Tag: Stock pick

Successful long-term investing is all about staying exposed to high-quality businesses over time.

For investors with a multi-year horizon, ASX exchange traded funds (ETFs) can be powerful tools.

They offer diversification, reduce single-stock risk, and make it easier to stay invested through market cycles. The key is choosing ETFs that are built to compound rather than chase short-term trends.

With that in mind, here are three ASX ETFs that stand out for long-term investors.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

The first ETF that could be a top long-term option is the VanEck Morningstar Wide Moat AUD ETF. It is designed around one simple idea: owning businesses that are hard to compete with.

This ASX ETF invests in US stocks that are judged to have sustainable competitive advantages, such as strong brands, high switching costs, or dominant market positions. Just as importantly, it targets these companies when they are trading at attractive prices.

For long-term investors, this approach encourages patience and discipline. Rather than constantly rotating into what is fashionable, the VanEck Morningstar Wide Moat AUD ETF focuses on quality businesses that can defend profits over many years. That combination of competitive strength and valuation support makes it well suited to long-term ownership.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is another ASX ETF that could be a good option for long-term investors. It offers exposure to the backbone of global equity markets.

This ETF tracks the S&P 500 Index, which includes many of the world’s largest and most profitable companies. Over long periods, this group of businesses has demonstrated a strong ability to adapt, innovate, and grow earnings.

For long-term investors, the iShares S&P 500 ETF provides scale and simplicity. It is not reliant on any single sector or trend, yet it still captures global innovation through established market leaders. Holding this fund allows investors to participate in global growth without needing to predict which individual company will outperform next.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Finally, the Betashares Global Quality Leaders ETF could be worth considering for a buy and hold investment. It takes a more selective approach to global investing.

This ASX ETF focuses on stocks that score highly in certain quality metrics. This includes returns on equity, balance sheet strength, and earnings stability. These characteristics often point to businesses with strong management, pricing power, and resilient business models.

For long-term investors, the Betashares Global Quality Leaders ETF offers a smoother way to access global markets. By prioritising quality metrics, it aims to reduce exposure to weaker balance sheets and more volatile earnings profiles. This is never a bad idea when making long-term investments.

The team at Betashares recently recommended the fund to investors.

The post The best ASX ETFs for long-term investors appeared first on The Motley Fool Australia.

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• Why Aussies are pouring into ASX ETFs at a record pace
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• Own MNRS or ARMR ETFs? Here’s why it’s a big day for you
• The best ASX ETFs to buy for an SMSF

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of ASX shares out there for investors to choose from.

To narrow things down, let’s take a look at three popular shares and see what Morgans is saying about them.

Are they buys, holds, or sells? Let’s find out:

Northern Star Resources Ltd (ASX: NST)

This gold miner has been given a hold rating and $26.00 price target by Morgans. While it is a fan of Northern Star, it hasn’t been impressed with its recent performance.

And with potentially more challenges to come, it thinks investors are better off sitting on the sidelines for the time being. The broker said:

NST has revised FY26 guidance lower after another soft sales quarter, cutting the midpoint ~8% to 1,650koz (from 1,775koz). The downgrade reflects ongoing operational challenges across all hubs, including grade, throughput and utilisation constraints. This marks the second guidance miss in as many years. While we remain constructive on NST’s long-term growth pathway, we are adopting a more cautious (previously bullish) short-to-midterm production outlook, maintained until delivery consistency improves.

We now forecast FY26 sales of 1,589koz (-9%), marginally below updated guidance (1,600–1,700koz). We lift our AISC to A$2,770/oz, reducing forecast EBITDA and EPS by 16% and 22% respectively. Rating revised to HOLD, price target A$26.00ps (previously A$27.41ps). The downgrade partly offset by our higher spot scenario of US$3,500/oz (from US$3,250/oz).

Pro Medicus Ltd (ASX: PME)

This health imaging technology company’s shares have been hammered due to the tech selloff.

Morgans thinks that this could be an opportunity to start accumulating shares and sees fair value at $290.00.

