Tag: Stock pick

PLS Group Ltd (ASX: PLS) shares were among the best performers on the S&P/ASX 200 index (ASX: XJO) in August.

During the month, the lithium giant’s shares surged 30% to end the period at $5.40.

This means the company’s shares are now up a remarkable 120% over the past 12 months.

Why did PLS shares rocket in August?

Investors were fighting to get hold of PLS shares following the release of its FY 2026 results.

For the 12 months ended 30 June, the lithium miner reported a 152% increase in revenue to $1,934 million. 

This was driven by a 17% increase in sales volumes to 891.6kt and a 121% jump in its average estimated realised price to US$1,488 per tonne.

Another positive was that its unit operating cost (FOB) improved by 9% to $569/t (US$386/t), which management advised reflects higher volumes and ongoing operational improvements.

This ultimately underpinned a more than 1,000% increase in underlying EBITDA to $1,137 million (from $97 million) and a net profit after tax of $526 million, which was up from a $196 million loss a year earlier.

The good news for shareholders is that this allowed the PLS board to bring back its dividend. It is paying shareholders a 5 cents per share fully franked dividend for the half.

Commenting on the results, PLS’ CEO, Dale Henderson, said:

FY26 was a record year for PLS, demonstrating our through-cycle strategy in action. We had positioned the business to respond quickly when market conditions improved and, as the lithium market strengthened, we acted – bringing idled capacity back into production and shifting our focus decisively from defence to growth. That preparation is reflected in the results. We delivered record production of approximately 880 thousand tonnes while reducing unit operating costs by 9%, generating $1.1 billion of underlying EBITDA at a 59% margin and $1.4 billion of cash margin from operations. These are strong outcomes and a credit to our team. 

With 100% ownership of Pilgangoora, our shareholders receive the full benefit of the scale, low-cost position and operating leverage we have built. We also strengthened the business for what comes next. During the year we accessed the international debt capital markets for the first time through our US$600 million bond and finished FY26 with $2.3 billion of cash. That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share. 

We enter FY27 larger, lower cost and financially stronger than we were a year ago. We remain confident in the long-term opportunity for lithium, and our focus is on continuing to execute well, allocating capital with discipline and delivering value for our shareholders.

Should you invest?

According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts still see value in PLS shares at current levels.

In response to its FY 2026 results, the broker retained its outperform rating and $6.00 price target on its shares.

Based on its current share price, this implies potential upside of approximately 11% for investors over the next 12 months.

The post Why PLS shares rocketed 30% in August appeared first on The Motley Fool Australia.

More reading

• Chasing dividends? 11 ASX shares in top-paying sectors going ex-dividend this week
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• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares
• ASX 200 mining shares outperform in final week of earnings season
• Here are the top 10 ASX 200 shares 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 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.

Following earnings results, the team at Ord Minnett is projecting big upside for Megaport Ltd (ASX: MP1). 

Megaport provides on-demand data and network interconnection services across multiple continents. 

It released full-year results on August 20. 

Results exceeded expectations

In yesterday’s report, Ord Minnett said Megaport’s FY26 earnings and FY27 guidance exceeded consensus estimates. 

The company also announced three contract wins, together valued at $506 million. 

These contracts will deliver annual recurring revenue of $129 million and start contributing in FY27. 

For FY26, total revenues rose 37% to $312 million, in-line with consensus of $313 million, and within the provided guidance range of $307-315 million. 

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 24% to $77 million, ahead of consensus at $72 million, and guidance of $64.5-75.5 million. 

Guidance is for FY27 revenue of $620-$730 million (consensus: $619 million) and an EBITDA margin of 38-40%, which implies EBITDA in the range of $ 236- $ 292 million (consensus: $242 million). 

Soft market reaction 

Despite the positive results, Megaport shares actually fell significantly following the results. 

Ord Minnett suggested this may have been influenced by several factors: 

Some parts of the investment community had been expecting contract wins already, or more of a guidance uplift in guidance from GPU Pool monetisation. 

We see guidance as prudent, and the EBITDA target is achievable purely on a conservative ramp-up of contracts without GPU Pool monetisation. EBITDA of over $300 million is possible with some GPU Pool monetisation on our analysis.

