Not every large yield is reliable, though. Extremely high dividend yields may be funded by an unsustainable dividend payout ratio, or by a significant decline in the share price (which pushes up the trailing yield) as the market expects a drop in earnings (and dividends).

While the dividend yields I'm about to talk about are not guaranteed, I think it's likely the ASX shares will continue to pay large dividends for the foreseeable future.

Centuria Office REIT (ASX: COF)

This is a very unloved real estate investment trust (REIT) right now – it owns office buildings across Australian metropolitan locations.

In the last six months alone, the Centuria Office REIT unit price has declined by 20%, making it much cheaper.

The work-from-home trend has certainly been a headwind for office demand in the last few years. Recently, AI growth and rising interest rates have also been potential headwinds for earnings, office property valuations, and market confidence.

However, the properties are still generating rental income for investors, the buildings still retain significant value, and the land the ASX share owns is rising in value over time.

In the FY26 first-half results, the business reported its portfolio valuation increased by $42.8 million, marking the second consecutive period of valuation gains. That shows the business was experiencing green shoots last year.

The business also said it continued to sign new rental leases, while the supply of new office buildings remains restrained because of high replacement costs (and lower demand).

In FY26, the business is expecting to generate rental profit (FFO – funds from operations) of between 11.1 and 11.5 cents per security. The guided FY26 distribution of 10.1 cents per unit translates into a forward distribution yield of 10.75%. Even a 10% cut of the distribution next financial year would still see it pay a distribution/dividend yield of well over 9%.

Hearts and Minds Investments Ltd (ASX: HM1)

The other high-yield ASX share I want to highlight is a unique listed investment company (LIC) on the ASX. It invests in shares across the world.

Instead of just one fund management team being in charge of the investment decisions, it's invested in stocks that have been chosen (for no management costs) by various fund managers.

Some of the portfolio is chosen by a core group of permanent fund managers, while picks in the portfolio are decided by an annual investment conference where experts pitch a stock they think could be a strong performer.

The reason why so many investment professionals are willing to contribute ideas for free is that the LIC donates 1.5% of net assets each year to medical research. I think that's a great initiative and one well worth supporting.

This ASX share has pleasing dividend characteristics – it hasn't given shareholders a dividend reduction since it started paying dividends in FY21. It has grown its annual payout every year in that time, aside from FY23 when it maintained its dividend.

The ASX share has provided guidance that it will grow its half-year dividend by 0.5 cents every six months for the foreseeable future, implying that the next two dividends will be 20.5 cents per share. That translates into a grossed-up dividend yield of 10%, including franking credits.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here at The Fool, our analysts do not recommend buying ASX shares simply just to get the next dividend payment.

Our market experts say the decision to buy should be more thoughtful than that, and based on fundamental analysis.

But if you already intend to buy any of these ASX shares, you might like to consider the best timing for you.

For example, you could buy before the ex-dividend date and receive entitlement to the next dividend payment.

Or you might prefer to wait until the ex-dividend date itself, when the share price usually falls, to snap up your stock.

Here are some ex-dividend dates next week

The post 20 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

High dividend yields can be a trap, particularly if they mean the dividend will be cut sooner rather than later.

However, some dividend yields may not be illusions but be coming from incredibly undervalued names.

Keep in mind, a dividend yield increases when a share price decreases. For example, if a business has a 7% dividend yield and then the share price drops 10%, the dividend yield reaches 7.7%.

Share prices do sometimes go through large declines when there is some sort of widespread issue, such as the GFC, COVID-19 or the strong inflation period. Dividend yield-focused investors can see higher yields at times like that. But, I wouldn't call the current period as once-in-a-decade. Rather, the market seems to regularly go through sizeable declines.

I think income investors should always be on the lookout for ASX 200 income shares with large yields.

The business doesn't necessarily need to have a dividend yield of 10% (or more) for it to be a good ASX dividend share. For example, I've highlighted names like Future Generation Australia Ltd (ASX: FGX) and Hearts and Minds Investments Ltd (ASX: HM1) as compelling ideas for dividend income (though they aren't ASX 200 income shares).

I'll briefly point out three names that are expected to have extremely high dividend yields in FY26. But, there's no guarantee those yields will be that strong forever.

IPH Ltd (ASX: IPH)

IPH is a legal business that provides clients with intellectual property (IP) services such as patent filing, trademarks and enforcement. It has a position in a number of markets including Australia, New Zealand, Asia and North America. It claims to be the largest player in the Asia Pacific region.

The FY26 half-year result showed good financial progress by the business. It grew revenue by 6.5% to $363.9 million, increased operating profit (EBITDA) by 6.6% to $107.1 million and the statutory net profit (NPAT) rose by 10.5% to $41.2 million. The business decided to hike its interim dividend by 11.8% to 19 cents.

The forecast on Commsec suggests the ASX 200 income share's annual dividend could rise to 37.6 cents per share in FY26. That translates into a dividend yield of 11% excluding any franking credits, at the time of writing.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a funds management business that provides portfolios across Australian shares, international shares and infrastructure equities. It also holds stakes in a few other businesses including investment bank Barrenjoey and fund manager Vinva.

The business recently announced it's going to merge with Barrenjoey, giving Magellan much more earnings growth potential in the coming years, in my opinion.

According to the forecast on Commsec, it's predicted to pay a grossed-up dividend yield of 11.1% in FY26, including franking credits at the time of writing.  

Centuria Office REIT (ASX: COF)

This is a real estate investment trust (REIT) that owns office properties across metropolitan Australian locations.

The ASX 200 income share's weighted average lease expiry (WALE) is around four years, which provides some rental income and visibility, but there are recent developing headwinds of higher interest rates, rising inflation and questions of how AI developments could impact office demand.