Commenting on the ASX share, the broker said:

PME’s share price has continued to decline since our last update, despite stable fundamentals and a consistent outlook. This decrease appears to be due to a broader market shift away from high-growth stocks, as there have been no major new contracts or company-specific changes for PME since our previous report. Business quality remains solid with high margins, long-term contracted revenues, and a growing contract book which underpins the demand and safety in the financial profile over the coming years.

No change to valuation (A$290 p/s) and longstanding positive outlook, just a better entry point. Upgrade to an ACCUMULATE recommendation, with the view that current prices represent a reasonable opportunity for partial positions, noting ongoing volatility in the name could still yet present further downside.

Web Travel Group Ltd (ASX: WEB)

Another ASX share that Morgans thinks investors should accumulate is WebBeds owner Web Travel. It has a price target of $5.20 on its shares, which is around 11% higher than current levels.

Morgans was pleased with its recent trading update and highlights its undemanding valuation. It said:

While WEB reported strong top line growth, this did not translate into strong NPATA growth (fell 7.4% on the pcp). However, cashflow was stronger than expected and the balance sheet is in a strong net cash position. Pleasingly, WEB’s trading update was stronger than expected and top line growth has accelerated. FY26 guidance was slightly stronger than expected and we have upgraded our forecasts.

WEB’s outlook comments for FY27 were also upbeat. With 19% [now 11%] upside to A$5.20 price target and trading on undemanding fundamentals, we upgrade to an Accumulate recommendation.

The post Buy, hold, sell: Northern Star, Pro Medicus, and Web Travel shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 2 undervalued ASX shares worth buying today
• 3 ASX 200 shares I’d load up on if markets crashed tomorrow
• Northern Star shares hit record high on cost guidance update
• Northern Star Resources revises FY26 cost guidance after lower gold sales

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

The Australian share market has historically provided investors with an average annual return in the region of 10%.

Not all shares rise in line with the market. Some underperform and some outperform. And then sometimes there are ASX shares that go even further and not just double in value, but more than triple in value.

Three ASX shares that have accomplished this over the past 12 months are listed below. Here’s why they have smashed the market:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up an incredible 670% since this time last year. This has been driven by the medical technology company gaining US FDA approval for its non-contrast computed tomography (CT) ventilation and perfusion imaging solution, CT:VQ.

In addition, it revealed a significant expansion of its distribution agreement with Koninklijke Philips (NYSE: PHG) and announced several contract wins with healthcare institutions. The company has even managed to raise $150 million via an institutional placement during this time. That would have been unthinkable 12 months ago when its market capitalisation was a fraction of what it is today.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 530% over the past 12 months.

Investors have been scrambling to buy this counterdrone technology company’s shares after it won a series of lucrative contracts. This includes a $49.6 million contract from an in-region European reseller that is contractually required to distribute the products to a European military end-customer.

In addition, with Western nations committing to large increases in defence spending, geopolitical tensions rising, and favourable changes to modern warfare, investors appear to believe that the contracts could continue to roll in for DroneShield this year.

Liontown Ltd (ASX: LTR)

The Liontown share price is up 204% since this time last year. Investors have been buying the lithium miner’s shares after the price of the battery making ingredient rebounded strongly.

A year ago, Liontown was operating with unit costs that were barely breaking even. However, this looks likely to be very different in 2026 with prices surging and costs coming down thanks to its underground mining.

The company’s CEO, Tony Ottaviano, said: “We’ve laid the foundations through FY25 and the early part of FY26. The focus from here is on continued execution, cost discipline, and unlocking the full performance of the Kathleen Valley operation.”

The post Why 4DMedical and these ASX shares are up 200%+ in just a year appeared first on The Motley Fool Australia.

More reading

• 4DMedical shares crash 20% this week: Should investors cut their losses on the once-booming stock?
• These 2 ASX All Ords shares tripled in value last year. Can they keep going?
• Here are the top 10 ASX 200 shares today
• Should you buy DroneShield, Westpac, and BHP shares?
• Why 4DMedical, ARB, Inghams, and Qoria shares are tumbling today

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 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.

BHP Group Ltd (ASX: BHP) shares are trading in the green on Wednesday afternoon. At the time of writing, the shares are up 1.38% at $48.44 a piece.

The mining giant has had a great start to the year, up 5.86% already in 2026. The share price stormed higher through December last year, too, and is now 19.29% higher than where it was trading this time last year.

