Tag: Stock pick

Commonwealth Bank of Australia (ASX: CBA) shares could struggle to ever reclaim the biggest ASX stock crown from S&P/ASX 200 Index (ASX: XJO) mining giant BHP Group Ltd (ASX: BHP).

The two ASX titans aren’t in direct competition with each other. But investors have been watching their market caps closely this year as they vie to remain the highest-valued company trading on Australia’s stock exchange.

Here’s what’s been happening.

BHP takes a commanding lead over CBA shares

On 27 January, BHP reclaimed the title of biggest ASX share from CBA. This came after the big four ASX 200 bank had enjoyed that crown for almost 18 months.

The crown then got handed back and forth a few times over the following weeks as one stock outperformed the other.

But BHP now looks to be cementing its lead, with the BHP share price buoyed by strong iron ore prices (currently at around US$110 per tonne). Meanwhile, copper prices (currently at US$13,411 per tonne) have surged by 45% over the past 12 months.

At the same time, CBA shares are under pressure. That’s partly due to ongoing analyst warnings on CBA’s overvaluation relative to its peers. And investors are also increasingly concerned over Australia’s economy potentially leading to lower home loans with higher defaults.

Connecting the dots, BHP shares have gained 48.52% over the past year, while CBA shares have fallen 5.68% during this time.

At market close on Wednesday, this saw BHP commanding a market cap of $291.32 billion compared to CBA’s market cap of just over $270 billion.

What are the experts saying about CommBank and BHP shares?

Charles Casey, a portfolio manager at Solaris, has a decidedly bullish outlook on BHP shares.

According to Casey (quoted by The Australian Financial Review):

The diverging performance is led by the outlook for earnings and dividends, which is improving for BHP and Rio Tinto Ltd (ASX: RIO) but is deteriorating for Commonwealth Bank, and that’s why we saw such a big derating in the valuation applied to CBA last week.

If you’re trading to perfection like CBA was, there’s just no room for disappointment.

As for why BHP could continue to outpace CBA shares, Casey said:

BHP is really well-placed at the moment to keep deleveraging and growing its earnings and dividends into August. BHP is one of our key holdings, and we’ve been very underweight CBA…

With the copper price high, this talk of electrification and obviously the building out of data centres, it looks like demand will stay strong for a while.

Regal Partners’ Phil King also sounded a bullish note on ASX mining stocks like BHP (quoted by the AFR).

King noted:

The next five or 10 years look extremely exciting for the mining sector. There’s going to be very little new supply in commodities like copper over the next five years. I don’t think the outlook for the mining industry has ever looked better.

With King speculating that global copper prices could increase by another fivefold over the coming five to 10 years, he said BHP shares could surge past $100 within the next few years.

“Even then, we’d still be happy to be long,” he said.

The post Why CBA shares might never retake the biggest ASX stock crown from BHP appeared first on The Motley Fool Australia.

More reading

• ANZ, Westpac, NAB and CBA shares: Analysts rate 2 a hold, and 2 a sell
• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
• BHP shares vs Rio Tinto shares: Which miner looks better?
• 3 reasons why the BHP share price could be a buy
• Why this top fundie is overweight BHP shares

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.

Passive income can be built in a few different ways on the ASX.

One way is with exchange traded funds (ETFs) that focus on dividend-paying Australian or international shares.

But which ones could be buys for passive income?

Here are three ASX ETFs that could be worth looking at:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

This fund provides exposure to ASX-listed companies with higher forecast dividends than the broader Australian share market.

Its portfolio includes many of the country’s best-known income shares, including banks, miners, energy companies, and telecommunications businesses. Holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

The attraction here is simplicity. Instead of trying to choose individual dividend shares, investors can gain diversified exposure to a basket of high-yielding Australian companies in one trade.

The Vanguard Australian Shares High Yield ETF could suit investors who want income from familiar ASX names without relying on just one or two companies.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF to look at is the Betashares Global Royalties ETF.

This fund takes a less conventional path to income. It invests in global companies that earn royalty-style revenue from assets such as commodities, intellectual property, infrastructure, and other long-life sources.

Royalty businesses can be attractive because they may benefit from the use or production of an asset without carrying the same operating burden as the company running it directly.