Even so, the land that the offices sit on is valuable, and the REIT is working out leasing some floors to data centres, protecting its underlying value.

The business has guided that it's going to pay a distribution per unit of 10.1 cents in FY26, translating into a distribution yield of 10.1%, at the time of writing.

The post A once-in-a-decade chance to get a 10%+ yield from ASX 200 income shares? appeared first on The Motley Fool Australia.

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

REITs can have various property types in their portfolios, or they might specialise in just one type. Some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels.

Investors may choose to target this asset because they typically provide predictable income through regular distributions, supported by rental cash flows and a tax-efficient structure. 

REITs also offer potential capital growth and diversification benefits, making them attractive as a long-term investment option.

Recent underperformance 

Despite the favourable aspects of REITs, over the last few years, this asset class has largely underperformed relative to other sectors. 

Many REITs struggled through and post pandemic due to market shifts. 

For example, some REITs own and operate office buildings. 

COVID-driven shifts in work patterns combined with poorly timed new supply drove vacancies higher, and rents lower across Australia's major CBDs, with asset values following suit.

Similar headwinds impacted REITs engaged in retail spaces like shopping centres. 

However new insight from VanEck suggests the tide could be turning after years of underperformance. 

Supply demand dynamics improving

According to VanEck, office REITs were among the best-performing A-REIT subsectors in 2025. 

In a new report, the ETF provider said this momentum could continue in 2026 for several reasons. 

VanEck said supply pipelines are thinning, economic conditions are favourable and elevated 10-year yields may begin to provide a more supportive backdrop for sector performance.

We think the medium-term outlook for office REITs in particular is positive, albeit one that still demands selectivity.

Pranay Lal, Portfolio Manager, VanEck said vacancy rates have stabilised and are expected to trend lower, with the supply/demand office space dynamics potentially improving. 

High replacement costs, restrictive financing conditions and limited development pipelines are likely to constrain further supply, with leading leasing agent Jones Lang LaSalle Incorporated (JLL) forecasting new supply to be almost half the 20 year calendar average.

Economic conditions favourable

According to VanEck, valuations across office REITs are closely linked to broader macroeconomic conditions. 

Periods of strong economic activity, low unemployment and robust population growth have historically been supportive of structurally lower vacancy rates.

Australia has seen a marginal acceleration in GDP growth, supported by improving business investment and consumer spending. 

Additionally, unemployment is near a historical low and forecast to stay in the 4% range over the medium term.

This backdrop further supports a recovery in CBD office demand.

Office and retail REITs are currently offering compelling value, we think. Both sectors are trading at discounts to net tangible assets, suggesting scope for a re-rating toward more normalised valuation levels. This potential mean reversion could act as a catalyst for relative outperformance.

How to gain exposure

For investors looking to gain exposure to this sector, there are a few options to consider. 

For pure-play office REITs, Centuria Office REIT (ASX: COF) owns a portfolio of high-quality office buildings across Australian capital cities and key markets. 

Other office REIT options include: 

• Dexus (ASX: DXS)
• Charter Hall Group (ASX: CHC)
• The GPT Group (ASX: GPT).

Another option is to target a thematic ASX ETF such as VanEck Vectors Australian Property ETF (ASX: MVA). 

MVA ETF gives investors exposure to a diversified portfolio of Australian REITs, however this isn't exclusively office owners. 

The post Why 2026 could be the year of the REIT rebound appeared first on The Motley Fool Australia.

Investing before an ASX company releases its February earnings can offer upside if results beat expectations. 

But it also carries higher risk because unexpected disappointments can trigger sharp price drops. 

Investing after the earnings release reduces uncertainty. It allows investors react to confirmed information and guidance, though some of the biggest price moves may already be priced in, limiting short-term upside.

Here is an updated outlook for two ASX REIT stocks this earnings season. 

Centuria Office REIT (ASX: COF) 

Yesterday, we saw share price swings for Centuria Office REIT following the release of HY26 results.

The share price fell roughly 2% before midday before recovering to finish 0.94% higher at approximately $1.07 per share. 

A report from Bell Potter noted funds from operations (FFO) of 5.6 cents per share was slightly below expectations, coming in 0.9% under Bell Potter's forecast.

Despite this modest first-half earnings miss, the company reaffirmed its FY26 guidance for FFO of between 11.1 cents and 11.5 cents per share, with the midpoint of the range sitting 0.9% ahead of Bell Potter's estimate.

The ASX REIT also reaffirmed its full-year distribution guidance, with dividends per share expected to be 10.1 cents, signalling confidence in the full-year earnings and income outlook.

Bell Potter also noted some key vacancies at 818 Bourke St (currently 25% vacant) and 201 Pac Hwy (33% vacant) remain outstanding, which limits upside. 

Following yesterday's results, the broker has placed a hold recommendation on the REIT, along with a price target of $1.05. 

While we don't necessarily see numerous short term upside catalysts for COF, 1H26 outcomes suggest the likelihood of downside to guidance has reduced following the de-risking of FY26 expiries.

Charter Hall Retail REIT (ASX: CQR)

Charter Hall is set to release results tomorrow on Friday 6 February. 

The company owns and manages a portfolio of convenience-focused retail properties. These include supermarket-anchored neighbourhood and subregional shopping centres, service stations, and some retail logistics properties.

It has performed well in the last year, rising roughly 20% in that span. 

It closed yesterday at $3.87. 

However, Citi currently has a buy rating and $4.50 price target on its shares.

Additionally, it is projecting dividend yields of more than 6%. 

This could be an example of an REIT that investors may want to target before earnings results are released. 

