Here are five ASX stable dividend shares I think are a great opportunity for passive-income-seeking investors, all paying yields between 6% and 10%.

APA Group (ASX: APA)

APA is one of the most stable income stocks listed on the ASX. The energy infrastructure business is well-known for paying strong, consistent dividends, with revenue derived from long-term contracted infrastructure assets. The company paid an interim dividend of 27.5 cents in the first half of FY26 and is guiding a full-year dividend of 58 cents per share. Its current dividend yield is 6.23%, partially franked.

Inghams Group Ltd (ASX: ING)

Food producer Inghams is a reasonably stable income stock. As a customer staple company with steady demand, its dividends are linked directly to food prices. And as everyone needs to eat, it's a business that is relatively defensive. In the first half of FY26, Inghams paid a fully-franked interim dividend of 4 cents per share, down from 11 cents previously. Its yield is pretty high, though, at 9.36%.

Fortescue Ltd (ASX: FMG)

The miner's stock is historically volatile because it closely tracks changes in iron ore prices. The material's price is expected to remain relatively stable through 2026, but gradually decline through to 2030 as supply increases. But Fortescue is a low-cost producer, which means it can remain profitable even when prices fall, though its dividends may fluctuate. The ASX dividend stock paid investors 62 cents per share for the first half of FY26. Broker UBS predicts that Fortescue could pay an annual dividend per share of $1.22.  Fortescue's current dividend yield is 6.23%, fully franked.

New Hope Corporation (ASX: NHC)

The thermal coal miner's shares have climbed over 21% in the past 12 months as improving coal prices and strong production figures boosted investor confidence. New Hope paid 15 cents per share in October. At current levels, the miner is offering a dividend yield of roughly 6.75%, fully franked. 

Nine Entertainment Co. Holdings Ltd (ASX: NEC)

The media giant underwent a strategic reshape of its business during the first half of FY26. It acquired QMS Media, sold Nine Radio, restructured its NBN and Darwin TV operations, and sold its controlling stake in property platform Domain. The deal allowed Nine to reduce debt, boost its balance sheet, and return roughly $777 million to investors. Nine is due to pay investors an interim dividend of 4.5 cents per share, unfranked, next month. The company is expected to pay 9 cents per share for the full year. Its current dividend yield is 7.54%.

The post 5 high-yield ASX dividend shares paying 6% to 10% appeared first on The Motley Fool Australia.

For you to be entitled to a stock's next dividend, you must own it before its ex-dividend date.

Here are some of the ASX shares going ex-dividend next week.

ASX shares with ex-dividend dates next week

The post 32 ASX shares about to go ex-dividend appeared first on The Motley Fool Australia.

Let's quickly recap what happened. 

Share price tumbles on earnings results 

Inghams released interim FY26 results last Friday.

The company reported: 

• Revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year-on-year.
• EBITDA fell 33.8% to $139.2 million.
• Net profit after tax (NPAT) declined 64.9% to $18.1 million.
• On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period.
• Underlying NPAT (pre-AASB 16) fell 60.4% to $21.3 million.

Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.

Investors were seemingly left disappointed by these results, as Inghams shares crashed 13% on Friday. 

Some investors saw an opportunity to buy-low yesterday, as the share price recovered a little over 2%. 

Inghams shares are now close to a 5-year low, and fresh guidance out of Morgans indicates it could be an attractive entry point. 

Here's what the broker had to say. 

Positive long term view 

In a note out of Morgans over the weekend, the broker said the 1H26 result was weak, but in line with guidance. 

It said as expected, gearing was above the Board's target range and FY26 guidance was revised by 13-16%. 

Importantly, ING has now dealt with its excess inventory levels, core poultry volumes are back in growth, selling prices are higher than the pcp and normal production settings and improved network efficiency should result in a much stronger 2H26 vs 1H26.

The broker said the annualised benefit from these more normalised operating conditions should eventuate in FY27, resulting in a strong earnings recovery. 

After the severe share price weakness, we upgrade to a BUY rating.

What are other experts saying about Inghams shares?

Inghams shares closed trading yesterday at $2.16. 

It is down more than 14% year to date and roughly 37% over the last 12 months. 

While upside may be limited, analysts see the current price as undervalued. 

The average rating of 7 analysts via TradingView places a 1 year price target of $2.38 on Inghams shares. 

That indicates an upside of 10.38% from current levels. 

However, Inghams also just announced an interim dividend of 4 cents per share, which would translate to 3.75% yield over the year should it repeat. 

Including this yield in 12 month projections, this could push the total upside over 14%. 

