Tag: Stock pick

ASX dividend stocks that pay out to investors every month are quite rare on the ASX. But there are still a few options for investors to consider if receiving monthly passive income paycheques is a priority.

We’ve written extensively on a number of these here at the Motley Fool, ranging from Plato Income Maximiser Ltd (ASX: PL8) to Metrics Master Income Trust (ASX: MXT).

But today, let’s discuss the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD). This exchange-traded fund (ETF) is specifically designed to cater to the needs of income-hungry investors. One of those caterings is a monthly dividend policy.

Like most ASX ETFs, HYLD holds an underlying portfolio of assets. In this case, those assets consist of a portfolio of around 50 ASX shares. These 50 shares are selected using screens that assess a company’s dividend history, as well as its perceived ability to continue to afford to pay out substantial income to shareholders.

According to the provider, some current holdings in HYLD’s portfolio include ANZ Group Holdings Ltd (ASX: ANZ), Rio Tinto Ltd (ASX: RIO), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS) and Telstra Group Ltd (ASX: TLS).

The BetaShares S&P Australian Shares High Yield ETF is a relatively new fund, having started ASX life back in August of 2025. Even so, we can get a good grasp of the kind of income investors can expect from HYLD.

An ASX monthly dividend stock with a 4.6% yield?

Starting from 16 September, this dividend stock has kept to its creed and paid out a monthly dividend distribution. The four dividends that investors have received since then have each come in at 11.92 cents per unit. These dividends only usually come with partial franking credits attached. This reflects the varied nature of HYLD’s portfolio.

If we annualise that monthly dividend of 11.92 cents per unit, we get a figure of $1.43 in dividend distributions per unit. At the current HYLD unit price of $31.14 (at the time of writing), that gives this ASX dividend stock an annualised dividend yield of 4.59%.

Of course, investors should not take that figure to the bank. No ASX dividend stock is obliged to pay out future dividends at past levels. And HYLD only had a few months of performance for investors to evaluate.

But even so, income investors who value monthly paycheques could arguably do worse than taking a deeper look at this ASX dividend stock.

The BetaShares S&P Australian Shares High Yield ETF charges a management fee of 0.25% per annum.

The post This 4.6% dividend stock sends cash to investors every single month appeared first on The Motley Fool Australia.

More reading

• Searching for the perfect retirement ETF? These two might fit the bill as monthly income providers
• Own Betashares ASX ETFs? Here’s your next dividend
• 3 ASX ETFs to generate passive income in retirement
• 3 ASX ETFs to buy for passive income in December

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

ASX small-cap shares outperformed the larger players by almost 2.5 times last year, according to S&P Global data.

S&P/ASX All Ords Index (ASX: XAO) shares delivered total returns (capital growth plus dividends) of 10.56% last year.

The ASX All Ords tracks the performance of the market’s top 500 companies by market capitalisation.

The S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, delivered a total return of 24.96%.

Small-cap shares typically have market caps between a few hundred million dollars and $2 billion.

So, why was it such a great year for the smaller players?

ASX small-cap shares make a comeback

Blackwattle Investment Partners portfolio managers, Robert Hawkesford and Daniel Broeren, who run the fund manager’s Small Cap Quality Fund, said ASX small-cap shares outperformed largely due to the rising value of junior gold explorers.

In a recent update, Hawkesford and Broeren said geopolitical instability prompted investors to buy precious and critical metals shares.

Additionally, interest rate cuts worldwide encouraged investors to buy companies in earlier stages of growth because “smaller cap companies offer the greatest range of opportunities”.

Lower interest rates reduce smaller companies’ debt servicing costs and boost their earnings potential.

Perpetual portfolio managers Alex Patten and James Rutledge, co-portfolio managers of the Perpetual Smaller Companies Fund, said the economic landscape “decisively” turned in favour of ASX small-cap shares in 2025.

They point out that during the August earnings season, the ASX Small Ords Index lifted 8.5% while the S&P/ASX 100 rose by 2%.

Patten said:

You’re starting to see some decent outperformance from small caps and micro caps.

This is the first time that’s happened in a number of years.

Over the past few years, when rates were going up quite quickly, that’s not typically a great environment for small caps.

But now that rates are starting to come down, we’re seeing more interest in small and micro caps and bit more liquidity in the market.

Exposure to Aussie economy

Patten and Rutledge also point out that ASX small-cap shares are more influenced by the domestic economy while large-caps are globally exposed.