‍MP1 renegotiated two strategic contracts due to supply constraints. Despite this, the outcomes appear more favourable for MP1 given the alternative arrangements include providing higher-grade graphic processing units (GPU). This has increased total contract values in aggregate by US$87.1 million with no material change in aggregate annual recurring revenue or capex requirements.

Big upside remains for Megaport shares

The recent dip may have created a strong opportunity for value investors. 

The team at Ord Minnett placed an accumulate rating and $22 price target on Megaport shares following results. 

From yesterday’s closing price, this indicates an upside potential of approximately 33%. 

Our EBITDA estimates fall by 11.2% in FY27 on higher expenses but increase 22.6% in FY28 on higher revenues from contract wins. Our target price is revised to $22.We have an Accumulate recommendation. Catalysts for the shares include upgrades to FY27 guidance and more contract wins.

‍

The post This broker is tipping 33% upside for Megaport shares appeared first on The Motley Fool Australia.

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

WiseTech Global Ltd (ASX: WTC) shares gave investors a wild ride in August. The ASX tech stock finished Monday 0.6% lower at $40.38, bringing its monthly gain to 11%.

That offered some relief after a brutal year. WiseTech shares remain down 41% year to date and 60% over the past 12 months. The big question now is whether September can extend the shaky rebound.

Hitting the accelerator, then slamming the brakes

For much of August, it looked like WiseTech shares couldn’t be stopped. During the first three weeks, the tech stock surged 25%, reaching $45.47 on 25 August. Then came the FY26 result and the rally quickly lost momentum.

Since that result, WiseTech shares have fallen around 11%, leaving them a long way from the $100 level reached almost a year ago.

The numbers themselves were hardly disastrous. WiseTech reported a 46% increase in EBITDA to US$558.4 million for the year to 30 June. That landed within management’s US$550 million to US$585 million guidance range, although it fell slightly short of the US$569.5 million market forecast.

For FY27, management expects total revenue growth of 6% to 10%, reaching US$1.48 billion to US$1.54 billion. Underlying EBITDA is forecast to grow 12% to 21%, with margins improving to 49% to 51%.

The business hasn’t fallen apart

That’s important because the collapse in WiseTech shares hasn’t simply been about deteriorating demand.

WiseTech’s CargoWise platform remains a major logistics software system, used by the world’s top 25 freight forwarders, including Toll and DHL. It helps freight forwarders, customs brokers and supply-chain operators manage increasingly complicated global trade.

That gives WiseTech exposure to powerful long-term trends, particularly the digitalisation of global trade and rising demand for sophisticated logistics technology.

The bigger problems have been investor confidence, governance concerns and regulatory issues.

What do brokers think about WiseTech shares?

Several brokers remain firmly in the bullish camp.

Morgans retained its buy rating with a trimmed $62.50 price target, while Morgan Stanley maintained its buy rating and $70 target. That points to a 73% upside. Bell Potter also remains bullish, despite cutting its target from $71.75 to $65.

Citi lifted its target from $55.05 to $58.75, while UBS reduced its target from $65 to $56 but retained its buy recommendation. Macquarie nudged its target up to $48.20 and also retained a buy rating.

But there is plenty of scepticism. Jefferies downgraded WiseTech shares to hold with a $45 target, while JPMorgan also has a hold rating, with a $40 target.

At $40.38, the huge gap between those valuations tells investors something important: the market remains deeply divided over WiseTech’s recovery.

The August rebound is encouraging. But after such a bruising decline, Wisetech shares still have plenty to prove before investors can confidently declare the turnaround complete.

The post WiseTech shares enjoy best month in over a year. More to come? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 options for investors to choose from on the ASX.

So, to narrow things down, let’s see what analysts at Morgans are saying about the three popular ASX shares listed below.

Here’s how the broker rates these shares:

Boss Energy Ltd (ASX: BOE)

Morgans was disappointed with this uranium producer’s guidance for FY 2027, which revealed weaker than expected production and higher than expected costs.

In response to the update, the broker has downgraded Boss Energy shares to a sell rating with a $1.30 price target. It said:

Guidance rest and expectations move lower – FY27 guidance implies a ~15% production downgrade versus consensus even at the top end of the range, while C1 costs and AISC are ~15-18% above market expectations. While FY26 was broadly in line, FY27 guidance is likely to drive a reset in earnings expectations. 

