% higher on Tuesday as earnings season continues.

ASX mining stocks are a popular investment choice these days amid rising commodity prices.

The materials sector, which incorporates mining companies, had an incredibly strong year in 2025.

The sector returned a staggering 36% to investors as gold and commodities associated with the energy transition surged.

On The Bull this week, experts recommend selling the following three producers.

Let’s take a look.

Northern Star Resources Ltd (ASX: NST)

Northern Star shares are $28.07 apiece, up 1.3% on Tuesday and up 57% over the past 12 months.

Tony Locantro from Alto Capital has a sell rating on this ASX 200 gold mining share.

Locantro comments:

Northern Star’s share price has performed strongly, supported by higher gold prices and improved sentiment towards large market capitalisation producers.

However, the company’s most recent production report disappointed, with output and cost guidance undershooting market expectations.

While the longer term outlook for gold remains positive, recent operational softness tempers near term confidence.

With much of the upside already reflected in the share price, the risk-reward balance favours taking profits at current levels.

Northern Star Resources will release its 1H FY26 results on Thursday.

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is $5.22, up 0.6% on Tuesday and up 12% over the past 12 months.

Tony Paterno from Ord Minnett has a sell rating on this ASX critical minerals mining share.

Paterno explains:

ILU’s mineral sands business clocked up net debt of $473 million at December 31, 2025.

We suspect a capital raising may be an option to address the debt overhang as cash flow is impacted at operations at current prices.

The shares were punished following the company update on January 29, 2026, falling from $6.96 on January 23 to trade at $5.17 on February 5.

Liontown Ltd (ASX: LTR)

The Liontown share price is $1.73, up 2.8% today and up 162% over the past 12 months.

Morgans maintained its trim rating on this ASX lithium mining share after Liontown released a 2Q FY26 update in the last week of January.

The broker increased its 12-month share price target on Liontown from 89 cents to $2.

Morgans commented:

2Q26 result beat expectations on production and costs.

Balance sheet de-risked following LG Energy Solution’s election to convert its US$250m convertible notes into equity, removing debt and strengthening flexibility despite dilution.

Maintain TRIM with much of the near-term upside factored into its share price.

The post 3 ASX mining shares to sell: experts appeared first on The Motley Fool Australia.

More reading

• UBS raises gold price target to US$6,200 per ounce for this quarter
• Experts name NAB and these ASX 200 shares as sells
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• Gold price recovers as reasons for buying ‘remain in place, but are also compounding’
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Motley Fool contributor Bronwyn Allen 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.

I like to own ASX shares that are growing, but I also like to own ones that pay dividends because it’s a way for investors to benefit from the rising profits these businesses are generating.

Ideally, we don’t want to trigger any capital gains tax (CGT) events if we don’t need to, because that can mean handing over money to the ATO unnecessarily, disrupting the compounding potential of the portfolio.

I’m going to talk about two ASX shares that I’ve long-admired. I’m expecting rising profits and dividends from them over the long-term.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia’s leading ethical investment managers. It aims to provide investors with investment management products that align with their values and provide long-term, risk-adjusted returns.

One of the main reasons why I think this business is such a compelling fund manager is because it provides customers with a superannuation option. This is compelling due to the consistent contributions that Aussies make to their superannuation, giving the company regular net inflows.

In the update to 31 December 2025, the company reported that it finished the period with funds under management (FUM) of $14.1 billion, with the business experiencing $0.11 billion of net inflows in its superannuation segment.

The company has been working on delivering efficiencies and scalability, which will hopefully help its margins in the coming years.

The ASX share has also pointed out that it continues to be recognised for its leadership in ethical investing, winning Money Magazine’s 2026 best of the best awards for the best ESG superannuation product and best ESG pension product.

The forecast on CMC Invest suggests the business could pay an annual dividend per share in FY26, which would be a grossed-up dividend yield of 5.9%, including franking credits (at the time of writing).

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in New Zealand and Australia. At the last count, it has 208 locations, including 41 cremation facilities and nine cemeteries.

One of the main tailwinds for the business is that death volumes are expected to increase in the coming years because of a growing and ageing population.

According to Propel, Australian death volumes are expected to increase by an average of 2.8% per year between 2025 to 2035 and 2.4% per year between 2036 to 2045. In New Zealand, death volumes are expected to increase by 2% per year between 2026 to 2035 and then 1.8% between 2036 to 2045.

