The RBA has raised the cash rate three times already in 2026. 

Why is the cash rate influential for ASX shares?

For the average punter, the cash rate target affects how much Australians pay to borrow money and how much they earn on savings. 

When the cash rate goes up, mortgage repayments and loan costs usually increase, while savings accounts often pay more interest.

When the cash rate goes down, borrowing becomes cheaper, which can boost spending and help support the economy.

The RBA cash rate can also significantly influence share prices on the S&P/ASX 200 Index (ASX: XJO) and the broader Australian share market.

When rates rise, borrowing becomes more expensive for companies and consumers, which can reduce profits and spending. This often puts downward pressure on share prices, especially for growth companies.

When rates fall, businesses and households can borrow more cheaply, which may boost profits and economic activity. Investors may also move money from low-yield savings accounts into shares, supporting stock prices.

While it's not always the case, generally, higher rates tend to be a headwind for shares, while lower rates are generally supportive of the share market.

What are the big four banks expecting tomorrow?

Experts and economists are expecting tomorrow's RBA meeting to result in a hold of the cash rate. 

This is supported by the big four banks, who also expect a rate hold this month. 

Taylor Nugent, senior economist at NAB, said (via Reuters) that the chance ​of a move at the June meeting is very low. 

He commented:

The RBA has now recalibrated policy and we're seeing evidence it was enough to get on top of domestically driven inflation pressures. That means the RBA can ​sit and hold from here while it assesses risks to inflation and growth coming out of the conflict in ​the Middle East.

According to Canstar, there are differing opinions on the long-term outlook from the big four banks. 

Westpac believes there will be further hikes to come in the back half of 2026, while the other major banks expect the next change to be cuts in 2027. 

What does a hold mean for ASX bank shares?

It has been a tough year so far for ASX bank shares. 

At the time of writing, year to date: 

• Commonwealth Bank Of Australia (ASX: CBA) shares are down 1%
• National Australia Bank (ASX: NAB) is down nearly 14%
• Westpac Banking Corporation (ASX: WBC) is down 10%
• ANZ Group (ASX: ANZ) shares have fallen 6%. 

At current valuations, bank shares are viewed as already trading at a premium.

However, a hold decision (on the cash rate) could provide some optimism that the worst is over. 

The RBA's commentary around this decision is likely more important than the decision itself. 

A hold with a dovish outlook (hinting at future cuts) will likely support the broader market. 

However a hold with a hawkish outlook (tipping further hikes) could put more downward pressure on bank shares. 

The post What are the big four banks expecting at tomorrow's RBA cash rate meeting? appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating on this banking giant's shares with a reduced price target of $39.25. The broker has been looking closer at potential impacts from proposed housing tax changes. Citi suspects that the changes could be a negative for the big four banks by slowing credit growth. As a result, it has adjusted its estimates to reflect this. The good news is that Citi believes mortgage growth will moderate more than business lending growth, which leaves ANZ, with its strong business franchise, better positioned to handle the slowdown. In light of this, the broker has named ANZ as its preferred major bank at present. The ANZ share price ended the week at $34.17.

CSL Ltd (ASX: CSL)

A note out of UBS reveals that its analysts have retained their buy rating on this biotechnology giant's shares with a trimmed price target of $158.00. UBS is feeling more positive on the company's outlook, believing that this year could mark the low point for CSL's earnings. It highlights that cost savings from the company's transformation program and lower plasma costs following a shift in collections could support its earnings growth in FY 2027. So, with the CSL share price trading at a discount to peer multiples, UBS thinks now could be a good time for investors to buy shares. The CSL share price was fetching $107.51 at Friday's close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Bell Potter have retained their buy rating on this logistics software company's shares with a trimmed price target of $71.75. According to the note, the broker believes that WiseTech could be having a bit of difficulty moving some of its large customers over to the new CargoWise Value Packs this financial year. In light of this, Bell Potter has reduced its CargoWise revenue forecasts in the short to medium term. However, the broker remains positive and highlights that its price target is a significant premium to the current share price. It also believes the lack of progress with CargoWise Value Packs is already reflected in the share price as well as the risk of a revenue result at the low end of guidance. The WiseTech Global share price ended the week at $37.50.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

But their performance could be set to get even worse.

Commonwealth Bank of Australia (ASX: CBA) shares have performed the best of the big four ASX 200 bank stocks year to date, recently down 0.2% in 2026. That outpaces the 1.3% losses posted by the benchmark index over this same period.

ANZ Group Holdings Ltd (ASX: ANZ) shares have had a more difficult run, recently down 5.6% for the year.

Rounding off the list, Westpac Banking Corp (ASX: WBC) shares were recently down 9.6% in 2026, while National Australia Bank Ltd (ASX: NAB) trails the pack with a 15.1% share price loss.

The banks have all faced headwinds from three consecutive RBA interest rate hikes this year. Coupled with ongoing inflationary pressures and the Federal Budget's expected changes to negative gearing policies for residential homes, this could lead to materially lower demand for mortgage loans as well as increased bad debts.

And it appears a number of hedge funds are looking to take advantage of these mounting headwinds.

Betting against ASX 200 bank stocks ANZ, NAB, Westpac and CBA shares

According to the Australian Securities and Investments Commission (ASIC), hedge funds have roughly doubled their short positions in the big four ASX 200 banks stocks over the past half year to $10.9 billion.

CBA shares are the most shorted among the hedge funds, with Westpac shares coming in at number two.

Firetrail Investments revealed it has held a short position in ANZ, Westpac, NAB and CBA shares since mid-April.

"The big banks are priced to perfection, and any earnings downgrades will be treated pretty harshly. Valuations are very rich for the earnings growth banks are providing," Patrick Hodgens, Firetrail Investments chief investment officer said (quoted by The Australian Financial Review).

Regal Funds also has a short position in CBA shares.

Explaining the potential mounting headwinds facing ASX 200 bank stocks, Regal Funds portfolio manager Mark Nathan said:

With banks, you always get a multiplier effect. If houses lose a bit of value, people don't feel as wealthy, they spend less money, they invest less, so you get a multiplier effect with the banks.