What has driven BHP shares higher?

Copper futures rocketed higher into early 2026 and reached record-high levels. Copper futures rocketed past US$6/lbs to an all-time high in early January, extending the huge rally seen throughout December. 

For context, on the 1st of December, Copper was US$5.09/lbs, and it eased to around US$5.87 yesterday.

Copper is a key material for the global energy transition, is used in electric vehicles, and is a critical component in AI data centres. And as the world’s largest copper producer, BHP has certainly benefited from the surge in copper prices.

At the same time, the mining giant has reported some strong production figures over the past year, meaning it is well placed to absorb some of that extra demand.

4 reasons why I think the shares are a must-buy

1. Production is growing

BHP upgraded its copper production guidance yesterday. Its production guidance has increased for group copper, Escondida, and Antamina. But NSWEC and Samarco are also now guiding to the upper half of their ranges, and BMA is now guiding to the lower half due to ongoing geotechnical challenges at Broadmeadow.

2. The company is expanding

The latest update follows an announcement in December that it has struck up a new US$2 billion infrastructure agreement with Global Infrastructure Partners (GIP), an investment group owned by BlackRock, to own and control 51% of the project due for completion by the end of FY26, subject to approvals. This latest agreement is part of BHP’s plan to drive growth through its capital products, strategic acquisitions, and asset development.

3. The business is diverse

BHP is a highly diverse business. While the focus is on copper right now, the mining giant also produces iron ore, nickel, metallurgical coal, and potash. It also produces gold, silver, and uranium at some sites.

This diversity means BHP’s share price is not solely reliant on the trajectory of one commodity.

4. It offers passive income

The miner offers a great passive income for investors who need reliable cash flow. 

BHP shares have delivered two fully franked dividends a year for over a decade. The payouts peaked at record levels in 2021 and 2022 when iron ore prices surged above US$200 per tonne, pushing BHP’s revenue and profit margins sky-high.

Over the past 12 months, BHP paid an interim dividend of 79.1 cents per share on 27 March and a final dividend of 91.9 cents per share on 25 September, both fully franked. That’s a full-year passive income payout of $1.71 per share.

The post 4 reasons why I think BHP shares are a must-buy for 2026 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 5 ASX shares I’d buy with $5,000 this week
• Why this fund manager is buying BHP shares
• Should you buy DroneShield, Westpac, and BHP shares?
• BHP shares rise on solid half and copper upgrade

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

HUB24 Ltd (ASX: HUB) has been a top ASX performer, with its share price up an extraordinary 286% over the past five years.

That kind of run is enviable, but the valuation inevitably raises eyebrows as the stock now trades at around 100x trailing earnings. So why are investors still willing to pay up?

Growth at scale (and still accelerating)

The most obvious reason is growth, which continues to surprise to the upside.

HUB24’s latest quarterly update shows that it is scaling rapidly across its platform and technology businesses, with its platform funds under administration increasing 29% from a year ago.

Importantly, this growth is occurring at a meaningful scale with platform funds under administration now exceeding $127 billion.

This sort of growth at scale for a tech platform can lead to strong profitability, and investors are willing to pay for that growth.

While the headline multiple looks extreme, on a one-year forward basis, the valuation falls to roughly 68x earnings. That’s still expensive, but it reflects expectations that earnings will continue to compound strongly rather than plateau.

Structural industry tailwinds

HUB24 also benefits from powerful industry tailwinds.

Australia’s wealth industry is undergoing long-term structural change: advisers are consolidating platforms, regulatory complexity is rising, and technology is becoming essential to productivity. The shift toward fewer, higher-quality platforms favours established players with scale and deep integrations.

HUB24 has positioned itself as a premium, adviser-aligned platform at exactly the right time. It’s a powerful narrative for investors who don’t want to swim against the tide and would rather have their investments powered by strong industry tailwinds.

High margins and operating leverage

Another key part of the valuation story is profit margins.

According to HUB24’s strategy deck released in late November 2025, group revenue has grown at a 4-year CAGR of 38%, while underlying EBITDA has grown at 46% and underlying net profit after tax at 61% over the same period. That gap highlights the business’ operating leverage.