It has shown a track record of successful capital deployment and improving margins recently. 

Should Charter Hall match or exceed expectations, the share price may jump considerably. 

The post Are these ASX REITs a buy, hold or sell this earnings season? appeared first on The Motley Fool Australia.

Centuria Office REIT (ASX: COF) shares are down 0.47% to $1.055, while Charter Hall Social Infrastructure REIT (ASX: CQE) is weaker by 3.22% to $2.855.

Here is what investors are reacting to.

Centuria Office REIT delivers mixed half-year results

Centuria Office REIT reported its results for the six months to 31 December 2025, showing a business that remains stable but still faces pressure from higher costs.

The trust delivered funds from operations of $33.4 million, or 5.6 cents per unit. That was slightly lower than the same period last year, largely due to higher interest expenses. Distributions for the half were maintained at 5.05 cents per unit, in line with expectations.

There were some positives in the result. Leasing activity remained solid, with more than 29,000 square metres of space leased across the portfolio during the half. Centuria also reported a $42.8 million uplift in portfolio valuations, with most assets holding their value or improving.

Management also sold an office asset in Chatswood at a premium, helping recycle capital and strengthen the balance sheet.

However, with earnings slightly lower and interest costs still elevated, the result failed to lift sentiment. Centuria reaffirmed its full-year guidance, pointing to funds from operations of between 11.1 and 11.5 cents per unit and full-year distributions of 10.1 cents.

Charter Hall Social Infrastructure REIT fails to excite

Charter Hall Social Infrastructure REIT also released its half-year results today, highlighting the defensive nature of its portfolio.

The trust focuses on social infrastructure assets such as schools, childcare centres, and government-leased properties. These assets typically have long leases and reliable tenants, which supports income stability.

During the half, CQE continued to reshape its portfolio, selling some lower-yielding early learning assets and reinvesting into longer-dated social infrastructure properties. The trust also extended its average debt maturity and reported a stronger balance sheet position.

Management upgraded its full-year guidance, now expecting operating earnings of at least 17.2 cents per unit and distributions of 17 cents per unit for FY26.

Despite the upgrade, investors appear underwhelmed. Much of the good news may have already been priced into the share price, and investors remain wary of the broader REIT sector.

Foolish Takeaway

Both REITs delivered steady results, but neither provided a clear catalyst for higher share prices.

With interest rates still elevated, investors remain focused on balance sheet strength, reliable income, and long-term growth.

The post Why these 2 ASX REITs are in the red after today's results appeared first on The Motley Fool Australia.

Certain businesses are able to produce very big dividend yields thanks to a mixture of a generous dividend payout ratios and low valuations. While consistent dividends aren't guaranteed, I think it looks like the following businesses can continue delivering large payouts.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is an underrated retailer, in my view. It wants to be the leader of male and female hair removal, selling products like electric shavers, clippers, trimmers and wet shave items. It also sells items from the oral care, hair care, massage, air treatment and beauty categories.

The ASX dividend stock has increased its payout in almost every year since 2017, aside from when it maintained the payout in 2024.

The Shaver Shop share price is trading at less than 13x FY25's earnings, with a current grossed-up dividend yield of 10.2%, including franking credits, at the time of writing. I think the company's moves to open more stores and grow its own brand called Transform-U will help its bottom line. I also believe the ASX dividend stock's margins could rise in the coming years thanks to bigger scale and more private brand and exclusive product sales.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is an investment business that focuses on buying stakes in private technology businesses.

The company is invested across an array of software businesses including hotel management and room distribution, financial advice and investment management, digital healthcare and telehealth, tours and activities booking, volunteer management, AI-enabled property investment, and fitness and wellness.

Bailador looks for a number of characteristics with its targets, including being founder-led, having a proven business model with attractive unit economics, international revenue generation, having a huge market opportunity and the ability to generate repeat revenue.

It aims to provide investors with a dividend yield (excluding franking credits) of 4% of the net tangible assets (NTA). But, due to the fact that it's trading at a discount of around 40% to the November 2025 pro-forma NTA of $1.98, at the time of writing, it has a dividend yield of 6.6% or 9.4% including the franking credits.

Centuria Office REIT (ASX: COF)

The office sector has struggled over the last few years because of the impacts of working from home and higher interest rates. To me, it's not a surprise that the Centuria Office REIT unit price has dropped over 50% since September 2021.

However, I think there are signs that the business could be undervalued, while providing pleasing levels of passive income. For starters, it's trading at a discount of more than 30% to the stated NTA of $1.67 at 30 June 2025.

The ASX dividend stock's fund manager Belinda Cheung said in August:

COF continues to execute its strategy through active leasing as well as asset and capital management initiatives. Despite this, the office leasing momentum remains fragmented across Australian office markets and, accordingly, the FY26 FFO guidance range takes into consideration anticipated downtime and lease-up assumptions for existing vacancy and pending expiries across COF's portfolio.

Looking ahead, higher replacement costs and office withdrawals for alternate-use conversion is expected to stem future supply and reduce the market size to rebalance office markets, reducing future vacancy rates. COF's portfolio is well positioned to benefit from these future tailwinds.

It expects to pay a distribution of 10.1 cents per unit in FY26, translating into a potential distribution yield of 8.8%, at the time of writing.

Across the three businesses I've mentioned, they have an average yield of close to 9.5%. With investments totalling $3,500, that translates into annual passive income of $331, which is a rewarding starting point.

The post All it takes is $3,500 in these three ASX dividend stocks to help generate $331 in passive income in 2026 appeared first on The Motley Fool Australia.

Returns on cash in the bank have been significantly reduced, so businesses that can offer a yield that's significantly above what term deposits can provide look particularly appealing.

