Tag: Stock pick

Telstra Group Ltd (ASX: TLS) shares may not be the most popular holding by retirees, but I think they’re a great choice for a number of reasons.

For starters, the ASX telco share isn’t operating in an ultra-competitive sector like banking, nor is its profits linked to a volatile commodity price. I believe the outlook for good earnings growth is positive and the possibility of good dividends is even stronger.

Let’s take a look at what makes the business so appealing.

Appealing earnings profile

Retirees may be tricked into thinking that a high dividend yield is always an attractive thing. But, there’s sometimes a danger that the profit of a business could go backwards significantly, hurting both the share price and the payout potential.

Telstra went through a rough patch several years ago as the NBN took control of the cable infrastructure, substantially hurting the company’s profit margins on broadband customers.

However, now that the transition has finished, Telstra’s earnings look much more defensive, and there’s growth too. Households and businesses seem to place a high importance on having an internet connection, giving Telstra resilient earnings.

The company is regularly winning new subscribers and achieving a higher level of revenue from each of its customers, helping profit margins due to the operating leverage as it spreads the costs of its network across more users.

In FY25, underlying earnings per share (EPS) grew 3.2% and the cash EPS jumped 12%.

As the country becomes more connected with more devices, I expect Telstra’s earnings can noticeably rise in the coming years.

Large dividend yield

Receiving cash into the bank account with dividends is probably a key focus for retirees, and it’s one of the important ways that owners of Telstra shares are being rewarded.

Telstra grew its annual dividend per share in FY22, FY23, FY24, and FY25.

The 2025 financial year saw the company pay an annual dividend of 19 cents per share. That equates to a grossed-up dividend yield of 5.5%, including franking credits. That’s not the biggest yield on the ASX, but combine that with further growth in the coming years, and it’s a great starting point.

Predictions for more passive income growth

If the company is able to grow its profits, then the payouts could continue to rise as well.

Telstra’s earnings are projected to continue rising, and the dividend could become much larger.

The broker UBS is projecting Telstra could pay an annual dividend per share of 21 cents in FY26, which would be a grossed-up dividend yield of 6.1%.

UBS forecasts the annual dividend per share could rise in every subsequent year until it reaches 30 cents in FY30. That’d be a grossed-up dividend yield of 8.7%, including franking credits. I think it’s a very appealing choice for retirees.

The post Why Telstra shares are a retiree’s dream appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX dividend shares to buy in December
• Forget term deposits and buy these ASX dividend shares
• 5 best Australian dividend stocks to buy in December
• These are the top ASX blue-chip shares I’d buy today
• 3 reasons Telstra shares are a screaming buy right now!

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

Vulcan Energy Resources Ltd (ASX: VUL) shares have returned from their trading halt on Thursday with a thud.

In morning trade, the lithium developer’s shares are down 33% to $4.11.

Why are Vulcan shares crashing?

Investors have been selling the company’s shares today after it completed a major capital raising.

According to the release, Vulcan has successfully completed its fully underwritten institutional placement and fully underwritten institutional entitlement offer.

The institutional offer raised 398 million euros (A$710 million) from the issue of ~178 million new shares at $4.00 per new share. This represents a sizeable 34.7% discount to its last close price.

The company notes that the institutional offer received strong support, with existing eligible institutional shareholders subscribing for approximately 23.2 million new shares. In addition, a number of new local and global institutions took part in the offer.

The proceeds from the offer will be applied to the Phase One Lionheart development.

Vulcan’s managing director and CEO, Cris Moreno, commented:

We would like to thank our existing shareholders for their continued support and welcome our new shareholders onto the register, including strategic investors. “The Placement will enable Vulcan to transition from development phase into execution phase with project execution of Project Lionheart due to commence in the coming days.

This is a lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. We look forward to providing further updates to our shareholders on the start of construction activities.

Finance package

Today’s institutional placement and entitlement offer complement the major finance package that Vulcan announced on Wednesday following the board’s positive final investment decision (FID) on the project.

It revealed a financing package, inclusive of its capital raising, worth approximately 2,200 million euros (A$3,929 million).

The bulk of this comes from a 1,185 million euros (A$2,116 million) senior debt funding package by a syndicate of 13 financial institutions. This comprises the European Investment Bank, five export credit agencies, and seven commercial banks.

There are also German government grants totalling 204 million euros (A$364 million) and a 133 million euros (A$238 million) investment from a consortium for a 15% equity interest in the Phase One Lionheart Project.