Honeymoon new feasibility study – The updated feasibility study outlines a more achievable development pathway with improved unit economics and lower sustaining capital intensity; however, the 13.8Mlb production profile sits below the ~15.1Mlb assumed by consensus, shifting the debate towards whether improved margins can offset lower volumes. Following material downgrades to our forecasts, we move to a SELL (previously ACCUMULATE) with a reduced-price target of A$1.30ps (previously A$1.40ps).

Magellan Financial Group Ltd (ASX: MFG)

The broker was relatively pleased with Magellan’s performance in FY 2026. Although its profits were down year on year, they were above consensus estimates.

And while there are headwinds in FY 2027, Morgans remains positive on its medium term growth outlook. As a result, it has an accumulate rating and $10.25 price target on Magellan’s shares. It said:

MFG’s group operating profit after tax (A$145m) was down 9% on the pcp (A$159m) and 2% above consensus (A$142m). Guidance was the main factor weighing on the result, with management flagging numerous headwinds for FY27 – which shapes up as a consolidation year – alongside signs of a slowdown in Barrenjoey growth in 2H26 (despite otherwise impressive overall numbers). 

We downgrade our MFG FY27F/FY28F EPS by ~10-20%, reflecting disclosed guidance impacts to earnings and greater conservatism in our Barrenjoey growth forecasts. Our price target falls from A$11.26 to A$10.25. While MFG faces some near-term pressures, we continue to believe the company is well positioned to drive medium-term growth. With >10% upside to our price target, we maintain our ACCUMULATE call.

NextDC Ltd (ASX: NXT)

Finally, this data centre operator impressed with its FY 2026 results and guidance for FY 2027. 

However, Morgans hasn’t seen quite enough to recommend it as a buy. So, for now, the broker has moved to a hold rating with a $15.00 price target. It explains:

NXT’s FY26 and FY27 outlook were both above expectations. Customer demand remains insatiable and NXT is on a glide path to materially higher EBITDA. We lift our EBITDA forecasts materially on a faster ramp-up of contracted MW. 

We see the value creation from substantial FY26 deals but cannot avoid the investment markets reasonable fixation on the funding envelop. We think, until NXT delivers more steps along the path to a capital recycling program, the stock could lack marginal buyers. We move to a Hold recommendation, for now.

The post Buy, hold, sell: Boss Energy, Magellan, and NextDC shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

ASX airline shares like Qantas Airways Ltd (ASX: QAN) are a popular choice for income-seeking investors.

The company is a household name operating in a resilient market. The airline has also returned to paying meaningful, fully franked dividends this year, after it suspended payments during COVID-19.

If Qantas’ earnings continue growing and its share price appreciates, investors could potentially get a combination of both capital growth and franked dividends.

But what exactly would it entail to earn the passive income you want?

Let’s take a look at what it takes to earn $10,000 per year of passive income from Qantas shares.

What passive income does Qantas pay its shareholders?

First, we need to understand what dividends the airline giant pays its shareholders.

Qantas resumed its twice-yearly dividend payments in 2025 after a break between 2020 and 2024. The company historically pays its shareholders an interim dividend in April and a final one in October, sometimes with an additional special dividend.

The company paid a fully-franked interim dividend of 19.8 cents per share in April.

Last week, as part of its FY26 results announcement, the airline declared a fully franked final dividend of 19.8 cents per share, to be paid to shareholders in October.

That comes to a total FY26 dividend of 39.6 cents per security.

At the time of writing, this translates to a dividend yield of around 4.2% for FY26. 

In FY27, Qantas is forecast to pay an annual dividend per share of 44.8 cents per security. At the time of writing, that translates into a grossed-up dividend yield of 4.8%, including franking credits.

How many Qantas shares do I need to generate $10,000 of passive income every year?

Using the FY26 total dividend payment of 39.6 cents per share, investors would need to own around 25,253 shares in order to earn around $10,000 of passive income.

Assuming the 44.8 cent per share dividend forecast for FY27 is correct, investors would need to buy around 22,322 shares to earn the same annual passive income.

How much would that cost?

At the time of writing, Qantas shares are trading for $9.42 a piece. 

That means, in order to buy the 25,253 shares needed for $10,000 of annual passive income in FY26, you would need to invest roughly $238,000.

