Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) is under pressure again on Monday, with investors taking risk off the table after another jump in oil prices.

At the time of writing, the ASX 200 is down 1.42% to 8,508 points.

The move has pushed the benchmark index to its lowest level in around 7 weeks.

The ASX 200 is now down 2.7% over the past week and 4.9% over the past month.

So, what has investors selling today?

Oil keeps the pressure on

Brent crude futures have pushed above US$111 a barrel as investors watch the risk of further escalation in the Middle East.

Reuters reported that oil and bond yields rose as global markets reacted to fresh inflation concerns and ongoing geopolitical tension.

Investors were already nervous after Wall Street ended lower on Friday as concerns over rising prices and higher bond yields weighed on sentiment.

The Dow Jones Industrial Average Index (DJX: .DJI) fell 1.1%, the S&P 500 Index (SP: .INX) lost 1.2%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 1.5% as Treasury yields moved higher.

That has left local investors with little reason to take on more risk today.

Most ASX 200 shares are falling

The weakness is spreading across most of the market.

The S&P/ASX 200 Industrials Index (ASX: XNJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) are among the main drags, down 4.22% and 2.89%, respectively.

On the other hand, the S&P/ASX 200 Energy Index (ASX: XEJ) is one of the few areas finding support from the oil rally, up 1.94%.

A big part of the industrials weakness is coming from Brambles Ltd (ASX: BXB).

The Brambles share price is down 19.23% to $17.85 at the time of writing after the pallet pooling giant cut its FY26 profit guidance.

The downgrade has made Brambles one of the day’s biggest ASX 200 fallers, which is not helping an index already under pressure.

Foolish Takeaway

Today’s ASX 200 fall is being driven by a mix of global concerns and local weakness.

Higher oil prices are keeping inflation worries alive, while Brambles has given investors another reason to sell after cutting its profit guidance.

The weakness also looks broad, with most sectors in the red and materials stocks weighing heavily on the index.

Investors appear to be showing caution rather than buying the dip, especially with no clear sign yet of where the selling might settle.

With the ASX 200 continuing to drift lower and US futures pointing lower, the market could be set for another difficult start tomorrow.

The post Why the ASX 200 is sinking to a 7-week low today appeared first on The Motley Fool Australia.

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• New Hope Corporation posts stronger coal output and profit in third quarter
• Pro Medicus inks $90m contract
• Brambles revises FY26 outlook, announces new US$400m buy-back
• Elders posts higher HY26 profit and holds interim dividend

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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are outlined below. Here’s why they are bullish on them:

Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Ord Minnett, its analysts have retained their speculative buy rating on this defence and space company’s shares with an improved price target of $14.00. The broker was pleased with a recent update from the company relating to its proposed acquisition of MARSS Group. Ord Minnett is positive on the deal, highlighting that the MARSS NiDAR system has a track record of defeating multiple Shahed drone attacks recently in the Middle East. Outside this, it was pleased to see that MARSS’ order book is substantial, which boosts the total combined unconditional order book to over $726 million. In light of this, Ord Minnett has boosted its earnings estimates for the near term and its valuation accordingly. The EOS share price is trading at $8.82.

Regis Resources Ltd (ASX: RRL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $9.50 price target on this gold miner’s shares. The broker has been looking at the company’s plan to merge with Vault Minerals Ltd (ASX: VAU). Macquarie sees positives in the deal, noting that it has the potential to become the second-largest Australian gold miner with significant production capacity. And while it concedes that there will be no operational synergies, it points out that there will be tax benefits and a potentially lower cost of capital. The Regis Resources share price is fetching $6.38 at the time of writing.

TechnologyOne Ltd (ASX: TNE)

Analysts at Bell Potter have retained their buy rating on this enterprise technology provider’s shares with an improved price target of $32.25. According to the note, the broker is feeling positive ahead of this week’s half-year results release. It expects TechnologyOne’s profit before tax growth to be consistent with its guidance. Bell Potter is forecasting 9% growth to $89.4 million, while the consensus estimate is for growth of 8% to $88.4 million. It also expects 17% growth in annual recurring revenue (ARR) to around $600 million. However, it suspects that there could be a positive surprise with its ARR, which could be a potential catalyst for its share price. The TechnologyOne share price is trading at $28.46 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• EOS shares halted after huge run as $175 million raising lands
• Sell alert! Why this expert is calling time on Technology One shares
• 5 things to watch on the ASX 200 on Monday
• What is Bell Potter’s updated view on TechnologyOne shares?
• Why EOS, Megaport, Racura, and Xero shares are racing higher today

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 Electro Optic Systems, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

The team at Shaw and Partners has been keeping a close watch on the small cap and emerging side of the market recently, and has come up with plenty of ideas around companies they see as good value.