The post Are Inghams shares a buy, hold or sell after last week's crash? 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:

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 10% to $18.33. Investors have been selling the burrito seller's shares following the release of its half-year results. Guzman Y Gomez reported global network sales growth of 18% to $681.8 million and net profit after tax growth of 44.9% to $10.6 million. Investors may be disappointed with the performance of its US operations, which recorded an EBITDA loss of $8.3 million. This is up from a loss of $5 million a year earlier.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 16% to $2.05. This has been driven by the release of the poultry producer's half-year results. Inghams reported largely flat revenue of $1.61 billion and a 64.9% decline in net profit after tax to $18.1 million. The latter was driven primarily by higher operating costs in Australia. Looking ahead, management has downgraded its EBITDA guidance for FY 2026. It now expects underlying EBITDA of $180 million to $200 million, which is down from $215 million to $230 million previously. Inghams' CEO and managing director, Ed Alexander, said: "Pre AASB 16 earnings of $80.6 million for the first half of FY26 were disappointing, with the results impacted by the cost of managing excess inventory and supply chain transition inefficiencies as the business implemented an operational reset following customer changes experienced in FY25."

Megaport Ltd (ASX: MP1)

The Megaport share price is down 5% to $10.37. This is despite the release of its half-year results, which revealed record revenue and earnings. Megaport reported a 26% increase in revenue to $134.9 million and EBITDA growth of 28% to $35.3 million. The company's CEO, Michael Reid, said: "Our global business continues to scale, with the United States delivering exceptional momentum, pushing the Americas to 24% YoY ARR growth. This performance was driven by rising NRR and consistent new logo acquisition."

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down over 3% to $163.18. This follows the release of the mining giant's full-year results. Rio Tinto reported a 9% increase in underlying EBITDA to US$25.36 billion. However, underlying earnings were flat at US$10.87 billion, which led to the Rio Tinto board holding its total dividends at US$4.02 per share. This was short of the market's expectations. Nevertheless, Rio Tinto's chief executive, Simon Trott, was pleased with the year. He said: "Our solid financial results demonstrate clear progress as we embed our stronger, sharper and simpler way of working. We achieved an 8% uplift in CuEq production driven by the ongoing ramp-up of the Oyu Tolgoi underground copper mine and record iron ore production since April from our Pilbara operations."

The post Why Guzman Y Gomez, Inghams, Megaport, and Rio Tinto shares are tumbling today appeared first on The Motley Fool Australia.

While management flagged a stronger second half, investors appeared focused on the scale of the first-half earnings decline and elevated leverage.

What did Inghams report?

Inghams delivered revenue of $1.61 billion for the 26 weeks to 27 December 2025, broadly flat year on year.

However, profitability deteriorated significantly. EBITDA fell 33.8% to $139.2 million, while net profit after tax (NPAT) slumped 64.9% to $18.1 million.

On an underlying pre-AASB 16 basis, EBITDA was $80.6 million, down 35% on the prior corresponding period. Underlying NPAT pre AASB 16 fell 60.4% to $21.3 million.

Core poultry volumes declined 0.7% year on year, although net selling prices increased 1.4%, partly offsetting the volume weakness.

The board declared a fully-franked interim dividend of 4 cents per share, down from 11 cents in the prior period.

What else do investors need to know?

The earnings decline was driven primarily by higher operating costs in Australia.

Key cost headwinds included excess inventory management ($19 million), incremental supply chain and logistics costs ($6.7 million), lower farming performance ($3.8 million), and transition inefficiencies at Ingleburn ($1.8 million).

Total costs rose 5% versus the prior period, reflecting both these operational pressures and broader inflation across labour, ingredients, utilities, and packaging.

Encouragingly, inventory levels declined by $24.3 million during the half, supporting a return to normalised production settings into the third quarter.

Cash conversion improved to 113.1%, driven by working capital improvements, but net debt increased to $466.1 million. Leverage rose to 2.4x underlying EBITDA pre AASB 16, above the company's target range of 1 to 2 times.

What did management say?

CEO Ed Alexander described the first-half result as "disappointing," citing higher operational costs and inefficiencies associated with supply chain changes and customer onboarding.

He said inventory levels had returned to desired levels and that measures were in place to restore unit cost performance through the second half, including supply chain stabilisation and improved planning.

What's next for Inghams?

Inghams reduced its FY26 underlying EBITDA pre AASB 16 guidance to $180 to $200 million, down from $215 to $230 million previously.

Management expects earnings to be weighted to the second half, with improved production settings, stabilised supply chains, and stronger wholesale pricing supporting a rebound into FY27.

Share price snapshot

After today's result, Ingham shares are now down 16% so far in 2026 and down 35% over the last 12 months.

The post Inghams shares plunge 13% as earnings slump and FY26 guidance cut 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 tumbling:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is down 7% to $4.46. This is despite there being no news out of the medical technology company. However, with its shares up almost 700% since this time last year, there could be some profit taking going on today. In addition, last week, 4DMedical raised $150 million through an institutional placement. Those shares are expected to be issued later this week on 22 January.

