Tag: Stock pick

The Worley Ltd (ASX: WOR) share price is in focus today as the company reported half-year 2026 results, highlighting 5.4% revenue growth to $6.31 billion and a steady underlying EBITA at $377 million, supported by strong project bookings and ongoing transformation efforts.

What did Worley report?

• Aggregated revenue of $6,312 million, up 5.4% on the prior corresponding period
• Underlying EBITA rose 0.3% to $377 million; underlying EBITA margin excluding procurement increased to 8.8%
• Underlying NPATA of $207 million, down 4.2%; statutory NPATA of $152 million, down 29.6%
• Interim dividend of 25 cents per share declared (unfranked)
• Normalised cash conversion ratio of 95.5%
• Backlog of $16.7 billion with bookings of $9.8 billion, up 63% on previous half

What else do investors need to know?

Worley continues to benefit from its global reach and growing presence across energy, resources, and chemicals, with energy now contributing half of aggregated revenue and resources showing the strongest growth. The company is actively managing its cost base, incurring $82 million in transformation expenses this half, and expects annual cost savings of over $100 million from FY27.

A $324 million on-market share buy-back has been completed since March 2025, reflecting strong capital management and confidence in future prospects. The Board also reaffirmed its commitment to returning capital to shareholders via the interim dividend.

Bookings for major projects reached a record $9.8 billion, supported by recent wins across LNG, carbon capture, mining, and energy infrastructure. Worley’s healthy $16.7 billion backlog and a robust pipeline of future opportunities underpin management’s confidence in delivering stable earnings.

What did Worley management say?

Chief Executive Officer and Managing Director Chris Ashton commented:

Solid revenue growth and resilient earnings define this result. Worley continues to win the confidence of our customers as their capital investments adjust to global conditions. These results show once again our adaptability in the face of dynamic markets.

What’s next for Worley?

Looking to FY26, management is targeting moderate growth in both aggregated revenue and underlying EBITA, with a focus on higher-margin work and expanding end-to-end project delivery. The company expects its transformation and restructuring initiatives to yield material cost savings from FY27, further strengthening earnings resilience.

Worley is also set to pursue opportunities in growth markets beyond its traditional energy, chemicals, and resources base—supported by digital innovation and the scale of its integrated global operations.

Worley share price snapshot

Over the past 12 months, Worley shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Worley posts HY26 results appeared first on The Motley Fool Australia.

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• Neuren Pharmaceuticals shares paused ahead of company announcement
• Ramsay Health Care posts 1H FY26 earnings; lifts dividend
• Lynas Rare Earths earnings: Profit jumps as growth strategy kicks off
• DroneShield wins $21.7m in western military contracts
• Atlas Arteria results: 2025 toll revenue climbs, 40c distribution on track

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Neuren Pharmaceuticals Ltd (ASX: NEU) share price trading has been temporarily paused, pending a further announcement from the company, according to today’s ASX market release.

What did Neuren Pharmaceuticals report?

• Trading in Neuren Pharmaceuticals shares has been paused by the ASX from 26 February 2026.
• The company is yet to issue a further announcement explaining the reason for the pause.
• No financial or operational results were reported in this particular market release.
• Investors are awaiting more information from Neuren Pharmaceuticals management or the ASX.

What else do investors need to know?

A trading pause generally means the company is preparing a significant update or announcement. Until this announcement is made, shares will not trade on the ASX.

This could relate to a range of matters including financial results, a capital raise, or a market-sensitive development affecting the Neuren Pharmaceuticals share price.

What’s next for Neuren Pharmaceuticals?

Investors should keep a close eye on the ASX platform for Neuren’s next update. The pause will likely be lifted once the expected announcement is released.

We’ll bring you the latest as soon as more details become available.

Neuren Pharmaceuticals share price snapshot

Over the past 12 months, Neuren Pharmaceuticals shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Neuren Pharmaceuticals shares paused ahead of company announcement appeared first on The Motley Fool Australia.

More reading

• Worley posts HY26 results
• Ramsay Health Care posts 1H FY26 earnings; lifts dividend
• Lynas Rare Earths earnings: Profit jumps as growth strategy kicks off
• DroneShield wins $21.7m in western military contracts
• Atlas Arteria results: 2025 toll revenue climbs, 40c distribution on track

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX growth share space has been hammered over the past few months, particularly names that have a significant technology element to their business. I decided to take advantage of the cheap prices I was seeing.