The ASX share had a market share of 9% in 2024, compared to InvoCare’s 21% market share. There is room for the company to expand its position in ANZ with both organic growth and acquisitions.

In the first quarter of FY26, the company delivered 3% growth of both revenue and operating profit (EBITDA) year-over-year. It benefited from a 2.7% rise of the average revenue per funeral and a 1% increase in funeral volumes.

According to the forecast on CMC Invest, it’s expected to pay an annual dividend per share of 15.5 cents in FY27, which would be a grossed-up dividend yield of 4.5%, including franking credits (at the time of writing).

The post 2 ASX shares that I rate as buys for both growth and dividends appeared first on The Motley Fool Australia.

More reading

• Is this the right time to invest in ASX defensive shares?
• 2 ASX All Ords shares I’d buy today
• Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today

Motley Fool contributor Tristan Harrison has positions in Australian Ethical Investment and Propel Funeral Partners. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Treasury Wine Estates Ltd (ASX: TWE) share price is higher on Tuesday after the company released a market update.

At the time of writing, the Treasury Wine share price is up 6.38% to $5.50. That move offers some short-term relief, but it comes against a sobering backdrop. The stock is still down roughly 50% over the past year after this month’s brutal sell-off.

Let’s take a closer look at the release.

A long-running US issue finally resolved

In a statement to the ASX, Treasury Wine said it has reached a settlement with Republic National Distributing Company (RNDC) in California. The agreement follows RNDC’s decision to exit the California market last year.

Under the agreement, Treasury Wine will repurchase its Treasury Americas portfolio inventory held by RNDC in California at original sale value. While the financial terms of the settlement are confidential, management said the agreement compensates the group for the disruption caused by RNDC’s withdrawal.

Treasury expects the net cash outflow related to this settlement in the first half of FY26 to be around US$65 million. That figure already factors in the expected resale of the inventory to other customers.

Earnings guidance edges higher

Alongside the settlement update, Treasury Wine provided fresh earnings guidance.

The company now expects first-half FY26 EBITS of approximately $236 million. That compares favourably with its previous guidance range of $225 million to $235 million issued in December.

While the upgrade is modest, it indicates conditions are tracking better than some investors had feared.

Management also confirmed the settlement does not change plans to gradually reduce distributor inventory levels in California over the next two years, a process already flagged to the market.

The US business is stabilising

Treasury Wine will continue working with RNDC across other US markets and highlighted that RNDC remains a committed distribution partner outside California.

Notably, Treasury Americas depletions in RNDC-distributed states grew 2.7% in the first half. That indicates demand for the company’s portfolio remains relatively resilient, despite wider pressure across the US wine market.

The company will provide more details when it releases its interim results on 16 February.

A bounce after heavy selling

The positive update has lifted the shares in early trade, but the move follows an extended period of weakness.

Treasury Wine’s shares have been in a steady downtrend for months, weighed down by softer US demand, margin pressure, and investor concerns around inventory levels.

From a technical perspective, the stock remains well below its levels from early last year. As a result, many investors are likely waiting for clearer evidence of a sustained turnaround before becoming more confident.

Foolish Takeaway

Today’s update removes a key operational overhang, but it does not change the broader challenges facing the business.

After a steep decline over the past year, Treasury Wine’s upcoming results will show whether recent US stabilisation can support a sustained recovery.

The post Why Treasury Wine shares are rising today appeared first on The Motley Fool Australia.

More reading

• I think these cheap ASX shares are strong buys this month
• These are the 10 most shorted ASX shares
• How low can this ASX 200 share go after losing 53%?
• What the stronger Australian dollar means for your shares
• Why UBS says it’s time to sell Treasury Wine Estates shares

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

PLS Group Ltd (ASX: PLS) shares are leaping higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock formerly known as Pilbara Minerals closed yesterday trading for $4.17. In morning trade on Tuesday, shares are changing hands for $4.39 apiece, up 5.2%.

For some context, the ASX 200 is up 0.6% at this same time.

Here’s what’s catching investor interest today.

PLS shares lift on Canmax lithium deal

Before market open this morning, PLS announced that it has inked a multi-year offtake agreement with Chinese-listed lithium-ion battery material manufacturer Canmax Technologies Co Ltd (SHE: 300390).

The binding two-year agreement will see PLS supply Canmax with 150 thousand tonnes a year of spodumene concentrate.

PLS shares look to be catching some added tailwinds with the company reporting it has the option to supply additional volumes, as well as an option to extend the agreement for a third year.