That's the big change since the budget. The market is less comfortable with what was previously a reasonable growth outlook, and downgrading that to a more modest growth outlook.

And Blackwattle Investment Partners' portfolio manager Joe Koh cautioned that the current $10.9 billion of short bets against ANZ, CBA, NAB and Westpac shares could well grow from here.

According to Koh (quoted by the AFR):

There could be a further wave of selling because offshore hedge funds are waiting for the budget changes to be officially passed, rather than delving into local politics and the risks of last-minute changes.

The post Buying ASX 200 bank stocks like Westpac and CBA shares? Here's why these funds are betting against you appeared first on The Motley Fool Australia.

Meanwhile, brokers have indicated continuing confidence in several ASX 200 shares with refreshed buy calls this week.

Here are some examples.

CSL Ltd (ASX: CSL)

The CSL share price is $107.34, up 4.3% today.

The ASX 200's largest healthcare share is having a strong week despite no price-sensitive announcements.

Since last Friday's close, CSL shares have spiked 9.6% while the S&P/ASX 200 Health Care Index (ASX: XHJ) has lifted just 3.6%.

CSL shares have fallen 63% over two years, but perhaps a turnaround is afoot?

UBS reiterated its buy rating on CSL shares on Tuesday.

However, the broker lowered its target price from $175 to $158.

This still implies potential capital gains of 47% ahead.

South32 Ltd (ASX: S32)

The South32 share price is $4.35, down 2.9% today.

Over the past six months, this ASX 200 mining share has risen 27%.

Citi reaffirmed its buy rating on South32 shares on Tuesday.

The broker increased its 12-month price target from $5.40 to $6.10.

This suggests a potential 40% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $10.97, down 3.1%.

This ASX 200 travel share has fallen 26% over six months.

But UBS is confident of a turnaround, reiterating its buy rating this week.

The broker has a $14.50 target on the ASX 200 consumer discretionary share.

This suggests a 32% upside from here.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $34.02, down 1.6% today.

This ASX 200 bank share has fallen 5.3% over the past month.

Citi reiterated its buy rating on ANZ shares with a price target of $39.25 on Tuesday.

This implies potential capital gains of 15% ahead.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is $1.46, up 0.3% today.

Over the past six months, this ASX 200 financial share has fallen 17%.

Morgans renewed its accumulate rating on GQG Partners shares yesterday.

The broker lowered its 12-month price target from $2.03 to $1.64.

This suggests a potential 12% upside ahead.

Morgans commented:

While the near-term operating environment remains difficult, we continue to see long-term value in the GQG franchise, trading at ~9x FY1 PE with a ~10% dividend yield.

Life360 Inc (ASX: 360)

The Life360 share price is $21.21, down 1.6% today.

Over the past month, this ASX tech share has recovered 5.6%.

Life360 has lost 33% of its valuation over the past 12 months.

Citi reaffirmed its buy rating on Life360 shares on Tuesday.

The broker modified its target from $32.10 to $28.25, suggesting a potential 33% increase from here.

SRG Global Ltd (ASX: SRG)

The SRG Global share price is $3.69, down 3.5% today.

This ASX 200 industrials share has ascended 32% over six months.

Morgans renewed its buy call on SRG Global shares this week.

The broker also lifted its target price from $3.20 to $4.20.

This implies potential capital growth of 13% over the next year.

Morgans said:

SRG has upgraded FY26 EBITDA guidance to the upper end of its $164-168m range (~$168m) and, unusually early, provided FY27 EBITDA guidance of $190-200m. This underlines the group's strong earnings visibility, which is arguably unparalleled in the services sector.

We forecast SRG reaches net cash in FY26 and, on that basis, expect it to resume acquisitions. We believe SRG may be able to continue to compound +20-30% EPS growth over the next few years as robust organic growth is supplemented by strategic acquisitive growth. 

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is $2.02, up 2.5% today and down 4.3% over six months.

Centuria Capital Group is a funds manager specialising in property investment and investment bonds.

Morgan Stanley renewed its buy rating on this ASX 200 real estate share on Tuesday.

The broker lifted its 12-month price target from $2.05 to $2.35.

This suggests a potential 16% upside ahead.

The post 8 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

At the time of writing, ANZ Group Holdings Ltd (ASX: ANZ) shares are down around 2% and changing hands at $33.96. The banking giant's shares are now down 17% from an all-time high recorded in mid-February, and 7% lower for the year to date.

National Australia Bank Ltd (ASX: NAB) shares are also down around 2% today, and trading at $35.69 at the time of writing. NAB shares are now down over 27% from an all-time high in late February and are around 16% lower for the year to date.

Many ASX 200 bank shares have slumped recently as concerns around the Federal Budget's property tax changes, higher interest rates, disappointing quarterly updates, and ongoing global volatility continue to spook investors. And many are rushing to sell up their holdings.

But when it comes to two of the big four banks, ANZ and NAB, there is one I'd sell and one I'd hold onto.

Here's why.

I'd hold ANZ shares

ANZ was one of the few banking giants that actually posted a positive first-half FY26 update last month.

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.

The bank also confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

It's clear that the bank has been working hard to reduce costs and simplify its operations, and its results last month suggest all its efforts have paid off. 

If profit continues to grow, there could be a glimmer of hope ahead for ANZ shares over the next 12 months.

Brokers look to have become more positive on the stock, too.

TradingView data shows that half of its analysts (eight out of 16) have a hold rating on ANZ shares, but another six have a buy or strong buy rating. 

The average $34.98 target price implies a potential 3% upside at the time of writing. But more bullish analysts think ANZ shares could climb 19% to a maximum target price of $40.50 over the next 12 months.

Citi is one of the more bullish brokers. The team has a buy rating on ANZ shares and a $40 price target.

UBS is slightly more bearish and rates ANZ shares as a hold. But its $36.50 price target is still higher than the average.

I'd sell NAB shares

NAB was one of the worst performers among the big four major banks last month. Its disappointing half-year FY26 results didn't help. 

In early May, the bank posted a modest earnings growth, including a 6.4% increase in underlying profit and a 3.1% increase in revenue. But the results were a miss versus expectations, and investors weren't pleased.