As revenue scales, a growing share of it drops through to profit. Platform EBITDA margins have also expanded steadily, supported by recurring revenue and a cost base that doesn’t rise linearly with funds under administration.

With roughly $400m of revenue and almost $100m of underlying net profit, profit margins are high, and this combination of strong growth and expanding margins is exactly what supports premium valuation multiples.

An emerging oligopoly

Finally, investors increasingly view HUB24 as part of a small group of long-term winners, alongside peers like Netwealth Group Ltd (ASX: NWL).

Platform businesses tend to become oligopolistic over time. Scale attracts advisers, advisers attract flows, and flows justify further investment in technology, thereby reinforcing the competitive moat. Once established, these advantages can be difficult for smaller competitors to overcome until the next big shift occurs.

The risks of paying up

For all of HUB24’s desirable traits, none of them completely insulates the risks for investors.

A 100x earnings multiple leaves little room for disappointment, and sharp drawdowns are to be expected, particularly during market volatility or if growth slows. Even great businesses can see their share prices fall when expectations reset.

Foolish bottom line

HUB24’s valuation reflects more than just hype. Investors are paying for growth at scale, structural tailwinds, high margins, and a belief that the company is helping shape a concentrated platform market.

That doesn’t make the shares low-risk, but it does help explain why, even after a 286% rise in five years, the market is still willing to pay a premium.

The post Up 286% in 5 years, why are investors paying 100x earnings for HUB24 shares? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 3 underappreciated ASX growth shares I would buy with $1,000
• Why this incredible ASX 200 stock could rise almost 25%
• Here are the top 10 ASX 200 shares today
• Why Bellevue Gold, DroneShield, Hub24, and Telix shares are storming higher today

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

ARB Corporation Ltd (ASX: ARB)

According to a note out of Macquarie, its analysts have retained their outperform rating on this 4×4 automotive parts company’s shares with a trimmed price target of $35.80. This follows the release of a half year update which revealed underlying profits well short of expectations. This was driven by weaker than expected margins. In addition, export sales were softer than the broker was expecting during the half. Nevertheless, Macquarie thinks its shares offer value for money following recent weakness and reaffirms its outperform rating. The ARB share price is trading at $27.38 on Wednesday afternoon.

BHP Group Ltd (ASX: BHP)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $56.50 price target on this mining giant’s shares. The broker was pleased with the Big Australian’s performance during the second quarter. This was particularly the case with its iron ore operations, which outperformed expectations. In addition, it was pleased to see its copper operations deliver production ahead of forecasts, largely due to the key Escondida mine. All in all, Morgan Stanley has seen nothing to change its positive view of the stock. The BHP share price is fetching $48.31 at the time of writing.

Hub24 Ltd (ASX: HUB)

Analysts at Bell Potter have retained their buy rating and $125.00 price target on this investment platform provider’s shares. According to the note, the broker was impressed with the company’s performance during the second quarter. It highlights that it achieved the highest quarterly inflow on record. In addition, it points out that management provided similarly positive comments around its pipeline. Bell Potter backs this up, noting that its own channel checks indicate that Hub24 continues to rank first for future flow intentions. In light of this and with the current forward multiple around average levels, the broker sees value in Hub24’s shares at these levels. The Hub24 share price is trading at $101.39 today.

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

More reading

• Up 286% in 5 years, why are investors paying 100x earnings for HUB24 shares?
• 3 underappreciated ASX growth shares I would buy with $1,000
• Why this incredible ASX 200 stock could rise almost 25%
• Should you buy the dip on these ASX 200 stocks?
• 5 ASX shares I’d buy with $5,000 this week

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 ARB Corporation, Hub24, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended ARB Corporation, BHP Group, and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Servcorp Ltd (ASX: SRV) are rocketing higher today, up 8.18% to $7.67 after the company delivered an upgrade to its FY26 outlook.

The global serviced offices provider released fresh guidance this afternoon, shedding light on how the business is tracking as FY26 progresses. Recent share price behaviour and shareholder activity are providing additional context.

Let’s take a closer look at the release.

FY26 guidance upgraded

In an ASX announcement released today, Servcorp lifted its FY26 outlook across all key metrics.

