Tag: Stock pick

Defensive ASX dividend shares can be a great option for passive income because of their ability to deliver consistent profits and reliable payouts.

That doesn’t necessarily mean they’re going to increase their payouts every single year, but I think each of the names I’m going to highlight can grow their payout in FY26 and the longer-term.

If I had $3,000 to invest, I’d happily put $1,000 into each of the following names.

Centuria Industrial REIT (ASX: CIP)

This business is a real estate investment trust (REIT) which owns a portfolio of appealing industrial properties across Australia. These buildings are located in compelling metropolitan areas where the vacancy rate is very low.

There are strong tailwinds for industrial property demand including ongoing e-commerce adoption and data centres, as well as population growth.

The REIT’s fund manager Grant Nichols recently said:

CIP continues to achieve strong outcomes across its portfolio relating to leasing, capital transactions and value add initiatives. The ability to deliver these results is credited to CIP’s portfolio being concentrated in Australia’s urban infill markets where tenant demand is strongest, vacancy is low and supply is constrained. These urban infill assets provides multiple future opportunities for alternative, higher-use developments such as data centres and residential schemes.

I think this bodes well for future rental income growth in the coming years.

The ASX dividend share expects to pay a distribution per unit of 16.8 cents in FY26, which translates into a distribution yield of 5% at the time of writing.

Coles Group Ltd (ASX: COL)

The supermarket business offers a defensive set of earnings considering the essential nature of what it sells. Currently, the company is delivering strong sales growth in the mid-single-digits (and higher single digit sales growth excluding tobacco sales), outperforming Woolworths Group Ltd (ASX: WOW).

Pleasingly for income-focused investors, the business has increased its payout each year in the last six months.

According to the projection on Commsec, Coles is forecast to pay an annual dividend per share of 78.8 in FY26. That’s a potential grossed-up dividend yield of 5.2%, including franking credits.

With a rising population, an expanding network of supermarkets, new advanced warehouses and an expanding range of own brand products, Coles shares look like a good long-term investment.

Australian Foundation Investment Co Ltd (ASX: AFI)

AFIC is a listed investment company (LIC). It’s the biggest and one of the oldest around.

I like the diversification that this LIC can provide because of the dozens of businesses that it owns in the portfolio.

Some of its largest holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Transurban Group (ASX: TCL).

Shareholders of this business haven’t seen any ordinary dividend cuts this century – it has provided significant stability for income-focused investors.

The ASX dividend share is currently trading at a discount of around 10%, making it look to me like an appealing time to buy.

It has a trailing ordinary grossed-up dividend yield of 5.3%, including franking credits, at the time of writing.

The post 3 wonderful ASX dividend shares I’d buy with $3,000 right now appeared first on The Motley Fool Australia.

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

One of the most dramatic changes we have seen on financial markets over the past month has not come from the ASX, nor from ASX shares, but from the Aussie dollar.

Less than a month ago, one Australian dollar was buying about 64.5 US cents, a level common to have seen over the past 12 months. But as it stands today, that same Aussie dollar will fetch 66.45 US cents. That’s a rise of about 3% in just a few weeks.

That’s not even the highest the Aussie has gotten in the last week, either. On Friday, the local currency reached as much as 66.7 US cents – close to a 52-week high.

These might not seem like newsworthy moves. But a rising dollar has profound impacts on many things in our economy. Let’s talk about those today.

How does a rising Aussie dollar affect ASX shares?

Currency movements don’t directly impact all ASX shares. But they do have secondary effects that filter down into most corners of the economy. The largest impact of a rising dollar on the economy is on imports and exports. Put simply, if the dollar strengthens in value against other currencies, it makes our imports cheaper and our exports more expensive.

That means that a rising dollar helps any company that imports goods into Australia to sell to us. Conversely, it hurts the bottom line of any ASX share that sends goods overseas for sale in other markets.

As such, if I were a shareholder in ASX shares like JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN), Ampol Ltd (ASX: ALD), or Wesfarmers Ltd (ASX: WES), I would be cheering the Aussie dollar’s rise. These companies habitually buy goods like televisions, refrigerators, furniture, refined petroleum (in Ampol’s case), electronics and appliances and, in Wesfarmers’ case, almost any consumer goods you can think of, from countries that specialise in cheap manufacturing. That’s usually China, but also markets like Vietnam, Korea, and Thailand.