Its holdings include Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

This gives the Betashares Global Royalties ETF a different income profile from a traditional dividend ETF. Its distributions are linked to businesses that can generate cash from assets, rights, or agreements rather than everyday operating activity alone. It was recently recommended by the team at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF that income investors may want to look at is the Betashares S&P 500 Yield Maximiser Complex ETF.

It provides exposure to the US share market while using an options strategy to help generate passive income.

This means its distributions are not driven only by dividends from the underlying companies. A key part of the income comes from selling call options and collecting the premiums from those contracts.

Its underlying exposure includes major US companies such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

The trade-off is important. This type of strategy can lift income, but it may limit some upside if the US market rises strongly.

For investors focused more on cash flow than maximising capital growth, the Betashares S&P 500 Yield Maximiser Complex ETF offers a different way to turn global equity exposure into regular income.

The post Which ASX ETFs could be buys for passive income? appeared first on The Motley Fool Australia.

More reading

• How to invest during market chaos and volatility
• Which Australian ETFs would be top buys this month?
• 3 ASX ETFs for investors in their 60s
• Building wealth with ASX ETFs? Don’t make these errors
• How to build a $1,000 a month passive income from the ASX

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 Amazon, Apple, and Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, 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.

Morgans has been busy adjusting its recommendations to reflect recent updates from a number of ASX 200 shares.

Two that have fared differently are named below. Here’s why the broker has turned negative on one of them and positive on the other:

Brambles Ltd (ASX: BXB)

Morgans was disappointed with this logistics solutions company’s trading update this month.

It highlights that the ASX 200 share is facing short-term pallet repair capacity constraints, which is weighing on its performance.

In light of this and the challenging operating environment, the broker has downgraded Brambles shares to a hold rating with a heavily reduced price target of $18.70. It explains:

BXB’s trading update was disappointing, reflecting short-term pallet repair capacity constraints in parts of the US. These issues were driven by subcontractor turnover at service centres, labour shortages, and elevated supply chain costs, including additional repair, handling, transportation, and storage expenses. BXB has downgraded FY26 (constant FX) revenue growth guidance to 2-3% (vs 3-4% previously) while underlying EBIT growth is now expected to be 3-5% (vs 8-11% previously). We adjust FY26/27/28F underlying EBIT by -4%/-5%/-1%.

Our target price declines to $18.70 (from $25.50) and we move to a HOLD rating (from ACCUMULATE). While management expects US pallet repair capacity constraints to be a short-term issue, with resolution targeted by the end of 1H27 and improvement initiatives already underway, risks remain given the challenging operating environment, including potential for further subcontractor turnover. With the volume outlook also uncertain, we prefer to wait for BXB’s FY26 result on 20 August before reassessing our view.

TechnologyOne Ltd (ASX: TNE)

This ASX 200 tech share delivered a half-year result in line with expectations this week. In fact, the company’s growth would have been ahead of expectations if it were not for foreign exchange (FX) headwinds.

So, with the company well-placed to hit the top-end of its guidance in FY 2026 and the broker seeing plenty of value in TechnologyOne’s shares, it has upgraded them to an accumulate rating with a $32.30 price target. It explains:

TNE’s 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus. The group enters 2H26, with a strong pipeline of ‘Plus’ leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance. The pullback in TNE’s share price sees our TSR lift to 18% and we therefore move to an Accumulate rating with a $32.30 price target.

The post Why Morgans upgraded this ASX 200 share and downgraded another appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Does Bell Potter think TechnologyOne shares are a buy?
• 3 reasons to sell this ASX tech stock

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

It was a red hump day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Wednesday. After yesterday’s enthusiastic rebound, the bears were back in force today, with the index starting in the red this morning and drifting lower as the session went on.

By the time the markets closed, the ASX 200 had shed a nasty 1.26%. That leaves the index back under 8,500 points at 8,496.6.

This rough mid-week session for the Australian markets follows a similarly negative night on the American bourse.

The Dow Jones Industrial Average Index (DJX: .DJI) drifted lower, dropping 0.65%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more pessimistic, falling 0.84%.