AI may well be a problem for a few different business models. But, the effect may take a lot longer to play out, impacts may not be as widespread, and incumbent businesses may be able to utilise AI to their advantage.

Following significant sell-offs of a number of businesses that I’m bullish about, I decided to put $4,000 into the following two names. I’m just as optimistic about their long-term prospects as I was a year ago.

Siteminder Ltd (ASX: SDR)

This software business provides software for many thousands of hotels around the world, generating tens of billions of dollars of reservations. Siteminder (and Little Hotelier) helps hotels operate more efficiently and generate more revenue.

Siteminder has a goal to increase its organic annual recurring revenue (ARR) by 30% per year in the medium-term. It has introduced a number of additional, profit-boosting modules for hotels which add a lot more data and analysis for clients, even offering tools to allow automatic room price changes throughout the year, depending on the level of demand.

Due to the software nature and operating leverage of its offering, I’m expecting long-term profit margin growth as long as cost growth is contained and its market share continues rising.

When I invested, the ASX growth share was down approximately 50% from 29 October 2025, which I think represents a huge decline for a business growing so quickly.

With profitability and cash flow increasing over time, I think the business has great tailwinds at increasing its underlying value, even if it trades on a lower price/earnings (P/E) ratio (or price to revenue ratio) than it used to. I think it could deliver strong returns over the next three or four years.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is another tech-related business that has been sold off heavily in recent months. It had dropped around 40% since 26 November 2026, making it look a lot cheaper.

Its FY26 half-year result didn’t impress the market, despite 20% revenue growth to $376 million. FY26 second half trading to 9 February 2026 showed revenue growth of 20%. Home improvement revenue rose 47% to $30 million, which I think bodes well for future growth in this segment.

I think homewares, furniture and home improvement revenue could all benefit from growing online shopping adoption by Australian (and New Zealand) consumers.

The ASX growth share’s total addressable market (TAM) is large, which gives the business a big target to aim at and a significant growth runway. I like how much it’s investing in growth activities, customer value and technology. While that may hamper profitability in the short-term, I think it’s the better choice for the long-term for its success.  

Operating leverage could lead to the business significantly increasing its profit margins in the future, particularly if it can capture a useful market share in New Zealand, where it has just started selling items.

In five years, I think its market share and profit margins could be considerably larger.

The post 2 ASX growth shares I invested in last week with $4,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in SiteMinder and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Ramsay Health Care Ltd (ASX: RHS) share price is in focus after the company reported first-half FY26 net profit after tax attributable to owners of $160.7 million and announced a fully franked interim dividend of 42.5 cents per share.

What did Ramsay Health Care report?

• Revenue from contracts with customers: $9,340.8 million, up 9.7% from 1H FY25
• Net profit after tax attributable to owners: $160.7 million, versus a $104.9 million loss in 1H FY25
• Underlying net profit after tax after non-controlling interests: $171.7 million, up 8.1%
• EBITDA: $1,118.4 million, up 6.4%
• Fully franked interim dividend: 42.5c per share, an increase of 6.3%
• Basic earnings per share (after CARES): 66.4 cents, up 234%

What else do investors need to know?

Ramsay’s results reflected improved performance in its core Australian business and the absence of large impairments seen in the UK segment last year. Group revenue climbed on the back of increased activity and higher case acuity, particularly in Australia and Europe.

The company proposed to distribute its shareholding in Ramsay Santé, its European business, to shareholders via an in‑specie distribution if approved. The board declared a fully franked interim dividend of 42.5 cents, with a payout ratio of roughly 60% of underlying net profit after tax from continuing operations. Ramsay suspended its Dividend Reinvestment Plan for this dividend.

What’s next for Ramsay Health Care?

Looking forward, Ramsay expects EBIT growth in Australia to continue, supported by ongoing activity growth, revenue indexation, and cost control. The UK acute hospital segment is preparing for continued NHS budget constraints until the new NHS fiscal year commences in April, after which additional funding is anticipated.

