Tag: Stock pick

Northern Star Resources Ltd (ASX: NST) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $26.09. In morning trade on Friday, shares are changing hands for $26.14 apiece, up 0.2%.

For some context, the ASX 200 is down 0.2% at this same time.

This follows the release of an FY 2026 exploration update, which points to strong growth potential for some of the company’s core gold mines.

Here’s what’s happening.

Northern Star shares lift on exploration details

The ASX 200 gold miner said today that it expects to spend $225 million in the full 2026 financial year (FY 2026) on its exploration programs.

Northern Star shares are lifting today with the company confirming it is actively exploring for new gold strikes across its three production centres (Kalgoorlie, Yandal, and Pogo) as well as its recently acquired development project (Hemi) located across Western Australia and Alaska.

Management said that the exploration budget in FY 2026 is “heavily focused” on Northern Star’s near-mine opportunities. The miner added that the $225 million spend is weighted to its largest asset, KCGM, located in Western Australia.

The miner said that new underground areas continue to help increased drilling activity, which is intended to provide “near-term optionality and long-term visibility” at the large-scale gold mining operation.

Citing recent exploration successes at KCGM that could provide long-term support for Northern Star shares, the company said the Fimiston South mineralisation footprint has been identified to extend up to 800 metres below the existing Mineral Resource. The miner has also identified a new prospect at Mt Charlotte, labelled Golden Goose.

The ASX 200 gold stock also highlighted that its exploration works come in at an “industry-leading” cost of Resources addition of $19 per ounce for the 12 months to March 2025.

What did management say?

Commenting on the exploration update that’s helping boost Northern Star shares today, managing director Stuart Tonkin said, “This update highlights the strong organic growth potential across our global portfolio. Our team continues to balance exploration priorities, from resource definition through to conversion, creating shareholder value by delivering low-cost Resource ounces.”

Tonkin added:

At Kalgoorlie, drilling and investment are driving growth, with future options to supply high-margin ore to the expanded Fimiston mill from FY27. At Pogo, new drill drives have enabled extensional drilling, while surface programs advance near mine opportunities, unlocking high priority targets such as Goodpaster, Star and Central Link.

The integration of our recent strategic acquisition, the Hemi Development Project, into our gold inventory is underway, with approvals progressing for what is to become our fourth production centre.

With today’s intraday moves factored in, Northern Star shares are up 69% in 2025.

The post Northern Star shares shining bright on $225 million gold exploration news appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Expert lists its top resources shares to target in December
• 5 things to watch on the ASX 200 on Thursday
• Up 75% this year, are Northern Star shares still a buy today?
• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment

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.

Premier Investments Ltd (ASX: PMV) shares are ending the week on a disappointing note.

In morning trade, the ASX 200 stock is down 12% to a 52-week low of $15.88.

Why are Premier Investments shares crashing?

Investors have been selling down the Peter Alexander and Smiggle owner’s shares today after responding negatively to a trading update ahead of its annual general meeting.

According to the release, the company has been battling with weak discretionary spending during the first half as consumers remained cautious due to ongoing cost-of-living impacts.

Though, one positive was that the Peter Alexander brand achieved record sales during the recent Black Friday and Cyber Monday promotional period. The company’s chair, Solomon Lew, explained:

Now turning towards current trade. Premier Retail commenced FY26 with a clean inventory position. Discretionary spending remains under pressure with consumers cautious due to ongoing cost-of-living impacts. Despite a challenging global environment, the Black Friday trading week provided encouraging early signs ahead of the all-important Christmas, Boxing Day and back-to-school trading periods, with Peter Alexander delivering record sales across the Black Friday and Cyber Monday promotional period.

Mr Lew then revealed that based on current figures, Premier Retail first half underlying earnings before interest and tax (EBIT) is expected to be around $120 million.

This will be a decline of approximately 7.3% on the $129.4 million it recorded for the first half of FY 2025.

However, the company’s chair concedes that there’s still some very important trading periods to come, so this guidance is far from guaranteed. Lew added:

Premier expects Premier Retail 1H26 underlying EBIT for the 26-week period ending 24 January 2026 (pre-AASB 16) to be circa $120 million. That said, we do not underestimate the significance of the December /January trading period ahead which is a critical driver for the Group’s first half result. The Group is well prepared for this important trading period ahead.

Share buyback

Failing to prevent Premier Investments shares from tumbling today is news that the company plans to initiate a buyback.