ARB Corporation Ltd (ASX: ARB)

The ARB share price is down 11.5% to $28.59. Investors have been selling this 4×4 automotive parts company's shares following the release of a trading update. ARB revealed that unaudited sales revenue for the first half was $358 million. This is down 1% on the prior corresponding period. Things were worse for its earnings due to margin weakness. ARB advised that it expects to report underlying profit before tax of approximately $58 million for the half. This represents a 16.3% decline compared with the prior year.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 5.5% to $2.51. This may have been driven by a broker note out of Macquarie Group Ltd (ASX: MQG). According to the note, the broker has downgraded the poultry producer's shares to an underperform rating with a reduced price target of $2.20. This implies potential downside of 12% from current levels. The broker believes that Inghams could fall short of expectations in FY 2026 due to cautious consumers. In addition, it highlights that a competitor could put pressure on pricing when its new facility comes online later this year.

Qoria Ltd (ASX: QOR)

The Qoria share price is down 30% to 34.5 cents. This follows the release of the digital safety company's quarterly update. The company revealed that it exited the quarter with annualised recurring revenue (ARR) of $149 million, which is up 19% year on year. It also reported cash receipts of $79.1 million, which was up 20% on the prior corresponding period. Despite this, it still recorded negative free cash flow for the quarter.

The post Why 4DMedical, ARB, Inghams, and Qoria shares are tumbling today appeared first on The Motley Fool Australia.

While many Australians may have heard of Inghams Group Ltd (ASX: ING), the scale of the business may be a surprise. It claims to be the largest integrated poultry producer in Australia and New Zealand. The company has also entered into the production of turkey and stockfeed.

The company has 8,200 staff, it supplies major supermarkets, fast food operators, food service distributors and wholesalers. I'll run through why I think the ASX small-cap stock is an attractive opportunity today at $2.55.

Cheap price

When we invest in a business, we're typically buying them at a certain price/earnings (P/E) ratio, meaning a certain multiple of their earnings.

While buying one business at a lower P/E ratio doesn't necessarily it's better than another with a higher P/E ratio, it does mean gaining access to more of that profit at a cheaper price.

Following challenging conditions over the past couple of years relating to inflation of costs and loss of a Woolworths Group Ltd (ASX: WOW) contract, the Inghams share price has fallen more than 30% from the May 2025 peak.

But, it looks very affordable based on the level of projected earnings for the 2028 financial year and beyond.

Broker UBS is currently forecasting that the business could generate 27 cents of earnings per share (EPS) in FY27 and 31 cents of EPS in FY28. That puts the Inghams share price at around 8x FY28's projected earnings.

It could take time for conditions to recover, which is why I'd focus on a couple of years ahead rather than FY26. However, there are positive signs for the company.

Rebound in operating conditions?

The company said it has put in place initiatives to address its farming and processing issues. For example, it has experienced higher egg costs due to reduced volumes and below-target feed conversion – the ASX small-cap stock explained that corrective actions are in place and delivering improvements, with farming performance expected to return to its target in the second half of 2026.

Inghams also said that its cost reduction program is on track and it expects "improved 2H26 performance and sustainable improvement beyond FY26".

It also revealed in a FY26 trading update that core poultry volumes were slightly higher and the net selling price (NSP) was slightly lower than FY25, leading to an improved revenue outlook."

Wholesale margins are also expected to remain favourable for the company, according to the ASX small-cap stock.

Big dividend predicted

Assuming the business does generate the projected profits, it could be capable of delivering very large dividends for shareholders in the years ahead, though not in the short-term because of FY26 is expected to see a reduced profit.

UBS currently projects that the business could pay an annual dividend per share of 20 cents in FY28. At the time of writing, that translates into a grossed-up dividend yield of close to 13%, including franking credits.

The dividend alone could be a market-beating return, so if the business is capable of growing earnings then it could be a very underrated ASX small-cap stock to consider.

The post Why I think this ASX small-cap stock is a bargain at $2.55 appeared first on The Motley Fool Australia.

Last week, The Motley Fool's Bronwyn Allen compared the performance of all 11 ASX sectors for 2025.

Coming in a disappointing 8th place was consumer staples shares. 

The S&P/ASX 200 Consumer Staples index (ASX:XSJ) rose just 1.43% for the year. 

For comparison, the best performing sector – materials – rose more than 31%. 

Why buy consumer staples shares?

Consumer staples shares play an important role in the economy for the everyday punter. 

These companies provide essential goods and services. 

Essentially, consumer staples are items people need rather than want, so they will continue to buy regardless of their financial situation. 