For the 22,322 shares needed for the same income in FY27, investors would need to invest around $211,000.

It’s not a small sum, but it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and enjoy the benefit of compound growth.

What do the experts expect next from Qantas shares?

Market experts are incredibly bullish on Qantas shares over the next 12 months, with many forecasting significant upside.

TradingView data shows the majority (14 out of 15) have a buy/strong buy rating on the airline shares.

The $11.72 average target price implies a potential 24% upside over the next 12 months, at the time of writing. Even the minimum $10.40 target price implies the shares could jump another 10%.

The post How many Qantas shares do I need to buy for $10,000 per year of passive income? appeared first on The Motley Fool Australia.

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.2% to 9,076 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 to fall again

The Australian share market looks set for a weak session on Tuesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.25% lower. In the United States, the Dow Jones dropped 0.7%, the S&P 500 fell 0.35%, and the Nasdaq edged 0.1% lower.

Shares going ex-dividend

A number of popular ASX 200 shares will be going ex-dividend on Tuesday and could trade lower. This includes Bendigo and Adelaide Bank Ltd (ASX: BEN), Endeavour Group Ltd (ASX: EDV), Fortescue Ltd (ASX: FMG), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). The latter will be rewarding shareholders with a fully franked 52 cents per share dividend later this month on 25 September.

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Tuesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3.5% to US$86.33 a barrel and the Brent crude oil price is up 3% to US$90.74 a barrel. This was driven by a flare-up in US-Iran hostilities.

Gold price falls

ASX 200 gold shares Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a soft session after the gold price fell overnight. According to CNBC, the gold futures price is down 0.75% to US$4,496.5 an ounce. The precious metal pulled back to a two-week low on increasing US rate hike bets.

Buy Liontown shares

Liontown Ltd (ASX: LTR) shares could be in the buy zone according to analysts at Bell Potter. This morning, the broker retained its buy rating and $1.90 price target on the lithium miner’s shares. It said: “We still believe that LTR’s EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t. While we expect lithium markets will be volatile, market fundamentals remain strong.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Endeavour Group and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. 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.

Betashares ETFs have become some of the most popular building blocks for Australian investors, but popularity does not automatically make an ETF a buy.

As September begins, three of the provider’s biggest funds offer very different propositions — from cheap Australian exposure to high-growth US technology and an all-in-one global portfolio.

A200: The boring ETF that keeps delivering

The BetaShares Australia 200 ETF (ASX: A200) may not be the most exciting ETF on the market, but that is precisely its appeal. The fund returned 1% over the past 12 months, 5% year-to-date and 19% over five years. It gives investors broad exposure to Australia’s biggest companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

A200’s standout strength is its rock-bottom 0.04% management fee, while its Funds Under Management (FUM) has climbed to around $11 billion. Its largest holdings include BHP and Commonwealth Bank, highlighting both the strength and weakness of the strategy.

For investors wanting a low-cost Australian core holding, A200 is hard to ignore. The problem is concentration. Australian equities are dominated by financials and resources, meaning investors are hardly getting a perfectly balanced slice of the economy. There is also no international exposure.

Still, after a relatively modest 12-month return, this Betashares ETF arguably looks more like a dependable long-term compounder than a momentum trade.

NDQ: The growth bet that has already run hard

If A200 is the steady option, BetaShares Nasdaq 100 ETF (ASX: NDQ) is the adrenaline shot.

NDQ has gained 6% YTD, 11% over one year and an impressive 75% over five years. Its portfolio is packed with global technology and growth giants. Nvidia Corp (NASDAQ: NVDA) and Apple Inc (NASDAQ: AAPL) are among its biggest holdings.

That exposure has been a major strength as artificial intelligence and technology spending have surged. But it is also the fund’s biggest vulnerability. Investors are paying a 0.48% management fee for a portfolio heavily tilted towards US mega-cap growth stocks.

After such a powerful five-year run, the provocative question for September is whether investors are buying tomorrow’s growth or yesterday’s winners.

DHHF: The one ETF to rule them all?

The BetaShares Diversified All Growth ETF (ASX: DHHF) takes a completely different approach. It returned 4.5% YTD, 6% over one year and 38% over five years. This Betashares ETF offers exposure to thousands of companies across Australian, developed and emerging markets.