Many ASX small-cap shares are domestic cyclicals, with retailers and residential building companies reporting an uptick in demand last year.

Smaller companies also benefitted from moderating wage growth.

ETF provider Global X reported strong inflows into its ASX small-cap shares ETFs in November.

This reflected investors’ desire to diversify away from large-caps with stretched valuations, such as the ASX bank shares.

Global X said:

Whether investors are aiming for the top 300 Australian companies rather than just the top 200, or focusing exclusively on smaller companies, small-caps could be making a comeback.

The impact of rising small-caps last year can be seen in the annual returns of Australia’s key indices.

Total returns of key ASX indices

5 best ASX small-cap shares for price growth in 2025

These were the five best-performing ASX small-cap shares for capital growth in 2025.

1. Anti-drone technology company DroneShield Ltd (ASX: DRO), up 300%

2. Gold miner Pantoro Gold Ltd (ASX: PNR), up 220%

3. Gold explorer Predictive Discovery Ltd (ASX: PDI), up 220%

4. Gold producer Resolute Mining Ltd (ASX: RSG), up 206%

5. Gold explorer Southern Cross Gold Consolidated CDI (ASX: SX2), up 204%

The post Why 2025 was the year of the ASX small-cap shares appeared first on The Motley Fool Australia.

More reading

• Why BlueScope, DroneShield, Monadelphous, and SGH shares are racing higher today
• My top 5 ASX stocks to buy in early 2026
• Why did DroneShield shares rocket 300% in 2025?
• These are the 10 most shorted ASX shares
• 2 ASX mining shares to buy for 2026

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 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.

Shares in tungsten producer EQ Resources Ltd (ASX: EQR) are trading at record levels, up nearly fourfold over a 12-month period, after the company announced a significant increase in production quarter on quarter.

The company said in a brief statement to the ASX on Tuesday that it had produced 38,292 metric tonnes of tungsten during the December quarter, which was up 33% on the previous quarter.

The company added that this came at a time when the tungsten price was particularly strong, at US$825 per tonne on December 26, which was up 42% quarter on quarter.

The price increased further to US$900 per tonne by January 2, the company added.

Shares test record highs

EQ Resources shares traded as high as 9.9 cents – a 12-month high – on the news before settling back to be 11.7% higher at 9.6 cents.

The company’s shares have traded as low as 2.5 cents over the past year, with that level recorded in late January last year.

EQ Resources said in its briefing to shareholders at the company’s annual general meeting in November that it had “one of the largest tungsten resource bases outside of China”, across its Mt Carbine mine in Australia and its Barruecopardo mine in Spain.

The company said it was aiming for a “material increase” in production over calendar year 2026, “as Barruecopardo performance strengthens and Mr Carbine accesses the high-grade Iolanthe vein”.

The company said tungsten was now being recognised as a critical mineral, with China controlling 85% of production, and few near-term Western projects on the drawing board “despite rising demand from defence, aerospace and clean energy sectors”.

The company said further:

With recovery improvements at Barruecopardo and a waste cut back under way at Mt Carbine, EQ Resources is well-placed to significantly increase production subject to execution of planned activities.  

EQ Resources has a minimum nine-year mine plan at Barruecopardo with expansion potential, while under the current mine plan, Mt Carbine has an eight-year life.

The company also informed the ASX in a statement in December that it had raised $34 million through a share placement at 5 cents per share, with the funds to be used to advance the Mt Carbine mine, pay down debt and receivables, and bolster working capital.

At the same time, Oaktree agreed to convert a $7.25 million loan to equity.

EQ Resources was valued at $396.7 million at the close of trade on Monday.

The post Almost a four bagger, this tungsten company says production is strong as its shares hit a record appeared first on The Motley Fool Australia.

More reading

• This 4.6% dividend stock sends cash to investors every single month
• Why 2025 was the year of the ASX small-cap shares
• Up 161% in 3 weeks, why is this surging ASX tech stock tumbling today?
• How I’d build a growing passive income stream from ASX shares over 15 years
• Why Andean Silver, CBA, Life360, and Silex shares are dropping today

The All Ordinaries Index (ASX: XAO) is up a respectable 1.5% since 18 December, but one ASX tech stock has left those gains well behind.

The fast-rising stock in question is Calix Ltd (ASX: CXL).

If you’re not familiar with Calix, the company earns its keep by creating businesses that solve global challenges in industrial decarbonisation and sustainability.