The miner noted that its ability to increase volume based on its own discretions gives it the flexibility to respond to evolving market conditions and customer requirements across its portfolio.

The ASX 200 lithium stock will receive a floor price of US$1,000 per tonne (SC6 basis) from Canmax. PLS noted there is no upside price limitation. This provides the miner with downside protection while maintaining full upside leverage should prevailing lithium market prices rise.

As part of the deal, PLS will also receive a US$100 million unsecured interest-free prepayment. That money will be repaid via the spodumene concentrate to be sold to Canmax under the offtake agreement.

The ASX 200 lithium miner said it has the flexibility to supply the new offtake commitments from its Pilgangoora Operation, located in Western Australia.

What did management say?

Commenting on the agreement with Canmax that’s boosting PLS shares today, CEO Dale Henderson said, “This agreement builds on our established relationship with Canmax and reflects both the quality and consistency of Pilgangoora’s spodumene and PLS’ proven capability as a reliable, large-scale operator.”

Hernderson added:

The US$100 million interest-free prepayment and floor price structure demonstrate strong commercial confidence in our product and performance, while preserving full exposure to price upside.

The agreement strengthens our near-term liquidity and preserves operational flexibility through optional volumes, supporting disciplined production and sales decisions as lithium market fundamentals continue to improve.

Deepening our partnership with Canmax further diversifies our customer base and reinforces PLS’ position as a leading, reliable supplier at scale to the lithium materials market.

With today’s intraday gains factored in, PLS shares are up 99.6% in a year and up 285.1% since posting one-year closing lows on 3 June.

The post Up 285% since June, PLS shares lifting off today on multi-year lithium offtake agreement appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Buy, hold, sell: Credit Corp, PLS, and ResMed shares
• Here’s what Bell Potter is saying about PLS shares in February
• 10 most traded ASX shares among 1 million Aussie investors last year
• Which ASX lithium share is a smarter buy: PLS Group or Liontown?

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.

ASX dividend shares that increase their payout every year could be the reassuring picks that passive income investors are looking for.

A rising payout will offset inflation, boost the amount of cash in investors’ bank accounts, and should signify a rising underlying value (whether that’s rising profits or a larger net asset value (NAV)).

The two businesses below are building a very impressive dividend record.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This business currently has the longest-running dividend growth streak. If it keeps increasing the payout, then it will always have the best record on the ASX. The investment house has hiked its regular annual dividend payout every year since 1998, so it’s getting close to 30 years of continuous increases.

There are some US companies that have increased the annual payout for more years in a row than Soul Patts, but I think the ASX dividend share holds one key advantage.

It owns a diversified portfolio of investments across a range of industries. Soul Patts is not stuck with operations in a single industry like a lot of businesses. It’s in resources, telecommunications, industrial properties, building products, financial services, swimming schools, credit, agriculture and plenty more.

That portfolio of investments pays Soul Patts with cash flow each year, allowing it fund a growing dividend and make new investments with the retained amount.

I think this business has the best chance of continuing to grow its payout out of all S&P/ASX 200 Index (ASX: XJO) shares.

At the current Soul Patts share price, I think it could pay a grossed-up dividend yield of around 4%, including franking credits in FY26.

Universal Store Holdings Ltd (ASX: UNI)

This is one of the impressive operators in the retail space when it comes to dividends, in my view. It started paying an annual dividend in FY21 and has increased its passive income each year since then, which not many retailers have done.

There are a few businesses within this ASX dividend share – Universal Store, Perfect Stranger and CTC. The impressive growth of Universal Store and Perfect Stranger has allowed the business to fund that dividend growth.

In FY25, group sales grew 15.5%, with Universal Store sales growth of 15% to $280.9 million and Perfect Stranger sales growth of 83.1% to $25.5 million. This helped earnings per share (EPS) rise by 14.6% to 45.4 cents per share, funding an 8.5% rise of the dividend per share to 38.5 cents.

At 30 June 2025, the business had 111 physical store locations, including 84 Universal Store locations and 19 Perfect Stranger stores. It has an ambition of 100 or more Universal Store locations and at least 60 Perfect Stranger stores.

FY26 has started well – in the first 17 weeks of FY26, Universal Store total sales were up another 11.4% and Perfect Stranger total sales were up 40.5%.

According to the forecast on CMC Invest, the ASX dividend share is projected to pay an annual dividend per share of 39 cents in FY26. That translates into a potential grossed-up dividend yield of 6.5%, including franking credits.

The post 2 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.