Unlike ANZ, NAB's outlook is much less positive. The bank is facing continued headwinds over the next 12 months, including margin pressure and slower profit growth.

Weaker sentiment is shown in analyst outlooks, too.

TradingView data shows that 10 of 16 analysts have a hold rating on NAB shares. Another four rate the banking giant as a sell. 

The average $37.53 target price currently implies a potential 5% upside at the time of writing. Although some think the shares could fall up to 19% to $29 each in the next 12 months.

Mark Gardner from MPC Markets said his team is bearish on NAB shares. He said they believe the bank's near-term earnings outlook is under pressure. The broker recently said that while its dividend remains attractive, valuation support is less convincing if earnings momentum continues softening. Gardner has a sell recommendation on NAB shares.

Catapult Wealth's Dylan Evans also has a sell recommendation on NAB shares. He said that recent changes announced in the Federal budget, coupled with households pressured by rising interest rates, could create new headwinds for the bank.

The post NAB and ANZ shares: One I'd hold and one I'd sell appeared first on The Motley Fool Australia.

Hedge funds have amassed a record short position nearing $11 billion against the big four banks. This marks the largest dollar value ever recorded for bets against the sector.

The number of shares lent to speculators has reached levels not seen since 2018, following the Hayne Royal Commission.

For the millions of Australians who hold shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), or ANZ Group Holdings Ltd (ASX: ANZ), it demands a clear answer to one question: are the short sellers right?

Who is shorting ASX bank shares and why

The first thing to understand is who is behind this record short position.

Unlike previous bear raids primarily driven by offshore funds betting against Australian property, this current wave is being led by domestic long-short managers. These investors are convinced the banks' profits and valuations are vulnerable to multiple domestic challenges.

The big four shed A$50 billion in combined market cap in May, after Commonwealth Bank suffered its largest single-day plunge on record.

The federal budget housing changes further spooked markets already nervous about rising provisions and stubborn inflation.

The short sellers were positioned for exactly that kind of event.

The bear case explained

Morgan Stanley believes operating conditions for Australia's major banks have "deteriorated rapidly". The broker pointing to three RBA rate hikes, proposed property tax changes, and the global energy shock as pressures landing simultaneously.

Morgan Stanley is now expecting consensus earnings per share forecasts to fall after a soft reporting season.

How? The bear case has four pillars.

First, three RBA rate hikes in 2026 are increasing mortgage stress across the banks' enormous combined home loan portfolios.

Second, the federal budget's negative gearing changes are expected to slow investor credit growth by as much as 25%, according to Jarden.

Third, net interest margins are under pressure from intense deposit competition.

Fourth, and most importantly, the big four bank shares are not cheap.

CBA trades at approximately 26 times forward earnings, a valuation that leaves virtually no margin for error if any of these headwinds intensify.

The bull case still exists for ASX bank shares

Shorting Australian banks has historically been described as a widow maker trade.

The big four remain extraordinarily profitable businesses with irreplaceable market positions, government-backed deposit guarantees, and pricing power in a rising rate environment.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, while paying a fully franked interim dividend of $2.35 per share.

Furthermore, the RBA meets in just five days on 16 June, with markets currently pricing a hold at near-certainty.

A definitive pause signal from the RBA would remove the single biggest near-term headwind weighing on bank shares and could trigger a sharp reversal of the short positions.

ANZ is currently the most favoured among analysts, with six of 16 analysts carrying buy or strong buy ratings and some seeing potential upside of 13% from current levels.

What the record short position actually means

A record short position does not necessarily mean ASX bank shares will fall.

It means a large number of professional investors believe they will fall. And professional investors are frequently wrong.

What the record short position does tell us is that the risk-reward for buying bank shares at current prices is less attractive than at almost any point in the past decade.

The valuations, particularly at CBA, reflect little of that risk. And the smart money is positioned for disappointment.

Foolish takeaway

Ordinary investors do not need to panic about the record short position.

The big four banks are not going to collapse and their dividends are not under immediate threat.

What the short sellers are saying is that the share prices, particularly CBA, have run ahead of the earnings reality.

The RBA's decision on 16 June will be the next significant test of that thesis.

If the RBA holds and signals a pause, the short sellers will feel real pain. If it hikes or signals further hikes ahead, they may have called this one correctly.

The post Hedge funds are shorting the big four bank shares. Should investors be worried? appeared first on The Motley Fool Australia.

In a research report published this week, Citi says it has downgraded its credit growth assumptions to 4% system growth by FY27, with business at 5%, and mortgage credit at 3.5%.

Bank earnings to come under pressure

Citi said re the banks:

This drives modest earnings downgrades for the majors on our numbers. The policy impact adds to the already unfavourable stagflation outlook for the Australian banks, with close to peak rates, slowing growth and rising credit risk.

Citi said there was "prior precedent" that could help investors understand the impact of regulatory intervention in the housing market.

Given Australia's fascination with property, this is not the first attempt to bring investor animal spirits in check. The mid-2010s saw a vast slowdown in investor credit as APRA applied a speed limit to investor credit growth, strengthened serviceability and other changes were made to borrowing power and risk weights. The net result was a slowdown in investor credit from ~11% to ~2% over 15 months. Similar tightening took place across the Royal Commission period as tightening of serviceability by the banks saw investor credit fall from ~4% to 0% over an 18-month period. Investor lending commitments were down ~30-40% in both instances.

Citi said that with fewer investors in the market, the question was whether there would be an offset from more owner-occupiers, including first-home buyers.

They said:

Back in the mid-2010s, despite investor credit decelerating from ~11% to ~2%, we saw overall housing credit only experience a ~1% slowdown because less investor credit was offset by owner occupier credit accelerating from ~5% to ~9%. With a clearer playing field, the owner occupiers effectively stepped into the gap, a move that was aided by falling rates which improved borrowing capacity.

ANZ leading the pack

In terms of the banks, Citi's order of preference is ANZ Group Holdings Ltd (ASX: ANZ) with a buy rating, National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corporation (ASX: WBC) both with a neutral rating, and Commonwealth Bank of Australia (ASX: CBA) with a sell rating.