Underlying NPBT is now expected to be between $80 million and $84 million, up from previous guidance of $72 million to $76 million. Underlying free cash flow guidance was also upgraded to no less than $100 million, compared with prior guidance of at least $90 million.

Importantly for income investors, Servcorp said its dividend is not expected to be below 32 cents per share, up from a previous floor of 30 cents.

Management attributed the upgrade to strong operating momentum, improved occupancy, pricing discipline, and leverage from mature locations. Cost control and better cash conversion across the global portfolio also played a role.

The company now enters the year with a strong balance sheet, high cash levels, and no debt.

Insider buying sends a strong signal

One of the more notable developments over the past year has been the level of insider buying at Servcorp.

Founder, CEO, and Executive Chairman, Mr Alfred George Moufarrige, has been a consistent buyer of Servcorp shares. According to disclosed director transactions, he has purchased well over 400,000 shares across multiple transactions in 2025, with several large off-market buys around the $7 level.

While insider buying is never a guarantee of future performance, sustained buying by a founder-led CEO is often interpreted as a strong vote of confidence in the company’s outlook and valuation.

Dividend appeal and technical picture

At the current share price, Servcorp offers a trailing dividend yield of around 4%, fully franked. With free cash flow guidance upgraded and a payout ratio near 50%, the dividend appears well supported.

From a technical perspective, Servcorp shares remain in a broader uptrend. The stock is trading above its 200-day moving average, with support forming around $6.80 to $7. Resistance remains near the recent highs around $7.40.

Foolish Takeaway

Servcorp may not be the most exciting stock on the ASX, but steady earnings, rising cash flow, a solid dividend, and insider buying make it one to watch.

With upgraded guidance now in place and a strong balance sheet underpinning returns, the company appears well-positioned to deliver reliable income while continuing to compound value over time.

The post Servcorp upgrades guidance, insiders keep buying. Is this ASX dividend stock quietly setting up? appeared first on The Motley Fool Australia.

More reading

• Up 286% in 5 years, why are investors paying 100x earnings for HUB24 shares?
• Top brokers name 3 ASX shares to buy today
• Why is this gold miner’s share price heading higher today?
• A 3.5% ASX dividend stock paying cash every month
• Up 300% since August, why this surging ASX gold stock could keep racing higher

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

Shares in St Barbara Ltd (ASX: SBM) have traded more than 5% higher after the company published a positive prefeasibility study for its 15-Mile processing hub.

The gold miner said in a statement to the ASX that the study “confirms outstanding project economics and optimal environmental and social outcomes”.

It added that the project had a post-tax payback period of less than one year, using a gold price of US$3000 per ounce, and would generate post-tax cash flow over the life of the mine of $2 billion.

The current gold price is sitting well above the figure used for the company’s calculations, with the precious metal currently changing hands for US$4835.45 per ounce.

Long life mining project

St Barbara said the project would have a stable production profile of more than 100,000 ounces of gold per year over more than 11 years, which did not include any potential upside from exploration in the region.

The project would cost about $308 million to build, and would have an all-in sustaining cost of production of US$1188 per ounce, “underpinned by fundamentals of low open pit strip ratios, strong recoveries from conventional free milling ores, proven operating experience from Touquoy and costs shared across three mining areas”.

Touquoy refers to the company’s existing mine, where open-cut mining is proposed to restart soon.

St Barbara said the 15-Mile development was expected to be funded from cash flow from the New Simberi gold project in Papua New Guinea and Touquoy once it had restarted.

The company said further re the project:

The project includes three operating locations, with all ore processing and tailings management occurring at 15-Mile, while Beaver Dam and Cochrane Hill are to operate as satellite mines. The prefeasibility study design leverages the existing Touquoy processing plant equipment. The proposed Touquoy restart would have no adverse impact on the 15-Mile Processing Hub Project development timeline as the remnant surface ore stockpiles are anticipated to be processed before relocation of the Touquoy processing plant to 15-Mile.

St Barbara Managing Director Andrew Strelein said the prefeasibility study showed 15-Mile had “outstanding” economics.

The completion of the prefeasibility study is a key milestone as we continue to de-risk the project. St Barbara is well-positioned to take the project to environmental and social impact assessment processes over FY26 and in parallel with the feasibility study.