Today I’ve selected two in the technology field, albeit very different companies, to see what the analyst team at Shaw and Partners are saying.

Let’s have a look.

Smart Parking Ltd (ASX: SPZ)

This company does as the name suggests – it supplies parking monitoring and management systems and now has offices in the UK, Denmark, Germany, Australia, New Zealand, and the US.

The company only entered the US in March of last year, after it acquired Peak Parking for $56.9 million.

The company said in its most recent half-year report that it had added 53 new automatic number plate recognition sites globally during the half year, while revenue jumped from $32 million to $62.8 million.

Net profit increased from $3.9 million to $4.3 million.

Shaw and Partners said in their recent note to clients that “a strong buying opportunity seems to have emerged in SPZ as the March quarter trading update paints a picture of solid performance notwithstanding a share price drop of over 40% since February”.

The analyst team said the US represented a large potential market for the company, which it was just breaking into.

They added:

The roll-out of SPZ’s low-cost, user-friendly, accurate parking technology into the relatively untapped parking segment of unmanaged, small surface lots (attached to retailers, hotels, fast food chains, and high-density transportation hubs etc) could add significant value. SPZ is confident in its ability to launch the service and has now hired a sales team.

Shaw and Partners has a price target of $1.55 on Smart Parking shares compared with 83.5 cents currently.

Atturra Ltd (ASX: ATA)

This company presented at the Shaw and Partners TechRise conference recently and Chief Executive Officer Stephen Kowal gave a “confident update” according to the Shaw analyst team.

Shaw and Partners said:

Management implicitly reaffirmed FY26 guidance and agreed the business is returning to growth in 2H, with accelerating demand across data, security and AI-readiness work offsetting weakness elsewhere and supporting confidence into FY27/FY28. Margins are expected to benefit from restructuring and automation-led managed services efficiencies, while improving cross-sell traction and stronger momentum across IP products (ACP and Scholarian) are incrementally strengthening the medium-term outlook.

Shaw and Partners has a price target on Atturra shares of $1.15 compared with 45 cents currently. Atturra is valued at $171 million.

The post Shaw and Partners says these two ASX small-cap companies could have some serious upside appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is sinking to a 7-week low today
• Leading brokers name 3 ASX shares to buy today
• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Which ASX rare earths company is spinning out a new aluminium company?

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.35% to 8,515.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 6% to $5.68. Investors have been buying the rare earths developer’s shares after it announced the spin-off of its aluminium business. Brazilian Rare Earths plans to demerge its Amargosa bauxite and gallium project into a new company through an initial public offering worth up to $50 million. It said: “The proposed demerger affords Amargosa the focus and flexibility it needs to be progressed rapidly, and reflects a disciplined portfolio strategy that separates two large-scale, strategically important mineral platforms with different development pathways.”

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is up 2.5% to $125.35. This morning, the health imaging technology company announced a seven-year, A$90 million contract with Boston-based Beth Israel Lahey Health. The contract will see the company’s cloud-based Visage 7 Enterprise Imaging Platform implemented throughout Beth Israel Lahey Health providing a unified diagnostic imaging platform. Pro Medicus’ CEO, Dr Sam Hupert, said: “Our pipeline remains strong and spans all market segments. This deal is for our ‘full stack’ comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing.”

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 1.5% to $2.17. This has been driven by the release of an announcement from the essential network services provider. Service Stream has secured new agreements worth $455 million across two major customers. This includes a new nine-year contract with Yarra Valley Water under its Maintenance Services Delivery Partners program. The company’s managing director, Leigh Mackender, said: “Service Stream is delighted to be selected as a delivery partner for this long-term program. We look forward to working closely with Yarra Valley Water and supporting the maintenance of its critical infrastructure across Melbourne.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 3% to $32.16. Investors have been buying the energy giant’s shares following a strong rise in oil prices on Friday night. Traders were bidding oil prices higher after Donald Trump suggested that he was losing patience with Iran in relation to peace talks. This has sparked fears of an escalation in the conflict.