Both of the businesses I'll highlight have provided guidance for sizable payouts in the year ahead. Let's get into them.

Charter Hall Long WALE REIT (ASX: CLW)

The real estate investment trust (REIT) sector can be a good opportunity to find higher-yielding stocks, particularly if they're trading at a sizeable discount to their underlying net asset value (NAV) – the NAV tells investors how much each share/unit is worth after taking into account all of the property values, the loans, and so on.

The Charter Hall Long WALE REIT has a diversified property portfolio spread across a variety of subsectors, including hotels and pubs, service stations, telecommunication exchanges, data centres, distribution centres, buildings leased to a government entity (such as GeoScience Australia), and more.

I like the diversification it offers, as well as the long-term rental contracts, giving the business significant income security and visibility. It has a weighted average lease expiry (WALE) of around nine years.

In terms of the valuation, its NAV was $4.59 at 30 June 2025, so it's trading at a discount of around 10% to this.

The ASX dividend share expects to increase its annual payout to 25.5 cents per share in FY26. At the time of writing, that translates into a possible distribution yield of 6.2%.

Centuria Office REIT (ASX: COF)

The office sector of the commercial property world has been through a challenging time due to the significant shift to working from home over the last six years, although some of that change has since unwound.

This dynamic has created a headwind for demand for office space, occupancy, and rental income. I believe the Centuria Office REIT could be undervalued, considering it's still generating solid rental profits and paying a large distribution.

Management of the business is optimistic about the medium term because of the expectation that higher replacement costs (to build new offices) and office withdrawals for alternate-use will "drastically reduce future supply and reduce the overall market size".

Centuria Office REIT says these rivers are leading to a rebalancing of office markets and future vacancy rates in many markets where its assets are situated, though there are near-term headwinds.  

The company continues to sign new and renewed leases, helping its occupancy be above 91% as of 30 September 2025 with a WALE of around four years.

It had a NAV of $1.67 at 30 June 2025 – at the time of writing, it was trading at a discount of around 30% to its stated underlying value.

The ASX dividend share expects to pay a distribution of 10.1 cents per unit in FY26. At the time of writing, that translates into a forward distribution yield of 8.5%.

The post 2 ASX dividend shares with yields above 6% appeared first on The Motley Fool Australia.

REITs can have various property types in their portfolios, or they might specialise in just one type. 

For example, some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Each week, broker Bell Potter provides analysis on the sector, including target prices and recommendations. 

Right now, it appears the broker sees upside after a down month. 

Here is how the broker is viewing the sector right now. 

Underperforming over the last month 

In this week's report, the broker noted that REITs performed well until a stronger-than-expected employment print (unemployment down to 4.3% vs. 4.5% prior and 4.4% consensus) drove the sector down against the broader S&P/ASX 200 Index (ASX: XJO).

Bell Potter said overall, the sector has underperformed over the last month but could be poised for a bounce back.

On this sentiment, we still think the sector is well positioned (return of earnings growth, strong balance sheets, increased cap trans activity and potential for debt-funded accretive acquisitions) and worth bearing in mind 3mth BBSW is only marginally above where it started FY26 (c.3.6%).

The broker highlighted that Infratil Ltd (ASX: IFT) delivered its 1H26 result, reaffirming full-year guidance, but lost ground given prior strong consensus views. 

Other companies that fell last week included:

• Goodman Group (ASX: GMG) down 3%
• HMC Capital (ASX: HMC) lost 4% 
• DigiCo Infrastructure REIT (ASX: DGT) fell 7%

Buy, hold, and sell from Bell Potter

The report from Bell Potter also included target prices and recommendations.

REITs with buy recommendations include:

• Centuria Capital Group (ASX: CNI)
• Goodman Group (ASX: GMG)
• Dexus Convenience Retail REIT (ASX: DXC)
• GDI Property Group (ASX: GDI)
• Healthco Healthcare And Wellness Reit (ASX: HCW)
• Dexus Industria REIT (ASX: DXI)

Of this group, the team at Bell Potter sees the biggest upside for Healthco Healthcare and Wellness Reit (ASX: HCW) and Goodman Group (ASX: GMG). 

The broker sees roughly 37% to 40% upside from current levels. 

The broker has hold recommendations on: 

• HMC Capital (ASX: HMC)
• DigiCo Infrastructure REIT (ASX: DGT)
• Homeco Daily Needs REIT (ASX: HDN)  

Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF). 

Looking ahead, the broker said feedback from corporates and leading CRE private credit providers points towards potential for margin compression across the sector. 

The post What is Bell Potter's view on REITs? appeared first on The Motley Fool Australia.

Each week, Broker Bell Potter releases commentary and analysis on this sector. 

The broker said REITs underperformed amongst a broadly overall flat week for the market last week. 

Per last weekly, the return of earnings growth for the sector, increased cap trans activity and potential for debt-funded accretive acquisitions improving we see a setting where notwithstanding there may be less Aus rate cuts, the sector growth profile still improves.

Here is the latest guidance from the broker including one buy, one hold and one sell. 

Buy

Bell Potter has an optimistic view on HealthCo Healthcare and Wellness REIT (ASX: HCW). 

This ASX REIT holds a $1.6 billion portfolio of 36 properties, including hospitals, aged care, childcare, life sciences and research facilities, as well as primary care and wellness assets.

The stock price has fallen approximately 31% so far this year; however, it seems Bell Potter anticipates a bounce-back. 

The broker has a buy recommendation and $1.00 price target on the stock. 

This indicates an impressive upside of 47%. 

Hold

In its latest report, Bell Potter has a hold recommendation on Lifestyle Communities Ltd (ASX: LIC). 