CEO Cris Moreno commented:

Securing this financing package and taking a positive FID is a significant achievement in the history of Vulcan Energy. It will allow the Company to transition from development phase into execution phase with the construction of the commercial scale supply chain for Lionheart.

A lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany’s Upper Rhine Valley.

The post Why are Vulcan Energy shares crashing 33% today? appeared first on The Motley Fool Australia.

More reading

• Gina Rinehart-backed Vulcan Energy Resources pulls trigger on European lithium project
• Why is this ASX lithium stock sinking 7% 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 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 copper price hit new all-time highs on Wednesday, with trading on the London Metal Exchange seeing copper futures climb above $11,400 per tonne for the very first time.

Overall, the global benchmark copper price in London has now increased by more than 30% since the start of the year.

For context, the All Ordinaries Index (ASX: XAO) is up by about 5% across the same period.

And copper could also be an attractive investment in 2026, according to Jun Bei Liu, founder and lead portfolio manager at Sydney-based hedge fund Ten Cap.

Critical metal

Copper is one of the most important metals of the modern-day world.

It boasts mass industrial applications thanks to its ductility, malleability, resistance to corrosion, and its thermal and electrical conductivity.

Such properties make the metal a key ingredient in a wide array of applications, including construction, power grids, transportation, and consumer electronics.

And as the world electrifies, its strategic value is growing.

For example, electric vehicles use roughly four times more copper than traditional cars, and AI data centres rely heavily on the metal for power distribution and cooling.

Some of the world’s biggest mining companies have also been growing their exposure to the metal in recent years.

These include ASX 200 mining heavyweights BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

And some analysts are also predicting a bright future for the metal.

Expert viewpoint

As reported in the Australian Financial Review, Jun Bei Liu believes that the structural demand for copper makes the metal one of the market’s most compelling trades for next year.

In particular, she cited the global energy transition as a key catalyst:

It’s almost like copper is the tech of the resources [sector] – the exciting part…

The demand needed for the energy transition is increasingly interesting. And should there be any sell-off, you’ve certainly seen a lot of support for copper and copper equities.

Curiously, Liu noted that she favours mid-cap ASX 200 mining stocks with an exclusive focus on copper over the diversified mining giants.

Here, she pointed to Capstone Copper Corp CDI (ASX: CSC) and Sandfire Resources Ltd (ASX: SFR), with the duo in the “sweet spot”, given their correlation to rising copper prices.

Two ASX 200 pure-play copper miners

Sandfire is a copper-focused mining stock with two producing assets.

In FY25, it churned out 94,000 tonnes of copper equivalent from its MATSA operations in Spain.

It added another 58,000 tonnes equivalent from its Motheo mine in Botswana.

Sandfire shares have jumped by 76% since the start of the year to $16.34 at Wednesday’s close.

Meanwhile, Capstone is a Canadian-based copper miner with several producing assets in the Americas.

In 2025, the company is targeting output of between 220,000 and 255,000 tonnes of copper.

Since early January, its share price has increased by 30% to $13.19 per share at yesterday’s close.

Rio Tinto or BHP shares?

Out of the two biggest ASX 200 mining stocks, Liu said she preferred Rio Tinto ahead of BHP shares.

Here, she believes that Rio Tinto offers a more attractive valuation and fewer strategic risks.

Since the start of the year, shares in Rio Tinto have lifted by 14% to reach $135.28 per share.

In comparison, BHP shares have risen by 7.5% during the same period to $42.96 apiece at the close of trading on Wednesday.

The post Rio Tinto or BHP shares? Expert says which stock to buy as copper price smashes record appeared first on The Motley Fool Australia.

More reading

• Why has a UK takeover bid lit a fire under this copper prospector’s share price?
• 3 ASX dividend shares to buy for a passive income stream
• Rio Tinto versus BHP shares: One I’d buy and one I’d sell
• With copper increasingly in demand, what are the Aussie stocks Wilsons Advisory is tipping to be winners?
• What happened with BHP, Rio Tinto and Fortescue shares in November?

Motley Fool contributor Bart Bogacz 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.

The drawn-out takeover saga involving Mayne Pharma Group Ltd (ASX: MYX) appears to be drawing to a close, with the company saying it will move to strike out the agreement.

US company Cosette Pharmaceuticals Inc launched a $7.40 per share takeover bid for Mayne in February, with the offer a 37% premium to the Mayne share price at the time.