In Europe, Ramsay Santé’s focus remains on cost control and operational efficiency, particularly as tariff indexation in France remains low. Across all regions, capital discipline and productivity improvements are key priorities. Group capex guidance for FY26 has been lowered to $755–795 million.

Ramsay Health Care share price snapshot

Over the past 12 months, Ramsay Health Care shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Ramsay Health Care posts 1H FY26 earnings; lifts dividend appeared first on The Motley Fool Australia.

More reading

• Worley posts HY26 results
• Neuren Pharmaceuticals shares paused ahead of company announcement
• Lynas Rare Earths earnings: Profit jumps as growth strategy kicks off
• DroneShield wins $21.7m in western military contracts
• Atlas Arteria results: 2025 toll revenue climbs, 40c distribution on track

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Lynas Rare Earths Ltd (ASX: LYC) share price is in focus today, after the company reported a sharp jump in half-year net profit to $80.2 million and revenue to $413.7 million.

What did Lynas Rare Earths report?

• Revenue grew to $413.7 million (1H FY25: $254.3 million)
• Net Profit After Tax (NPAT) surged to $80.2 million (1H FY25: $5.9 million)
• EBITDA rose to $152.4 million (1H FY25: $38.1 million)
• Closing cash and cash equivalents of $1,030.9 million
• Rare earth oxide (REO) production increased to 6,375 tonnes
• Successful $932 million equity raising to support growth

What else do investors need to know?

Lynas completed commissioning of the Mt Weld expansion, while the first half of heavy rare earths production at Lynas Malaysia was delivered. The company began shipping separated heavy rare earths to customers, signing initial contracts with pricing reflecting the strategic value of these materials.

Lynas also announced an expanded heavy rare earth separation facility at its Malaysian site to meet rising customer demand. An MoU was signed with a permanent magnet manufacturer to strengthen the supply chain outside China, and further upstream resource development continued via partnerships in Malaysia. The balance sheet was bolstered by a large equity raise supporting the new Towards 2030 growth strategy.

What did Lynas Rare Earths management say?

CEO & Managing Director Amanda Lacaze said:

The December half of FY2026 was an exciting one for Lynas. We completed commissioning for the Mt Weld expansion project, delivered the first half year of Heavy Rare Earth production at Lynas Malaysia, launched the Towards 2030 growth strategy and successfully completed an equity raising to support our growth agenda.

All of this occurred in a global context where the focus on rare earth supply chain security is reshaping the market through government actions to address market dysfunction and supply challenges. With the completion of the Lynas 2025 capital investment program during the half year, Lynas is the only company able to capture the full value of this market upside. This is due to our position as the only commercial producer of separated Light and Heavy Rare Earth oxides outside China today.

“Alongside market movements, half year production volume, sales volume, revenue and average selling price all increased from the prior corresponding period, contributing to a Net Profit After Tax (NPAT) of $80.2m.

What’s next for Lynas Rare Earths?

Looking ahead, Lynas is focused on delivering its Towards 2030 strategy, which aims to optimise the performance from recent capital investments and expand further into heavy rare earths production. Management believes the recently completed projects position the company to benefit from rising demand and stronger pricing.

Lynas’ expanded facilities and strategic partnerships should help it meet customer needs and take advantage of market opportunities as global supply chains look for reliable sources outside China.

Lynas Rare Earths share price snapshot

Over the past 12 months, Lynas Rare Earths shares have risen 149%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Lynas Rare Earths earnings: Profit jumps as growth strategy kicks off appeared first on The Motley Fool Australia.

More reading

• Worley posts HY26 results
• Neuren Pharmaceuticals shares paused ahead of company announcement
• Ramsay Health Care posts 1H FY26 earnings; lifts dividend
• DroneShield wins $21.7m in western military contracts
• Atlas Arteria results: 2025 toll revenue climbs, 40c distribution on track

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is in focus after announcing a package of six contracts totalling $21.7 million with a western military end-customer. The contracts cover dismounted counter-drone systems, spares, and software, with delivery slated for the first quarter of 2026.

What did DroneShield report?

• Secured six standalone contracts, valued at $21.7 million, via an in-country reseller
• Deals cover supply of counter-drone systems, spare kits, and software subscriptions
• All items are available from existing stock and expected to be delivered in Q1 2026
• Payment anticipated in the second quarter of 2026
• No additional material conditions required for fulfilment
• Previously received $17.8 million in contracts from this reseller over the past seven years

What else do investors need to know?