This ASX REIT is a developer and manager of communities for the over-50s, semi-retired, and retirees market in Victoria.

Its stock price has fallen more than 38% YTD; however, the broker appears to still have reservations. 

Its price target sits at $5.70, which is roughly 5% higher than yesterday's closing price of $5.42. 

Sell

Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF). 

This ASX REIT has a portfolio of office and commercial property assets throughout Australia.

Its stock price has been volatile this year, but it is overall up 2% in 2025. 

The broker has a price target of $1.10 on COF shares. 

This is more than 5% lower than yesterday's closing price. 

The post Which ASX REITs are a buy, hold and sell according to Bell Potter? appeared first on The Motley Fool Australia.

I wouldn't invest in a high-yield ASX share unless I believe its underlying value is attractive; otherwise, any income payments may be offset by capital declines.

Sometimes, businesses with very high yields may be at a higher risk of a dividend cut than a typical dividend-paying business. But, at the current valuations, I believe the following businesses are underrated by the market and have given guidance of large payouts for FY26.

Centuria Office REIT (ASX: COF)

The office sector has faced challenges over the last few years, but several companies have implemented mandates requiring employees to partially or fully return to the office. This, along with a wider economic recovery, is a tailwind for the sector.

This real estate investment trust (REIT) reported that 75% of its income came from government, multinational corporations, and listed entities, which are high-quality and reliable tenants. At the end of FY25, the business had a portfolio occupancy of 91.2% and a weighted average lease expiry (WALE) of 4.1 years.

In terms of how undervalued it is, the business had net tangible assets (NTA) of $1.67 per unit in FY25, meaning it's trading at a discount of approximately 30%.

The business expects to pay a distribution per unit of 10.1 cents in FY26, which will be funded by rental profit (funds from operations – FFO) of between 11.1 cents and 11.5 cents per unit. At the time of writing, the ASX share's FY26 dividend yield is approximately 8.5%.

At the time of the FY25 result, the fund manager of the REIT, Belinda Cheung, said:

Looking ahead, higher replacement costs and office withdrawals for alternate-use conversion is expected to stem future supply and reduce the market size to rebalance office markets, reducing future vacancy rates. COF's portfolio is well positioned to benefit from these future tailwinds.

Abacus Group (ASX: ABG)

Abacus is another business in the property sector. It says it's a strong asset-backed business, with an annuity-style model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value.

It has assets spread across office, retail, and self-storage. The business also generates management fees from self-storage and commercial. It manages and owns almost a fifth of Abacus Storage King (ASX: ASK).

The ASX share is focused on increasing opportunities to scale its investment management activities, including capital partnering and joint ventures.

The business expects to pay a distribution of 8.5 cents per security in FY26, translating into a forward dividend yield of 7.2% at the time of writing.

As a bonus, past and future rate cuts could increase the valuation of the properties in the portfolio and also help improve the earnings, leading to potentially larger distributions.

The post 2 ASX shares with dividend yields above 7% appeared first on The Motley Fool Australia.

The report provides an overview of the market as well as recommendations. 

Broadly speaking, this week's report discussed the sharp undersupply in Australia's apartment housing pipeline. 

Despite already accounting for twice the pace of household formation compared to owner-occupied housing, apartment supply remains insufficient.

More concerning is that the current 1–2 year forward pipeline is projected to fall 30–40% short of demand targets, even as vacancy rates in key gateway cities remain critically low at ~2% or below (well under the structural 2–3% benchmark).

Additionally, net overseas migration is forecast to add 1.1 million people over the next five years, while apartment commencements have dropped to 13-year lows.

Developers with strong pipelines on foot are well placed to benefit from the secular tailwind ahead in our view.

Based on this analysis, let's look at three recommendations from the broker that stood out. 

Buy – Dexus Convenience Retail REIT (ASX: DXC)

Dexus is a real estate investment trust that wholly owns a portfolio of service station and convenience retail assets. 

It operates across the office, industrial, retail, infrastructure, healthcare and alternatives sectors.

Bell Potter is optimistic on this ASX REIT for a few reasons, including its high distribution yield, and discounted trading price. 

It posted solid FY 25 results, and the broker believes it is well placed to deliver defensive and growing earnings and NTA. 

It has a price target of $3.45, which indicates 15.38% upside from yesterday's closing price of $2.99. 

Hold – HomeCo Daily Needs REIT (ASX: HDN)

The company is an Australian property group focused on the ownership, development, and management of Australian shopping centres. 

The trust owns more than 50 convenience-based shopping centres in five Australian states, targeting neighbourhood retail, large format retail, and health and services sub-sectors.

Bell Potter lists this ASX REIT as a hold, with a price target of $1.40. It closed trading yesterday at $1.36, suggesting it is close to fair value at its current valuation. 

Additionally, Bell Potter said FY25 results were in line with expectations, as the company focuses on development pipeline redeployment. 

Sell – Centuria Office REIT (ASX: COF)

The company is Australia's largest pure-play office real estate investment trust (REIT). It owns a $2.3 billion portfolio of office and commercial property assets throughout Australia.

Bell Potter has a sell recommendation and $1.10 price target. 

Subsequently, this indicates a downside of 7.56% from yesterday's closing price. 

Bell Potter said it anticipates continued declining fundamentals for the office subsector and expects FY 26 to be another tough year for this ASX REIT. 

The post ASX REITs that are a buy, hold and sell according to Bell Potter appeared first on The Motley Fool Australia.

Among the payers this week were BHP Group Ltd (ASX: BHP), which paid a fully franked dividend of 91.9 cents per share yesterday.