But let’s return to the local markets now for a deeper look into how today’s tough trading conditions filtered down into the various ASX sectors this session.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Morgans upgraded this ASX 200 share and downgraded another
• Top brokers name 3 ASX shares to buy now
• ASX 200 drops to a new 7-week low as banks and miners sink
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Why this $2.7 billion ASX 200 stock is charging higher in Wednesday’s sinking market

Motley Fool contributor Sebastian Bowen 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 ResMed and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Gqg Partners and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX bank shares have sunk lower through the first few weeks of May, as investors become concerned about earnings growth, valuations and interest rate hikes. 

Some softer-than-expected results, combined with proposed changes to negative gearing and capital tax concessions put pressure on major bank shares.

Here’s a rundown of how each of the big four banking giants are faring today, and what brokers expect next.

Hold ANZ Group Holdings Ltd (ASX: ANZ) shares

ANZ shares are down around 1% to $35.2 at the time of writing. The shares are now down 4% so far in May, down 3% for the year-to-date, but are 23% higher than the trading price this time 12 months ago.

The banking giant posted good news earlier this month though. In early May, ANZ reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

ANZ confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY 2026.

Brokers are relatively neutral on ANZ shares. TradingView data shows that out of 16 analysts, the majority (eight) have a hold rating on the stock. Another six have a buy or strong buy rating while two have a sell or strong sell rating.

The average $35.32 target price implies a potential 0.3% upside at the time of writing.

Sell Commonwealth Bank of Australia (ASX: CBA) shares

CBA shares are trading in the red in Wednesday lunchtime trade. At the time of writing, the ASX bank shares are relatively flat, trading at $162.31 at the time of writing.

Today’s slump means the shares are now down 6.5% so far in May, and are 6% lower than their trading price this time last year.

The bank posted a disappointing third-quarter capital update last week, where it reported a flat operating income and a 1% decline in its unaudited cash NPAT. Investors were spooked by the results and rushed to sell up their shares, sending the share price tumbling.

CBA shares have been considered overvalued relative to its peers for some time now, and it looks like the downturn could finally be coming to fruition. But the shares haven’t reached the bottom yet.

The majority (11 out of 16) of analysts have a strong sell rating on CBA shares. Another three rate the stock as a sell and two rate it as a hold. The average $127.57 target price implies more than 20% downside ahead, at the time of writing.

Hold National Australia Bank Ltd (ASX: NAB) shares

NAB shares are also in the red on Wednesday lunchtime, down around 1% to $36.76 at the time of writing. NAB has been the worst big four performer in May, down 8% already. For the year-to-date the shares are down 13% and they’re just over 1% lower than this time last year.

The bank’s latest half-year FY26 results were a miss versus market expectations, and investors reacted negatively. Despite posting a modest earnings growth earlier this month, including a 6.4% increase in underlying profit and a 3.1% increase in revenue, the share price sell-off accelerated. 

It looks like analyst sentiment is finally shifting for NAB shares though.

The latest data shows nine out of 16 analysts now rate the ASX bank stock as a hold. Another five have a sell or strong sell rating. This is an improvement from late-April when the majority had a sell or strong sell rating.

The average $38.40 target price now implies a potential 5% upside, at the time of writing.

Sell Westpac Banking Corp (ASX: WBC) shares

Westpac shares have also come under pressure on Wednesday. At the time of writing the share price is down 1% to $35.96 a piece. They’re now down 8% for the year-to-date but are still 14% higher than 12 months ago.

The bank posted its first-half results earlier this month. Westpac’s statutory net profit was 3% higher year-on-year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year-on-year.

The result was solid, and it caused a brief share price uptick before investors reversed and the sell-off resumed. 

Analysts are pretty pessimistic about the outlook for Westpac shares over the next year. The majority (nine out of 16) have a sell or strong sell rating on the bank shares. Another seven have a hold rating.

The average $34.04 target price implies around 5% downside at the time of writing. 

The post ANZ, Westpac, NAB and CBA shares: Analysts rate 2 a hold, and 2 a sell appeared first on The Motley Fool Australia.

More reading

• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
• Here is what Westpac is paying shareholders in June 2026
• Is the CBA share price a buy for its 4.5% dividend yield?
• Which big four ASX bank stock is the best buy right now?
• Why is the ASX 200 starting at a 7-week low 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 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.