The counterparty is a subsidiary of a large, global, publicly listed company, acting as an intermediary for distribution to the western military end-user. DroneShield notes there is no commitment for further orders from either the reseller or the end-customer at this stage.

Importantly, DroneShield confirms that the identity of the customer is not expected to have a material effect on the value of its securities. The announcement includes all the information relevant for investors to assess the contract’s impact on the company’s outlook.

What’s next for DroneShield?

DroneShield expects to complete delivery on these contracts by the end of Q1 2026, with payments to follow in Q2 2026. The company remains focused on supplying innovative counter-drone solutions to defence and government clients worldwide.

This win strengthens DroneShield’s track record with major international partners and underscores its position in the growing counter-drone technology sector.

DroneShield share price snapshot

Over the past 12 months, DroneShield shares have risen 299%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post DroneShield wins $21.7m in western military contracts appeared first on The Motley Fool Australia.

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• Sigma Healthcare shares: 1H26 profit and sales leap
• Qantas earnings: Profit up, higher dividends, and bigger fleet for FY26
• Westgold Resources posts record profit and revenue for H1 FY26
• Vault Minerals posts half-year earnings; declares maiden dividend

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Atlas Arteria Group (ASX: ALX) share price is in focus today after the company unveiled its 2025 full‑year results, which saw a 9.4% lift in proportional toll revenue and a reaffirmed distribution guidance.

What did Atlas Arteria report?

• Proportional toll revenue grew 9.4% to $2,012.3 million
• Proportional EBITDA increased 9.3% to $1,509.9 million, with a 75.0% margin
• Statutory net profit after tax was $181.8 million, impacted by the Temporary Supplemental Tax
• Operating free cash flow per security came in at 34.9 cents
• Distribution paid and guidance for 2025 are both 40.0 cents per security

What else do investors need to know?

Atlas Arteria implemented a new leadership structure during 2025, sharpening its focus on strategic priorities. The company refreshed its executive team, appointing new CEOs at Dulles Greenway and Chicago Skyway to drive results and strategic execution.

Operationally, traffic performance was steady across the portfolio, with Dulles Greenway seeing an 8.2% increase in volume as drivers avoided congestion on alternate routes. The company also submitted a new rate case application for Dulles Greenway in December and continues to pursue growth projects in France, particularly with the A412 motorway.

What did Atlas Arteria management say?

CEO Hugh Wehby said:

2025 was another positive year for Atlas Arteria. We delivered strong revenue growth and steady traffic performance. We continued to build and optimise our businesses to improve safety and customer experience. This performance supports a 40 cps distribution for our investors for 2025, in line with guidance.

What’s next for Atlas Arteria?

Looking ahead, Atlas Arteria reaffirmed its distribution guidance of 40.0 cents per security for both 2025 and 2026, with plans to maintain or exceed this level subject to ongoing business performance. The company highlighted continued growth in free cash flow and an FX hedging program to help support distributions.

Atlas Arteria remains committed to building a resilient, long-term portfolio. Its strategy focuses on optimising current operations, seeking value-accretive growth opportunities, and preparing for French concession retenders in the coming decade.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Atlas Arteria results: 2025 toll revenue climbs, 40c distribution on track appeared first on The Motley Fool Australia.

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• DroneShield wins $21.7m in western military contracts
• Sigma Healthcare shares: 1H26 profit and sales leap
• Qantas earnings: Profit up, higher dividends, and bigger fleet for FY26
• Westgold Resources posts record profit and revenue for H1 FY26
• Vault Minerals posts half-year earnings; declares maiden dividend

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There are plenty of emerging sectors that investors can now gain access to through focussed ASX ETFs. 

Traditionally, ETFs were seen as a way to track broad markets or indexes. These were often indexes like the S&P/ASX 200 Index (ASX: XJO) or S&P 500 Index (SP: .INX). 

Funds that track these indexes are still great cornerstones of many portfolios. However targeting emerging sectors as well can help capture future growth. 

These are often referred to as thematic ASX ETFs. 

New insights from Global X have highlighted two such sectors that could be set for growth. 

