Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is heading lower again on Tuesday as investors start September on the back foot.

At the time of writing, the benchmark index is down 0.31% to 9,048 points after falling as low as 9,023 points earlier in the session. That briefly put the ASX 200 at its lowest level in around 2 weeks.

The weakness is fairly broad, with 105 of the top 200 shares falling, 84 rising, and 11 unchanged at the latest count.

So, what is behind today’s move?

Bond yields and rates are back in focus

Wall Street gave the ASX 200 a weak lead overnight, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 0.7%, the S&P 500 Index (SP: .INX) dropping 0.33%, and the Nasdaq Composite Index (NASDAQ: .IXIC) slipping 0.12%.

Higher oil prices and rising bond yields didn’t help.

Brent crude moved back above US$90 a barrel as fighting between the US and Iran picked up again, adding to concerns that higher energy prices could keep inflation elevated.

Bond yields are also moving higher. Australia’s 10-year government bond yield has climbed to around 5.19%, its highest level in 15 years, while the US 10-year Treasury yield is above 4.75%.

Interest rates are also back in the conversation again.

ANZ Group Holdings Ltd (ASX: ANZ) now expects the RBA to lift the cash rate by 25 basis points to 4.60% in November, citing persistent inflation and resilient household spending.

That follows a stronger-than-expected July inflation report, while the latest ANZ-Roy Morgan survey showed consumer confidence falling 2.6 points to 74.9 last week.

Ex-dividend moves are adding to the decline

Part of today’s fall also comes down to several large ASX 200 shares trading ex-dividend.

That means investors buying the shares today won’t receive the latest dividend, which can see the share price fall by roughly the value of the payout.

Wesfarmers Ltd (ASX: WES) shares are down 3.89% to $76.35, Woolworths Group Ltd (ASX: WOW) shares have dropped 2.70% to $39.22, while Fortescue Ltd (ASX: FMG) shares are 2.03% lower at $17.34.

Resources are limiting the damage

It isn’t all red across the market, with higher commodity prices helping several large resource shares.

Woodside Energy Group Ltd (ASX: WDS) shares are up 1.85% to $33.02, and Santos Ltd (ASX: STO) shares have gained 2.21% to $8.32 as oil prices rise.

BHP Group Ltd (ASX: BHP) shares are also 0.59% higher at $66.62, while Rio Tinto Ltd (ASX: RIO) shares have added 0.50% to $175.68.

That support has helped keep the ASX 200 above 9,000 points, after it briefly moved closer to that level earlier in the session.

The post The ASX 200 is falling again. What’s behind the sell-off? appeared first on The Motley Fool Australia.

More reading

• Don’t panic if these 9 ASX 200 shares fall today
• By September 2027, $5,000 invested in Macquarie shares could turn into…
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is struggling today despite a bank share rally

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

S&P/ASX All Ords Index (ASX: XAO) shares are 0.3% lower at 9,240.3 points on Tuesday.

With earnings season now over, brokers have updated their ratings and 12-month price targets on hundreds of ASX shares.

Top broker Morgans reckon these three ASX shares are going to rip over the next year.

Here’s why.

Airtasker Ltd (ASX: ART)

The Airtasker share price is 22 cents, down 2.3% today and down 46% over 12 months.

Morgans kept its buy call on this ASX communications share after reviewing Airtasker’s FY26 report.

The broker has a 12-month price target of 47 cents, suggesting a potential near-120% upside ahead.

Morgans said:

Airtasker’s (ART) FY26 result was broadly in line with our expectations.

Group revenue grew ~10% on pcp to A$57.8m (marketplaces revenue ex-OneFlare +15.5% to A$52m), and its earlier stage offshore marketplaces (UK/US) showed accelerating momentum and strong topline growth (+55%/150% respectively).

ART also announced media deals with OML and Nova, extending the brand investment runway (media inventory to deploy from FY27 now ~A$24m).

betr Entertainment Ltd (ASX: BBT)

The betr Entertainment share price is steady at 20 cents on Tuesday, and down 33% over 12 months.