Due to its strong financial position, the company’s board has announced a plan to return up to $100 million to shareholders through an on-market buyback. It stated:

The Board has determined that the current capital position provides opportunity to return up to $100 million of capital to shareholders, whilst maintaining a strong balance sheet to support future growth initiatives, and take advantage of opportunities that may arise in the future. As such, the Board announced today its intention to undertake a 12-month on-market share buyback of up to $100 million as part of its ongoing capital management strategy.

The post Why are Premier Investments shares crashing 12% today? appeared first on The Motley Fool Australia.

More reading

• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• 3 ASX shares that I think are buys for both growth and dividends
• 1 ASX dividend stock down 25% that I’d buy right now
• Macquarie names 16 potential ASX takeover targets

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

Rio Tinto Ltd (ASX: RIO) shares are under pressure on Friday morning.

At the time of writing, the mining giant’s shares are down 2% to $137.83.

Why are Rio Tinto shares falling?

Investors have been selling the company’s shares today following the release of its 2025 Capital Markets Day presentation.

That presentation outlined Rio Tinto’s strategy to deliver industry leading returns by becoming stronger, sharper, and simpler.

This includes the miner’s chief executive, Simon Trott, detailing how Rio Tinto will unlock its full potential to become the most valued metals and mining business through a strategy that starts with having the right assets in the right markets, supported by a diversified model that delivers market-leading performance and industry-leading returns.

What is the plan?

Rio Tinto revealed that there are three strategic pillars focused on driving a step change in performance and returns.

One is operational excellence, which will see Rio Tinto streamline to three world class businesses – Iron Ore, Copper, and Aluminium & Lithium. It will have a relentless focus on productivity and leveraging best in class ore body knowledge.

Another strategic pillar is focused on project execution. It aims to create new options for organic growth by delivering projects reliably, efficiently, and at scale.

Finally, capital discipline will be another focus. It notes that it will continue to allocate capital with rigor and maintaining a strong, resilient balance sheet, with leading returns.

Delivering value

Rio Tinto also revealed that it is looking to deliver value through a number of areas. This includes production growth, productivity benefits, and asset sales.

With respect to the latter, the company advised that it is looking at an opportunistic release of US$5 billion to US$10 billion from existing asset base.

It notes that it will aim to release cash where third-party funding is lower than the cost of capital. This includes exploring commercial, partnership, and ownership options across land, infrastructure, mining, and processing assets.

It adds that the strategic reviews of Iron and Titanium, and Borates are advancing as planned, with the next phase focused on testing the market for these assets.

Commenting on its plans, Simon Trott, said:

We are building from a position of strength for Rio Tinto’s next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets.

We are delivering strong early productivity benefits and cost savings with more to come. Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline. Our experienced leadership team is committed to delivering against our mission to become the most valued metals and mining company – for shareholders, the people who work with us, our partners and the communities around us.

The post ‘Stronger, sharper, and simpler’: Rio Tinto shares fall despite major update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Major ASX 200 mining shares hit 52-week highs
• How much upside does Macquarie tip for Rio Tinto shares?
• Rio Tinto or BHP shares? Expert says which stock to buy as copper price smashes record

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

Nextdc Ltd (ASX: NXT) shares are racing higher on Friday morning.

At the time of writing, the data centre operator’s shares are up 11% to $14.90.

Why are NextDC shares jumping?

Investors have been bidding the company’s shares higher this morning after it confirmed media reports of a major development plan.

The AFR reported that ChatGPT’s owner, OpenAI, has signed an agreement to become the major customer in a new $7 billion NextDC data centre that will be the largest in the southern hemisphere.

NextDC will reportedly build the 650 megawatts centre in Sydney’s Eastern Creek after securing OpenAI as its anchor tenant. It will be used to run the artificial intelligence (AI) models, tasks, and queries from OpenAI’s Australian corporate clients. This includes Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Canva, and Atlassian (NASDAQ: TEAM).

OpenAI’s chief executive, Sam Altman, commented:

Australia is well-placed to be a global leader in AI, with deep technical talent, strong institutions and a clear ambition to use new technology to lift productivity.

This sentiment was echoed by OpenAI’s strategy officer, Jason Kwon. He adds:

We are creating a physical presence here in multiple ways and these are intended to be multiple-year partnerships where we build together. This is really about just the beginning. Our hope is that this sends a pretty clear signal to the Australian market that there is more to be built to enable more economic activity.