Indian market lag creates opportunity 

A new report from Global X has reinforced the opportunity for Indian equities. 

However it is important to point out it has had a rough start to 2026. 

According to the report, the Indian share market started 2026 with its worst relative performance versus emerging markets in over 30 years.

However, there are three key tailwinds set to kick in that could help future growth. 

Firstly, the ETF provider pointed towards policy stability. 

Global X said India’s government is reducing its fiscal deficit while maintaining significant capital expenditure. This is evident across transport, energy, and defence. 

Continued investment in infrastructure supports long term productivity, while incentives for electronics, semiconductors, and clean energy help shore up domestic manufacturing and supply-chain resilience.

Secondly, trade clarity with the US is improving. 

The long anticipated US – India trade deal removed a major overhang for markets, easing tariff uncertainty and improving sentiment among foreign investors. 

Finally, AI infrastructure is emerging as a growth engine. 

Global X said major global tech companies (including Amazon, Microsoft, Google, Meta and others) have announced large-scale commitments to AI, cloud, and data-centre buildouts across the country. 

With hyperscaler spending accelerating, India is aiming to transition from an outsourcing destination to a foundational AI infrastructure hub.

ASX ETFs to consider if you are looking for exposure to Indian equities include: 

• The Global X India Nifty 50 ETF (ASX:NDIA)
• Betashares India Quality ETF (ASX: IIND)

AI infrastructure buildout 

Another global sector set for future growth is AI and semiconductors. 

Of course, the growth of artificial intelligence is not a new idea. 

However, Global X has outlined the case that the semiconductors sector is moving through an important transition from cyclical to structural. 

What this means is the first phase of the AI trade was driven by demand for compute, concentrating gains in a small group of AI chip designers and hyperscalers as training and inference scaled rapidly. 

Now, as AI systems grow, tightening memory supply, surging storage needs, and rising data centre power demands are revealing infrastructure constraints. This is shifting the story from pure compute to a broader build-out across semiconductors and physical assets.

The AI build-out is now spreading across two distinct layers. The first is the digital layer, which sits within the semiconductor ecosystem and includes memory, foundries, chip designers, equipment, and advanced packaging.

The second is the physical layer, which allows that compute to operate at scale. This includes electricity generation, grid upgrades, data centres, cooling systems, and the broader industrial capacity required to support them. As AI workloads grow, this layer becomes just as critical as the chips themselves.

To target semiconductors directly, an ASX ETF to consider is the Global X Semiconductor ETF (ASX: SEMI). 

For investors looking to target the physical layer of the AI buildout, a fund to consider is the Global X Ai Infrastructure ETF (ASX: AINF). 

The post Niche ASX ETFs headed for massive growth 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 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.

Do you have space in your portfolio for ASX dividend shares? The Australian share market offers plenty of options to consider.

Here are two high-quality ASX stocks, Sonic Healthcare Ltd (ASX: SHL) and Cedar Woods Properties Ltd (ASX: CWP), that lead their respective sectors and could strengthen your income strategy.

Sonic Healthcare Ltd (ASX: SHL)

This isn’t the flashy ASX growth darling grabbing headlines. Sonic Healthcare is the steady compounder. The ASX dividend share that just keeps turning the crank.

It’s defensive by design. Recession or boom, patients still need blood tests, biopsies and scans. Diagnostic demand is essential, recurring, and far less exposed to consumer sentiment than most industries.

Sonic’s pathology and imaging network spans Australia, Europe, the US and the UK. That global footprint gives it multiple earnings engines and built-in diversification if one region slows. Few ASX healthcare names match that spread.

The structural tailwinds are clear. Ageing populations and the shift toward preventative medicine mean more testing over time, not less. Rising volumes drive reliable cash flow, while disciplined bolt-on acquisitions have expanded scale without wrecking margins.

And then there’s the income stream.

With a market cap around $10 billion, Sonic pays dividends twice a year and has built a long track record of maintaining – and gradually growing – payouts.

Bell Potter forecasts partially franked dividends of 109 cents per share in FY26 and 111 cents in FY27. At a recent share price of $23.14, that equates to yields of roughly 4.7% and 4.8%.