Telstra Group Ltd (ASX: TLS) also paid out a fully franked final dividend of 9.5 cents per share yesterday.

Some companies that reported their financial results late in the August earnings season are yet to go ex-dividend.

That means you still have time to strategise how to make their ex-div dates work for you.

Make the ex-dividend date work for you!

Ex-dividend dates provide two opportunities for investors.

After a company announces its next dividend, investors have a small window of opportunity to buy the ASX share with the payment attached.

If you do this, you can generate a quick return via short-term income.

Alternatively, you might like to wait until the ex-dividend date to buy, because the price will likely fall, creating a buy-the-dip opportunity.

Share prices typically fall on ex-dividend dates because the stocks are fundamentally less valuable without the next dividend attached.

As usual, there have been many examples of ASX shares falling on their ex-dividend dates this year.

On Monday, New Hope Corporation Ltd (ASX: NHC) shares fell 7.35% after the coal mining stock went ex-dividend.

Next week, a slew of real estate investment trusts (REITs) and other ASX shares will go ex-dividend.

19 ASX shares with ex-dividend dates next week

Here is a sample of the ASX shares with ex-dividend dates next week.

The post 19 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

This business says it's Australia's largest ASX-listed pure play office real estate investment trust (REIT), overseen by an active management team with "deep real estate expertise".

Around 75% of its income is derived from government, multinational corporations or listed entities. Another 12% is leased to national tenants. The business can point to a strong, blue-chip tenant base.

There are a few reasons why this could be a good time to invest. Let me explain what's attractive to me.

Economic conditions are improving

The period of high inflation was tough for the business because there was still a high level of working from home, while high interest rates were a headwind for property valuations and increasing (interest) costs.

However, the worst now appears to be over.

In the second half of FY25, the business reported an $18 million like for like valuation gain. The business also reported that a 4% average increase in market rents was adopted in the valuations over FY25.

Any additional interest rate cuts by the Reserve Bank of Australia (RBA) could be another boost for the valuation of the properties and could make the ASX 300 stock more attractive for income-focused investors.

Plus, the rate cuts can assist profitability by reducing the cost of debt, leading to higher rental profits and potentially larger distributions.

Centuria Office REIT also pointed to a number of growth drivers remaining for the Australian office market's medium-term outlook. It said that current development feasibilities [are] expected to restrict future supply, office withdrawals for conversion are expected to improve vacancy, and population growth and white collar employment growth could demand. Ultimately, there's rental growth potential in supply-constrained markets.

For FY26, it has several goals, including maintaining a high occupancy rate above the national average and maintaining or improving the portfolio's weighted average lease expiry (WALE).

Does the ASX 300 stock have an attractive dividend yield?

While the office property sector is not exactly booming for landlords, it has seemingly stabilised, with some companies mandating workers return to the office more often.

The passive income from the business remains strong for investors. The ASX 300 stock expects to pay a distribution of 10.1 cents per unit in FY26. At the time of writing, that translates into a distribution yield of approximately 8%.

With the Centuria Office REIT unit price trading (at the time of writing) at an approximate 25% discount to the June 2025 net tangible assets (NTA), it could still be an underrated buy with potentially one or more RBA rate cuts expected in the next 12 months.

The post With an 8% dividend yield, is this ASX 300 stock a buy? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Amcor (ASX: AMC)

The Amcor share price is down 10% to $13.57. Investors have been selling the packaging company's shares following the release of its fourth quarter update. Amcor posted a 43% jump in net sales to US$5,082 million. This was thanks to the completion of the Berry Global acquisition at the end of April. And while its EBITDA was also up 43% to US$789 million, this fell comfortably short of the consensus estimate of US$836 million.

Centuria Office REIT (ASX: COF)

The Centuria Office share price is down 3% to $1.26. This office property company's shares are falling after it released its full year results for FY 2025 and reported a 14.5% decline in funds from operations to $70.4 million. This led to the company cutting its dividend by a similar margin from 12 cents per share to 10.1 cents per share. Management is guiding to another decline in funds from operations for FY 2026.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is down 1% to 46.5 cents. This morning, this lithium explorer released its quarterly update. While it has made plenty of progress with its exploration, it continues to burn through its cash and reported a loss of $1.7 million for the period even after recording $4.2 million of flow-through premium income.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price is down almost 14% to $16.69. The catalyst for this has been the completion of an institutional placement by the niobium company. WA1 Resources revealed that it has received firm commitments to raise $100 million at an issue price of $17 per new share. This follows strong support from new and existing institutional investors across the Americas and Australia. Funds raised will be applied toward pre-development and permitting activities for the Luni Niobium Project, as well as planned capital expenditure relating to supporting infrastructure. Managing Director, Paul Savich, commented: "The Luni Niobium Project is clearly an exceptional asset and this was again reflected in the strong demand recevied for the Placement from existing shareholders and new institutional investors across the world."

The post Why Amcor, Centuria Office, Patriot Battery Metals, and WA1 Resources shares are falling today appeared first on The Motley Fool Australia.

Meanwhile, the brokers have downgraded several ASX All Ords shares to moderate sell ratings.

Some of these ratings are based on valuation. The experts think these shares have gone up too much — beyond their fundamental worth.

Other downgrades are based on company-specific issues.

Sell 'em, say the experts

Here are 8 ASX All Ords shares downgraded over the past month by analysts on the CommSec platform.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $7.21, down 0.35% on Tuesday.

This ASX All Ords large-cap was among 17 shares that soared 100% or more in FY25.

The gold stock has lifted 83% over the past 12 months.

CommSec analysts have a consensus moderate sell rating on Evolution Mining.

Morgans put a trim rating on Evolution shares last month after the miner released its quarterly report and an exploration update.