NextDC response

This morning, NextDC responded to the reports and confirmed that it has agreed a memorandum of understanding (MoU) with OpenAI to develop a sovereign AI infrastructure partnership under the OpenAI for Australia program.

It notes that through the MoU, OpenAI and NextDC will collaborate on the planning, development, and operation of a next generation hyperscale AI campus and large-scale GPU supercluster at NEXTDC’s S7 site in Eastern Creek, Sydney.

Should you invest?

In response to the news, this morning the team at Citi reaffirmed its buy rating and $18.35 price target on NextDC’s shares.

This implies potential upside of over 20% for investors over the next 12 months.

Elsewhere, last week, the team at Morgans upgraded NextDC’s shares to a buy rating with a $19.00 price target. It said:

The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.

The post NextDC shares jump 11% on major OpenAI deal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Morgans just upgraded these ASX stocks to buy ratings (with huge upside!)
• Top brokers name 3 ASX shares to buy today
• Why Domino’s, Greatland, NextDC, and Unico Silver shares are pushing higher today
• 2 ASX 200 tech stocks racing higher on big news

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian and Wesfarmers. 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.

I believe that buy and hold investing is one of the best ways to build wealth.

But don’t worry if you’re not a fan of stock-picking. That’s because exchange traded funds (ETFs) are here to save the day by offering simply access to large groups of stocks in one fell swoop.

With that in mind, here are three ASX ETFs that I would buy for the long term:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF offers investors exposure to the top 100 non-financial stocks listed on the Nasdaq exchange.

This effectively means a concentrated basket of the world’s most innovative technology leaders. Inside the ASX ETF, you will find giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), along with rising players like Adobe (NASDAQ: ADBE) and Broadcom (NASDAQ: AVGO).

The Nasdaq 100 has historically outperformed most global indices thanks to its tilt toward fast-growing industries like cloud computing, artificial intelligence, consumer tech, and semiconductors. And with AI now driving a generational infrastructure buildout, many of the Betashares Nasdaq 100 ETF’s largest holdings remain central to that global transformation.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF targets some of the most influential and fast-growing technology companies across China, Taiwan, and South Korea. Key holdings include Tencent Holdings (SEHK: 700), SK Hynix (KRX: 000660), Alibaba Group (NYSE: BABA), Samsung Electronics (KRX: 005930), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and PDD Holdings (NASDAQ: PDD).

These companies sit at the heart of global megatrends like e-commerce, artificial intelligence, social media, and semiconductor manufacturing. Taiwan Semiconductor, for example, produces the world’s most advanced chips and plays a crucial role in powering everything from smartphones to autonomous vehicles. Tencent and Alibaba, meanwhile, dominate entertainment, cloud, and digital payments across Asia.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity has become one of the most essential industries in the digital economy, and the Betashares Global Cybersecurity ETF provides simple access to the world leaders in the space.

Its portfolio includes CrowdStrike Holdings (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These are companies using advanced AI-powered tools to protect governments, corporations, and consumers from increasingly complex cyber threats.

One standout holding is CrowdStrike. The company’s Falcon platform is widely considered one of the most advanced security solutions available, capable of detecting threats in real time through machine learning. With cyberattacks rising globally and businesses moving more systems into the cloud, cybersecurity spending is expected to grow steadily for years to come.

The post 3 ASX ETFs I’d buy right now to build wealth appeared first on The Motley Fool Australia.

More reading

• Here’s why Nvidia still is a multimillionaire-maker
• Amazon is expanding its AI chip ambitions. Should Nvidia investors be worried?
• 3 exciting ASX ETFs to buy and hold for 20 years
• Michael Burry just sent a warning to artificial intelligence (AI) stocks. Should Nvidia investors be worried?
• Better $3 trillion AI stock to buy now: Microsoft or Alphabet

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group, Broadcom, and Palo Alto Networks and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Apple, CrowdStrike, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There’s nothing quite like a takeover bid to drive interest in a stock, and for existing shareholders, there is also the prospect of windfall gains if the price is right.

There has been a flurry of takeover bids recently, with targets ranging from small gold prospectors, such as Venus Metals Corporation Ltd (ASX: VMC), to major companies like logistics provider Qube Holdings Ltd (ASX: QUB).

And in the case of the latter, and fellow takeover target National Storage REIT (ASX: NSR), there’s still the potential to make short-term gains, given each company’s share price is still trading at a discount to the offer price.

Qube trading at a decent discount

In the case of Qube, Macquarie Asset Management has launched a conditional bid for the company at $5.20 per share.