This provides some defensive advantages, as they aren't linked to market conditions as heavily as other sectors. 

For example, consumer discretionary items like electronics, travel and luxury goods are far more dependent on economic conditions and cash flow. 

If household spending is tight, you aren't going to book an overseas holiday or buy a new luxury car. 

However you still need groceries, fuel etc. 

This is the appeal of consumer staples shares. 

Two consumer staples shares with upside 

Amongst the sector that fell flat last year, there were two that fell substantially that now may present value. 

The first is Inghams Group Ltd (ASX: ING). 

If the name sounds familiar, that's because Inghams supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants including McDonalds and KFC.

The company has a dominant position in the poultry market in both Australia and New Zealand. 

In the last 12 months, its share price is down more than 20%. 

The first reason it may be an attractive stock is its healthy dividend. 

It is projected to pay a grossed-up dividend yield of more than 7% this year. It's hard to find a yield better than that. 

This is significantly above the ASX 200 average of 3.5%.

Furthermore, analysts' price targets suggest its current share price is below fair value. 

Estimates from TradingView and online brokerage platform SelfWealth list it as undervalued by between 4-11%. 

Another consumer staples stock that could be undervalued is Ridley Corporation Ltd (ASX: RIC).

It is an animal feed manufacturer, engaged in the production and market of stock feed and animal feed supplements.

Its share price is down 4% over the last 12 months. 

This is despite solid earnings in FY25 including  EBITDA climbing 8.6% on FY24. 

SelfWealth lists this stock as undervalued by 33%, while average analyst ratings on TradingView includes a one year price target 30% higher than current levels. 

It also offers a dividend yield above 3%.

The post Two ASX consumer staples shares to buy on the cheap appeared first on The Motley Fool Australia.

The business Inghams Group Ltd (ASX: ING) is one of the largest poultry businesses in Australia. It has supply arrangements with major retail, wholesalers and quick service restaurant (QSR) customers. Inghams also produces turkey, stockfeed and value-enhanced poultry products for changing consumer preferences.

As the chart below shows, the Inghams share price has declined more than 30% from May 2025 following challenging operating conditions and lower-than-expected profitability.

Analysts expect the ASX dividend stock's earnings and dividend to bounce back in the medium-term, which is why this could be a good time to consider the business.

Outlook for earnings and dividend rebound

The business is facing the prospect of reporting a difficult first half of FY26, but things could improve significantly after that.

The projection on CMC Markets suggests Inghams could generate earnings per share (EPS) of 19.7 cents in FY26 and it could pay an annual dividend per share of 13.5 cents. That payout would translate into a grossed-up dividend yield of 7.75%, including franking credits.

But, there could then be a significant improvement in FY27. The projections suggest a potential rise of EPS to 25.8 cents and the dividend payout could increase to 17.3 cents per share.

Therefore, the FY27 payout could translate into a grossed-up dividend yield of close to 10%, including franking credits. That'd be very appealing for dividend investors, if that happens.

What positives are there for the ASX dividend stock?

It was only weeks ago that the business gave an update at its annual general meeting (AGM) which was promising considering how cheaply the business is now trading.

The company is expecting to deliver underlying operating profit (EBITDA) of $80 million in the first half of FY26. For the full 2026 financial year, the company has guided between $215 million to $230 million of underlying operating profit.

Inghams says that earnings guidance is heavily weighted to the second half because of weak trading in the fourth quarter of FY25, with the timing of operational improvements and stabilisation of the inventory position after "corrective actions" in the first half of FY26.

The ASX dividend stock is seeing an "improved revenue outlook" thanks to core poultry volumes being slightly higher than FY25, though the net selling price (NSP) was slightly lower.

Inghams also noted that wholesale profit margins are expected to remain favourable.

While operating costs (excluding feed) are rising due to inflation and identified operational challenges, this has been materially offset by between $60 million to $80 million in annualised savings from labour, procurement and site operations initiatives. Feed costs are expected to continue to provide a modest benefit.

At the current Inghams share price, the ASX dividend stock is valued at under 10x FY27's estimated earnings.

The post 1 ASX dividend stock down 36% I'd buy right now appeared first on The Motley Fool Australia.

Corporate Travel Management shares have been suspended since 26 August after the company revealed accounting irregularities in its UK operations.

Auditors have since discovered incorrect revenue recognition of GBP 45.4 million and other irregularities.

S&P Dow Jones Indices announced its next quarterly rebalance, effective 22 December, after the market close on Friday.

Car parts retailer Bapcor Ltd (ASX: BAP) and poultry producer and food processor Inghams Group Ltd (ASX: ING) will also drop out.

Alternative asset and property fund manager, HMC Capital Ltd (ASX: HMC) will also go.