And despite today’s sizeable retrace, Calix shares have been on an absolute tear since mid-December.

Here’s what I mean.

Calix shares are currently down a sharp 10.4% today, trading for $1.335 apiece.

That will obviously come as unwelcome news to investors buying the ASX tech share on Monday.

But turn the clock back to 18 December, and you could have picked up Calix shares at an intraday low of just 51.2 cents each.

That’s a gain of 160.7%, despite today’s pullback.

Or enough to turn an $8,000 investment into $20,859. In less than three weeks!

Why is the Calix share price tumbling today?

With no fresh troubling news out from Calix to explain today’s sharp sell-down, it looks like we’re seeing some healthy profit-taking today.

After all, over the past five trading days, the ASX tech stock has posted consecutive gains of 9.6%, 10.0%, 11.4%, 15.3%, finishing with a whopping 31.9% gain yesterday.

So, it’s only natural that investors may be taking some money off the table here on the third trading day of 2026.

What’s been sending the ASX tech stock soaring?

On Friday, Calix responded to a ‘speeding ticket’ from the ASX, questioning its rapid share price gains and increased trading volume.

The ASX queried, “Is CXL aware of any inf ormation concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities?”

To which the ASX tech stock answered, “No.”

Looking back at the charts, Calix shares really began their lift off on 19 December, closing up 26.9% on the day.

That big move came after the company announced a three-year contract with an unnamed United States-based customer, reported to be among the world’s largest agriculture companies.

The contract involves supplying magnesium hydroxide water treatment products. And management expects it will generate up to $10 million a year in product and services revenue.

Investors reacted positively, with the ASX tech stock noting that it expects to generate the initial revenue from that contract in the first quarter of 2026.

The post Up 161% in 3 weeks, why is this surging ASX tech stock tumbling today? appeared first on The Motley Fool Australia.

More reading

• Why is this ASX tech stock jumping 14% on Friday?
• Rio Tinto milestone sends shares in resources tech stock higher

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.

Building a reliable passive income from ASX shares doesn’t happen overnight. It is a long game that rewards patience, discipline, and a willingness to let compounding work its magic.

If I were starting today with a 15-year time horizon, my focus wouldn’t be on generating income immediately. Instead, I would concentrate on building the engine first, then letting income emerge naturally over time.

Years 1–5

In the early years, my priority would be capital growth. At this stage, passive income is far less important than expanding the size of the portfolio. The bigger the base, the more powerful the income potential will be later.

I would lean towards high-quality ASX growth shares with strong business models, recurring revenue, and long growth runways. This might include shares such as WiseTech Global Ltd (ASX: WTC), Life360 Inc. (ASX: 360), and Pro Medicus Ltd (ASX: PME).

Any dividends received during this phase would be reinvested automatically. This is because rather than taking the cash and spending it, reinvesting the funds quietly increases the number of shares I own, which compounds future income.

The key takeaway here is simple: don’t touch the income, let it snowball.

Years 6–10

By the middle of the journey, the portfolio would ideally be meaningfully larger. At this point, I would start paying more attention to passive income quality, not just growth rates.

I wouldn’t abandon ASX growth shares, but I would begin adding businesses with dependable cash flows, pricing power, and a history of sustainable dividends. Think companies that can both grow earnings and pay shareholders more each year, such as Woolworths Group Ltd (ASX: WOW), Universal Store Holdings Ltd (ASX: UNI), and Dicker Data Ltd (ASX: DDR).

Dividends would still mostly be reinvested, but psychologically this is where the strategy becomes motivating. You start to see income numbers that actually feel tangible. This phase is about balance, allowing the portfolio to keep growing while laying the foundations for future cash flow.

Years 11–15

In the final stretch, the strategy would gradually tilt towards income reliability. By now, the portfolio should be large enough that even modest dividend yields translate into meaningful dollars.

This is when I would reduce exposure to growth stocks and increase weightings to high-quality dividend payers and income-focused ETFs like HomeCo Daily Needs REIT (ASX: HDN) and Telstra Group Ltd (ASX: TLS). Importantly, I wouldn’t chase high yields. The goal is sustainable passive income, not the highest possible payout this year.

At this stage, I would still expect some growth, but stability becomes more important than speed.

Foolish takeaway

A growing passive income stream from ASX shares isn’t built by chasing dividends on day one. It is built by owning quality businesses, reinvesting early income, and slowly shifting gears as time does the work for you.