Brokers see upside, too. The consensus 12-month price target sits near $25.59, implying 10.6% potential gains. Bell Potter is more bullish, with a buy rating and a $28.50 target — suggesting upside closer to 23%.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods is a focused residential developer with one big advantage: control. The ASX dividend share owns a sizeable land bank across key growth corridors, giving it the flexibility to release stock when market conditions suit.

That discipline has helped it generate steady cash flow, fund dividends, and avoid the excessive leverage that trips up many property peers.

The strength here is simplicity. The ASX real estate stock sticks to what it knows: master-planned communities and well-located residential projects. And it executes with a conservative balance sheet. In a housing market undersupplied for years, that’s a powerful position.

But let’s be clear: this is still a cyclical business. Earnings can be lumpy, settlements can shift between periods, and higher interest rates or softer buyer sentiment can quickly slow sales. Construction costs also remain a risk if margins tighten.

The outlook? Australia’s housing shortage hasn’t disappeared. Population growth and limited supply should support medium-term demand. If buyer confidence improves and rates stabilise,

Cedar Woods is well placed to convert its pipeline into rising earnings and dividends. The ASX dividend share just declared a fully franked interim dividend of 14 cents per share, up 40% on last year’s interim dividend of 10 cents per share.

Bell Potter believes the ASX dividend share is well-positioned to benefit from Australia’s chronic housing shortage.

The broker expects this to support dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.60, this equates to 4.1% and 4.5% dividend yields.

The post Chasing income? These top ASX dividend shares could deliver appeared first on The Motley Fool Australia.

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• How high could this soaring ASX real estate stock go in 2026?
• This ASX All Ords stock is rocketing after posting 163% profit growth
• Why Cedar Woods, Clearview, Emerald Resources, and Monadelphous shares are racing higher
• Morgans says these buy-rated ASX dividend stocks offer yields up to 10%
• Is this ASX 200 healthcare share a great buy after reporting?

Motley Fool contributor Marc Van Dinther 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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sigma Healthcare Ltd (ASX: SIG) share price is in focus today after the company reported 1H26 revenue of $5.5 billion (up 14.9%) and normalised NPAT of $392 million (up 19.2%).

What did Sigma Healthcare report?

• Revenue increased 14.9% to $5.5 billion year-on-year
• Normalised EBIT rose 18.7% to $582.9 million
• Normalised net profit after tax (NPAT) up 19.2% to $392.0 million
• Australian Chemist Warehouse (CW) branded store sales up 17.2%, with like-for-like sales up 15.0%
• International retail network sales jumped 24.5% to over $807 million
• Net debt reduced by $117.1 million to $635.1 million (0.6x normalised EBITDA)
• Interim fully franked dividend of 2.0 cents per share declared, nearly 60% payout ratio

What else do investors need to know?

Sigma continued the expansion of its Chemist Warehouse branded network, adding 13 new Australian stores and growing to 550 stores nationwide. Internationally, the network also expanded, including the addition of new outlets in New Zealand and Ireland.

Integration and transformation programs remain on track, with $13 million of early synergies delivered during the half. Operating cash flow reached $317.4 million, and the company’s balance sheet remains conservatively leveraged, supporting future growth plans.

Sigma has also made progress reinvigorating the Amcal and Discount Drug Stores brands, converting MyChemist franchise stores and enhancing its owned and exclusive product lines.

What did Sigma Healthcare management say?

CEO and Managing Director Vikesh Ramsunder said:

Our first half performance reinforces the strength of Sigma. As an integrated healthcare business we see long-term opportunities for growth, headlined by sustained performance across our core domestic market, led by CW branded stores.

What’s next for Sigma Healthcare?

Sigma says momentum has continued into the early part of the second half of FY26, with Chemist Warehouse branded store sales in Australia up 16.6% and like-for-like sales up 14.4% year to date. The company expects benefits from its integration program to ramp up, with a $100 million annual synergy target set for FY29.

Management remains focused on expanding its retail footprint internationally, growing its portfolio of owned brands, and improving supply chain efficiency. Sigma believes its strong balance sheet and disciplined approach will help drive ongoing growth and shareholder value.

Sigma Healthcare share price snapshot

Over the past 12 months, Sigma Healthcare shares have remained flat, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

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The post Sigma Healthcare shares: 1H26 profit and sales leap appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.