Intellectual property services firm, IPH Ltd (ASX: IPH), rounds out the list of ASX 200 departees.

You can find out which shares will enter the ASX 200 index on 22 December here.

What is an index rebalance?

Every three months, S&P Dow Jones Indices reviews and updates Australia's leading market indices.

Rebalances ensure the indices accurately rank the nation's largest listed organisations by market capitalisation.

Indices provide a consistent way to measure and monitor the market's performance over the long term.

The ASX 200 is the benchmark index for the Australian share market.

However, other indices, like the S&P/ASX All Ordinaries Index (ASX: XAO) and S&P/ASX 300 Index (ASX: XKO), are also very important.

Why is it bad for these ASX 200 shares?

Membership in the ASX 200 indicates a company's strong market standing.

Being dropped in a rebalance can signal potential problems, market headwinds, or a declining stock valuation.

As shown below, all six of these ASX 200 shares have fallen over the past year (except the frozen Corporate Travel Management shares).

Leaving the ASX 200 can have tangible effects on a share's price. This is because it triggers passive investment exits.

Many exchange-traded funds (ETFs) and managed funds are designed to track the performance of the ASX 200.

This means that every quarter, fund managers must buy the shares that enter the ASX 200 and sell those that leave.

This can result in extra trading activity around the rebalance date, which may influence a share's value.

Rebalances have greater significance than ever before due to the rising popularity of ASX ETFs.

The latest Betashares data shows Australians ploughed a record $5.99 billion into ASX ETFs in October.

A record $321.7 billion is now invested in more than 400 ETFs on the market today.

ASX ETFs are a passive, diversified investment option that many investors perceive as convenient and lower risk.

They are a basket of shares that investors can buy in one trade for one brokerage fee, with low ongoing management fees thereafter.

The post Corporate Travel Management and Boss Energy shares dumped from ASX 200 appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor start to the week despite a decent finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.15% lower. In the United States, the Dow Jones was up 0.2%, the S&P 500 rose 0.2%, and the Nasdaq pushed 0.3% higher.

Oil prices rise

It could be a decent start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.7% to US$60.08 a barrel and the Brent crude oil price was up 0.8% to US$63.75 a barrel. Stalling Russia and Ukraine peace talks gave prices a boost. Though, over the weekend, the US claims that progress was made.

Quarterly rebalance

A number of ASX 200 shares will be on watch today after being kicked out of the benchmark index at the December quarterly rebalance. Leaving the ASX 200 index on 22 December are Bapcor Ltd (ASX: BAP), Boss Energy Ltd (ASX: BOE), Corporate Travel Management Ltd (ASX: CTD), HMC Capital Ltd (ASX: HMC), Inghams Group Ltd (ASX: ING), and IPH Ltd (ASX: IPH).

Gold price flat

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price traded flat on Friday night. According to CNBC, the gold futures price was steady at US$4,243 an ounce. However, the precious metal had a good week, driven by expectations that the US Federal Reserve will cut interest rates this month.

Buy Catalyst Metals shares

Bell Potter thinks that Catalyst Metals Ltd (ASX: CYL) shares are in the buy zone right now. This morning, the broker has retained its buy rating on the gold miner's shares with an improved price target of $9.30. It said: "We view CYL as derisking the Plutonic gold hub with a clear line of sight to a 200kozpa steady state (FY29). Execution on the plan (five mines feeding an underutilised 1.8Mtpa plant) and Reserve growth towards >2Moz are viewed as the key drivers of multiple re- ratings and margin expansion."

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

But is it time to buy the dip, or will a suitor come in to take the company out?

Poor report card

Inghams, which published a trading update on Wednesday, said while market fundamentals had been strong, "at the same time, we have experienced higher than expected operational costs in Australia across farming and processing operations which arose toward the end of FY25''.

Ms Nash said in her address to the AGM on Thursday that the 33% or so decrease in the company's share price and the softer trading update had come about amid "challenging market conditions" that emerged in the fourth quarter of the last financial year, "and specific operational cost pressures across inventory management, farming and processing performance, and our turkey operations''.

She went on to say:

I acknowledge that these issues, and the performance of our share price, are deeply disappointing for all shareholders, and I want to assure you that your Board and management are responding with urgency and discipline through a range of measures which are expected to position the Company for stronger performance in the second half of FY26 and beyond.

But where there is share price weakness, there can be an opportunity.

The Australian Shareholders Association, in a report published ahead of the AGM, raised the notion that it could lead takeover suitors to take a closer look at the company.