A2 Milk Company Ltd (ASX: A2M) shares are under pressure again on Wednesday as investors keep selling the infant formula stock.

At the time of writing, the A2 Milk share price is down 4.26% to $5.62.

Earlier today, the stock hit a new 52-week low of $5.60. The last time A2 Milk shares traded around these levels was back in January 2025.

It has been a rough fall for shareholders. A2 Milk shares are now down around 25% over the past month and 39% since the start of 2026.

The sell-off comes after a difficult run of company updates, broker downgrades, and concerns about the outlook for infant formula sales.

So, what has gone wrong?

Guidance cut

The biggest problem is still A2 Milk’s recent trading update.

In April, the company warned that supply chain disruptions were constraining product availability, despite strong underlying demand.

Investors were already focused on China before the update landed. The weaker guidance only added to concerns about demand and the extent of A2 Milk’s growth.

As part of the update, A2 Milk downgraded its FY26 outlook.

Revenue growth was reduced to low-to-mid double digits, while cash conversion was expected to fall to 50%.

The company also said it expected lower infant milk formula sales, mostly related to Chinese labels.

Margins are also under pressure, with A2 Milk’s EBITDA margin now expected to fall to between 14% and 14.5%. That’s down from its previous guidance range of 15.5% to 16%.

Brokers are losing patience

The recent weakness has also been made worse by broker commentary.

Citi reportedly downgraded A2 Milk shares to a sell rating, with a reduced price target of $5.85. The broker pointed to ongoing supply challenges, lower birth rates, and valuation concerns.

Other analysts have also taken a more cautious view.

Catapult Wealth has named A2 Milk as a sell this week, pointing to the supply chain issues and softer outlook.

Dolphin Partners Financial Services has also highlighted the pressure on the stock after the company’s downgrade and recent product recall in the United States.

The recall related to 3 small batches of product sold in the US. A2 Milk said the issue was isolated to US label product.

Foolish takeaway

A2 Milk’s share price fall shows how quickly confidence can change when a growth stock starts missing expectations.

The company is still profitable and demand has not disappeared. But investors are no longer giving it the benefit of the doubt while guidance is being cut and margins are moving lower.

Until A2 Milk can show it is back on track, the share price may struggle to find much support.

The post Down 39% in 2026, is this ASX 200 stock becoming a falling knife? appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Endeavour and A2 Milk shares
• 4 ASX 200 shares tipped to jump another 50% to 60%
• Why experts are selling these 3 ASX shares this week
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Synlait Milk CEO resigns – the latest in a line of executive departures

Citigroup is an advertising partner of Motley Fool Money. 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.

Evolution Mining Ltd (ASX: EVN) shares have tumbled further into the red in Wednesday afternoon trade.

At the time of writing, the Australian gold miner’s shares are down 5.27% to $11.32. 

The latest downturn means the shares have now crashed 36% since peaking at an all-time high of $17.67 in early March. The gold stock is also 11% lower year to date but remains 40% higher than a year ago.

For context, the S&P/ASX 200 Index (ASX: XJO) has slumped 1.27% to a seven-week low on Wednesday afternoon.

Why are Evolution Mining shares under pressure today?

There is no price-sensitive news out of Evolution Mining today to explain the latest pull-back.

It’s most likely that the slumping gold price is causing investors to sell off their shares.

Trading Economics data shows that gold is trading below US$4,500 per ounce on Wednesday, after tumbling 2% in the previous session. The latest gold price drop means the metal has slumped over 5% in value over the past month.

It looks like investors are fleeing from the safe-haven asset in anticipation that tensions between the US and Iran could reignite. Concerns around higher inflation also puts markets under pressure.

Earlier today, US President Donald Trump warned that he would resume fresh strikes within “two or three days” if Tehran fails to accept Washington’s terms.

What sparked the sell-off in March?

Evolution Mining shares dropped sharply in March, mainly for the same reasons they are tumbling now.

Investors sold off their shares in ASX gold mining companies amid a broad market panic. 

Gold prices fell suddenly in late March as markets reacted to shifting expectations for US interest rates and geopolitical tensions. 