That was a significant premium to the $4.07 at which the company’s shares were trading at the time of the bid.

And while the shares have consistently traded higher than levels before the bid, they are still only changing hands for $4.64, meaning canny investors could make a windfall gain – should the bid actually go through.

Keep in mind that it is still conditional on satisfactory due diligence and a unanimous recommendation from the Qube board.

The board has granted Macquarie a period of exclusive due diligence, having previously negotiated for a higher price from Macquarie, and said at the time the possible deal was made public that, in the absence of a better offer, they do expect to endorse the bid.

Interestingly, UniSuper, which is a significant shareholder in Qube, has increased its shareholding in the company from 5.25% to 9.95% since the potential takeover bid was announced.

National Storage also in play

In the case of National Storage, the company was forced to divulge in late November that it had been approached by Brookfield Property Group and GIC Investments about a potential takeover, priced at $2.86 a share. This followed an article in The Australian hinting at the possible deal.

Like the Qube bid, the National Storage takeover offer is at this stage non-binding and conditional, but investors once again could make gains if it was to go through.

The National Storage bid is priced at $2.86, minus the likely 6-cent dividend to be paid by the company, which compares with the current share price of $2.71.

That implies a much lower premium of just 3.3% for investors who buy in now; however, some might be betting that a higher offer is in the wings.

In the case of Venus Metals Corporation, that company’s share price is actually trading higher than the 17 cent per share offer price from Queensland coal billionaire Chris Wallin’s company QGold.

 QGold’s offer is an on-market offer, meaning the company is actively buying shares at the offer price, however Venus said in a statement to the ASX this week it appeared the company was buying shares  at higher prices of between 18 cents and 19 cents in recent sessions.

Venus said this week it was currently preparing a target’s statement, which would be released to the ASX on December 8.

Venus shares closed Thursday’s trading session at 20 cents, well above the on-market bid price.

The post These two takeover targets are still trading below their potential bid prices appeared first on The Motley Fool Australia.

More reading

• Why Harvey Norman, Mirvac, Qube, and Suncorp shares are falling today
• 3 ASX 200 shares smashing the benchmark this week
• This ASX storage REIT’s shares surge as takeover talks confirmed
• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Qube shares?

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 share price of this ASX tech stock has taken a notable hit in recent weeks. In the last month, Megaport Ltd (ASX: MP1) has lost 27% of its value, with a 10.5% decline in the last 5 trading days alone.

The recent tumble is erasing a significant portion of Megaport’s strong 2025 rally, although the ASX tech stock is still up 74% this year.

It’s a stark contrast with the performance of ASX 200 tech shares in general. By comparison, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 20% in the past 12 months.

Streamlining cloud connectivity

Regardless of the current volatility, the ASX tech stock remains one of the stand-out tech companies this year. Megaport is a network-as-a-service solutions provider that streamlines cloud connectivity for businesses.

Rather than investing in costly physical infrastructure or committing to lengthy telecommunications contracts, organisations can use Megaport’s software to establish private, secure data connections within minutes.

Sticky revenue

Megaport’s platform allows customers to connect to around 860 data centres worldwide. In the first half of FY25 alone, the ASX tech stock added another 82 data centres and four new internet exchange locations. This approach offers greater cost efficiency, speed, and flexibility compared to conventional networking methods.

The ASX 200 tech stock has been experiencing swift growth. Its customer base is increasing quickly, and it is broadening its presence around the world. This has helped Megaport underpin a strong annual recurring revenue (ARR) growth. For example, in FY25, it reported a 20% increase in ARR to $243.8 million. 

Fresh scrutiny over acquisition

Despite a solid underlying business, the ASX stock price has been under pressure in recent weeks. At the centre of recent volatility is the acquisition of Latitude.sh.

When it announced the takeover, the ASX 200 stock highlighted that Latitude.sh enables the company to extend its offering beyond network connectivity. It would be capable of marrying high-performance computing with Megaport’s existing global private networking.  

That pitch clearly excited investors at the time. Now, it seems that negative sentiment dominates and puts pressure on the price of the ASX tech stock. Investors don’t seem to be happy that the acquisition was largely financed by a capital raise.

Megaport completed a fully underwritten $200 million institutional placement issuing roughly 14 million new shares. For many shareholders, that dilution paired with uncertainty over integration and execution has created unease, contributing to the recent sell-off.

What do analysts think?