Citi said:

We think CBA's multiple holds greatest risk to a slowdown in the housing market given its stretched starting point, and hence we reiterate our Sell Rating.

Citi has price targets of $39.25 for ANZ, $135 for Commonwealth Bank, $36.75 for NAB, and $39 for Westpac.

The post What are the big 4 banks worth as the housing market falters? appeared first on The Motley Fool Australia.

Three ASX shares that brokers have named as buys this week are listed below. Here's why their analysts are feeling bullish on them right now:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating on this banking giant's shares with a trimmed price target of $39.25. Citi has been looking into the potential impact of proposed housing tax changes. The broker suspects that the changes could slow credit growth and has adjusted its estimates to reflect this. The good news is that Citi believes mortgage growth will moderate more than business lending growth, which leaves ANZ, with its strong business franchise, better positioned to handle the slowdown. As a result, the broker has named ANZ as its preferred major bank at present. The ANZ share price is trading at $34.46 on Wednesday afternoon.

Life360 Inc. (ASX: 360)

Another note out of Citi reveals that its analysts have retained their buy rating on this location technology company's shares with a trimmed price target of $28.25. Citi highlights that app data suggests that Life360 had a strong month in the United States in May. In addition, international markets showed stronger momentum. And while it is only one month of the year, the broker suspects this strength could lead to Life360 outperforming subscription revenue expectations. The Life360 share price is trading at $22.30 on Wednesday.

Minerals 260 Ltd (ASX: MI6)

A note out of Bell Potter reveals that its analysts have retained their speculative buy rating and $1.35 price target on this gold developer's shares. The broker highlights that Minerals 260 has released more positive drilling results from the Bullabulling Gold Project. Bell Potter points out that the results continue to confirm the continuity and grade of mineralisation at Bullabulling. They also demonstrate that key deposits remain open at depth and along strike. And with high-grade hits below the existing pit-shells and along the more recently identified footwall shear zones, Bell Potter believes there are strong high-grade targets emerging. Outside this, the broker notes that Minerals 260 has a very strong balance sheet and enough cash to fund it through to a final investment decision in early 2027. The Minerals 260 share price is fetching 76 cents at the time of writing.

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

Bank stocks make up a core part of many investors' portfolios. This means that when they fall, they can drag down your portfolio's overall performance. 

Not only do the big four dominate market share, but they are also targeted for relatively stable earnings and dividends.

Let's look at how they are performing this year, and the lesser-known bank stock earning positive ratings from experts. 

Big four bank shares struggle

Since the start of 2026, the big four bank shares have underperformed the broader ASX 200. 

Year to date: 

• Commonwealth Bank of Australia (ASX: CBA) is essentially flat with the start of the year
• National Australia Bank (ASX: NAB) is down nearly 14%
• Westpac Banking Corporation (ASX: WBC) is down over 10%
• Anz Group (ASX: ANZ) shares have fallen 6%. 

Why are bank stocks down?

ASX bank stocks have weakened in 2026 as investors grapple with the implications of a higher interest rate environment. 

While rising rates can support bank margins, they also increase borrowing costs for households and businesses, raising concerns about slower loan growth and a potential increase in bad debts.

Investors are increasingly concerned about the risk that mortgage stress could rise if rates remain elevated for an extended period, particularly given Australia's high household debt levels. 

At the same time, bank valuations had reached historically rich levels following a strong run-up in share prices in 2025, leaving little room for disappointment. 

As a result, even solid earnings results have failed to prevent profit-taking across the sector, sending ASX bank shares lower.

What are brokers saying?

There is little optimism from brokers surrounding the big four ASX bank stocks. 

CBA shares recently were listed as a hold by Red Leaf Securities, while NAB shares were listed as a sell by the team at Catapult Wealth. 

Elsewhere, Morgan Stanley has a sell rating on CBA, NAB and Westpac. 

The only glimmer of upside appears to be ANZ. 

UBS recently upgraded ANZ shares to a hold rating with a $36.50 price target.

This indicates a modest 7% upside from current levels. 

The surprising option emerging as a buy

While the big four bank stocks appear to have little upside, there is plenty of optimism about smaller rival bank stock Judo Capital (ASX: JDO). 

Its share price is down 20% year to date, however brokers are tipping a rebound for this smaller bank. 

The team at Morgans recently retained their buy rating on this small business lender's shares with an improved price target of $2.15.

From current levels, this indicates an upside of 50%. 

Looking ahead, the broker believes Judo Capital will deliver strong earnings growth over FY 2026 – FY 2028.

The post Which ASX bank stock is the best buy right now? appeared first on The Motley Fool Australia.

They are owned for yield, not growth, and they tend to move slowly in both directions.

TPG Telecom Ltd (ASX: TPG) has offered investors rather less stability than the sector's reputation might suggest, with shares down 30% over the past twelve months.

But this week's Investor Day contained a commitment that income investors specifically should pay close attention to.

What TPG said at its Investor Day

TPG Telecom held its annual Analyst and Investor Day on Tuesday 3 June 2026.

The company presented a first-half 2026 trading update alongside its medium-term strategic direction.

TPG delivered two important messages for income investors.

First, mobile service revenue continues to grow strongly. The company forecasts 70,000 to 80,000 new mobile subscribers in the first half of FY2026. EBITDA growth is also expected to outpace revenue growth as the company's cost discipline takes hold.

Second, and most importantly for dividend investors, management confirmed that dividend growth is expected to continue in line with sustainable profit and cash flow growth.

This is a meaningful upgrade to the dividend policy from prior years when capital was being prioritised for debt reduction.

The financial transformation behind the dividend commitment

The dividend growth commitment is credible because of the financial transformation underpinning.

In FY2025, TPG's operating free cash flow almost doubled to $1.91 billion. This was a dramatic improvement from prior years when heavy capital expenditure on the mobile network consumed the bulk of cash generation.

Net bank borrowings fell from $4.1 billion to $1.361 billion over the same period, dramatically reducing the financial risk that had previously constrained dividend capacity.

Total FY2025 dividends paid were $0.18 per share, franked at 30%.