Shares in St Barbara have tripled over the past 12 months, up from 19.2 cents to 61.5 cents on Wednesday, up 4.2% on the day.

The company was valued at $713.8 million at the close of trade on Tuesday.

The post Why is this gold miner’s share price heading higher today? appeared first on The Motley Fool Australia.

More reading

• Why Clarity, DroneShield, St Barbara, and Treasury Wine shares are charging higher today

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.

Over the past few months, we’ve been looking at the dividend stocks on the ASX that pay out income every single month.

Monthly dividend payers are a rare breed in Australia. Biannual dividend shares that fork out two payments per year are the norm, while quarterly dividend stocks are less common. But there are only a handful of monthly dividend payers. Let’s talk about another one that has only joined the ASX recently.

That monthly dividend payer is WAM Income Maximiser Ltd (ASX: WMX).

WAM Income Maximiser is a listed investment company (LIC) run by the LIC-focused Wilson Asset Management (WAM). It began ASX life in May last year, debuting at $1.50 a share. The company is currently up 8% from that IPO price at $162 at the time of writing.

Like most LICs, WAM Income Maximiser invests in an underlying portfolio of assets that it manages on behalf of its investors. In this case, that portfolio consists of both ASX shares and corporate debt instruments. The ASX shares are mostly blue-chip dividend stocks, including (as of the latest data) BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), Woolworths Group Ltd (ASX: WOW), Medibank Private Ltd (ASX: MPL), and Macquarie Group Ltd (ASX: MQG). This portion of WAM Income Maximiser’s assets accounts for about 73.3% of the entire portfolio.

The corporate debt component makes up another 26.7% of the portfolio. 54% of the debt is classified as either A- or AAA-rated debt, with 28% rated at BBB and the last 18% consisting of hybrid assets.

Together, these shares and debt assets provide WAM Income Maximiser with investment income, which it passes through to investors as fully-franked dividends.

How much monthly income does this ASX dividend stock pay out?

WAM Income Maximiser paid out its first dividend in August last year and has paid a monthly dividend ever since. As we haven’t yet had a full 12 months of income, we cannot come to an accurate annual dividend yield figure as of yet. But we’ll attempt some creative accounting regardless.

WAM Income Maximiser’s first dividend, paid out on 29 August 2025, came to 0.2 cents per share. Each month, the LIC has increased its payouts by 0.5 cents. Investors bagged 0.25 cents per share in September, 0.3 cents in October, and so on. The company has provided guidance that its January dividend (set for payment on 30 January) will be worth 0.45 cents per share. That will be followed by a 0.5-cent per share payout in February and a 0.55-cent dividend in March.

There are two potential paths we can anticipate here. Assuming WAM Income Maximiser continues on its past trajectory, the company could pay a 0.6-cent-per-share dividend in April, 0.65 cents in May, and so on. Once August rolls around, investors will have received a total of 5.7 cents per share in dividends. That would result in the company trading at a dividend yield of 3.52% today.

More conservatively, we can take an average of the dividends WAM Income Maximiser has already paid out and apply that to the next few dividends. That average is 0.38 cents per share, which, if applied ot the current share price, would give this monthly dividend stock a yield of 2.79% today.

Would I buy this monthly ASX dividend stock?

Monthly dividend payers have a certain (and understandable) appeal amongst ASX investors. However, I wouldn’t be buying this particular one. For one, WAM Income Maximiser hasn’t gotten off to a great start, underperforming the S&P/ASX 200 Index (ASX: XJO) since its inception. Sure, a period of less than 12 months is arguably not enough time to rule out a stock for performance reasons. But this is not my only concern.

Wilson Asset Management has a patchy track record when it comes to the performance of its LICs. We’ve looked at the underwhelming return that its flagship WAM Capital Ltd (ASX: WAM) has delivered before. WAM Capital has been a disappointing investment for a long time now, with its shares currently down 18.8% over the past five years. WAM Research Ltd (ASX: WAX) has lost 22.1% over that same period, while WAM Global Ltd (ASX: WGB) shares have lost 0.4%.