The post Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Which ASX rare earths company is spinning out a new aluminium company?
• Investors are buying this ASX stock after a $455 million update
• Pro Medicus shares jump as massive US contract win turns heads
• How much could the Pro Medicus share price rise in the next year?
• Pro Medicus inks $90m contract

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

The S&P/ASX 200 Index (ASX: XJO) is having a tough start to the week. In afternoon trade, the benchmark index is down 1.4% to 8,507.7 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 4.5% to $5.85. This appears to have been driven by a broker note out of Citi. According to the note, the broker has downgraded the infant formula company’s shares to a sell rating with a reduced price target of $5.85. Citi made the move in response to ongoing supply challenges. In addition, it points out that lower birth rates are weighing on the industry and its shares are looking expensive at current levels.

Brambles Ltd (ASX: BXB)

The Brambles share price is down 18% to $18.08. This has been driven by a guidance downgrade from the supply chain solutions company this morning. Brambles now expects sales revenue growth of 2% to 3% (previously 3% to 4%) and underlying profit growth of 3% to 5% (from 8% to 11%). Brambles CEO, Graham Chipchase, said: “Our immediate priority is to meet our customers’ needs and to restore stability and service in the affected parts of our US network. Our response and ongoing investments in quality reinforce that meeting our customers’ needs is non-negotiable. We will not compromise on the investment required to meet the quality, network resilience and service outcomes our customers expect.”

Elders Ltd (ASX: ELD)

The Elders share price is down 22% to $5.61. Investors have been selling the agribusiness company’s shares following the release of its half-year results. Elders posted a 32% increase in underlying sales to $1.77 billion and a 33% jump in underlying EBIT to $76.6 million. This was driven largely by the addition of Delta Agribusiness, which was acquired in November. While this was a strong result on paper, its earnings fell short of consensus estimates. Nevertheless, Elders’ managing director and CEO, Mark Allison, was pleased with the half. He said: “The first half of FY26 has been eventful for Elders, with Delta Agribusiness welcomed into the Elders Group and seasonal improvements driving optimism for the winter crop. Our decision to implement a new divisional structure in FY26 is already reaping benefits through improved alignment and efficiency gains.”

Tuas Ltd (ASX: TUA)

The Tuas share price is down 64% to $2.20. Investors have been selling this Singapore-based telco after it revealed that its SIMBA business has allegedly been using spectrum that it doesn’t own. In light of this, the Infocomm Media Development Authority of Singapore (IMDA) has suspended its review of Tuas’ proposed acquisition of M1 Limited for S$1.43 billion. It said: “The circumstance identified by the IMDA as giving rise to its decision to suspend the review is that it had learned that Simba may have been using radio frequency bands that it was not authorised to use, which would be a breach of the Telecommunications Act and the conditions of Simba’s Facilities-Based Operations Licence.”

The post Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• Why are Tuas shares crashing 69% on Monday?
• Why are Brambles shares crashing more than 15% to a new 12-month low today?
• Which ASX 200 share is crashing 22% on half-year results?
• Brambles revises FY26 outlook, announces new US$400m buy-back

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

Brazilian Rare Earths Ltd (ASX: BRE) plans to demerge its Amargosa bauxite and gallium project into a new company, which will launch after an initial public offer worth up to $50 million.

Shareholders to share the wealth

The new company will be known as Alurion Resources Ltd, and Brazilian Rare Earths shareholders on the register on an as-yet unannounced record date will be given 0.5607 shares in Alurion for each share they own.

Brazilian Rare Earths shareholders will also be given priority for new shares under the initial public offer.

The company’s board said in a statement to the ASX on Monday that separating the Amargosa project into a new company with its own focused management team made sense.

The company said:

The proposed demerger affords Amargosa the focus and flexibility it needs to be progressed rapidly, and reflects a disciplined portfolio strategy that separates two large-scale, strategically important mineral platforms with different development pathways.

The company added that bauxite was in high demand, with new sources needed globally.