Start with growth, transition to a balanced portfolio, and finish with income. Give it 15 years, and the results could be life-changing.

The post How I’d build a growing passive income stream from ASX shares over 15 years appeared first on The Motley Fool Australia.

More reading

• Why Andean Silver, CBA, Life360, and Silex shares are dropping today
• Up 38% in a year, Life360 shares sliding today on $120 million US acquisition news
• Forecast: Here’s what $10,000 invested in Telstra shares could be worth next year
• The best ASX dividend shares to buy in January
• Top 5 ASX 200 tech shares for growth in 2025

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, Universal Store, WiseTech Global, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Dicker Data, Life360, Telstra Group, WiseTech Global, and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT, Pro Medicus, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has given back its early gains and dropped into the red. In afternoon trade, the benchmark index is down 0.4% to 8,692.9 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Andean Silver Ltd (ASX: ASL)

The Andean Silver share price is down 2.5% to $2.42. This follows news that the silver miner has doubled the size of its share purchase plan (SPP) due to increased demand. The SPP will now raise $6 million, but it could have been so much more. Andean Silver revealed that it received applications totalling approximately $18 million, which significantly exceeded the original $3 million target. Andean Silver’s chair, David Southam, said: “The demand for the SPP was exceptionally strong, reflecting the rapid progress we are making at the Cerro Bayo Project and our ability to unlock an abundance of opportunities to drive growth and value creation. The proceeds from the Placement and SPP will help us accelerate our drilling programs, project studies and potential land acquisitions. Andean is uniquely placed in the silver market with its significant existing infrastructure, which will help deliver a capital-light restart in the quickest and most efficient manner.”

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down over 2% to $156.76. This is despite there being no news out of the banking giant. However, it is worth noting that all the big four banks are sharply lower today. This could be a sign that some large investors are rotating out of the banks and into other areas.

Life360 Inc (ASX: 360)

The Life360 share price is down 2.5% to $31.18. This morning, this location technology company announced the completion of its Nativo acquisition and provided an update on its user growth. With respect to the latter, Life360 now has over 50 million monthly active users (MAU) in the United States. This is up from 48.7 million at the end of September, which may be lower than the market was expecting given its historical growth rates.

Silex Systems Ltd (ASX: SLX)

The Silex Systems share price is down 35% to $6.33. This morning, the company revealed that its joint venture business, Global Laser Enrichment, has not been selected for a US$900 million program focused on low enriched uranium by the U.S. Department of Energy (DOE). And while the company has been selected for an award of up to US$28 million from the DOE to advance next generation laser-based uranium enrichment technology, this wasn’t the award the market was hoping for.

The post Why Andean Silver, CBA, Life360, and Silex shares are dropping today appeared first on The Motley Fool Australia.

More reading

• How I’d build a growing passive income stream from ASX shares over 15 years
• Could 2026 be the year when CBA stock implodes?
• This previously hot uranium technology stock has been sold down heavily after a contract snub
• Up 38% in a year, Life360 shares sliding today on $120 million US acquisition news
• Top 5 ASX 200 tech shares for growth in 2025

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) stock had a fascinating 2025.

It really was a tale of two halves when it comes to CBA’s year. The ASX 200 bank share enjoyed a highly successful six-month period between January and late June, with the notable exception of the ‘liberation day’ April wobble. Commonwealth Bank shares hit several new all-time records in the first half of last year, culminating in the still-reigning record high of $192 a share that we saw mid-year.

But one June was over, CBA’s momentum stalled. The bank spent the back half of 2025 drifting away from that high, finally getting down to just above $151 a share by mid-November.

CBA stock recovered a little by the time New Year’s Eve came around, though, ending the year at $160.57 a share.

Even so, that’s a good 16% or so away from that June all-time high. The bank’s highs still more than offset the late-year drift in 2025, with CBA recording a 4.78% gain for the year. That’s quite a contrast to the bank’s far more lucrative 2024. That year saw CBA stock gain almost 40%.

But we are in 2026 now. So what might this year hold in store for this ASX 200 bank share? Could 2026 finally be the year that CBA stock implodes, as many experts have been predicting?

Will CBA stock implode in 2026?

Of course, no one knows how a stock might fare over the coming year. There are an infinite number of possibilities, and picking the one that will eventuate is, at best, a fiendishly difficult task for even a seasoned professional.