Before WAM Income Maximiser’s debut, Wilson Asset Management launched WAM Strategic Value Ltd (ASX: WAR) in 2021. This LIC is down almost 16% from its 2021 debut at today’s pricing.

WAM Income Maximiser also charges a relatively expensive fee. Investors pay 0.88% per annum to have their money in this LIC. Additionally, they are slugged an additional 20% performance fee if the fund outperforms a benchmark. That benchmark is calculated using 60% of the S&P/ASX 300 Accumulation Index and 40% of the Bloomberg AusBond Bank Bill Index. That means that WAM Income Maximiser can underperform the broader Australian stock market and still collect a performance bonus from its shareholders.

Foolish takeaway

Weighing all of this up, I would prefer to invest in cheaper monthly ASX dividend stocks that don’t charge performance fees like WAM Income Maximiser. Two of my favourite monthly payers are Plato Income Maximiser Ltd (ASX: PL8) and the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD). Both offer monthly payouts but with far lower fees. Over time, this factor alone will probably make a significant difference for investors.

The post A 3.5% ASX dividend stock paying cash every month appeared first on The Motley Fool Australia.

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• Own MNRS or ARMR ETFs? Here’s why it’s a big day for you
• A monthly income ETF I like more than BHP shares
• The perfect retirement stock with a 4.4% payout each month
• This 4.6% dividend stock sends cash to investors every single month

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

ASX gold stock Titan Minerals Ltd (ASX: TTM) has been on a tear since plumbing one-year lows in August.

How much of a tear?

Well, on 5 August, you could have bought shares at the closing price of 29 cents.

In afternoon trade today, Titan Mineral shares are up 1.8% trading for $1.16 each. That sees the ASX gold stock up a blistering 300% in just over five months.

Or enough to turn an $8,000 investment into $32,000.

Atop from enjoying a surging gold price (gold is currently trading for US$4,824 per ounce), Titan Minerals has also impressed investors with strong results from its ongoing exploratory drilling campaign at its Dynasty Gold Project, located in Ecuador.

And it’s with these results in mind that the team at Euroz Hartleys believe Titan Minerals shares can keep leaping higher in 2026.

ASX gold stock expanding its footprint

Titan Minerals shares closed up 15.4% on 14 January after the ASX gold stock reported on “exceptional wide, high-grade results” from infill drilling at the Cerro Verde prospect, situated within Dynasty.

“Our infill drilling has highlighted the quality and remarkable predictability of the Dynasty gold orebody, with latest results set to support resource classification upgrades and a robust MRE update suitable for feasibility studies,” Titan Minerals CEO Melanie Leighton said on the day.

Having pored over those results, Euroz Hartleys analyst Mike Milligan said:

Latest resource infill and extensional drilling results from Titan’s 100%-owned Dynasty Gold Project continues to support an upgrade in resource classifications and growth ahead of the late Q1CY26 resource update… Recent drilling from the Brecha-Comanche target, Cerro Verde has delivered wide, high-grade vein-hosted mineralisation with significant results.

And Euroz Hartleys expects the ASX gold stock is poised to deliver a significant resource upgrade this year.

Milligan said:

Dynasty has a current resource of 43.5Mt @ 2.2g/t Au & 15.7g/t Ag for 3.1Moz gold and 22Moz silver, of which Cerro Verde contains over 60% or 1.9Moz gold & 12Moz silver, which is clearly set to increase.

We continue to see potential for gold equivalent resource growth towards 4Moz AuEq [gold equivalent], which could be significantly higher if the bulk tonnage porphyry mineralisation extends as anticipated.

Titan Minerals shares could also get further support amid merger and acquisition interest.

Milligan noted:

While key de-risking milestones such as feasibility studies remain ahead, TTM has confirmed a substantial resource base and is attracting strong M&A interest, reinforcing its value proposition.

Connecting the dots, Euroz Hartleys maintained its speculative buy rating on Titan Minerals with an increased price target of $1.70 a share.

That represents a potential upside of 46.6% from current levels.

The post Up 300% since August, why this surging ASX gold stock could keep racing higher appeared first on The Motley Fool Australia.

More reading

• 5 of the hottest ASX metals and mining shares right now
• Titan Minerals shares leaping 14% on Wednesday on ‘spectacular’ gold results

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.