Bauxite is the primary raw material used to make alumina, which is then used to produce aluminium. The world’s seaborne bauxite supply chain has become increasingly concentrated, with Guinea now supplying approximately 70% of China’s imported bauxite feedstock. This supply concentration highlights the strategic importance for new, high-quality bauxite supply from reliable mining jurisdictions.

Advanced project status

Brazilian Rare Earths said Amargosa was not an early-stage project, with exploration work by Rio Tinto Ltd (ASX: RIO) and, more recently, by Brazilian Rare Earths itself, having defined a 568 million tonne resource, including 98 million tonnes of direct-ship bauxite at a grade of 41.9%.

The company added:

The scale and quality of the resource provide the foundation for a low-complexity initial development pathway and potential longer-term expansion opportunities. The first-stage Scoping Study development plan is simple by design: mine and ship bauxite directly, without building a beneficiation plant, tailings facility or major fixed infrastructure. This development pathway is designed to minimise upfront capital intensity, reduce time to market and position Amargosa in the first quartile of the global cost curve.

Brazilian Rare Earths said the scoping study envisaged a 1.2 year payback period and a development cost of just US$119 million.

Brazilian Rare Earths Managing Director Bernardo de Veiga said regarding the plan:

The proposed demerger and public listing of Alurion Resources is a disciplined value-unlocking transaction for BRE shareholders and the right structure for the leading Amargosa Bauxite-Gallium Project. Amargosa is a large-scale bauxite-gallium province, with the resource base, grade, logistics and low-capex first-stage development pathway to support a compelling standalone investment proposition. Establishing Alurion as a dedicated company gives Amargosa the capital focus, specialist leadership and strategic mandate to advance its development pathway. For BRE, the demerger also sharpens our corporate focus. It allows Alurion to advance Amargosa as a leading bauxite and critical minerals development company, while BRE concentrates its development and execution capabilities on advancing one of the world’s most important rare earth and critical minerals provinces.

Brazilian Rare Earths shares were 4.9% higher on Monday at $5.60.

Canaccord Genuity recently issued a share price target for the company of $8.

The post Which ASX rare earths company is spinning out a new aluminium company? appeared first on The Motley Fool Australia.

More reading

• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher

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

With almost $900 million in funds under management, the VanEck Morningstar Wide Moat ETF (ASX: MOAT) is a popular exchange-traded fund (ETF) on the ASX.

Although not quite in the same league as the index fund heavy-hitters like the Vanguard Australian Shares Index ETF (ASX: VAS), many Australian investors have entrusted the MOAT ETF with their hard-earned cash.

Most index funds are incredibly simple, and easy to wrap one’s head around. VAS, for example, holds the largest 300 shares on the ASX, weighted by market capitalisation. Nothing more, nothing less.

MOAT is another kettle of fish, though, and works a little differently from a basic index fund. So today, let’s dive deeper into the VanEck Wide Moat ETF, see how it works, and discuss what an investor will actually own if they buy this ASX ETF.

Unlike a simple index fund, MOAT uses a complex approach to build an underlying portfolio of investments that the ETF indirectly allows investors to purchase. Its portfolio is determined by a series of formulas. These seek to identify US stocks that show clear signs of possessing a wide economic moat.

This term, originally coined by legendary investor Warren Buffett, refers to a durable competitive advantage that a company can possess. It is used to keep customers within the company’s ‘walls’, as well as keeping competitors out.

What’s in the VanEck Wide Moat ETF?

This competitive advantage could be a strong brand, a low-cost advantage, or providing a good or service that customers find difficult to replace or avoid using.

The VanEck Wide Moat ETF identifies a series of companies that show signs of possessing at least one of these moats, and adds said company to its portfolio if the price is attractive. As such, MOAT tends to have a portfolio of around 50 individual stocks, all held at an equal weighting.

Here are the fund’s current ten largest stocks, as of 15 May:

1. Fortinet Inc
2. NXP Semiconductors N.V.
3. NVIDIA Corporation
4. Mondelez International Inc
5. Airbnb Inc
6. Masco Corp
7. Bristol-Myers Squibb Co
8. Kenvue Inc
9. Constellation Brands
10. Microsoft Corporation

As you can see, there are clearly some wide moats there. It could be Microsoft’s sticky Office or Windows software suites, Nvidia’s dominance in AI and chip technology, Airbnb’s network effects, or the power of Mondelez and Constellation’s popular brands (which include Cadbury chocolate and Corona beer, respectively).