Management is now guiding for FY2026 EBITDA of $1.665 billion to $1.735 billion and capital expenditure of approximately $750 million.

This combination implies continued strong free cash flow generation and growing capacity to lift the dividend.

The current yield picture

At the current TPG share price, the trailing dividend yield sits at approximately 4.9% on a partially franked basis.

This yield does not compare unfavourably to the big four banks, particularly ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), which carry their own earnings risks in the current high-rate environment.

Furthermore, the partially franked dividend does carry some franking credit value for Australian taxpayers. This should improve their effective after-tax yield above the headline figure.

The key question for income investors is not the current yield but the trajectory.

A business with nearly doubling free cash flow, dramatically lower debt, and a new dividend growth policy is precisely the setup from which reliable income growth tends to emerge over a three to five-year horizon.

The risks worth knowing

TPG's broadband subscriber base has been declining as the company shifts focus toward mobile and away from legacy fixed-line services.

This transition has created some revenue headwinds in the near term that management is working to offset through cost reduction and mobile subscriber growth.

The company also flagged that spectrum renewal costs from 2028 represent a capital expenditure risk that will need to be managed carefully.

Competition from Telstra (ASX: TLS) and Optus in the mobile market remains intense, and any meaningful loss of mobile market share would directly threaten the earnings trajectory that underpins the new dividend policy.

Foolish takeaway

TPG shares have underperformed the market significantly over the past year.

That underperformance has created a more attractive entry point for income investors than has been available in some time.

A dividend growth commitment backed by nearly doubling free cash flow and dramatically reduced debt is not something to overlook.

For patient income investors comfortable with a telco turnaround story, TPG shares deserve serious consideration.

The post TPG Telecom just raised its dividend. Here's what that means for income investors appeared first on The Motley Fool Australia.

What happened to the ASX 200 big four major banks in May?

Australia's banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ). 

Together, they make up around a quarter of the S&P/ASX 200 Index (ASX: XJO) by market capitalisation. 

CBA shares fell 5.6% in May and are trading around 1% lower again for the first day of June. At the time of writing, the ASX 200 bank shares are changing hands for $163.87 a piece.

Westpac shares fell 6.5% throughout the month, and are largely flat at the time of writing on Monday, at $36.02 a piece.

NAB shares also fell by 6.4% in May. At the time of writing, the bank shares are marginally higher, up around 0.4% to $37.48 each.

ANZ shares suffered a slightly smaller slump in May versus its peers. The bank stock fell 4% in May and has continued tumbling into the first day of June. At the time of writing, the shares are down around 0.5% to $35.03 a piece.

What about the mid-tier banks?

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares fell 3.3%, and Bank of Queensland Ltd (ASX: BOQ) dropped nearly 7% in May. 

Macquarie Group Ltd (ASX: MQG) was the best performer by far and the only ASX 200 bank that saw a gain throughout the month. Its shares climbed around 1.5% in May.

It looks like Macquarie largely escaped the May bank sell-off. This is likely because it posted a stronger-than-expected FY26 result in the first week of the month.

Which ASX banks are a buy for June?

Macquarie Group is also the only ASX 200 bank share that brokers think can keep climbing higher.

Market Index data shows brokers have a buy rating on Macquarie Group shares. It tips around a 7% upside to $253.75 at the time of writing. 

Which ASX banks are a sell?

Analysts are concerned that CBA shares are still overvalued versus their peers. Market Index data shows brokers hold a strong sell rating on the ASX 200 bank's shares. They tip a potential average 23.85% downside to $124.20 at the time of writing.

Brokers also rate Westpac shares a strong sell and tip a 6% downside to an average target price of $33.97 over the next 12 months.

NAB shares are a sell, but the average $39.21 target price still implies a potential 5% upside, at the time of writing.

Meanwhile, Bank of Queensland shares are rated a sell and are tipped to fall just over 1% to $6.14 each.

Which ones are a hold?

Brokers rate ANZ shares as a hold, and they tip a 3.2% potential upside to an average $36.20 target price, at the time of writing. 

Bendigo shares are also rated a hold, and brokers tip a 3% upside to an average target price of $10.66.

The post Are ASX 200 bank shares a buy in June? appeared first on The Motley Fool Australia.

The ASX bank share typically has a higher dividend yield than competitors like Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), and a similar yield to names like National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Thankfully, ANZ's dividend has recovered significantly since the COVID-hit year of 2020.

The recent FY26 half-year result was another example of the ASX bank's share stability for shareholders.

In that HY26 result, ANZ maintained its interim dividend per share at 83 cents following the bank's underlying cash profit before provision growth of 12%, while the underlying cash profit grew 14%.

In this article, we're going to look at the annual FY27 dividend, which will be paid in 2027.

2027 dividend projection for owners of ANZ shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.70 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 4.75% excluding franking credits and a grossed-up dividend yield of approximately 6.3% including franking credits.

If someone were to invest $8,000 in ANZ, they would be able to buy 224 ANZ shares (with a little bit of money left over).

With those 224 ANZ shares, investors could receive $380.80 of cash and some franking credits, the level of franking credits are not known at this stage because the ASX bank share is only paying partially franked dividends.

Is this a good time to invest in the ASX bank share?

According to CMC Invest, there have been 10 analyst ratings calls on the business in the last three months.

Of those 10, four of them were a buy, five were a hold and one was a sell. So, the investment professionals are, on average, neutral on the appeal of the company's valuation right now.

The average price target of those 10 ratings is $35.14. That means, collectively, those analysts are predicting the ANZ share price will (at the time of writing) hardly move over the next year.

In the last 12 months, the ANZ share price has been above $40 and below $30, so it's probably about fair it's roughly in the middle now.

For now, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in ANZ shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

Meanwhile, brokers have indicated continued confidence in several ASX 200 shares, issuing renewed buy calls this week.

Let's review.

Goodman Group (ASX: GMG)

The Goodman share price is $31.39, up 2% today.

The ASX 200 real estate share has risen 2% in the calendar year to date (YTD).

Morgans renewed its buy rating on Goodman shares on Thursday.

The broker raised its 12-month share price target from $32.45 to $36.

This suggests a potential 15% upside ahead.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $35.27, up 1.1% today.