Cosette’s doubt emerge

But Cosette later tried to back out of the deal, arguing that there were a number of factors that constituted a “material adverse change” with regard to Mayne’s business, including a trading update in April and certain correspondence with the US Food & Drug Administration (FDA).

Mayne, at the time, denied that the arguments put forward by Cosette constituted a material adverse change as defined in the scheme implementation deed for the deal and stated that the company would challenge Cosette’s right to withdraw.

As Mayne Pharma said in a statement to the ASX in May:

Mayne Pharma maintains its position that all information relevant to the financial position of Mayne Pharma has been disclosed to the market in the earnings announcement released on 22 April and that there is now new information required to be disclosed in light of the contents of the Cosette notice.

Mayne took the matter to court, winning a ruling in the New South Wales Supreme Court, which denied Cosette’s bid to back out of the deal.

Plant closure plans doomed the bid

But the proposed transaction also had a political element, with Cosette’s plans to close Mayne’s Adelaide-based drug manufacturing plant piquing the interest of the Foreign Investment Review Board and Treasurer Jim Chalmers.

The Treasurer wrote to Cosette in October, saying his “preliminary view is that the proposed acquisition would be contrary to the national interest, on the grounds that it would negatively impact the Australian economy and community”.

That preliminary notice was followed by a formal notification in November that the Treasurer had objected to the proposed takeover.

Mayne said at the time:

As a result, Mayne Pharma is disappointed to inform shareholders that the FIRB condition precedent to the scheme will not be satisfied such that the scheme is unlikely to proceed.

Late on Wednesday this week, Mayne said in a statement to the ASX that it “has not been able to reach any position with Cosette that might allow the scheme to proceed”.

Mayne said it had issued a notice to Cosette “in relation to Cosette’s material breaches of the scheme implementation deed with Mayne Pharma considers were wilful and intentional”.

Mayne said it now had the right to terminate the scheme “if the relevant circumstances set out in the notice of intention to terminate continue to exist for five business days, being to 10 December”.

Mayne shares traded as high as $7.31 when the takeover was first announced, but are now changing hands for just $3.36, not far off their 12-month lows of $3.27.

The post Doomed takeover bid for Mayne Pharma to come to an end appeared first on The Motley Fool Australia.

More reading

• Why Accent Group, EOS, Mayne Pharma, and Pilbara Minerals shares are falling today
• Why Alliance Aviation, Brainchip, Mayne Pharma, and Perpetual Credit shares are sinking 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.

While Westpac Banking Corp (ASX: WBC) and the rest of the big four banks have been great picks for income investors in recent years, there are signs that their shares could have peaked now.

In light of this, investors may get better results by focusing on other areas of the share market.

But which ASX dividend stocks? Let’s take a look at three that analysts are bullish on right now:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a great alternative is Centuria Industrial REIT.

It is one of Australia’s leading industrial real estate companies. Its portfolio includes 87 high-quality, fit-for-purpose industrial assets worth a collective $3.89 billion. These assets are situated in key in-fill locations and close to key infrastructure.

The team at UBS thinks investors should be buying its shares and has put a buy rating and $3.95 price target on them.

As for income, the broker is forecasting dividends per share of 16.8 cents in FY 2026 and then 17.9 cents in FY 2027. Based on its current share price of $3.46, this equates to dividend yields of 4.85% and 5.2%, respectively.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that gets the thumbs up from analysts is IPH.

It is a global intellectual property services company that helps clients protect their patents, trademarks, and intellectual property across multiple jurisdictions. Its clients range from Fortune 500 companies to SMEs.

While trading conditions are soft at present, Morgans remains positive. It currently has a buy rating and $6.05 price target on its shares.

With respect to income, the broker is expecting IPH to reward shareholders with fully franked dividends of 37 cents per share in FY 2026 and FY 2027. Based on its current share price of $3.49, this implies very generous dividend yields of 10.6% for both years.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare has also been named as an ASX dividend stock to buy now.

It is a medical diagnostics company that operates laboratories and collection centres across Australia, Europe, and the United States.

Bell Potter thinks the company is ready for a return to consistent growth and feels investors should be snapping up its shares. It recently put a buy rating and $33.30 price target on its shares.

As for income, the broker is forecasting partially franked payouts of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $23.12, this equates to dividend yields of 4.7% and 4.8%, respectively.