As they said in their report:

So, what is going to happen? 2026 is not looking good with EBITDA predicted to be at best 2.8% lower and at worst, down by 10%. Is there a future upside? Hopefully! In the short term (first half 2026): reducing excess inventory built up in FY25 and rightsizing production, which is expected to weigh on first half 2026 earnings. Inghams has a substantial number of issues to overcome and hopefully it will, however its plunging share price and market positioning may make is susceptible to being bought out.

Shares looking cheap

Broker Jarden has also run the ruler over the company's recent trading update, and said while the update was "mixed", there was money to be made buying Inghams shares at current levels.

As they said in a note to clients:

We retain our neutral rating but with a positive bias, owing to new management taking action to cut cost, drive volumes and reduce volatility in earnings. Confidence around guidance, operational improvement and industry pricing will be key to becoming more positive. 

Jarden has a price target of $2.80 on Inghams shares, and factoring in dividends, is projecting a total shareholder return of 19.3% based on the closing price on Wednesday of $2.43. Inghams shares were 3.1% higher on Thursday at $2.50.

The post Is this ASX food producer a takeover target after its "deeply disappointing" share price performance? appeared first on The Motley Fool Australia.

However, in 2025, this consumer staples stock is down approximately 22%. 

The company supplies poultry products, notably to major Australian supermarkets Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL), as well as quick-service restaurants such as McDonald's and KFC. Its sales include chicken and turkey products, as well as supplying the Australian stock feed and New Zealand dairy feed industries.

Inghams recently released its FY26 trading update, which showed some improvement in the supply-demand environment.

According to a new report, the team at Macquarie remains neutral on Inghams shares and has downgraded its target price.

Here's the latest guidance out of the broker. 

Supply/demand improving

The team at Macquarie said the supply-demand environment is improving for now. 

The broker said Inghams has pulled back on volumes since the end of FY25, and the wholesale market pricing has improved sequentially, with a ~39% increase in wholesale margins vs FY25. 

Macquarie also noted there are green shoots in the QSR channel, with volumes +8.6% in the 18 weeks of FY26 vs pcp, driven by improved demand supported by promotional activity from market participants.

QSR channel refers to Quick Service Restaurants – basically fast-food chains (e.g., McDonald's, KFC, etc.).

We await evidence of execution on cost control, and a stabilising supply environment, to become more positive.

Risk in 1H26 guidance

On the negative side, Macquarie is cautious about Inghams Group meeting its full-year FY26 earnings guidance.

The company guided for FY26 pre-AASB16 EBITDA of around $223 million. However, only $80 million is expected in 1H26.

That suggests a 36%/64% earnings split between 1H and 2H. Essentially, the second half would need to be a record result.

Historically, Inghams' second-half contribution has been below 50%, and only once (FY23) reached 55%.

Because of this, Macquarie thinks the 2H target is ambitious and forecasts FY26 EBITDA of about $207 million, which is 4% below guidance.

A further risk is that a competitor's new processing plant (starting April 2026) could increase supply and pressure prices in the final quarter of FY26.

Price target downgrade for Inghams shares

Based on this guidance, the team at Macquarie has a neutral rating on Inghams shares. 

The 12-month price target has also been reduced to $2.30 (previously $2.70). 

Based on today's opening stock price of $2.50, the target price from Macquarie indicates a downside of 8%. 

The post Down 22% this year, does Macquarie rate Inghams shares a buy? appeared first on The Motley Fool Australia.

So with the stock out of favour and well below its high over the past year of $3.90, could it be time to buy back in?

Trading well but costs bite

Inghams managing director Ed Alexander said on Wednesday that while trading was solid, costs had been an issue for the company.

 As he said in a statement to the ASX:

Market fundamentals have developed favourably over the first 18 weeks, with stable demand, volume and materially improved wholesale pricing tracking in line or ahead of our FY26 outlook provided in August. At the same time, we have experienced higher than expected operational costs in Australia across farming and processing operations which arose toward the end of FY25. These factors will weigh on first half earnings, however, we are taking decisive corrective actions, and the early results are encouraging.  

Mr Alexander said combined with benefits from the company's organisational restructure, they remain confident of a "a significantly improved second-half performance that will set us up for long-term sustainable growth''.

The organisational restructure, which took place early in the company's second quarter, created three new divisions while removing layers in the business, and was expected to deliver $8-$10 million in annualised cost savings, the company said.

More broadly the company said it was on track to deliver $60-$80 million in annualised cost savings across the business, in line with previous guidance it has given.

With regard to the company's full year profit expectations, Inghams said it reaffirmed its underlying EBITDA guidance of $215-$$230 million, although this would be heavily weighted towards the second half of the year.

The company said:

First half 2026 Underlying EBITDA … is expected to be approximately $80 million, reflecting the short-term impact of the operational cost pressures before the full benefit of the company's corrective actions take effect.  

Risk to forecasts

Analysts at RBC Capital Markets ran the ruler over the market update, and said overall it was negative for the shares.