But that doesn’t mean we can’t delve into the field of educated guesswork.

Let’s look at the facts. As we discussed last month, CBA stock is incontestably expensive by global bank standards. Today, it sports a price-to-earnings (P/E) ratio of 26.9. That’s despite low single-digit earnings growth over FY2025, and with no tangible signs of an improvement going forward.

Put simply, CBA’s shares have banked a 50% gain over the past three years without corresponding profit growth. That leaves the bank vulnerable to a share price correction.

That could either come in the form of a sharp implosion, or a gradual stagnation that occurs over a number of years. That latter scenario is similar to what CSL Ltd (ASX: CSL) has experienced since 2020. Given CBA’s sheer size (gifting it the right to soak up massive amounts of index fund and superannuation capital), I think this is the most likely scenario.

So if I were a betting man, I would not put money on a dramatic CBA stock price implosion this year. However, I think CBA’s 2026 will look far more similar to its 2025 than its 2024. And that’s if it’s lucky. Let’s see what happens.

The post Could 2026 be the year when CBA stock implodes? appeared first on The Motley Fool Australia.

More reading

• Why Andean Silver, CBA, Life360, and Silex shares are dropping today
• Decade darlings – these ASX shares have provided 10 years of returns
• CBA shares returned just 4.9% last year. Should investors look elsewhere?
• Buy, hold, sell: CBA, REA Group, and Xero shares
• 5 fantastic ASX ETFs for beginners in 2026

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 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 WAM Active Ltd (ASX: WAA) fund has announced an increased interim dividend and a new special dividend after chalking up a return of 41.4% for the year to the end of December.

The fund, which is part of well-known fund manager Geoff Wilson’s stable, will pay a fully-franked interim dividend of 3.2 cents per share, up from 3 cents previously, plus a special dividend of 1 cent per share to be paid mid-year, leading to a grossed-up dividend yield on an annualised basis of 9.3%, the fund said on Tuesday.

Historically strong figures

Mr Wilson said in a statement to the ASX that the six-month performance of the fund’s portfolio for the second half of the calendar year was “the strongest for WAM Active since inception 18 years ago”.

He went on to say:

WAM Active’s proven and flexible investment strategy, coupled with the expertise of the investment team and the dynamic portfolio construction continues to deliver excellent investment portfolio performance for shareholders.

Plenty of room to grow

WAM Active Deputy Portfolio Manager Shaun Weick said the team had been trading actively to take advantage of opportunities.

He said further:

Over the past six months, we have materially increased portfolio turnover to take advantage of the opportunities we see in the market, whilst at the same time actively managing the cash position to cushion downside exposure. In recent weeks we have seen a material shift in domestic investor sentiment as the outlook for inflation and interest rates has been reassessed higher. Accepting this adjustment, we expect the upcoming February reporting period should provide compelling trading opportunities.

Mr Weick said the WAM Active team was watching the metals markets in particular.

WAM Active has progressively rotated positioning towards precious and base metals as we believe these companies are well positioned for near term outperformance as the US continues to reduce interest rates, global growth improves and the USD moves lower. We believe this environment warrants an active approach to portfolio construction which positions the fund well. Whilst capital markets activity has generally improved this year, the performance of recent IPOs suggest caution is warranted in this respect. Overall, we remain optimistic on the outlook for markets into 2026 and are excited by the opportunities that could present over time,

WAM said the fund beat the performance of the S&P/ASX All Ordinaries Index (ASX: XAO) by 30.8% over a 12-month period.

WAM Active shares were 5.1% higher on the positive performance news on Tuesday, changing hands for $1.04 apiece.

The ex-dividend date for the interim dividend is May 15, while the ex-dividend date for the special dividend is June 17.

The post This fund has just declared a special dividend after “record outperformance” appeared first on The Motley Fool Australia.

More reading

• This 4.6% dividend stock sends cash to investors every single month
• Why 2025 was the year of the ASX small-cap shares
• Almost a four bagger, this tungsten company says production is strong as its shares hit a record
• Up 161% in 3 weeks, why is this surging ASX tech stock tumbling today?
• How I’d build a growing passive income stream from ASX shares over 15 years

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.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Tuesday. In afternoon trade, the benchmark index is down 0.3% to 8,703.3 points.