Its biggest underlying exposures include A200 and BGBL, giving investors a combination of Australian and global equities in one package.

The attraction is simplicity. With around $1.6 billion in FUM and a 0.19% management fee, DHHF gives investors a diversified 100%-growth portfolio without having to assemble one themselves.

Its weakness is equally straightforward: investors surrender some control over exactly where their money goes. And because DHHF is entirely growth assets, it can still take a serious hit when global sharemarkets turn south.

For September, DHHF may be the least exciting choice, but for investors seeking simplicity and diversification, that could be exactly the point.

The post Are these 3 top Betashares ETFs a buy in September? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, BHP Group, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is up around 1% since this time last year, with plenty of help from this surging ASX All Ords stock.

The outperforming company in question is Shape Australia Corporation Ltd (ASX: SHA).

In Monday afternoon trade, shares in the Australian fitout and construction services specialist were trading for $7.19 apiece. That sees the Shape share price up an impressive 74.9% in 12 months.

Atop those strong capital gains, the ASX All Ords stock also paid (or shortly will pay) two fully franked dividends, totalling 32 cents a share, over this period. At the recent share price, this sees Shape shares trading on a fully franked 4.5% trailing dividend yield. That equates to a grossed-up yield of 6.4%, once we add in the benefits of those franking credits.

It’s a bit late to grab the final FY 2026 Shape dividend, with the stock having traded ex-dividend on Friday, 28 August.

But I wouldn’t be concerned about the upcoming passive income payment, with the analysts at Ord Minnett forecasting Shape shares to deliver more outsized gains.

What’s been happening with Shape shares?

Shape reported its full year FY 2026 results on 19 August.

Highlights included a 29.6% year-on-year increase in revenue to $1.24 billion, marking the first year the ASX All Ords stock achieved more than $1 billion in annual revenue.

Earnings grew strongly as well, with earnings before interest, taxes, depreciation and amortisation (EBITDA) up 53% to $50 million.

And on the bottom line, Shape reported net profit after tax (NPAT) of $32 million, up 50.2% from FY 2025.

Over the 12 months, Shape also completed two strategic acquisitions, Arden and Australian Professional Shopfitters (APS).

Should I buy the ASX All Ords stock today?

Ord Minnett noted that Shape’s revenue exceeded the top range of guidance of $1.225 billion.

The broker added:

Notably, a gross margin of 9.8% (9.5% ex. interest revenue) looks to be a sustainable level going forward given that Arden’s contribution in the 2H offset the slight pullback in modular revenue, which was to be expected.

This gross margin profile in FY27 will be supported by an additional half of Arden operations as well as a full year of APS earnings. In addition, the modular business has room to grow with a sizable cut of the 23% education contribution to the $628.4m orderbook allocated to modular work. SHAPE continues to execute strongly on its strategy

Ord Minett also believes management is being conservative with its FY 2027 earnings outlook.

“Outlook for FY27 earnings looks to be somewhat conservative, but gives SHAPE a strong chance of exceeding expectations given its strong track record of performance,” the broker noted.

Connecting the dots, Ord Minett maintained its buy recommendation on the ASX All Ords stock with a slightly lowered price target of $8.55 a share (down from $8.85).

That represents a potential upside of around 19% from the recent Shape share price.

The post Up 75%! Why this rocketing ASX All Ords stock is forecast to deliver more outsized gains appeared first on The Motley Fool Australia.

More reading

• SHAPE Australia: Record profit, revenue, and dividends in FY26

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 Shape Australia. 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 have enjoyed another powerful month, climbing to a record high of $68.77 last week.

Although the mining giant has slipped 3.5% over the past five trading days, it remains up 10% in August, taking its year-to-date gain to 45% and its 12-month return to 54%.

With BHP now knocking on the door of $70, the question is whether another record is around the corner or whether the rally is running out of steam.

What happened in August?

BHP shares began trending higher in early August as investors became increasingly bullish about copper prices.

The rally accelerated after BHP delivered its FY26 results on 18 August, with the miner reporting a record underlying EBITDA result and a 27% increase in earnings.

The strong operational performance across its key businesses gave investors another reason to pile into the stock.