Morgans reiterated its buy rating on this ASX retail share after the company’s FY26 results.

The broker has a target price of 36 cents, implying a potential 80% upside over the next year.

Morgans said:

BETR Entertainment (BBT) finished the year strongly, with normalised EBITDA of $6.1m in the second half against guidance of $5m to $8m, a $19.3m swing on the first half.

Full year normalised EBITDA of -$7.1m was a touch below our -$6.2m, with a gross profit beat offset by a higher cost of doing business.

Encouragingly, current trading remains healthy. Through the first eight weeks of FY27, turnover is up more than 20%, new customers have almost doubled, CPA is down 31% and promotional cost is down 9%, all excluding the FIFA World Cup.

The company announced the launch of its new first to market ‘Wildcards’ same game multi (SGM) feature that will launch during the Wildcard AFL round this weekend.

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 Technologies share price is steady at 28 cents today, and down 10% over 12 months.

Morgans reaffirmed its buy rating on the ASX healthcare share after reviewing Mach7’s FY26 report.

The broker raised its 12-month price target from 44 cents to 48 cents.

This suggests a potential 70% upside ahead.

Morgans said:

The market should be broadly comfortable with the result given recent trading updates, but new contract delivery remains the key requirement before investors are likely to begin marking the stock materially higher.

Revenue and OPEX landed broadly in line with guidance, while the NPAT miss was driven by a A$1.9m restructuring charge and a weaker tax benefit rather than deterioration in the core subscription business.

Moderate increase in target price due to model roll-forward, lower share count, and leaner-than-expected cost base.

Upside potential to target presents an opportunity but needs new contract momentum to spark renewed interest.

The post 3 ASX shares tipped by broker to rise 70% to 120% appeared first on The Motley Fool Australia.

More reading

• 4 ASX All Ords shares with 40% to 90% upside post-results: experts

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Mach7 Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. 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.

Fortescue Ltd (ASX: FMG) shares have fallen to a new 52-week low on Tuesday.

At the time of writing, the Fortescue share price is down 2.37% to $17.28 after briefly touching $17.10 earlier this morning.

There’s a pretty simple explanation behind much of today’s fall. Fortescue is trading ex-dividend for its 46-cent fully franked final dividend, which is due to be paid later this month.

Still, today’s move continues what has been a difficult year for shareholders.

Fortescue shares are now down around 21% since the start of 2026 and have fallen roughly 6.7% over the past month.

So, with the shares back at their lowest level in a year, is this starting to look like a buying opportunity?

A rough few months

Fortescue shares were trading above $22 in late May before beginning their latest slide.

The stock has struggled to regain momentum since then and entered September close to the bottom of its 52-week range.

Today’s ex-dividend move needs to be kept in context. The shares closed at $17.70 yesterday and investors buying from today will no longer receive the 46-cent final dividend.

Looking beyond today’s price swing, Fortescue recently reported FY26 underlying EBITDA of US$8.6 billion, up 9%, and underlying net profit rose 9% to US$3.5 billion.

Free cash flow increased 25% to US$3.2 billion, while iron ore shipments reached a record 201.3 million tonnes.

What do brokers think?

Despite the weaker share price, brokers remain fairly cautious.

According to TipRanks, the average 12-month price target across 11 analysts is $17.95. That’s only around 4% above the current Fortescue share price.

There are currently 2 ‘buy’ ratings, 6 ‘holds’ and 3 ‘sells’.

Morgan Stanley is one of the more bearish brokers. It reiterated its ‘sell’ rating on Tuesday with a $15.45 price target, implying downside of around 11% from current levels.

At the other end, Macquarie has a ‘buy’ rating and $20 target, while Ord Minnett is also positive with a $19.50 target.

Is it time to buy Fortescue shares?

The falling share price has certainly made Fortescue look cheaper than it did a few months ago.

The company paid $1.08 per share in fully franked dividends across FY26. Based on the current share price, that represents a trailing dividend yield of around 6.3%.