If the Aussie dollar rises, as it has been doing, the cost of buying these goods wholesale falls. Those savings can either be banked by the company or passed on to consumers as lower prices. That’s good news for shareholders, either way.

Cheaper petrol and diesel, assuming no underlying change in the oil price itself, is also a potential net benefit for the entire economy.

However, the dollar is a double-edged sword. If I owned shares of BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), or any other ASX share that exports internationally, I would be eyeing off the rising dollar with trepidation. Just as it lowers the cost of importing goods, the rising Aussie dollar increases export costs. A tonne of iron ore, for example, is sold in US dollars, and then the profits are brought home in Aussie dollars. This rise in our local dollar means that those US dollars are worth fewer Aussie dollars when swapped over.

Foolish Takeaway

The profitability of ASX shares can be, and is, affected by what happens with our dollar. With interest rate cuts seemingly accelerating in the United States, and with our own RBA hitting pause, it’s well worth keeping an eye on this space in 2026. We might see the Aussie dollar go even higher next year.

The post What a rising Aussie dollar means for your ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for passive income on the share market, then look no further than the three ASX dividend stocks named below.

They have been given buy ratings by brokers and are forecast to offer attractive dividend yields in the near term. Here’s what they are recommending:

Harvey Norman Holdings (ASX: HVN)

Harvey Norman could be an ASX dividend stock for income investors to buy.

It is of course a retail giant and a household name in furniture, electronics, and appliances. But what a lot of people may not know is that it also has one of the largest retail property portfolios in Australia.

Bell Potter is positive on the retailer and believes the market is overlooking its property portfolio.

It expects this portfolio and favourable trading conditions to underpin fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.00, this would mean dividend yields of 4.4% and 5%, respectively.

Bell Potter currently has a buy rating and $8.30 price target on its shares.

IPH Ltd (ASX: IPH)

A second ASX dividend stock that gets the seal of approval from analysts is IPH.

It is an international intellectual property (IP) services group with operations covering 26 IP jurisdictions. From its wide range of businesses, IPH services a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, small businesses, and professional services firms.

The team at Morgans remains positive on IPH and sees significant value in its shares and generous dividend yields on the horizon.

With respect to the latter, it is forecasting fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on its latest share price of $3.39, this would mean 10.9% dividend yields for both years.

Morgans has a buy rating and lofty $6.05 price target on its shares.

Transurban Group (ASX: TCL)

Finally, Transurban is an ASX dividend stock that analysts are tipping as a buy.

This toll road giant owns and operates a number of important roads across Australia and North America. This includes CityLink in Melbourne and the Eastern Distributor in Sydney.

Citi believes its portfolio is position to support dividends per share of 69.5 cents in FY 2026 and then 73.7 cents in FY 2027. Based on its current share price of $14.65, this equates to dividend yields of 4.75% and 5%, respectively.

The broker currently has a buy rating and $16.10 price target on its shares.

The post Want passive income? These ASX dividend stocks could help appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in DigiCo Infrastructure REIT (ASX: DGT) were among the best performers in the S&P/ASX 200 Index (ASX: XJO) on Monday after the company announced a healthy 6-cent dividend.

With the market having a challenging day overall, down 0.79% to 8628.3 by mid-afternoon, the good news about the data centre investor’s dividend had it placed well within the top 5 best performers in the ASX 200.

The company, which was listed on December 13 last year, told the ASX in a statement that it would pay a 6-cent per share dividend to shareholders on the register on December 30.

The unfranked dividend would be paid “on or about” 26 February, the company said.

Strong dividend yield

Taken together with the 10.9 cents per share dividend paid in August, the newly-declared dividend takes the unfranked dividend yield up to 6.84% per share.

DigiCo shares were trading 8 cents higher on the news on Monday at $2.47.

New leader to drive growth

DigiCo also announced just last week that it had named Michael Juniper as Chief Executive Officer.

Mr Juniper, the company said, had more than two decades’ experience in digital infrastructure, and was a founding Executive and Deputy Chief Executive Officer at privately held data centre giant AirTrunk.

The company said last week that it had appointed Mr Juniper following him also joing the company’s Board in September.

Michael’s experience, relationships and track record in this sector make him ideally placed to lead DGT. Under Michael’s leadership, DGT will continue the development of next-generation data centre campuses.