It is not difficult to understand the enthusiasm. BHP generated underlying EBITDA of around US$33 billion in FY26, supported by stronger commodity prices and record iron ore production in Western Australia.

But copper is increasingly becoming the star of the show. Copper contributed more than half of BHP’s underlying EBITDA for the first time, while production reached around 2 million tonnes for a second consecutive year.

The company is targeting approximately 40% growth in copper production by FY35 through projects across Australia, Chile and Argentina, potentially giving shareholders significant exposure to the metal’s long-term demand outlook.

Meanwhile, net debt fell below US$9 billion and BHP declared a final dividend of 99 US cents per share.

Can BHP shares break $70?

The market isn’t universally convinced that the rally can continue.

TradingView data shows 14 of 24 analysts have a hold rating on BHP shares. Six rate the stock a strong buy, while four have a sell or strong-sell recommendation.

More importantly, the average analyst price target of $60.52 sits below the current share price, implying roughly 9% downside over the next 12 months.

But that average masks an extraordinary disagreement among analysts.

The lowest target is just $34.77, implying a potential 35% plunge. At the other end of the spectrum, the highest target is $67.11, a fraction higher than the current share price.

What do the major brokers expect?

Morgan Stanley is relatively bullish, with a buy rating and $67.50 target, although that target is already below BHP’s latest record.

Berenberg has a hold rating and $64.22 target, while UBS is targeting $59.

JPMorgan has a $56.66 target, Morgans is considerably more bearish with a sell rating and $55.30 target, and Deutsche Bank has a $51 target.

So, can BHP break $70?

The fundamentals remain compelling, particularly the growing contribution from copper. But with shares already up 45% in 2026, investors may need another surge in commodity prices or stronger-than-expected earnings growth to push BHP decisively into record territory.

The post After another big month, can BHP shares break through $70? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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.

As FY27 gets underway, dividend shares are back in focus following earnings results adjustments. 

During earnings season, investors get a clearer picture of how companies are performing, what management expects for the year ahead, and whether current dividend payouts look sustainable. 

For income-focused investors, this can create an opportunity to reassess dividend shares that combine attractive yields with the potential for reliable earnings and cash flow growth.

Why consistency is just as important as yield 

It’s understandable for income investors to hunt for high yields, however yield alone doesn’t tell the whole story. 

A reliable income stream can be just as valuable, particularly for investors who depend on their portfolio to provide consistent cash flow. 

A slightly lower yield backed by strong, sustainable fundamentals may ultimately prove more attractive than a higher yield that comes with a greater risk of dividend cuts or significant capital losses. 

For income investors, the key is not simply how much an investment pays today, but how dependable that income is likely to be over the long term.

With that in mind, here are three great ASX dividend shares to target right now. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the company behind a number of well-known Australian retail names, including Bunnings, Kmart, Officeworks, Priceline, Target, and others.

It has long been a go-to option for income investors for its reliable dividend. 

This is set to continue, as it is expected to offer a grossed-up dividend yield of 4.3%, including franking credits.

This is expected to reach nearly 5% by FY29, offering a long-term option for investors. 

Bank of Queensland Ltd (ASX: BOQ)

Bank of Queensland is one of the largest competitors in the banking sector outside the big four. 

Over the past year, it has paid shareholders a total of 55 cents per share in fully franked dividends, including the special capital return dividend paid on 24 August.

Based on the current share price, Bank of Queensland shares are currently offering a fully franked dividend yield of over 8%. 

This current yield places it at the top end out of every ASX 200 stock. 

ANZ Group Holdings Ltd (ASX: ANZ)

Turning our attention to big four bank shares, which have long provided consistent yields, ANZ currently offers the best yield, along with Westpac Banking Corp (ASX: WBC). 

Both currently offer a yield of roughly 4.5%, however ANZ appears to have the most capital gain upside. 

The bank has a long history of paying regular dividends, with franking credits potentially adding to the value for eligible Australian investors. 

Its established earnings base and strong position in the Australian banking sector also provide a solid foundation for ongoing shareholder returns.

The post 3 top ASX dividend shares to target in September  appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2029 for Wesfarmers shares
• How much must I invest in ANZ shares to earn $1,000 in passive income in 2027?
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How to build an ASX portfolio you do not need to check every day

Motley Fool contributor Aaron Bell 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.