Computershare Ltd (ASX: CPU)

The Computershare share price is $40.15, down 0.94%.

This ASX All Ords industrial share has risen 59% over the past year.

CommSec analysts have a consensus moderate sell rating on the administrative services company.

Damien Nguyen from Morgans is among the analysts with a sell rating on Computershare.

Nguyen explains:

As we anticipate moving into a lower interest rate environment, earnings growth may come under pressure as its margin income shrinks on client cash balances.

We suggest existing investors who have done well out of CPU to consider selling and rotating into stocks with stronger upside potential.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is 84 cents, up 1.2% on Tuesday.

The ASX All Ords lithium share has fallen 3.5% over the past 12 months.

CommSec analysts have a consensus moderate sell rating on Liontown.

After reviewing the miner's quarterly update released last week, Morgans kept its sell rating in place.

The broker lifted its 12-month price target to 56 cents, which is well below today's share price.

Helia Group Ltd (ASX: HLI)

The Helia share price is $5.11, up 0.69% on Tuesday.

The ASX All Ords financial share has lifted 38% over the past year.

CommSec analysts have a consensus moderate sell rating on the lenders' mortgage insurer.

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price is $19.40 per share, up 1.8%.

The ASX All Ords technology share has risen 55% over the past 12 months.

CommSec analysts have a consensus moderate sell rating on the sports analytics company.

Cettire Ltd (ASX: CTT)

The Cettire share price is steady at 28 cents at the time of writing.

This ASX All Ords consumer discretionary share is down 78% over the past year.

CommSec analysts have a consensus moderate sell rating on the online luxury fashion retailer.

Last week, Cettire shares plummeted after the US announced the end of the de minimis exemption from 29 August.

The Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is 8.3 cents per share, down 2.35% on Tuesday.

The ASX consumer discretionary stock has fallen 84% over the past 12 months.

CommSec analysts have a consensus moderate sell rating on the casino operator.

Last Friday, the Star Entertainment share price weakened on news that its sale of the Queen's Wharf precinct is off.

Centuria Office REIT (ASX: COF)

The Centuria Office REIT share price is $1.26, up 0.8% on Tuesday.

The ASX All Ords real estate investment trust (REIT) has lifted 3% over the past year.

CommSec analysts have a consensus moderate sell rating on the commercial property owner.

The post 8 ASX All Ords shares just downgraded to a sell rating by experts appeared first on The Motley Fool Australia.

The RBA has already reduced the cash rate twice in 2025 and there are projections that there could be more cuts in the coming months.

Term deposits and savings accounts are offering savers lower returns. But, it's not as though retailers or utilities are significantly reducing the costs of their products and services for customers. ASX income stocks could be the answer because of how they can provide stronger passive income yields as well as growth of payments over time for some businesses.

There are a few high-yield names I'd normally mention in an article like this such as GQG Partners Inc (ASX: GQG) and Bailador Technology Investments Ltd (ASX: BTI). But, there are a number of other names that I believe are worth knowing about.

Centuria Office REIT (ASX: COF)

This is a real estate investment trust (REIT) which owns a portfolio of office buildings around Australia.

The business said that at 31 March 2025 it had a portfolio occupancy of 91.4% with a weighted average lease expiry (WALE) of 4.2 years despite the challenging conditions for the office sector. Offices are priced at a lower multiple of its rental profit than other types of buildings such as warehouses, creating larger distribution yields.

Centuria Office REIT said it continues to actively address known vacancies and upcoming lease expiries across its portfolio. The business said "achieving successful leasing outcomes requires capital investment towards repurposing existing fit-outs to align with tenant expectations and undertaking refurbishments to reposition assets".

The ASX income stock expects to generate 11.8 cents per unit of rental profit (funds from operations – FFO) and pay a distribution per unit of 10.1 cents. At the current Centuria Office REIT unit price, it is expected to pay a distribution yield of 8.1% in FY25. It's trading at 10.5x its FY25 forecast rental profit.

Inghams Group Ltd (ASX: ING)

Inghams has more than 8,000 employees, it's one of Australia's largest poultry businesses. It supplies major retailers, fast food operators, food service distributors and wholesalers. The business says it has strong market positions across the Australian turkey, Australian stockfeed and the New Zealand diary feed industries.

The last two dividends paid by the business come to 19 cents per share, which translates into a grossed-up dividend yield of 7.7%, including franking credits.

The business is expecting some net benefit from lower key feed costs in FY25. It also expects to deliver annualised cost savings through procurement, operational and continuous improvement initiatives that will "significantly contribute to offsetting general inflationary effects".

In FY25, the ASX income stock is expecting to generate operating profit (EBITDA) that's between flat to 6% growth. The company expects the core poultry net selling price (NSP) to show "modest growth" in FY25, which will help offset a slight reduction in the core poultry volumes.

According to the forecasts on Commsec, the Inghams share price is trading at 11x FY26's estimated earnings with a potential grossed-up dividend yield of 10.8%, including franking credits.

The post Here are 2 ASX income stocks with yields above 7% appeared first on The Motley Fool Australia.

The ASX 300 stock ended the day over 5% lower at $1.16.

This means that the office focused property company's shares are now trading flat over the past 12 months.

Why did this ASX 300 stock tumble today?

The catalyst for today's decline was the release of a broker note out of Bell Potter this morning.

Its analysts note that the ASX 300 stock has been a strong performer over the past three months. However, they don't believe that this outperformance is justified given the challenging trading conditions it is facing. The broker said:

COF's share price has performed strongly over the past 3m (+8.9% q/q) which in our view is inconsistent with the prolonged challenging conditions observed across suburban office markets. We see limited near term catalysts and potential downside risk to consensus earnings, consistent with our revised estimates.