Four ASX shares that are bucking the trend today are listed below. Here’s why they are rising:

BlueScope Steel Ltd (ASX: BSL)

The BlueScope Steel share price is up 22% to $29.80. Investors have been buying the steel products manufacturer’s shares after it received a takeover offer. A non-binding $30.00 per share offer has been tabled from a consortium comprising SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD). This would see SGH acquire all of BlueScope’s shares and then on-sell BlueScope’s North American businesses to Steel Dynamics. BlueScope is yet to make a decision on this proposal and is considering the offer.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 15% to $3.82. This is despite there being no news out of the counter drone technology company on Tuesday. Though, it is worth noting that drone stocks in the United States charged higher overnight. Investors may believe the US-Venezuela situation could lead to increased demand for counter drone solutions.

Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price is up 2.5% to $27.68. This follows news that the diversified services company has won another contract from BHP Group Ltd (ASX: BHP). Monadelphous has been awarded a $175 million construction contract for BHP’s car dumper project located at Finucane Island in Port Hedland. The contract covers major civil, structural, mechanical, piping, and electrical works during a planned shutdown. Monadelphous’ managing director, Zoran Bebic, said: “We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.”

SGH Ltd

The SGH share price is up 5% to $49.01. This follows news that it has made a non-binding offer to acquire BlueScope Steel. Commenting on the proposal, SGH’s managing director and CEO, Ryan Stokes, said: “We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”

The post Why BlueScope, DroneShield, Monadelphous, and SGH shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Why 2025 was the year of the ASX small-cap shares
• This ASX 200 company is celebrating its second major contract win in as many months
• BlueScope shares jump 20% on takeover news
• My top 5 ASX stocks to buy in early 2026
• Monadelphous awarded $175 million BHP contract: Key details for investors

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 DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Steel Dynamics. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Artificial intelligence (AI) stocks have been on fire in recent years. Over the past three years alone, Nvidia (NASDAQ: NVDA) has soared by a staggering 1,180%, as of this writing. In other words, if you’d invested $1,000 in Nvidia just three years ago, you’d have nearly $13,000 by today.

However, some investors are concerned that the AI sector has become a bubble poised to burst. If that’s the case, investing now could be a risky move. While nobody knows what lies ahead, here’s where investors stand on the future of AI stocks. 

Should you really invest right now?

Again, the future of any stock or industry is unknowable, at least to a degree. Even the experts can’t say where AI will be in six months or a year, and that uncertainty can be daunting.

That said, an investment’s long-term potential is far more important than any short-term volatility. So rather than asking whether an AI bubble is looming, the real question investors should ask is where AI will be in 10 or 20 years. And according to the majority of investors, the answer is promising.

Nearly two-thirds (62%) of American adults are confident that AI-focused companies will deliver strong long-term returns, according to The Motley Fool’s 2026 AI Investor Outlook Report. Among those who are already investing in AI stocks, a whopping 93% believe in the technology’s long-term potential.

But what if a bubble is around the corner? Experts emphasize that the earning potential could be worth the rough patches.

“For investors willing to weather near-term volatility, the AI transformation represents a once-in-a-generation opportunity to participate in technology that’s restructuring how the world works,” says Donato Riccio, Head of AI at The Motley Fool.

“Of course, we’ll see peaks and troughs in AI earnings cycles,” Asit Sharma, AI Stock Analyst at The Motley Fool, adds, “but the long-term potential of this market is still superior to almost any other current investment theme we can name.”

The key to protecting your portfolio

While you may not be able to avoid short-term volatility, investing in quality stocks is crucial to reap the long-term rewards. And there are some investments that may be better poised for significant growth over time.

Specifically, Sharma recommends seeking out companies building the foundations of AI technology.

“For the biggest opportunities, look to smaller semiconductor and data center ecosystem players, such as data interconnect specialists, high-bandwidth memory providers, and cutting-edge data storage designers,” he explains. “The ‘best of breed’ in these categories will likely outpace the market in the next three to five years.”

Wherever you choose to buy, be sure you’re researching the company’s fundamentals rather than relying on hype. Even weak companies can appear to thrive when the entire industry is soaring, but those stocks will struggle to bounce back after a downturn. Healthy organizations, however, are far more likely to recover from even severe volatility.

Nobody can say where AI stocks will go in 2026. We could be headed for a bubble, or the industry may have much further to climb. However, by investing in the right stocks and staying focused on the long term, you can capitalize on AI’s promising growth potential while still mitigating risks. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you really invest in AI stocks in 2026? Here’s what other investors are saying appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Katie Brockman 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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.