But brokers don’t see a huge amount of upside on average, and the shares have remained in a clear downtrend since May.

That leaves investors with a mixed picture. The shares are cheaper and the dividend yield looks decent, but brokers are hardly rushing to call the stock a bargain.

A lot will depend on whether Fortescue can keep producing strong cash flow from here.

The post Fortescue shares just hit a 52-week low. Is it time to buy? appeared first on The Motley Fool Australia.

More reading

• Don’t panic if these 9 ASX 200 shares fall today
• 5 things to watch on the ASX 200 on Tuesday
• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week
• ASX 200 mining shares outperform in final week of earnings season
• If I invest $15,000 in Fortescue shares, how much passive income will I receive in 2027?

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

The S&P/ASX Small Ords Index (ASX: XSO) is down 9% in the calendar year to date (YTD) and up 3% over the past month.

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has risen 2% in the YTD and is 0.5% higher over the past month.

This week on The Bull, two experts offer their latest ratings and insights on 3 ASX small-cap shares.

Advanced Engineered Materials Ltd (ASX: AEM)

AEM produces high purity alumina (HPA) and has production facilities in Quebec, Canada.

The Advanced Engineered Materials share price is steady at 35 cents on Tuesday, and down 43% over 12 months. 

Jonathan Tacadena from MPC Markets has a buy rating on this ASX small-cap materials share. 

Tacadena said: 

HPA is a specialised form of aluminium oxide, which is a critical input for a range of commercial applications, including electronics, semi-conductors and lithium-ion batteries.

The Quebec plant operates a patented low-cost process and is expanding production.

AEM continued to increase production in the first half of 2026 and unaudited revenue was up 85 per cent on the prior corresponding period.

In our view, the stock is trading at a discount and offers good value.

Kina Securities Ltd (ASX: KSL)

KSL is Papua New Guinea’s second largest commercial bank and financial services company, and its biggest wealth manager.

The Kina Securities share price is $1.20, down 0.4% today and down 8% over 12 months. 

Remo Greco from Sanlam Private Wealth has a buy call on this ASX small-cap financial share. 

Greco said: 

Substantial resource development is driving strong lending growth.

The bank’s strong capital base is poised to generate growth and increase its market share. 

In July, the company forecast net profit after tax to increase between 15 per cent and 20 per cent for the financial year ending December 31, 2026.

KSL’s dividend yield is also appealing as it was recently trading above 7.5 per cent.

Metrics Master Income Trust (ASX: MXT)

Metrics Master Income Trust is a non-bank corporate lender and alternative asset manager.

The Metrics Master Income Trust share price is $1.89, down 0.8% today and down 8% over 12 months. 

Greco has a sell rating on this ASX small-cap income share.

He explained: 

MXT … specialises in fixed income, private credit, equity and capital markets.

The trust allocates capital across corporate loans and other income producing assets to pay its investors a regular income.

Our concern is a weakening economy operating under the weight of persistent inflation, stubbornly high interest rates and recent tax changes announced in the federal budget that could penalise capital growth.

The company’s listed price can be volatile.

The post 2 ASX small-cap shares to buy and 1 to sell: Experts appeared first on The Motley Fool Australia.

More reading

• Kina Securities lifts profit and dividend in half-year 2026 earnings
• 2 ASX dividend shares yielding 8% (or higher)
• Metrics Master Income Trust posts unfranked August 2026 distribution

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

S&P/ASX 200 Index (ASX: XJO) shares are down 0.33% at 9,046 points on Tuesday.

With reporting season now wrapped up, a number of companies have been downgraded by the experts following their FY26 results.

Let’s find out why Morgans cut its ratings on the following 5 ASX shares.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $63.76, down 1.4% today and up 73% over 12 months. 

Morgans lowered its rating on this ASX 200 mining share from buy to accumulate after reviewing the FY26 numbers.

The broker raised its 12-month share price target from $68 to $71.

This implies an 11% potential upside ahead.