Former Chief Executive Officer Chris Maher transitioned to a new Managing Director role in the related company HMC Capital (ASX: HMC) as part of the leadership transition.

Mr Juniper said at the time:

I am honoured to assume the role of Chief Executive Officer of DGT. DGT is uniquely positioned as Australia’s sovereign digital infrastructure platform, with strong foundations and a high-quality global portfolio. Demand from cloud, AI and GPU-led workloads is accelerating, and DGT is building a future-ready organisation that is required to support these next-generation requirements.

Outlook strong

Mr Maher told the company’s annual general meeting last month that DigiCo was in a strong financial position with “more than $1 billion in potential funding for value-accretive development opportunities”.

On the outlook, he said, following recent customer wins, the company’s Australian contracted IT capacity was expected to be 41MW by June next year, which would represent growth of 95% from June 2025 across the Australian business.

Underlying EBITDA for the current financial year is expected to be $120-$125 million.

The post Healthy dividend sends ASX 200 data centre investor’s shares higher appeared first on The Motley Fool Australia.

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

Shares in Westgold Resources Ltd (ASX: WGX) pulled back on Monday despite a plan that will involve it spinning out some non-core assets into a cashed-up new company.

The gold miner said on Monday it would create a new company called Valiant Gold Ltd, which would “unlock value” from assets that were not currently part of Westgold’s three-year forward plan.

Shareholders to be dealt in

Westgold shareholders would be able to participate in a $20 million priority offer of new shares in the company, which aims to raise $65-$75 million overall prior to listing, anticipated to occur in the third quarter of FY26.

The company would contain Westgold’s current Reedy and Comet projects, “an exploration and development package including four small historic underground mines with recent production history and a combined mineral resource of 15.6 million tonnes at 2.4 grams per tonne of gold for 1.2 million ounces”.

Westgold Managing Director Wayne Branwell said it made sense to build a dedicated team around the assets, which would focus on bringing them to production.

By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages. Valiant will have a fast-track to cashflow with an ore purchase agreement (OPA) to be entered into with Westgold. This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG). This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high grade oxide ore to Westgold’s Meekatharra processing hub.

Mr Bramwell said Vailant would look to replicate this success.

With several small underground mines in care and maintenance, a range of open pit opportunities, and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near term cashflow.

Westgold said a Board and management for the company had already been selected, with Brendan Tritton named as Managing Director.

Broker gives it the tick

Analysts at RBC Capital Markets said the move was positive for Westgold shareholders.

Westgold’s spin-off of exploration assets currently outside its 3-year outlook is a laudable attempt to realise value for assets otherwise forgotten by the market. New company Valiant should place greater exploration and project emphasis on spun-out assets than would a broader Westgold, which already has a material pipeline of mine upgrades and development options. We maintain our view that a recent doubling in gold price has created material industry-wide opportunities for realising new mine & mill combinations. This vehicle adheres to that principle, with meaningful overall gold resources.

RBC has a price target of $7.80 on Westgold shares, compared with $5.91 on Monday, down 3.1%. The 12-month high for the shares is $6.25.

Westgold was valued at $5.6 billion at the close of trade on Friday.

The post Westgold Resources shares fall from near-record highs despite plans to spin out new company appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Macquarie, its analysts have retained their outperform rating on this travel agent’s shares with an improved price target of $17.85. It notes that Macquarie has just signed an agreement to acquire the UK’s leading online cruise agency, Iglu, for 100 million British pounds. Macquarie highlights that Iglu has a 15% of the UK market and upwards of 75% of online bookings. It was pleased the move and points out that Flight Centre is leveraging its scale and balance sheet to accelerate its growth with strategic acquisition. The broker sees the cruise industry as attractive with further acquisition opportunities. Outside this, Macquarie likes Flight Centre due to its belief that it will achieve its guidance, which is being supported by improving consumer trends. The Flight Centre share price is trading at $14.98 this afternoon.

Generation Development Group Ltd (ASX: GDG)

Another note out of Macquarie reveals that its analysts have initiated coverage on this diversified financial services company’s shares with an outperform rating and $6.70 price target. The broker highlights that Generation Development Group’s businesses are market leaders in growth sectors, and well positioned to scale. This includes the key Evidentia (managed accounts) segment, which is poised to capture an outsized share of industry growth over 2024 to 2030. Another positive is that management incentives support alignment with investors, with the top end of long term incentives requiring an earnings per share growth hurdle of +27.5%. The Generation Development Group share price is fetching $5.64 at the time of writing.