The post Forget Westpac shares and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

More reading

• Westpac versus CBA shares: Which bank is a better buy for 2026?
• 3 reasons to buy this $12 billion ASX 200 stock today
• ANZ shares are lagging the other big banks: Here’s why
• Here’s what Westpac says the RBA will do with interest rates in December
• Buy 14,286 shares of this top dividend stock for $200 per month in passive income

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 IPH Ltd and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares were 0.098% higher at the close of the ASX on Wednesday afternoon, at $81.72 a piece. The stock crashed nearly 15% at the end of October following the retail company’s annual general meeting (AGM). This has dragged Wesfarmers shares 2.96% lower over the past month. For the year to date, the shares are still 14.42% higher.

What happened?

At the Wesfarmers’ AGM, management spoke positively about the company’s performance so far in FY26. They said that year-to-date sales growth in its Bunnings business was ahead of the growth recorded in the second half of FY25, supported by solid trading in the consumer segment. 

Management also said that its Kmart Group has benefited from “strong value credentials and quality” of its Anko product range, with year-to-date sales growth broadly in line with the second half of the 2025 financial year.

However, management did say that its Industrial and Safety division isn’t performing as strongly, citing that “trading conditions remain challenging, with earnings impacted by subdued demand across the mining and resources sectors”.

And it looks like investors were unimpressed by the company’s AGM announcement. 

Is there any upside ahead? 

Data shows that analysts aren’t too positive on the outlook for Wesfarmers shares. Out of 15 analysts, 7 have a sell or strong sell rating. Another 7 have a hold rating, and 1 has a strong buy rating.

The average target price is $81.25, implying a 0.57% downside from the current share price. Although some analysts think the shares could fall another 22.17% to around $63.60 over the next 12 months.

Are Wesfarmers shares worth holding for passive income though?

It’s true that while the Wesfarmers share price might have tumbled recently, and the outlook for its share price isn’t positive, investors need to factor in the passive income that Wesfarmers dishes out to its investors. The company continues to be one of the most effective ASX blue-chip shares to own over the long term. 

That’s because, while Wesfarmers is famous for its well-known retailers Bunning and Kmart, it also owns several other businesses. This diversity helps the company maintain a strong track record of delivering growth while consistently increasing dividends for shareholders. 

For FY25, the Wesfarmers board of directors decided on a fully franked final dividend of $1.11 per share. That brings the full-year dividend to $2.06 per share, representing a year-over-year increase of 4%. The full-year dividend represents 88% of underlying earnings per share.

So is it time to sell up? I think I’d sit and wait for now. Wesfarmers shares are a long-term play.

The post Is it time to sell your Wesfarmers shares? 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 things about Wesfarmers stock every smart investor knows
• Here’s how Morgans rates the 3 biggest ASX 200 consumer discretionary shares
• 5 best Australian dividend stocks to buy in December
• These are the top ASX blue-chip shares I’d buy today

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 positions in and has recommended 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.

After a steady run this year, the S&P/ASX 200 Index (ASX: XJO) has cooled a touch, slipping a little over 3% across the past month. 

It’s hardly dramatic. 

A few big names, including Commonwealth Bank of Australia (ASX: CBA), have eased back from record highs, yet nothing resembles a storm. If anything, it looks like the market is catching its breath.

In other words, business as usual.

A breather is part of the rhythm

Markets move in bursts. Companies, however, do not. They operate every day, serving customers, refining products, optimising operations, and pursuing the next dollar of profit. Over long stretches, those earnings do the heavy lifting for investors.

In the short term, though, markets behave more like sentiment gauges. Hopes, fears, and macro narratives dominate. This is the heart of Benjamin Graham’s famous line: 

“In the short run, the market is a voting machine; in the long run, it is a weighing machine.” 

Investors vote based on emotion and expectation, but eventually, the fundamentals are weighed and valued accordingly.

That contrast explains why we see long, quiet plateaus in the index. Sometimes not much happens on the surface, even though thousands of companies are still playing the long game underneath.

Short-term noise vs long-term momentum

If you look for headlines, you will find them. The latest controversy surrounding Corporate Travel Management (ASX: CTD) is an example of how single-company news can spark big reactions. Broader macro events can also swing sentiment quickly. Markets can snap risk-on or risk-off in a matter of days.

Yet zooming out offers a different story. Markets regularly experience pauses, reversions, and consolidation phases. They are natural and healthy, especially after periods of strength.