Morgans said:

MIN delivered a strong FY26 result and FY27 guidance. Underlying NPAT was an 8% beat vs expectations and MIN declared a final dividend of 83cps (vs consensus 7.4cps).

The stock gave back its early gains post the conference call after MIN flagged copper as a next potential growth pathway which we think unsettled some investors.

South32 Ltd (ASX: S32)

The South32 share price is $5.24, up 1.5% today and up 92% over 12 months.

Morgans downgraded the ASX 200 mining share from accumulate to hold following South32’s FY26 report.

The broker increased its 12-month price target from $4.70 to $4.90.

This suggests a potential 6% downside ahead.

Morgans said:

S32 delivered a broadly in line FY26 result, with FY27 guidance on unit cost and capex reflecting existing market expectations of continued cost pressure.

Don’t count on S32 returning a meaningful part of the Alcoa deal proceeds, with the company going as far as talking down its commitment to its ordinary dividend.

Similar to some of its peers, S32’s earnings have enjoyed a healthy upcycle, our concern is that it is starting to increasingly look factored in (while the company arguably swaps its earnings clout for a mid-cycle M&A war chest post Alcoa deal).

With S32’s share price outperforming even its pure-copper ASX peers year-to-date on larger cycle leverage, we downgrade our rating to HOLD (from Accumulate).

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.66, up 0.4% today and up 44% over 12 months.

Morgans downgraded the ASX 200 energy share from buy to accumulate following the uranium miner’s FY26 results.

The broker has a 12-month price target of $14.10, implying a 20% upside from here.

Cash is starting to flow — PDN delivered positive operating cash flow for the first full year since the restart, generating US$38m in FY26 and marking the transition from ramp-up story to steady-state and cash-generating producer.

Guidance beaten across the board – Langer Heinrich Mine (LHM) exceeded FY26 production, sales and cost guidance, providing further evidence that the operation can sustainably deliver and continues to build momentum as it enters more steady state operations.

Following recent share price strength, we move to an ACCUMULATE (previously BUY) with an increased price target of A$14.10ps.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is $24.73, down 3.9% today and down 41% over 12 months.

Morgans downgraded the ASX 200 retail share from buy to accumulate after its FY26 report.

The broker shaved its 12-month price target from $32.50 to $31.

This indicates potential capital gains of 25% over the next year. 

Morgans said:

LOV delivered a strong FY26 result, with EBIT up 14.1%, ~4.5% ahead of consensus. Excluding estimated ~$22m of EBIT losses from Jewells UK, the underlying business would have grown just shy of 30% yoy.

The global store rollout continues, opening 160 stores in FY26, with management expecting a similar number in FY27.

Trading in the first 8 weeks of FY27 was positive (+3% LFL), against a challenging comp in the pcp (+5.6%).

Our valuation lowers to $31.00 and we move to an ACCUMULATE (from BUY) following recent strength in the share price.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is $2.72, down 1.6% today and down 36% over 12 months.

Morgans downgraded the ASX 300 healthcare share from buy to accumulate after reviewing Nanosonics’ FY26 report.

The broker lowered its 12-month price target from $4 to $3.50.

This suggests a potential near-30% upside ahead.

Morgans said:

Mixed result. Our key focus was whether 2H delivered the guided growth acceleration, it didn’t, but trophon-only earnings confirmed the core business remains in excellent health regardless of the group-level miss and near-term OPEX requirements for the CORIS launch.

Trophon’s demonstrated EBIT growth ex-CORIS underwrites the thesis regardless of near-term CORIS spend, and the FY27 guidance step-down reads to us as front-loaded investment to land the launch properly, not any deterioration in the longer-term opportunity.

The post 5 ASX shares downgraded by Morgans post-results appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: South32, Mineral Resources, BHP shares
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• These are the 10 most shorted ASX shares
• ASX 200 mining shares outperform in final week of earnings season
• 3 ASX mining stocks UBS rates as a buy

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

After posting a new record high earlier in the month, the S&P/ASX 200 Index (ASX: XJO) closed up 1.1% in August, with plenty of help from a basket of surging ASX 200 stocks.