The first half guidance came in at about 18% below their expectations of $97.8 million, and 17% below consensus estimates.

There was also risk the full year result would not eventuate, as they wrote in a note to clients:

The achievement of FY26 guidance hinges on Inghams' ability to drive significant operational improvements over a short period of time, as well as an improvement in volumes and a continuation of other key market fundamentals.

That said, RBC has a price target of $3 on the shares, well above the $2.41 the shares were changing hands for on Wednesday, down 0.2%

The stock traded as low as $2.27 on Wednesday morning – the lowest level over the past year.

The post At a 12-month low, is it time to buy Inghams shares? 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:

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is down 5% to $60.93. This follows the release of the gaming technology company's FY 2025 results. Although Aristocrat delivered a strong result, its guidance for the year ahead appears to have disappointed investors. In FY 2025, the company posted an 11% increase in revenue to $6,297 million and a 12% jump in normalised NPATA to $1,550.7 million. For the new financial year, Aristocrat is expecting to "deliver NPATA growth over the full year." Bell Potter is forecasting 12% growth in FY 2026. So, it is unclear if this will be achieved based on its guidance statement.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 1.5% to $2.38. This poultry producer's shares are falling today following the release of a trading update. Inghams advised that it has "experienced higher than expected operational costs in Australia across farming and processing operations which arose toward the end of FY25." As a result, it warned that "these factors will weigh on first half earnings." Nevertheless, management has reaffirmed its guidance for the full year.

Life360 Inc. (ASX: 360)

The Life360 share price is down 9.5% to $41.46. This location technology company's shares are falling today after its strong sales and profit growth during the third quarter was overshadowed by softer monthly active user (MAU) growth. However, Bell Potter thinks this is an overreaction given how its slower MAU growth was driven by management's strategic focus on retaining and converting users rather than sheer user growth. In response, Bell Potter has retained its buy rating with an improved price target of $52.50.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 3% to $14.84. This follows the completion of the network solutions company's institutional placement this morning. Yesterday, Megaport revealed that it was raising $220 million to fund the acquisition of Latitude.sh for US$150 million in cash and scrip. It said: "Latitude.sh is a globally scalable, high performance software platform that automates infrastructure. It is similar to Megaport and offers customers compute-as-a-service which can be provisioned on demand."

The post Why Aristocrat, Inghams, Life360, and Megaport shares are falling today appeared first on The Motley Fool Australia.

All three of the companies that I'm going to talk about have seen their share prices decline in recent times. But, I believe they are great candidates to bounce back from recent difficulties; they only seem to me like temporary challenges.

Let's get into what makes them exciting ideas.

Beacon Lighting Group Ltd (ASX: BLX)

As the chart below shows, the Beacon share price has fallen more than 20% since August.

Beacon has a few different segments including its Beacon Lighting stores for consumers, a trade segment (for electricians, builders, architects and interior designers) and international sales.

The ASX small-cap share is exposed to a number of areas of the economy that have struggled including consumer spending, construction and trade activity.

But, following rate cuts, I think the company has the potential to become a lot larger. It has identified a potential store network of close to 200 Beacon Lighting stores, implying a possible increase of around 50% from where it is today.

I'm also hopeful that the company can grow its earnings in international markets such as Hong Kong and Europe (which saw double-digit sales growth). Impressively, Tmall Global sales in China grew by 72.3% during FY25.

According to the forecasts on CMC Markets, the Beacon share price is valued at 20x FY26's estimated earnings and 17x FY27's estimated earnings.

Adairs Ltd (ASX: ADH)

Adairs is a homewares and furniture retailer that operates through three different businesses – Adairs, Mocka and Focus on Furniture.

It has dropped around 30% from 19 September 2025, as the below chart shows.

I view Adairs as a discretionary retailer that goes through elevated volatility, so it can be an opportunity to buy when investors don't seem very confident.  

The ASX small-cap share recently reduced its FY26 guidance, but it's working on a number of initiatives to improve its profitability.

I think it's trading at a price that's too low given how retail spending could recover over the next year or two.

According to the forecasts on CMC Markets, it's trading at 10x FY26's estimated earnings and 8x FY27's estimated earnings.

Inghams Group Ltd (ASX: ING)

Inghams is one of the largest poultry businesses in Australia. The Inghams share price is down around 40% from June 2025.

The company has suffered through a number of negatives including transitioning to a new Woolworths Group Ltd (ASX: WOW) supply agreement, a shift to a lower-margin mix, weaker wholesale pricing and weaker overall retail demand.

But, the poultry ASX small-cap share is working on a number of ways to try to improve profitability, including reducing inventory, matching production to demand and reducing costs.