History suggests that these breather periods often resolve in one of two ways: either companies continue to compound, and the index grinds higher over time, or investors get better buying opportunities as volatility resets expectations. 

Neither outcome is inherently negative for long-term investors.

What long-term investors usually do next

If you are building wealth through ETFs or diversified portfolios, stretches like this are often when habits matter more than headlines.

Dollar cost averaging smooths out the emotional highs and lows. It is also how investors stay invested through quiet periods that feel directionless but ultimately contribute meaningfully to long-term compounding.

The Vanguard Australian Shares Index ETF (ASX: VAS) mirrors the performance of the broader market and has closely tracked the long-term average of the S&P/ASX 300 Index (ASX: XKO). 

Over time, the index has rewarded patient investors who stick to a consistent plan.

A gentle reminder about how markets grow

Companies do not grow in straight lines. Markets do not climb without interruption. These pauses can feel uneventful or even a little uncomfortable, but they form part of the market’s normal rhythm.

For investors focused on the long term, maintaining discipline has historically mattered far more than trying to predict the next few weeks’ sentiment.

The ASX 200 may be taking a breather today. In the long run, earnings growth and compounding tend to do most of the work.

The post The ASX 200 has taken a breather. Here’s what usually happens next appeared first on The Motley Fool Australia.

More reading

• Doomed takeover bid for Mayne Pharma to come to an end
• Forget Westpac shares and buy these ASX dividend stocks
• Is it time to sell your Wesfarmers shares?
• Bendigo and Adelaide Bank unveils RACQ Bank acquisition in investor update
• Bell Potter names the best ASX dividend shares to buy in December

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

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is in focus today as the bank announces an agreement to acquire RACQ Bank’s retail lending assets and deposits, with over 90,000 customers. The deal is expected to be accretive to return on equity (ROE) and cash earnings per share, and forms part of the company’s broader growth strategy.

What did Bendigo and Adelaide Bank report?

• Agreement to acquire $2.7 billion in retail loans and $2.5 billion in retail deposits from RACQ Bank (as at 30 June 2025)
• Purchase to be completed at book value, funded from cash reserves
• Net interest income of approximately $50–$55 million expected from the acquired lending book
• Estimated incremental cost to service the acquired book: $12–$14 million before tax
• Transaction is expected to be 35–40bps ROE and 4–5cps cash EPS accretive (annualised)
• Regulatory approvals required, with completion targeted for 1H27

What else do investors need to know?

Bendigo and Adelaide Bank’s acquisition will be funded from its existing cash reserves and is expected to use around 35 basis points of CET1 capital. Management aims to integrate the new lending assets and deposits by leveraging its simplified core banking system, which will be in place by the end of 2025.

Once the deal completes, Bendigo’s Queensland exposure for residential lending will increase from 15% to 18%, offering greater geographic diversity. The integration is expected to be efficient, minimising costs, and will include a strategic referral agreement with RACQ Bank.

What did Bendigo and Adelaide Bank management say?

CEO and Managing Director Richard Fennell said:

RACQ Bank’s strong deposit franchise and member focus complements Bendigo Bank’s own deposit franchise and longstanding focus on our customers and the community. This acquisition leverages our proven ability to efficiently integrate significant portfolios and is expected to drive improved shareholder returns through cost efficiencies and geographic diversification.

What’s next for Bendigo and Adelaide Bank?

The strategic focus for Bendigo and Adelaide Bank is on optimising its deposit base and gaining efficiencies through consolidation to one core banking system. The company plans to migrate RACQ Bank customers and assets upon regulatory approval and completion in the first half of FY27.

Management expects the deal to support the group’s 2030 return on equity target and drive further sustainable growth, particularly in Queensland. Investors will be watching for progress updates on the transaction and integration.

Bendigo and Adelaide Bank share price snapshot

Over the past 12 months, Bendigo and Adelaide bank shares have declined 25%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

View Original Announcement

The post Bendigo and Adelaide Bank unveils RACQ Bank acquisition in investor update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX dividend shares: How to snowball your passive income
• Here are the top 10 ASX 200 shares today
• 3 of the best ASX 200 shares to buy right now!
• Perseus Mining launches superior offer for Predictive Discovery shares

Motley Fool contributor Laura Stewart 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 Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you are looking for the very best ASX dividend shares to buy, then read on!