Below we look at five of the best large-cap ASX shares to have bought at market close on 31 July and held through to 31 August.

And all but one of our top performers have something in common.

Can you guess what it is?

Westgold Resources Ltd (ASX: WGX)

Westgold Resources shares surged 34.7% in August, closing the month at $6.37.

The ASX 200 gold stock was supported in part by a resurgent gold price. The yellow metal ended August trading for US$4,450 per ounce. That saw the gold price up 10% over the month, according to data from Bloomberg.

Westgold also released a number of positive exploration and resource updates over the month. And the miner reported its full-year FY 2026 results on 28 August.

Highlights included record revenue of $2.33 billion, up 79% year-on-year. And underlying net profit after tax (NPAT) of $480 million was up 452%.

Regis Resources Ltd (ASX: RRL)

Regis Resources shares leapt 36.3% in August to end the month trading for $8.30 each.

Regis also will have benefitted from the rising gold price.

And the ASX 200 stock released some strong FY 2026 results on 21 August.

Regis Resources reported a 43% year on year increase in gold sales revenue to $2.35 billion. And on the bottom line the miner achieved a record NPAT of $715 million, up 181% from FY 2025.

CSL Ltd (ASX: CSL)

Moving away from ASX gold shares, for a moment, CSL shares also shot the lights out in August.

Shares in the ASX biotech giant closed August trading for $171.57 each, up 39.4% for the month.

CSL shares got a big lift on 18 August after the company released its FY 2026 results.

The company reported a 1% year-on-year decline in revenue to US$15.8 billion. And underlying NPATA of US$3.1 billion was down 2%.

But investors were favouring their buy buttons amid a rosier outlook for FY 2027.

Following what they labelled a ‘reset year’, management said they steady revenue in FY 2027, with underlying NPAT forecast to grow by around 5%.

Vault Minerals Ltd (ASX: VAU)

Moving back into the gold space, Vault Minerals shares soared 39.8% in August, ending the month at $6.67 a share.

On 20 August, Vault Minerals also spurred investor interest after it released some strong FY 2026 results.

Highlights included a 31% year on year increase in revenue from metal sales to $1.88 billion. And Vault achieved a statutory NPAT of $278.4 million.

Which brings us to…

Genesis Minerals Ltd (ASX: GMD)

The fifth ASX 200 stock you would have done well to buy and hold throughout August is Genesis Minerals.

Shares in the Aussie gold miner closed out the month trading for $8.22, up a whopping 44.0% in August.

Genesis Mineral released its FY 2026 results late in the day on 20 August.

The company reported an 89% year on year increase in sales revenue to $1.74 billion. And the miner’s underlying NPAT was up 147% to $547 million.

The post The 5 best ASX 200 stocks to buy and hold in August revealed appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares to buy in September 2026
• CSL shares are up more than 40% in a month. What just happened in the US?
• 5 things reporting season taught ASX investors about FY27
• 5 things to watch on the ASX 200 on Tuesday
• Where will CSL shares be in 12 months? Brokers weigh in

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

Superannuation has had an excellent run of late, and a rate rise this month would be the first real test of it.

The Reserve Bank of Australia meets on 29 September. Morgan Stanley expects a hike, which would be the first move higher in this cycle.

Most Australians will not think about what that means for their retirement savings. But given the implications, this question is worth five minutes of your time.

How your superannuation has actually performed

The average superannuation fund did well in FY26.

Chant West estimates the median growth fund returned around 9% in FY26, making it a fourth consecutive year of strong returns.

International listed shares did most of the heavy lifting.

Every asset class delivered a positive return over the year with the single exception of Australian real estate investment trusts.

It’s important to compare this performance to two broadly-held ASX market ETFs.

Vanguard Australian Shares Index ETF (ASX: VAS) tracks the S&P/ASX 300 Index across 321 securities for a fee of 0.07% a year.