It’s also likely that investors seized the opportunity to take their profit off the table after a huge share price rally. The miner’s shares jumped 39% in the first two months of the calendar year.

As a business, Evolution Mining has been relatively strong this year. In mid-April, the company posted its quarterly update, where it revealed gold production of 170,000 ounces and copper production of 11,000 tonnes. This was achieved with an all-in sustaining cost (AISC) of $2,220 per ounce, which underpinned record quarterly net mine cash flows.

Earlier this month, the company also released its Mineral Resources and Ore Reserves Statement. The company said its Mineral Resources have grown to 31 million ounces of gold and 4.2 million tonnes of copper over the past year. The miner’s contained gold increased by 900,000 ounces, or 3%.

Is the ASX gold stock now a buy, sell, or hold?

TradingView data shows that analysts are mostly positive about the outlook for Evolution Mining shares over the next 12 months.

Half of the 20 analysts have a buy or strong buy rating on the shares. Another six rate the stock as a hold, and four have a sell or strong sell stance.

The average $14.65 target price implies a potential 29% upside at the time of writing. The maximum target price is $19.55, suggesting a huge 73% upside over the next 12 months. 

The post Evolution Mining shares crash 36% from an all-time high: Buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

• Why ASX gold miners Evolution Mining and Northern Star could keep shining in 2026
• 5 things to watch on the ASX 200 on Friday
• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares 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 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.

After one of the strongest runs in the commodity market, silver is starting to wobble.

The white metal is now trading around US$73 an ounce, down almost 16% over the past 7 days. The pullback has taken some heat out of the rally, but it hasn’t changed how far silver has already moved.

Silver was trading around US$20 an ounce in 2022 before surging past US$120 an ounce earlier this year. Even after the latest fall, it remains at levels that would have looked extreme only a few years ago.

Nonetheless, billionaire resources investor Eric Sprott has a very different view.

According to The Australian, Sprott recently told Forbes he believes silver could easily climb to US$200, or even US$300 an ounce.

Sprott is a long-time precious metals investor who has been buying into the sector since the 1980s.

Forbes has estimated his fortune at about $8 billion.

Why Sprott is still bullish

Sprott’s view is built around the simple supply and demand argument.

He believes the silver market is facing a major shortfall, with demand running well ahead of mine supply.

The demand is not just coming from investors buying silver as a precious metal. A lot of the interest is also tied to silver’s industrial uses, including solar panels, electric vehicles, consumer electronics, data centres, and other modern technologies.

This is the main difference with gold. The yellow metal is more heavily driven by investment demand, central bank buying, and safe-haven interest. Silver has those same precious metal qualities, but it’s also tied to parts of the economy where demand has been growing.

Sprott also pointed to what he sees as large short positions in the silver market.

If the price changes course and keeps rising, some traders may be forced to buy silver back, which will add more pressure to the upside.

Why the silver trade remains risky

Even with Sprott taking a bullish view, the latest fall is still a reminder of how volatile silver can be.

A move from more than US$120 an ounce to around US$73 is a big drop, even if the metal remains well above its 2022 levels.

For investors, this makes the current setup more complicated. A tighter silver market may support the longer-term outlook, but short-term moves can still be driven by profit-taking, the US dollar, and bond yields.

The interest in silver is still there, but the past week has been a reminder that momentum can fade pretty quickly.

The post Silver tumbles 16% in a week, but one billionaire investor still sees more upside appeared first on The Motley Fool Australia.

More reading

• Down 39% in 2026, is this ASX 200 stock becoming a falling knife?
• Evolution Mining shares crash 36% from an all-time high: Buy, sell or hold?
• Why is Infratil cashing out of its Contact Energy shares?
• Buying Woolworths shares? Here’s the yield you’ll get today
• $8,000 invested in Woodside shares in December is already worth…

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.

S&P/ASX 200 Index (ASX: XJO) company Infratil Ltd (ASX: IFT) has today announced plans to sell a part of its investment in Contact Energy Ltd (ASX: CEN).

The deal will see Infratil earn almost NZ$500m after it sells 53.5 million shares at NZ$9.25 each through a fully underwritten institutional block trade.

After the sale, Infratil’s stake in Contact Energy will drop to roughly 9.08%.

Why is Infratil selling?