While the long-term potential remains attractive, there are also concerns about Megaport’s near-term growth outlook. Its FY26 guidance appears to have disappointed investors.

Analysts are divided, and some remain wary of the integration risk of Latitude.sh. They’re also uncertain whether Megaport can deliver on its ambitious growth and margin targets.  

However, most brokers still view the booming ASX tech stock as a hold or buy. They also see a 22% upside with an average target price of $16.55 over the next 12 months.

The post Why has this booming ASX tech stock dropped 27% in the last month? appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares fight back after 10 weeks of decline
• The unstoppable ASX stocks powering the AI revolution
• The next wave of ASX tech winners to buy before 2026
• Why this high-flying ASX tech stock is surging again
• Bear market alert: ASX 200 tech shares down 24% since September peak

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

After a strong run in recent years, several blue-chip names that Australians rely on for income, including Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL), have eased back from their highs. 

For many, it’s a reminder that even high-quality companies occasionally reset to more rational price levels.

For dividend investors, that can open a window. Not necessarily because yields shoot higher overnight, but because the next phase of long-term income growth often begins with buying quality businesses when expectations cool.

Why falling share prices can improve dividend prospects

When a share price pulls back, two things happen.

First, the starting yield often inches higher. We saw the reverse effect earlier this year, when Commonwealth Bank’s yield fell as the share price ran to all-time highs. Second — and more importantly — a valuation reset can give investors a better chance of achieving a margin of safety. 

Paying less for the same earnings power is one of the quiet levers behind a sustainable income strategy.

Contrast that with extremely high trailing yields often found in some mining, resources or energy companies. These yields can look enticing, yet they are backward-looking and typically reflect short-term conditions — such as elevated commodity prices — rather than what investors might reasonably expect going forward. Because profits in these sectors can swing sharply from year to year, the dividends that flow from them tend to fluctuate just as much.

That’s why dividend investing is rarely about what a company paid last year. It’s about what it can sustain.

Focus on earnings strength, not yield-chasing

A strong yield is only as durable as the cash flows behind it. The true foundations of long-term income are:

1. Competitive advantages that protect margins

Industries with high switching costs, intellectual property, network effects or essential infrastructure tend to exhibit more predictable earnings. That can translate into more stable dividends over time.

Healthcare leaders, global logistics operators, defensive consumer businesses and financial services with strong moats often fall into this category.

2. Earnings that grow steadily across cycles

Dividend growth follows earnings growth. Investors often underestimate how powerful a steady increase in earnings per share can be over a decade or more.

Some of the strongest long-term dividend stories — both in Australia and globally — were not the highest-yielding companies at the start. They were the ones whose earnings expanded consistently. This mirrors the principle used in passive-income strategies: build the engine first, then let the income flow later.

3. Valuations that aren’t “priced for perfection”

Even an outstanding business can become a poor investment if bought at too high a price. As seen with Commonwealth Bank earlier this year, stretched valuations reduce future return potential and compress yields. A pullback improves the equation.

Buying quality at a reasonable price has always been at the heart of long-term dividend investing.

What might dividend investors look for now?

For dividend investors, the recent pullback across parts of the ASX is less a warning sign and more a chance to reassess quality. 

When long-established franchises with strong track records of compounding earnings reset to more reasonable valuations, the long-term yield on cost often becomes far more compelling than whatever headline yield appears today. The goal isn’t to chase the biggest number — it’s to position yourself in front of dependable earnings power.

That starts with businesses that generate reliable, recurring cash flow. Sustained dividends tend to come from service-based models, essential infrastructure, global operators and companies with diversified revenue streams that can absorb market shocks. 

Moderate but consistent dividend growth can outpace high but unstable yields over a decade. Balancing your income across sectors such as banks, healthcare, consumer staples and infrastructure can further smooth the ride.

The broader takeaway is simple: a reset is an opportunity to upgrade quality, not stretch for yield. Favour robust companies with durable advantages, steady earnings growth and reasonable valuations. Do this consistently and income tends to take care of itself.

Alternatively, investors who prefer a more hands-off approach can also use income-focused ETFs, such as the Betashares S&P Global High Dividend Aristocrats ETF (ASX: INCM), to gain diversification and remove the active stock-selection component from their process.

Strong dividend investing has always been simple, not dramatic.

The post Dividend investing opportunities emerging as quality ASX stocks reset appeared first on The Motley Fool Australia.