The fund returned 5.79% over the year to 31 July 2026 and 8.92% annually across the past decade.

Vanguard Australian Shares High Yield ETF (ASX: VHY) is far more concentrated, holding 92 companies led by Commonwealth Bank, BHP Group and the other major banks.

Its forecast yield is 4.2%, or 5.5% once franking credits are counted, and it returned 17.87% over the year to 31 July 2026.

What a rate rise would actually do

The Reserve Bank held the cash rate at 4.35% on 11 August.

Its statement left little doubt about the direction of future interest rates.

The Board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise.

However, not everyone agrees the move comes this month.

For example, Westpac chief economist Luci Ellis sees November as the more likely date.

A hike would hit a superannuation fund in three places.

Bond prices fall when yields rise, so the defensive part of your portfolio takes an immediate mark-to-market hit.

Australian real estate investment trusts and infrastructure assets are repriced lower, because their long-dated cash flows are worth less.

Bank shares face slower credit growth and higher deposit costs, and they are a very large part of the local index.

The parts of your superannuation that would hold up

Not everything suffers.

Cash and term deposit allocations earn more, which helps anyone in a conservative or pension-phase option.

Similarly, resources companies are largely driven by commodity prices rather than domestic rates.

And then there are global equities, which are the biggest single driver of most balanced funds, and which respond to United States policy far more than Australian policy.

What I would not do

Switching your superannuation to cash ahead of a possible rate rise is the classic mistake.

You crystallise any loss, you miss the recovery, and you have to be right twice to come out ahead.

For investors who care about long-term returns, time in the market is much more important than timing the market.

Foolish takeaway

A September rate rise would trim returns, not wreck them.

Bonds and rate-sensitive Australian shares would take the hit, while cash and global equities would cushion it.

If your superannuation sits in a default balanced option and you have twenty years to run, the correct response is almost certainly nothing at all.

If you are drawing an income and are heavily weighted toward bank shares, it may be worth checking your allocation.

Either way, the decision should reflect your time horizon, which is usually much longer term than a single rate decision.

The post Could a September rate hike hurt your superannuation returns? appeared first on The Motley Fool Australia.

More reading

• Why I think the VAS ETF is a top pick for beginners and experienced investors
• Are these 2 top Vanguard ETFs still worth buying today?
• How to build an ASX portfolio you do not need to check every day
• VGS vs VHY: Which Vanguard ETF comes out on top?
• How many Vanguard Australian Shares Index ETF (VAS) units do I need to buy for $10,000 of passive income?

Motley Fool contributor Mark Verhoeven 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 and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DUG Technology Ltd (ASX: DUG) has had an unremarkable year from a share price performance point of view, returning just 3% over the past 12 months.

But the team at Shaw and Partners is predicting bigger things for the company this year, and has a bullish price target on the shares, which I’ll get to shortly.

Shares fall on soft order book

The company’s shares fell more than 20% when they released their FY26 results recently, despite the company delivering a solid set of figures.

The oilfield software and services company’s revenue from customers came in at US$86.4 million, up 38% from the previous year, while net profit of US$2.6 million was up from a loss of US$4.4 million.

Commenting on the result, Managing Director Dr Matthew Lamont said:

FY26 was a record year for DUG. Revenue grew 38% and normalised EBITDA grew 78%, lifting our margin to 32% from 25%. We returned to profit and generated US$20.9 million of cash from operations. Earnings grew at twice the rate of revenue, which shows the operating leverage in this business. These results come from a long period of through-the-cycle investment rather than a single good year. Intellectual property is the centre of everything we do, and we now monetise it in four ways: services, software, HPC and multi-client. They are not separate businesses, they are different ways of selling the same core technology. We saw all of them perform extremely well during FY26 and we’re excited about the future of each business.

Dr Lamont said the industry was busier than it had been in years, with high oil prices driving increase in exploration budgets.