This ASX 200 bank share has fallen 2.5% over the past month.

Citi reiterated its buy rating on ANZ shares with a price target of $40 on Monday.

This implies potential capital gains of 13% ahead.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda share price is $1.37, up 7.6% today.

This ASX 200 gold share has fallen 10.9% YTD.

Canaccord Genuity reiterated its buy rating with a $2.25 target this week.

This implies a potential 64% upside ahead.

Codan Ltd (ASX: CDA)

The Codan share price is $42.13, up 2.7% today.

This ASX 200 tech share has rocketed 45% YTD.

Canaccord Genuity reaffirmed its buy rating with a 12-month target of $47.05.

This suggests a potential 11% upside ahead.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is $1.56, up 12% today.

This ASX bank share has fallen 14% YTD.

Citi renewed its buy rating on Judo shares with a $2.20 target today.

This implies potential capital growth of 40% over the next year.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $72.99, up 3.1% today.

This ASX 200 mining share is up 32% YTD.

UBS renewed its buy rating on Mineral Resources shares this week.

The broker raised its share price target from $73 to $83.

This implies potential capital growth of 14% over the next year.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $10.99, up 8.8%.

This ASX 200 travel share is down 27% YTD.

Jefferies has reaffirmed its buy rating on Flight Centre shares with a $14 target.

This suggests a potential 28% capital gain ahead. 

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman y Gomez share price is $19.49, up 0.5% today.

This ASX 200 consumer discretionary share has fallen 16% over six months.

Last week, the Mexican restaurant chain upgraded its earnings guidance and announced it was exiting the US.

Morgans renewed its buy rating on Guzman y Gomez shares on Monday.

The broker upped its price target from $26.70 to $29.40.

This suggests a potential 50% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $7.77, down 1.1% today.

This ASX 200 energy share has lifted 26% due to higher oil and gas prices in 2026.

UBS renewed its buy rating on Santos shares with a $8.60 target on Thursday.

This suggests a potential 11% upside ahead.

The post 9 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

The S&P/ASX 200 Banks Index (ASX: XBK) is down 2.1% today while the broader benchmark index is down 2%.

The sector's No. 1 share, Commonwealth Bank of Australia (ASX: CBA), is leading the pack lower, down 2.5% to $160.67.

What's happening with ASX 200 bank shares?

ASX 200 bank shares are facing many headwinds today.

Morgan Stanley reckons there's a 5% earnings downgrade ahead, purely due to capital gains tax (CGT) changes in the Federal Budget, which may impact lending growth to property investors.

On top of that, there are macroeconomic challenges afoot, which tend not to bode well for bank stocks.

Consumer confidence is at a five-year low after three interest rates rises.

We've just seen the first signs of weakness in the jobs market, with unemployment rising to 4.5% last month.

And we're a long way off seeing the full long-tail impact of the global oil shock.

Amid this, the banks are trading on stretched valuations and falling trailing dividend yields.

You can compare ASX 200 bank share dividend yields with rising risk-free savings deposit rates beyond 5.5% for further data.

Portfolio manager Suhas Nayak from contrarian fund manager Allan Gray says ASX 200 bank shares look less attractive today.

Nayak told The Australian:

The total returns from here look not as appealing as many other parts of the market.

With all of this in mind, let's check out some new ratings on three of the five major ASX 200 bank shares.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is $234.45, down 0.8% today and up 1.1% over the past month.

Morgan Stanley reiterated its buy rating on Macquarie shares with a 12-month price target of $263 this month. 

This implies 12% upside ahead.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $34.81, down 2.2% today and down 3.4% over the past month.

UBS recently upgraded ANZ shares to a hold rating with a $36.50 price target.

That implies 5% upside from here.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $35.77, down 1.7% today and down 7.4% over the past month.

Morgan Stanley reiterated its sell rating on Westpac shares last week.

The broker has a target of $34 for Westpac shares, suggesting a 5% fall from here.

The post Buy, hold, sell: ANZ, Macquarie, Westpac shares appeared first on The Motley Fool Australia.

Saying that, if you are looking for an ETF that offers up a dividend yield greater than 4% today, your choices are far more nuanced. In fact, only a handful of funds still offer yields of that size. Even the broad-based index funds, long famed for their fat dividends, aren't in that ballpark. VAS, for example, currently trades on a trailing yield of 3.14% (as of yesterday's closing price).

That's why, if you're an investor who prioritises maximising dividend cash flow above all else, you may wish to consider the VanEck Australian Banks ETF (ASX: MVB) today.

This is a very simple ASX ETF. As its name implies, MVB gives investors access to an underlying portfolio of ASX bank shares. It keeps things simple, with just seven bank stocks in its portfolio at present. As one might expect, the big four are all there, and take up a lot of room.

Which ASX bank shares are in this dividend ETF?

As it currently stands, Commonwealth Bank of Australia (ASX: CBA) shares are at the top of the pile, taking up about 20% of MVB's portfolio. ANZ Group Holdings Ltd (ASX: ANZ) is next, contributing 19.9%, followed by Westpac Banking Corp (ASX: WBC)'s 18.9%.

National Australia Bank Ltd (ASX: NAB) accounts for a further 17%.

Then we have two of the ASX's smaller bank shares. Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ) are the smallest holdings in the VanEck Australian Banks ETF.

That's six. So what about number seven? Well, that would be the ASX's 'fifth bank', the millionaire's factory, also more formally known as Macquarie Group Ltd (ASX: MQG). Macquarie, although not a pure bank, is MVB's largest holding, making up 21.4% of the entire portfolio.

As such, the VanEck Australian Banks ETF can be thought of as a 'seven-for-the-price-of-one' investment in the Australian financial sector.

But let's talk dividends.

Over the past 12 months, investors have received four dividend distributions from MVB. These total $2.19 per unit. At the last MVB unit price of $42.52, that gives the VanEck Australian Banks ETF a trailing dividend distribution yield of 5.15%. Those came with an average franking level of 91%.

There's no guarantee buying MVB units today will secure you that kind of yield going forward, of course. No ASX dividend share or ETF can promise that. However, given the high levels of income ASX bank shares tend to pay out, I'd be surprised if this ETF didn't remain a reliable source of income for the foreseeable future.