Some other names that you may recognise in MOAT’s current portfolio include Amazon, Nike, PepsiCo, and Walt Disney Company.

The VanEck Morningstar Wide Moat ETF charges a management fee of 0.49% per annum.

The post Own the VanEck Wide Moat ETF? Here’s what you’re really buying appeared first on The Motley Fool Australia.

More reading

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• 2 top ASX shares to buy and hold for the next decade
• 5 of the best ASX ETFs to buy and hold in 2026
• Here’s why I’d buy this Buffett-inspired ASX ETF today
• How to become a millionaire on a $60,000 salary

Motley Fool contributor Sebastian Bowen has positions in Amazon, Microsoft, Mondelez International, PepsiCo, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares Index ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Amazon, Bristol Myers Squibb, Fortinet, Kenvue, Microsoft, NXP Semiconductors, Nike, Nvidia, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Constellation Brands and Masco. The Motley Fool Australia has recommended Airbnb, Amazon, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Service Stream Ltd (ASX: SSM) shares are pushing higher on Monday after the company locked in a fresh batch of infrastructure contracts.

At the time of writing, the Service Stream share price is up 4.91% to $2.245.

The gain adds to a solid recent run, with the stock now up around 13% over the past month. However, it remains broadly flat since the start of 2026.

Let’s take a look at the announcement.

$455 million in new contracts

According to the release, Service Stream has secured new agreements worth $455 million across two major customers.

The biggest part of the update is a new 9-year contract with Yarra Valley Water under its Maintenance Services Delivery Partners program.

The agreement is worth about $405 million over the term and covers work across one of Victoria’s largest water utilities.

Yarra Valley Water services more than 2 million people across Melbourne’s northern and eastern suburbs.

Under its refreshed delivery model, the utility has split its operational areas into North and South, with Service Stream selected as the delivery partner for the Northern Region.

The work will cover mechanical, electrical, and civil maintenance services across water and sewerage networks and treatment facilities. Service Stream will also handle responsive maintenance and selected programmed activities.

Mobilisation is expected to start immediately, with operations due to begin in October 2026.

More work in Queensland

Service Stream has also picked up two key contracts with Millmerran Operating Company at its power station in Millmerran, Queensland.

The contracts are worth a combined $50 million over the next 3 years and cover a range of outage and maintenance work. This includes major and forced outage works, mechanical inspections, testing, overhaul, and repair activities.

Service Stream said it will support the boiler and balance of plant across the 425MW units.

Why the size of the deal stands out

The market appears to be responding to the size and length of the newly announced work.

A 9-year contract with a large utility customer gives Service Stream a longer revenue runway, and the work sits in a part of the economy that doesn’t really switch off.

Water networks still need to be maintained, treatment facilities still need servicing, and sewerage systems still need to keep running. This means demand for this type of infrastructure work should remain fairly steady.

The Millmerran contracts also give Service Stream more secured work in energy infrastructure.

With Service Stream valued at about $1.36 billion, the $455 million in contract wins is large enough to explain why investors are taking a closer look today.

The post Investors are buying this ASX stock after a $455 million update appeared first on The Motley Fool Australia.

More reading

• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher

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.

It’s been a rough start to the trading week for most ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has shed a nasty 1.4% or so and is back to just above 8,500 points. By comparison, Westpac Banking Corp (ASX: WBC) shares are doing quite well.

Westpac is holding its head above water at present. The ASX 200 bank stock is currently up a decent 0.33% at $35.96 a share, easily outperforming the broader market.

Unfortunately for Westpac shareholders, that gain doesn’t quite make up for the rough couple of months that this bank stock has endured on the ASX. At today’s prices, Westpac remains down by about 7.8% year to date in 2026 so far, and down almsot 16% from the near-$43 levels we were seeing just last month.

However, most investors who own Westpac shares arguably aren’t holding them for the capital appreciation potential. As a big four ASX 200 bank share, Westpac is typically beloved as a dividend investment above all else.

So today, let’s check out exactly what kind of dividends you can expect from this bank if you buy Westpac shares right now.