More reading

• Why CSL shares now look ‘massively oversold’
• Own CBA shares? Here are the dividend dates for 2026
• ASX bank stocks: Buy, sell, or hold?
• Down 8% and 11% in November – Is this the start of a long slide for NAB and CBA shares?
• 4 ASX shares I’d buy today with $10,000

Motley Fool contributor Leigh Gant 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.

Do you have room for some new additions to your income portfolio in December?

If you do, then it could be worth considering the two ASX dividend stocks in this article that brokers rate as buys. Here’s what they are recommending as buys:

Flight Centre Travel Group Ltd (ASX: FLT)

Analysts at Morgans think that Flight Centre could be an ASX dividend stock to buy in December.

The broker believes that it is worth holding the travel agent’s shares through the current period because when the tide turns, its earnings growth is expected to accelerate. Morgans believes this could put a rocket under its share price. It said:

FLT’s FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT’s guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts.

We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

With respect to income, Morgans is forecasting fully franked dividends of 51 cents per share in FY 2026 and then 58 cents per share in FY 2027. Based on the current Flight Centre share price of $13.76, this would mean dividend yields of 3.7% and 4.2%, respectively.

The broker currently has a buy rating and $15.65 price target on its shares.

Rural Funds Group (ASX: RFF)

Over at Bell Potter, its analysts think that Rural Funds could be an ASX dividend stock to buy this month.

Rural Funds is an Australian agricultural property company with a total of 63 assets across five sectors

At the last count, it boasted a weighted average lease expiry of 13.9 years, which gives it significant visibility on its future earnings and distributions.

Despite this, Bell Potter notes that its shares are trading at a significant discount to net asset value. It said:

Our Buy rating is unchanged. The -~35% discount to market NAV remain higher than average (~6% premium since listing) and likely reflects the proportion of assets that are underearning as operating farms. With a continued improvement in most counterparty profitability indicators in recent months (i.e. cattle, almond and macadamia nut prices), resilience in farming asset values and the progress made in creating headroom in funding lines to complete the macadamia development we see this as excessive.

Bell Potter believes the company is positioned to pay dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.97, this would mean dividend yields of almost 6% for both years.

The broker has a buy rating and $2.45 price target on its shares.

The post Analysts expect 4% to 6% dividend yields from these ASX stocks appeared first on The Motley Fool Australia.

More reading

• Forget savings accounts, these ASX dividend stocks pay more
• I’d buy this ASX dividend stock in any market
• These ASX 200 shares rocketed 10%+ higher in November
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pilbara Minerals Ltd (ASX: PLS) shares are trading in the red on Thursday afternoon. At the time of writing the lithium producer’s share price is down 4.5% to $3.72 a piece. It’s not done much to dent the surging stock’s latest price rally though. Over the past month the shares have jumped 20.62%. They’re now an impressive 209.17% higher than just 6 months ago.

What’s happened to the Pilbara Minerals share price?

Pilbara Minerals shares have been on the rise since June, and they’ve been climbing pretty steadily too. Improved lithium market sentiment and demand has primarily been driven by a surge in interest in electric vehicles (EV) and battery energy storage. Global EV sales have been rising faster than carmakers can keep up! And demand for grid-scale energy storage to stabilise renewable energy is also booming.

It’s not just the lithium demand and strong prices pushing the producer’s share price higher though. Its business has also strengthened substantially over the past year, positioning the company as a major producer in the market. 

In its September quarter update, Pilbara Minerals posted a 2% increase in spodumene production and a 20% increase in realised pricing. This resulted in an exceptional 30% rise in revenue to $251 million.

Pilbara Minerals is also the 100% owner-operator of relatively low-cost, long-life spodumene mines. The company has a strong net cash balance sheet, which gives it more flexibility and a competitive edge over some of its peers.

Is there any more upside ahead?

The rally for lithium demand has exploded this year, and while there are concerns that some lithium producer’s shares have now peaked, I don’t think this is the case for Pilbara Minerals.

The stock has made headlines recently for being one of the most-traded shares last week, albeit the majority was selling activity. This also supports claims it is also one of the 10 most-shorted shares on the ASX.

Data shows that analysts are divided on the stock, with most having hold or buy ratings on the stock. Out of 20 analysts, 9 have a hold rating and 6 have a strong buy rating on Pilbara Minerals shares. The average target price is $3.11, however some think the share price could rise as high as $4.40 over the next 12 months. At the time of writing that represents anything from a potential 16.41% downside to an 18.28% upside. 

The post Up over 200% in 6 months: Are Pilbara Minerals shares still a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.