The post This ASX bank ETF has a 5.2% dividend yield right now appeared first on The Motley Fool Australia.

At the time of writing, the benchmark index is up 0.21% to 8,675 points.

The move isn't huge, but it's notable given the market was under pressure earlier in the session.

The ASX 200 traded as low as 8,625.8 points before recovering after the April inflation numbers landed.

The index is still down 0.44% in 2026 and around 1.26% over the past month. Over the past year, however, it remains up about 3.19%.

Inflation gives investors a reason to buy

The Australian Bureau of Statistics (ABS) said annual inflation eased to 4.2% in April, down from 4.6% in March. The fall was helped by lower automotive fuel prices, which dropped 7% over the month after the federal fuel excise cut.

That was enough to settle some nerves after a weaker start to the session.

Lower headline inflation can reduce pressure on the Reserve Bank of Australia (RBA) to keep lifting interest rates.

It also helps explain why investors were more willing to buy stocks after the data was released.

But the report wasn't all good news.

Trimmed mean inflation, which strips out some volatile price moves, rose to 3.4% over the year. That was up from 3.3% in March and remains above the RBA's 2% to 3% target band.

Why the RBA question is not settled

Today's inflation update may reduce the chance of another rate rise in June, but it doesn't close the door on more tightening later this year.

The RBA has already lifted the cash rate 3 times this year, taking the cash rate target to 4.35%.

That is already putting pressure on households, especially mortgage holders rolling onto higher repayments.

The problem for the RBA is that the headline inflation number is only one part of the picture.

Annual inflation has eased, but the underlying measure is still moving the wrong way.

It also explains why the market reaction has been positive, but not overly excited.

Investors have enough in the numbers to justify some buying today. They do not have enough to assume the inflation fight is finished.

Banks weigh while tech helps

The recovery has not been spread evenly across the market.

The major banks are still dragging on the index, with Commonwealth Bank of Australia (ASX: CBA) shedding 0.60% to $163.32, Westpac Banking Corp (ASX: WBC) down 1.46% to $36.08, National Australia Bank Ltd(ASX: NAB) slipping 1% to $37.23, and ANZ Group Holdings Ltd (ASX: ANZ) edging 0.98% lower to $35.31.

Tech shares are doing more of the heavy lifting.

Dicker Data Ltd (ASX: DDR) is surging 7.86% to $9.61, Megaport Ltd (ASX: MP1) is climbing 7% to $14.75, and Siteminder Ltd (ASX: SDR) is up 6.5% to $3.04.

The post ASX 200 rises as inflation surprise leaves investors with one big question appeared first on The Motley Fool Australia.

Then came the federal budget, and details of proposed changes to the capital gains tax (CGT).

People already knew the Federal Government was considering CGT changes for property investments to improve housing affordability.

What they didn't expect was CGT changes on all asset classes, including ASX shares and businesses.

That changes the game, according to some experts.

CGT changes magnify importance of yield

Some experts reckon higher taxes on capital gains will likely amplify the appeal of yield over growth for some investors.

Private wealth and investment advisory firm, Medallion Financial Group, said:

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

This might enhance the appeal of ASX dividend shares, or exchange-traded funds (ETFs) tracking the S&P/ASX 200 Index (ASX: XJO).

ASX dividend shares deliver a much higher yield than international shares, but they aren't what they used to be.

Historically, income investors have relied on ASX 200 bank and mining shares to deliver generous dividend yields.

But the average dividend yield for the ASX 200 has fallen below 3.5%.

And this may start looking a little weak to income investors, given risk-free savings deposit rates have now risen above 5.5%.

Savings deposit interest rates

Savings deposit rates are not only attractive now, they're likely to go even higher given expectations of further rate rises this year.

Some examples in the market today include a 5.75% ongoing but conditional savings rate offered by Westpac Banking Corp (ASX: WBC) to customers aged 18 to 34 via its Westpac Life product.

ING offers a 5.5% ongoing but conditional rate via its Savings Maximiser product.

These are not short-term intro savings rates that last only a few months.

They are ongoing, everyday interest rates that apply as long as you meet certain conditions every month, such as increasing your balance by a certain amount.

Those yields are certainly appealing, but here's the thing.

If you're a long-term investor, you are still likely to do better with ASX dividend shares over savings, even if you pay a bit more CGT.

This is because ASX dividend shares offer both capital growth and yield.

Savings accounts just deliver yield (which inflation then eats into as well).

So, remaining invested in assets that also deliver reliable growth over the long term is protective.

The following chart shows the current trailing dividend yields of the top 10 ASX 200 shares by market capitalisation.

As you can see, some stocks have dividend yields above today's savings deposit rates, while some are below.

And nine out of 10 have delivered solid average annual capital growth over the past five years.

Even if you pay more tax on gains in the future, growth plus yield still looks to be a compelling combination, depending on your goals.

Food for thought.

Top 10 ASX 200 shares: Dividend yields and capital growth

The post How do ASX dividend shares compare to savings deposit rates today? appeared first on The Motley Fool Australia.

At the time of writing, the Commonwealth Bank of Australia (ASX: CBA) share price is $162.99, down 1% today.

The National Australia Bank Ltd (ASX: NAB) share price is $37.54, down 1.9%.  

ANZ Group Holdings Ltd (ASX: ANZ) shares are $35.37 apiece, down 1.1%.

Westpac Banking Corp (ASX: WBC) shares are also 1.1% lower at $36.38.

Macquarie Group Ltd (ASX: MQG) shares are down 1.5% at $233.95.

Today, the world is waiting for further news on an impending US-Iran deal that would reopen the Strait of Hormuz.

Oil prices have dropped significantly in anticipation of the key shipping channel reopening after nearly three months of effective closure.

The Brent Crude oil price is currently US$97.72 per barrel, down 12% in a week.

Regardless of when the war ends, economists say the full economic effect of the oil shock is yet to play out.

The question is not whether the impact will be bad, but rather, how bad.

The Australian Bureau of Statistics reported today that 72% of Australian businesses are under pressure due to higher fuel costs.