That’s because the two listed below have just been named as high conviction buys by the team at Bell Potter. Here’s what the broker is saying about them:

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter thinks that this retail giant could be one of the best ASX dividend shares to buy now. It has a buy rating and $8.30 price target on its shares.

Although its shares have rallied strongly over the past 12 months, the broker believes they are still good value. Especially when you factor in its property portfolio. It explains:

As a leading household goods retailer in Australia and growing presence globally, Harvey Norman has seen modest growth in its independent franchisee base in Australia and expanded its company operated global store print over the last 5 years. We see HVN as one of the most diversified retailers in terms of both categories and regions, while benefitting from both as a quasi-retailer/landlord and channel mix via company operated stores and franchising.

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter expects fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.24, this would mean dividend yields of 4.25% and 4.9%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Bell Potter thinks could be one of the best to own is Universal Store. The broker has a buy rating and $10.50 price target on its shares.

Bell Potter is a big fan of the youth fashion retailer due to its attractive valuation and positive growth outlook. The latter is being underpinned by its store rollout and increasing private label product penetration. It said:

Universal is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI has ~85 stores under its flagship ‘Universal Store’ brand and is expanding private label brands by growing the stand-alone format of ‘Perfect Stranger’ and ‘Thrills’ with more than 100 stores in total.

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.55, this would mean dividend yields of 4.35% and 4.8%, respectively.

The post Bell Potter names the best ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 top consumer discretionary shares from Bell Potter
• Does Macquarie rate Harvey Norman shares a buy, hold or sell?
• Here are the top 10 ASX 200 shares today
• Why Harvey Norman, Mirvac, Qube, and Suncorp shares are falling today

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Harvey Norman. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords share Duratec Ltd (ASX: DUR) has raced ahead of the All Ordinaries Index (ASX: XAO) over the past year.

Duratec shares closed up 1.69% on Wednesday, trading for $1.81 apiece. That sees the Duratec share price up 27% in 12 months, smashing the 1.59% gains posted by the benchmark index over this same period.

Atop those outsized share price gains, the ASX All Ords share trades on a fully franked dividend yield of 2.35%.

If you’re not familiar with Duratec, the Australian engineering, construction, and remediation contractor’s four main operating segments are defence, mining & industrial, building & facades, and energy

And according to the analysts at Taylor Collison, Duratec is well-placed to deliver another year of outperformance and solid dividends.

Here’s why.

ASX All Ords share on the growth path

Duratec held its annual general meeting (AGM) on 20 November.

Looking back on FY 2025, the ASX All Ords share highlighted a 3.1% year-on-year increase in revenue to $573 million. Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 11.3% to $53 million. And on the bottom line, net profit after tax (NPAT) rose to $22.8 million.

“Our portfolio approach, spanning Defence, Energy, Mining & Industrial, Building & Facade, and Emerging sectors, continues to provide resilience and growth opportunities, and remains a key differentiator,” Duratec non-executive chair Martin Brydon said on the day.

Commenting on the outlook for Duratec’s defence segment following the AGM, Taylor Collison said:

DUR continues to see a strong medium-term outlook in defence. Beyond Garden Island [where the company has been contracted for work on HMAS Stirling], there are potential projects valued at more than $15bn scheduled for delivery between 2028 and 2032.

In addition, work at Henderson in WA sits near the top of a large pipeline of prospective opportunities. The scale and longevity of these programs provide meaningful visibility across the decade.

The broker also sounded a positive note on the ASX All Ords share’s mining & industrial segment.

According to Taylor Collison:

Management continues to execute on its strategy of expanding Managed Service Agreements with major Australian miners, including Newmont Corp (ASX: NEM), BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG).

The addressable opportunity is substantial and supported by favourable commodity prices. However, as DUR continues to grow within the sector, we remain mindful that margins in mining services are typically lower and may trend down as the business scales.

Connecting the dots, the broker concluded:

At 14.6x our FY27 EPS estimates, we view the current valuation as attractive given the breadth of the opportunity set, including HMAS Stirling, iron ore maintenance, and activity across the oil and gas sector (maintenance and decommissioning).

Taylor Collison maintained its outperform recommendation on Duratec shares, with a $2.09 target price.

That’s more than 15% above Wednesday’s closing price for the ASX All Ords share. And it doesn’t include those upcoming dividends.

The post Why this dividend paying ASX All Ords share is tipped to outperform again in 2026 appeared first on The Motley Fool Australia.

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