Bell Potter highlights a number of reasons why it feels that the risk is definitely to the downside for earnings expectations. It adds:

With c.9% vacancy on foot (occupancy 91.4% at 3Q25), retention proving challenging, near-record downtimes across leasing markets and 13% of the portfolio expiring in FY26, we see more downside than upside risk in the near-term.

Additionally, recent transactional evidence (both completed & on-market) is pointing to office sector cap rates wider than COF's book – which is to be expected – but implies little-to-no upside from where the market is pricing it now (implied WACR 8.66%). We increase our 12m WACR expansion estimate from +40bp to +60bp to reflect market conditions.

Downgraded to sell

In light of the above, the broker has downgraded the ASX 300 stock to a sell rating (from hold) and cut the price target on its shares to $1.10 (from $1.20).

Based on its current share price, this still implies potential downside of over 5% for investors.

Commenting on its recommendation, the broker said:

We appreciate that there is deep value in this name (-28% discount to NTA) when taking a long-term view (given white collar employment growth and limited new supply) but considering the lack of near-term catalysts and BP estimates for negative FFO growth (-14% FY25 & -1% FY26) we see better relative value elsewhere in the sector.

Bell Potter is more positive on Centuria Capital Group (ASX: CNI). This morning, it did the reverse and upgraded its shares to hold (from sell) and lifted its price target to $1.80 (from $1.70).

Its analysts "think the macro backdrop presents a more positive environment for CRE managers, and given CHC's outperformance, we believe CNI will start to screen more attractively on a sector-relative basis."

The post Guess which ASX 300 stock was downgraded to sell today appeared first on The Motley Fool Australia.

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

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is down 25% to 23 cents. Investors have been selling this gold miner's shares after it released its guidance for FY 2026 and its aspirational outlook for the following two years. Aurelia Metals is forecasting a sizeable drop in production in FY 2026 with higher operating costs. And while it expects a rebound in production the following year, it is then forecasting another sizeable decline in FY 2028. This appears to have disappointed investors and fallen significantly short of the market's expectations.

Centuria Office REIT (ASX: COF)

The Centuria Office share price is down 2.5% to $1.20. This appears to have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has downgraded the office property company's shares to a sell rating with a reduced price target of $1.10 (from $1.20). It said: "We appreciate that there is deep value in this name (-28% discount to NTA) when taking a long-term view (given white collar employment growth and limited new supply) but considering the lack of near-term catalysts and BP estimates for negative FFO growth (-14% FY25 & -1% FY26) we see better relative value elsewhere in the sector."

Meeka Metals Ltd (ASX: MEK)

The Meeka Metals share price is down 11.5% to 15.5 cents. This has been driven by the completion of the gold developer's institutional placement. Meeka has raised $60 million at a discount of 15 cents per new share. Meeka's managing director, Tim Davidson, said: "With this funding in place the Company is now focused on maximising the expanded open pit mining opportunity, confirming the pathway to bring forward production with increased processing capacity and defining further growth opportunities with the drill bit."

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is down 10% to 59.7 cents. This reflects broad weakness in the gold industry today after the US Federal Reserve elected to not cut interest rates overnight. It isn't just Resolute Mining that is falling. The S&P/ASX All Ordinaries Gold index is down 10% at the time of writing.

The post Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today appeared first on The Motley Fool Australia.

While I wouldn't invest in something just because of the yield, I think high-yield businesses can be appealing because of how real cash returns can be distributed to investors each year. I'd only want to invest in businesses I think can deliver growing earnings in the longer term. There's not much point in receiving a large dividend yield if the share price falls by a larger amount.

With that in mind, let's take a look at two businesses sending out significant sums to investors every year.

Adairs Ltd (ASX: ADH)

Adairs is a retailer of furniture and homewares through three different businesses: Adairs, Mocka, and Focus on Furniture.

As a discretionary retailer, the business has been disrupted by the high cost of living in the last two or three years. However, with the Reserve Bank of Australia (RBA) now cutting the official cash rate, I believe the business is primed to deliver earnings growth in the next two to three years.

The business is already seeing encouraging sales growth. In the FY25 half-year result, total sales increased 2.7% to $310.5 million, underlying operating profit grew 6.7% to $33 million, and statutory net profit after tax (NPAT) increased 9.7%. In the first seven weeks of the second half of FY25, group sales were up an impressive 9.2%.

The solid rebound of earnings allowed the ASX share to hike its interim dividend by 30% to 6.5 cents per share. Its last two declared dividends come to a grossed-up dividend yield of 7.1%, including franking credits.

According to Commsec, it's expected to pay a grossed-up dividend yield of 8.7% in FY26, including franking credits.

Centuria Office REIT (ASX: COF)

This is a REIT focused on owning quality office properties around Australia. It's the largest pure-play office REIT on the ASX.

The business has a portfolio occupancy rate of 91.4%, which is stronger than the average national office market occupancy of 84%, allowing it to generate pleasing rental profits for investors. It currently has a weighted average lease expiry (WALE) of 4.2 years, which is a satisfactory level of income visibility, in my opinion.

The REIT said that its portfolio is "well-positioned to service evolving tenant requirements, as tenants gravitate towards sustainable, modern accommodation, especially those with existing fit-outs." It's actively addressing known vacancies and upcoming lease expiries across its portfolio.

The business has guided that it expects to generate funds from operations (FFO) – rental profit – of 11.8 cents per unit. With this, it could pay a distribution per unit of 10.1 cents.

At the current Centuria Office REIT unit price, the stock offers an FY25 dividend yield of 8.3%.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.