GenusPlus Group Ltd (ASX: GNP)

Analysts at Bell Potter have retained their buy rating on this power and communications infrastructure and services provider’s shares with an improved price target of $7.50. It notes that GenusPlus has been awarded several major contracts since its FY 2025 results, including this month’s major Western Renewables Link contract. The good news is that the broker expects this trend to continue. It highlights that the company provides investors with concentrated exposure to a long-duration tailwind in rising investment levels for renewable energy generation, storage, and transmission infrastructure. It points out that its current record $2.6 billion+ orderbook of transmission and BESS work packages reflects this thematic. The GenusPlus share price is trading at $6.26 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended GenusPlus Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group, Generation Development Group, and GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I have long written about the VanEck Morningstar Wide Moat ETF (ASX: MOAT) and its place as a beloved holding in my personal ASX share portfolio. But what of its younger sibling, the VanEck Morningstar International Wide Moat ETF (ASX: GOAT)? 

MOAT is an ASX exchange-traded fund (ETF) that has been around for just over ten years. Over this timespan, it has delivered some impressive returns to its investors, returning an average of 15.17% per annum since inception (as of 30 November). 

This ETF works by holding a relatively concentrated portfolio of exclusively American stocks (usually between 40 and 60) that all show characteristics of possessing a wide economic moat. 

A moat is the term first coined by legendary investor Warren Buffett. It describes an intrinsic competitive advantage that a company can possess. This advantage can come in a few different forms. It could be a strong brand that commands consumer loyalty. It could also be a low-cost advantage, a network effect, or selling a product that consumers find difficult to avoid buying. 

Buffett himself has stated that he usually looks for companies that possess some kind of moat for Berkshire Hathaway‘s investment portfolio. It’s always worked well for Buffett, and that same strategy seems to have worked well for the VanEck Morningstar Wide Moat ETF. 

Some of MOAT’s current holdings include Nike, Boeing, Salesforce, Adobe, Mondelez International, Alphabet and Caterpillar.

But what of the International Wide Moat ETF?

MOATs and GOATs

Perhaps due to the success of its original MOAT fund, ETF provider VanEck launched the International Wide Moat ETF back in 2020.

This fund aims to extend the successful MOAT strategy to international markets, with the fund investing in companies from markets like Japan, the United Kingdom, Europe, and Canada. The United States is still in play, though, making up about 40% of GOAT’s portfolio at present. 

So while MOAT sticks to the United States, GOAT branches out, currently holding stocks like Yaskawa Electric Corp, Kubota Corp, GSK plc, and Roche Holdings. That’s in addition to many of the US stocks listed above.

Unfortunately, though, GOAT’s successful strategy doesn’t seem to be a happy traveller. Whilst MOAT has returned a healthy 15.88% per annum over the past three years, and 14.79% per annum over the past five, GOAT hasn’t kept up. It has returned just 11.53% per annum over the past three years. That drops to 10.62% per annum over five.

Those are still decent returns to be sure. But they pale against what the US-centric MOAT has delivered.

Foolish takeaway

Warren Buffett has always focused on investing in the United States, and perhaps GOAT’s underperformance shows us why. Until GOAT shows it has the potential to successfully replicate the wide moat investing strategy beyond the United States of America with consummate returns, I’ll be sticking to MOAT.

The post Is the VanEck International Wide Moat ETF (GOAT) a buy today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Berkshire Hathaway, Caterpillar, Mondelez International, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Berkshire Hathaway, Boeing, Nike, and Salesforce. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended GSK and Roche Holding AG and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Alphabet, Berkshire Hathaway, Nike, Salesforce, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in resources technology company Calix Ltd (ASX: CXL) traded almost 10% higher on Monday after its recently announced joint venture with Rio Tinto Ltd (ASX: RIO) passed a key milestone

Calix said that Rio Tinto had completed due diligence for the Zesty Green Iron Demonstration Project, which paved the way for an initial cash payment of $3 million to the junior environmental technology company.

Major agreement to produce green iron

Calix in mid-November announced that it had executed a joint development agreement (JDA) with Rio Tinto – one of the world’s leading iron ore producers – for more than $35 million in cash and in-kind support for the demonstration of the company’s zero emissions steel technology.