He added:

That means exploration in harder places, where imaging quality decides whether a prospect is drillable, which is precisely the problem we built our technology to solve. We enter FY27 within an energised industry, with a large pipeline of opportunities, a contracted software and HPC base, and a growing multi-client library. We’re excited for what lies ahead.

Broker says shares are looking oversold

Shaw and Partners noted that the company’s forward order book of US$33.6 million was down 35% year on year, but said that management attributed this largely to timing.

They added:

Management stressed that unlike previous periods when a falling order book created concern, internally there is currently optimism, with projects remaining in the pipeline rather than being lost and significant acquired seismic data still to flow into processing.

Shaw and Partners has a price target of $3 per share on DUG, which is significantly above the current share price of $1.63. The company is valued at $223.7 million.

The post Shaw and Partners says this ASX software company could rise 84% appeared first on The Motley Fool Australia.

More reading

• Expert names 2 ASX tech shares to buy today
• DUG Technology share price sinks 22% on FY26 results
• DUG Technology scores US$9.3m software and HPC contract

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

Zip Co Ltd (ASX: ZIP) shares have suffered a tough 12 months. 

The buy now, pay later (BNPL) provider’s shares have swung wildly anywhere between $1.38 and $4.93 per share thanks to strong headwinds and fluctuating investor sentiment.

The ASX tech stock has faced several major headwinds over the past 12 months. 

The falling share price is mostly the result of a sector-wide sell-off of technology stocks. Investors were spooked by concerns about rising competition, slowing growth, and margin compression, and it caused a sharp sell-off through late-2025 and into early-2026.

This was exacerbated further by rising concerns around conflict in the Middle East. In early-2026, many investors rotated away from high-growth technology stocks and towards more stable assets.

A sharp increase in the value of some ASX tech shares in 2025, including Zip, also sparked concerns that tech companies were overvalued and overdue a price correction. 

Where are Zip shares trading now?

At the time of writing, Zip shares are up around 1% and changing hands at $2.53 a piece.

The increase means the shares are now around 24% lower for the year to date and down 41% from 12 months ago.

Are Zip shares too cheap to pass up?

Analysts are incredibly bullish on Zip shares, with widespread anticipation that we’ll see a significant upside over the next 12 months.

Market Index data shows all brokers agree on a strong buy rating, and the $3.95 target price implies around a 58% upside, at the time of writing.

TradingView data shows something similar. All 13 analysts have a buy/strong buy rating on the shares. The average $4.52 target price implies a potential 81% upside ahead, at the time of writing. Although some are confident that Zip shares can climb another 141% to $6.03 over the next 12 months.

UBS recently confirmed its buy rating and $4.70 target price on Zip shares. The broker said that the outlook for the current year was better than expected, providing comfort around the defensive qualities of the buy now, pay later business model through slowing economic times.

The team at Macquarie also agrees. The broker has a buy rating and $3.50 target price on the shares. Macquarie said “Zip’s outlook remains attractive as management executes the market opportunity in the US, supported by performance in AU”.

What is expected to drive the ASX tech shares higher this year?

Zip’s financial results have been strong through the past few quarters. Its latest full-year FY26 results announcement last month shows that growth has continued accelerating. The fintech business posted a huge 57.9% increase in its cash EBTDA. It also reported a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.

The company also said it expects its cash EBTDA to climb even higher in FY27, by around 26% thanks to strong growth and greater scale across the business.

Zip has undergone a major reset over the past few years. It is now heavily concentrated on product growth and global expansion, especially in the US. It looks like this reset is finally translating to improved revenue and a boost in investor confidence.

Zip is currently pursuing a dual sharemarket listing on the Nasdaq in the US in the hope that it could help drive an even opportunity for business expansion in the area. 

The post Is it time to get greedy with Zip shares? appeared first on The Motley Fool Australia.

More reading

• Short sellers are targeting these ASX shares. Should you worry?
• These are the 10 most shorted ASX shares
• 2 ASX fintech shares to buy for their huge US growth potential
• 2 ASX shares tipped to grow 60% or more in the next 12 months
• 3 reasons why the Zip share price could be a great buy

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

ASX dividend shares are about to deliver one of the biggest income weeks of the year.