Westpac dividends

At the current Westpac share price, this bank is trading on a trailing dividend yield of 4.28%. This is derived from the latest two dividend payments that Westpac has made to its shareholders. The first of these payments was the final dividend from December last year, worth 77 cents per share. The second is the 2026 interim dividend, also worth 77 cents per share.

Now, the latest dividend hasn’t arrived in investors’ bank accounts just yet, and is due on 26 June next month. However, Westpac shares have already traded ex-dividend for the payment, meaning it technically contributes to the company’s trailing dividend yield.

Both of these dividends came (or will come) with full franking credits attached, as is Westpac’s norm.

So Westpac is looking pretty compelling from an income potential standpoint today. However, as any good dividend investor knows, trailing yields reflect the past, not what shareholders will receive in the future. There’s no way to determine any ASX’s dividend shares’ future income potential until the company itself reveals its dividends. Saying that, my Fool colleague Tristan looked at some analyst predictions earlier this month for Westpac shares.

In some potentially good news for investors, analysts are pencilling in $1.625 worth of dividends per share over the 2027 financial year. If that turns out to be the case, Westpac shares could be trading on a forward yield of 4.52% today.

Let’s see if that prediction turns out to be on the money.

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

More reading

• Down 17%: Are Westpac shares cheap?
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• Why the big four banks could keep delivering for income investors
• How much do I need to invest in ASX shares for $500 a month of passive income?
• Which Australian banks will benefit the most from rising interest rates?

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 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.

Santos Ltd (ASX: STO) shares pushed higher on Monday as investors cheered both stronger oil prices and a major production milestone in Alaska.

During afternoon trade, Santos shares climbed 2.5% to $8.08. The energy giant has now surged around 31% year to date and roughly 26% over the past 12 months.

That is a massive outperformance compared to the benchmark S&P/ASX 200 Index (ASX: XJO), which was down 1.2% on Monday and has gained only around 4% over the past year.

Alaskan oil production boost

Rising global oil prices amid ongoing geopolitical tensions and tighter supply expectations have been the main driver for this year’s share price rally.

But Monday’s gains received another boost for Santos shares after the company announced first oil production from the Pikka phase 1 development on Alaska’s North Slope.

For Santos, this is a major milestone. The company is one of Australia’s largest oil and gas producers, supplying LNG, natural gas, and oil across Australia, Papua New Guinea, Timor-Leste, and, increasingly, Alaska.

Its earnings move with energy prices and production growth. Major project developments can sharply shift investor sentiment.

The company revealed that oil flow has now been established through the Lease Automated Custody Transfer (LACT) meter into the Pikka sales oil line. Santos operates the project and holds a 51% interest in the Pikka Unit, while partner Repsol SA (BMEX: REP) owns the remaining 49%.

Major production ramp-up

Importantly, this is only the beginning of the production ramp-up. Pikka phase 1 has officially started production. At first oil, 28 development wells were already drilled. 21 had been stimulated and flowed back as expected.

Output is now ramping toward 20,000 barrels per day over the coming weeks as key systems progressively come online. Production will remain intermittent during commissioning before stabilising for around one month once the Seawater Treatment Plant begins water injection.

The company then expects output to accelerate sharply, targeting a production plateau of 80,000 barrels per day during the third quarter. First sales revenue should start flowing within three months. Santos and Repsol will alternate tanker shipments from the Port of Valdez.

What did Santos management say?

Management clearly views Pikka as a transformational long-term asset.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said:

Alaska has a huge runway ahead of it which will underpin value-accretive production growth for Santos for the long term. When the Pikka Field was discovered, the Nanushuk formation was recognised as a new generation play in an established global super basin and we are proud to be at the forefront of unlocking its resource potential. The Pikka phase 1 project has demonstrated Santos’ capability to develop this world-class resource safely, responsibly and efficiently. We are already implementing technical drilling improvements that save time and cost, and we will continue to drive improved performance into the future.

What next for Santos shares?

For investors, the announcement reinforces Santos’ strategy. It is expanding long-life, cash-generating energy assets. It is also benefiting from a stronger oil price environment.

With Pikka now producing first oil, momentum is building. The market is growing more confident that Santos still has meaningful production growth ahead.

The post Why are Santos shares jumping higher today? appeared first on The Motley Fool Australia.

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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 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.