Under the agreement, the project will be based in Kwinana, Western Australia, and the agreement also covers help to enable the future commercialisation of the technology.

The cash payments would total $8 million, including the $3 million to be paid now following due diligence, and a further $5 million prior to a final investment decision to go ahead with the project.

Rio could also take up shares in a Zesty subsidiary business to the value of its $8m contribution to the project, and would be able to use the technology under a global, non-exclusive agreement.

Range of funds to be used

Calix said in November that the demonstration project would also be supported by a grant of up to $44.9 million from the Australian Renewable Energy Agency (ARENA), subject to matched funding being secured.

The company said at the time:

The Kwinana site is in close proximity to the NeoSmelt project for downstream processing of direct reduced iron being developed jointly by Rio Tinto, BHP, BlueScope and Woodside. It provides access to established utilities, ports and other infrastructure, and is in relative proximity to other sources of iron ore in Australia.

Under the terms of the agreement, Rio’s in-kind contributions would support the project to reach a final investment decision through the provision of the project site, technical support, engineering services, and advocacy.

Calix said further:

Subject to a positive final investment decision and construction of the plant, Rio Tinto will provide up to 10,000 tonnes of a range of Pilbara iron ores for use in plant commissioning and operations, and introductions to potential users of the Zesty green iron product for material testing and downstream processing to steel.

The Zesty technology uses a combination of electric heating and hydrogen reduction to produce green iron, and ultimately green steel.

Calix shares traded as high as 56.5 cents on Monday before settling back to be 6.3% higher at 54.7 cents.

The company was valued at $111 million at the close of trade on Friday.

The post Rio Tinto milestone sends shares in resources tech stock higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

CSL Ltd (ASX: CSL) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed on Friday trading for $183.93. In afternoon trade on Monday, shares are changing hands for $180.67 apiece, down 1.8%.

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

With today’s intraday losses factored in, CSL shares are down a painful 35.8% in 2025. And CSL’s dividend payouts won’t do much to take the sting out of those losses. The ASX 200 biotech stock currently trades on a 2.5% unfranked trailing dividend yield.

If you’ve been following along with Australia’s third-largest listed company (currently commanding a market cap of just under $88 billion), you’ll know that its troubles really began on 19 August.

The stock closed down 16.9% on the day, as investors reacted negatively to the release of CSL’s full-year FY 2025 results.

One of the issues that had investors reaching for their sell buttons was the lower-than-expected level of influenza vaccine demand in the United States.

Investors also were caught off guard by management’s announcement that the CSL Seqirus segment – one of the world’s largest influenza vaccine businesses – was going to be spun off into a separate ASX-listed company.

That plan has since been temporarily put on the back burner as the company waits for improved conditions in the US influenza vaccine market.

Which brings us back to our headline question…

Should you buy the big dip on CSL shares now?

EnviroInvest’s Elio D’Amato recently analysed the outlook for the biotech giant’s share price (courtesy of The Bull). And he believes there’s likely more pain to come before the stock finds solid support.

“I recommended selling CSL in TheBull.com.au in February 2025 after the biotechnology giant posted a lacklustre first half result in fiscal year 2025, in my view,” he said.

“The shares have substantially fallen from $261 on February 24. The stock was trading at $178.83 on December 11,” D’Amato noted.

And CSL shares certainly weren’t helped by management’s FY 2026 guidance downgrades.

“CSL recently cut revenue and profit growth forecasts for fiscal year 2026,” D’Amato said.

CSL stock closed down 15.9% on 28 October, the day of that announcement. That came after management downgraded CSL’s revenue growth guidance to 2% to 3% (from the prior 4% to 5%). And the company’s net profit after tax before amortisation (NPATA) growth guidance was reduced to 4% to 7% (from the prior 7% to 10%).

Commenting on his sell recommendation, D’Amato said:

The company’s vaccine division Seqirus is under pressure from declining vaccination rates in the United States. Plasma collection remains healthy, but integration costs involving CSL Vifor, a leader in iron deficiency and nephrology, amid restructuring expenses continue to weigh on margins and cash flow, in my view.

D’Amato concluded, “In the absence of near-term catalysts and years of share price stagnation, capital could be better deployed elsewhere until the outlook improves.”

The post Down 36% in 2025, should you buy CSL 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 positions in and has recommended CSL. 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.