Reporting season closed on Monday, and final dividends declared through August are now flowing.

Eleven ASX 200 names go ex-dividend this week alone.

Miss an ex-dividend date by a single day, and you miss the payment entirely.

With that in mind, here are three worth knowing about.

Why these ASX dividend shares are worth the timing

Energy and resources did the heavy lifting for income investors in FY26.

Utilities shares paid an average yield of 5.98% across the year, with energy at 5.14% and materials at 4.63%.

The S&P/ASX 200 Index (ASX: XJO) averaged 4.23%.

All three companies below are in that first group, and each has lifted its payout on the back of strong commodity prices.

1. Origin Energy: Ex-dividend Wednesday

Origin Energy Ltd (ASX: ORG) is the first of the three we’ll discuss.

The company’s shares trade ex-dividend on 2 September, so you need to own them before today’s close.

The company declared a fully-franked final dividend of 30 cents per share, taking FY26 distributions to 60 cents, with payment landing on 2 October.

The FY26 result was a mixed one.

Statutory profit rose to $1,574 million, but underlying profit fell to $1,159 million from $1,490 million a year earlier.

The far more encouraging number was adjusted free cash flow, which jumped to $2,074 million from $1,207 million.

Chief executive Frank Calabria pointed to the build-out behind that cash.

Our portfolio is increasingly well positioned for a changing energy market, with new battery capacity brought into commercial operation on time and on budget.

2. Woodside Energy: Ex-dividend Thursday

Woodside Energy Group Ltd (ASX: WDS) goes ex-dividend on 3 September, with payment on 25 September.

The interim dividend is 57 US cents per share, fully franked, or roughly 79.5 Australian cents, which represents an 80% payout ratio and a yield of about 5.9%.

Woodside’s half-year numbers were solid.

Operating revenue rose 13% to US$7,446 million, net profit after tax climbed 27% to US$1,672 million, and free cash flow more than doubled to US$352 million.

Production actually fell 13% to 86.5 million barrels of oil equivalent, held back by planned maintenance and cyclone disruption.

The larger story is the company’s Scarborough project, now 98% complete and on track for its first LNG cargo in the fourth quarter of 2026.

One caution for income investors: the dividend reinvestment plan remains suspended.

3. Ampol: The monster payout

Ampol Ltd (ASX: ALD) is the biggest cheque of the three by a wide margin.

The fuel retailer and refiner declared an interim dividend of $1.85 per share, fully franked, up 362.5% on last year’s equivalent payment.

The company’s shares trade ex-dividend on 4 September, with money arriving on 30 September.

The driver was an extraordinary refining result.

Group earnings rose 152% to $1.64 billion, and net profit excluding significant items jumped 376% to $857 million, while statutory profit of $1.36 billion compared with a $25 million loss a year earlier.

The forward yield sits near 6%, and Ampol does not offer a dividend reinvestment plan either.

Refining margins are deeply cyclical, and this half was helped enormously by conflict-driven disruption to global supply.

The catch with buying ASX dividend shares this way

Buying purely to capture a payment rarely works as neatly as it looks on paper.

Share prices typically fall by roughly the dividend amount on the ex-dividend date.

You are moving money from one pocket to another and paying tax on the way through, and while franking credits soften that, they do not eliminate it.

The strategy makes far more sense when you wanted to own the business anyway.

Foolish takeaway

I would not buy any of these three purely to collect a cheque three weeks from now.

Ampol offers the largest payment and the most cyclical earnings behind it.

Woodside has the clearest growth catalyst in Scarborough.

Origin has the weakest earnings momentum but the most improved cash flow.

For income investors, ASX dividend shares will be doing a great deal of the heavy lifting this month.

The post Top 3 ASX dividend shares to buy before they go ex-dividend appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week
• 5 things to watch on the ASX 200 on Monday
• 2 ASX dividend shares I’d buy right now for passive income
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Mark Verhoeven 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.