Higher petrol and diesel prices, along with three interest rate rises this year, have contributed to a multi-year low in consumer sentiment.

Rates have gone up due to resurgent inflation. That started before the war began, and it's now been exacerbated by higher fuel prices.

We've also just seen the first sign of a weakening jobs market. Unemployment rose to 4.5% in April amid 18,600 job losses.

On top of all that, proposed changes to capital gains tax (CGT) are worrying businesses and investors in shares and property.

Top broker predicts impact of CGT tax changes

In a new note, analysts from top broker Morgan Stanley said softer mortgage growth and margin headwinds stemming from the proposed CGT changes could result in FY27 earnings downgrades of about 5% for the major ASX 200 bank shares.

This is because the banks are highly exposed to the residential housing market, which is already weakening due to higher interest rates.

The analysts said a deterioration in housing market sentiment would raise the probability of lower valuation multiples for bank stocks.

Concern about the impact of CGT changes was partly behind a 10% daily drop for CBA shares earlier this month.

That was the biggest one-day fall for CBA shares ever.

It followed the bank's 3Q FY26 update, which was released the morning after the Federal Budget.

CBA reported an unaudited cash net profit after tax (NPAT) of $2.7 billion, down 1% on the quarterly average for 1H FY26.

Investors also noticed the $200 million increase to bad debt provisions, which CBA attributed to higher geopolitical and economic risks.

Will ASX 200 bank shares fall?

ASX 200 bank share price movements are often seen as a barometer of investor confidence in the economy.

And right now, the economy isn't looking great.

Consumer confidence is near pandemic lows; higher inflation and interest rates are expected; we have entrenched low productivity growth; the first signal of a weakening jobs market; and the impending long-tail impact of the global oil shock and changes to CGT tax on top.

Additionally, when any ASX stock trades on a stretched valuation, it's natural to assume that mean reversion will occur at some point.

ASX 200 bank shares have been on the up since November 2023. The big five have all reset their record highs over the past year.

The following chart showing percentage changes in ASX 200 bank share prices since November 2023 paints a picture.

Portfolio manager Suhas Nayak from contrarian fund manager Allan Gray says the major ASX 200 banks are trading at rich levels today.

Four of the major five are trading on a price-to-earnings (P/E) ratio of 18 times to 19 times, compared to the historical average of 12 times.

And CBA shares are out on their own at 26.7 times.

Nayak told The Australian that this presents a risk for share prices:

It just exposes you to valuation risks across those particular companies that have done particularly well.

What about bank dividends?

An additional factor that may increasingly weigh on ASX 200 bank shares is their declining dividend yields.

As ASX 200 bank share prices have stormed higher, earnings have not kept pace, so dividend yields have reduced.

This makes ASX 200 bank shares less attractive to investors focused on passive income. (Find out current bank dividend yields here).

Nayak said:

The total returns from here look not as appealing as many other parts of the market.

Morgan Stanley has a sell rating on CBA, Westpac, and NAB shares today.

The broker gives a buy rating to ANZ and Macquarie shares.

The post Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here's why appeared first on The Motley Fool Australia.

As we can see on the chart below, the ANZ share price has decreased in the last few months. It can be a good idea to look at names like ANZ when they go through a decline.

Let's see what the latest forecasts are for the ANZ share price and what this could mean for shareholders.

Price target

A price target is where analysts think the share price will be in within 12 months of the investment call. Sometimes the price target suggests there will be a decline and other times it suggests there could be an impressive rise.

According to CMC Invest, there have been 10 recent ratings on the ASX bank share. Of those ten, four were buys, five were holds and one was a sell.

The average price target from these 10 analysts was $35.60. That's very close to what it's actually trading at, meaning investors shouldn't look forward to any strong gains.

The most optimistic price target is $40, implying a possible rise of 12% from where it is at the time of writing.

However, the lowest price target is $30.72, which implies a possible decline of 13%.

So, the valuation looks finely balanced at the moment.

What's driving the ANZ share price?

You'd have to ask each buyer and seller of ANZ shares why they transacted at the price they did.

But, it's clear that the market still has its eyes on the ASX bank share's recent FY26 first-half performance.

ANZ reported that, excluding significant items, operating income was flat and operating expenses declined 9%, helping profit before provisions rise 12%. Underlying cash profit increased by 14%.

As you can tell from the numbers it reported, the ASX bank share has been working hard at reducing costs by reducing duplication and simplifying the organisation. ANZ said 78% of 3,500 announced roles exited the bank by the end of April 2026.

Profit growth is a key driver of the ANZ share price, so it's good to see that profit grew by double-digits in the most recent result.

However, with how its net loans and advances only grew by 1% over the six months between September 2025 and March, it's not exactly shooting the lights out.

I can see why analysts aren't excited about the valuation at the moment, so there could be better opportunities out there.

The post How much could the ANZ share price rise in the next year? appeared first on The Motley Fool Australia.

That means ASX dividend shares may become more interesting than growth stocks if the CGT changes get through Parliament.

In a recent newsletter, private wealth and investment advisory firm, Medallion Financial Group, said:

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

The most reliable dividend yields come from ASX 200 large-cap shares.

Large caps have a minimum market capitalisation of $10 billion. They are our biggest and most established listed companies.

They typically offer high dividend payout ratios because they are long-standing, well-established businesses with reliable profits.

At the top of the ASX 200 today is a mix of bank shares, mining shares, property shares, and others.

Let's take a look at the current trailing dividend yields of the top 10 ASX 200 shares today.

Dividend yields

Things to consider

A company's trailing dividend yield is calculated by dividing its total dividends (usually two) paid over the past 12 months by the current share price and multiplying by 100.

This means trailing dividend yields are based on the previous year's income and do not account for this year's market conditions.

For example, the impact of the global oil shock, which is raising input costs for many companies right now, is not reflected in current trailing dividend yields. Those rising costs today may reduce the dividend amounts some companies can pay over the next year.

So, use trailing dividend yields as a guide, not a guarantee, of future dividend income.

The post Thinking about dividend yields? Here's how much the top 10 ASX 200 shares pay appeared first on The Motley Fool Australia.