According to Infratil’s management, the move is about creating flexibility for future growth opportunities rather than losing confidence in Contact Energy itself.

Infratil CEO Jason Boyes said the company remains confident in both Contact Energy and the broader energy sector outlook. He noted that Infratil originally received its Contact Energy stake as part of the Manawa Energy transaction, which was completed in 2025.

Boyes also said Infratil currently has no immediate funding pressures, but believes it is prudent to reposition its capital now so that the company is ready to support future growth opportunities across its portfolio.

That explanation makes sense given how infrastructure investors typically operate.

Companies like Infratil regularly recycle capital by selling mature investments and redirecting funds into new opportunities with potentially stronger long-term returns. Infratil has investments spanning renewable energy, digital infrastructure, healthcare, and data centres. These are all sectors that require substantial amounts of capital to grow.

Importantly, Infratil is not completely exiting Contact Energy.

The company said it intends to retain its remaining shares through at least Contact Energy’s FY26 results announcement in August 2026, subject to customary exceptions.

Contact Energy shares were placed in a trading halt prior to the announcements, and its investors will likely be focused on the large volume of shares being sold into the market. Big sell-downs can sometimes place short-term pressure on a stock simply because of the increase in supply.

Longer term, though, investors will probably pay closer attention to Contact Energy’s underlying business performance and Infratil’s next move with the cash raised from the sale.

Infratil shares are up 28% so far in 2026, whilst Contact Energy shares are roughly flat from where they started the year.

The post Why is Infratil cashing out of its Contact Energy shares? appeared first on The Motley Fool Australia.

More reading

• Contact Energy reports April 2026 earnings
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks storming higher in this week’s flat market
• Here are the top 10 ASX 200 shares today
• Why DigiCo, HMC Capital, Infratil, and Qantas shares are taking off today

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Most of the blue-chip stocks on the S&P/ASX 200 Index (ASX: XJO) are well-known dividend payers, and as such, can be found in many a dividend investor’s income portfolio. That’s certainly the case when it comes to Woolworths Group Ltd (ASX: WOW) shares.

Woolworths has often enjoyed quite a premium from ASX investors, thanks, at least in part, to its defensive, consumer staples nature and dominant position in the Australian grocery market. As a result, Woolies has never really had the kind of yield that other blue chips, particularly the big four banks, have offered investors.

Even so, Woolworths has historically been a reliable dividend payer, and one that typically attaches full-franking credits to its payouts.

Let’s go through what kind of dividend yield investors can expect if they buy Woolworths shares today.

What kind of dividends do Woolworths shares pay?

At the time of writing, Woolworths shares are trading at $34.54 each, up 0.95% for the day thus far. At this pricing, Woolworths is trading on a trailing dividend yield of 2.61%.

That 2.61% comes from the grocer’s last two dividends. The most recent of these was the 2026 interim dividend, which arrived in investors’ bank accounts on 1 April last month. It was worth 45 cents per share and came with full-franking credits attached. Before that, Woolies doled out a final dividend in September last year, which was also worth a fully-franked 45 cents per share. That 90 cents per share gives the company that 2.61% yield at current pricing.

These two dividends were a bit of a mixed bag. The interim payment did come in 15.4% above last year’s equivalent dividend of 39 cents per share. Saying that, 2025’s final dividend was well below the 57 cents per share that investors bagged in September of 2024. And that’s not even factoring in the special 40-cent-per-share dividend either.

However, none of this means much for investors wondering how much income they will bag if they buy Woolworths shares today. After all, a trailing yield merely reflects the past; it does not tell us anything about the future.

What’s next for this dividend stock?

Fortunately for anyone eyeing off Woolworths shares today, analysts predict the company will boost its income over the next few years. Earlier this month, my Fool colleague Grace looked at the consensus on Woolworths’ future dividends.

She found that analysts are pencilling in 99.5 cents per share in dividends from Woolies over FY 2026, rising to $1.13 in FY 2027, and then to $1.28 in FY 2028. That would equate to a forward yield of 2.88%, 3.27%, and 3.71%, respectively, at current pricing.

That will no doubt get some investors excited. But we shall have to wait and see if these estimates are on the money.

The post Buying Woolworths shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

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