I'm optimistic that the company's profits can recover over the next couple of years, making the current valuation attractive as a turnaround opportunity.

According to the forecasts on CMC Markets, the Inghams share price is valued at 12x FY26's estimated earnings and 9x FY27's estimated earnings.

The post 3 ASX small-cap shares I'd buy with $3,000 right now appeared first on The Motley Fool Australia.

This hasn't gone unnoticed by the team at Macquarie Group Ltd (ASX: MQG).

So much so, the broker has run its takeover screen to see if there are any takeover candidates in the current market.

Macquarie points out that after re-running its takeover screen from five years ago, it found that 46% of the 37 stocks it identified had some form of M&A. It feels that this gives its screening process some merit. It explains:

With the offer for AUB plus media reports of PE interest in DMP, we have re-run our takeover screen from 2020. Looking back at the original, there were 37 stocks on the list and 46% had some sort of M&A (9 completed takeovers, 6 failed or pending, and 2 strategic stakes acquired), so the screen has merit. In our view, we are in an environment conducive to deals as the market is near its highs, credit spreads are tight and confidence in the outlook is improving. Our FOMO Meter is back up to +0.98, marking the strength of equity sentiment.

Which ASX stocks could be takeover targets?

According to the note, Macquarie has identified 16 ASX stocks that it believes could be attractive options for private equity and other suitors.

And from these, there are 11 ASX stocks in particular that standout.

These are pizza chain operator Domino's Pizza Enterprises Ltd (ASX: DMP), pharmaceutical products distributor EBOS Group Ltd (ASX: EBO), Dan Murphy's owner Endeavour Group Ltd (ASX: EDV), language testing company IDP Education Ltd (ASX: IEL), poultry producer Inghams Group Ltd (ASX: ING), intellectual property services provider IPH Ltd (ASX: IPH), packaging company Orora Ltd (ASX: ORA), Smiggle owner Premier Investments Ltd (ASX: PMV), hospital operator Ramsay Health Care Ltd (ASX: RHC), plumping parts company Reliance Worldwide Corporation Ltd (ASX: RWC), and healthcare company Sonic Healthcare Ltd (ASX: SHL).

Other candidates are Australian Clinical Labs Ltd (ASX: ACL), James Hardie Industries plc (ASX: JHX), Reece Ltd (ASX: REH), Spark New Zealand Ltd (ASX: SPK), and Viva Energy Group Ltd (ASX: VEA).

Commenting on the stocks, the broker said:

The result is 16 stocks. Of these, the forward PE is >1 standard deviation below the 10-year average for 11 stocks. Ranked by how far they are below their highs, they are IEL, DMP, IPH, RHC, PMV, EDV, ING, ORA, EBO, SHL and RWC. Two (RHC, ORA) already had failed takeover offers in recent years, while others have been the subject of takeover speculation. Based on the performance of the takeover screen from 2020, we would be surprised if none of the stocks on the list is the subject of takeover interest in the next year.

The post Macquarie names 16 potential ASX takeover targets appeared first on The Motley Fool Australia.

It has fallen so much that it's almost at its all-time low.

The business describes itself as the leading poultry business in Australia and New Zealand, with customers including major retailers, fast food operators, food service distributors and wholesalers.

While its core focus is chicken, it also claims to have strong market positions across the Australian turkey, Australian stockfeed and the New Zealand dairy feed industries.

Why is the ASX dividend stock so much cheaper?

The business had a challenging FY25, with core poultry volume down 1.4%, revenue down 1.5% and underlying net profit down 11.6%. This led to a reduction of the annual dividend per share of 5% to 19 cents.

Inghams noted multiple impacts including a transition to a new Woolworths Group Ltd (ASX: WOW) supply agreement, a shift to a lower-margin mix, weaker wholesale pricing and softer overall retail demand.

The business said it's acting decisively to address the issues, reduce excess inventory, adjust production settings to match demand in each channel and implement structural cost reductions across the business. These initiatives are expected to underpin a stronger result in the second half of FY26 and beyond.

The full-year benefit of the cost-reduction program will be felt in FY27, alongside expected volume growth from expanded customer relationships and the full-year impact of contracts in FY26.

Inghams then said:

Together, these factors and all of our initiatives are expected to support an improvement in earnings over time, underpinned by an improved mix and a lower cost base.

While the ASX dividend stock has been impacted, it's clear the business has a plan to turn things around, so investing with a long-term mindset could mean buying at a cheap, beaten-up price today.

When share prices fall, the dividend yield can become much larger. So, let's take a look at what the FY26 payout (and beyond) could be.

Potential passive income payments

As I mentioned, Inghams paid an annual dividend per share of 19 cents, which translates into a grossed-up dividend yield of 11%, including franking credits, at the current Inghams share price.

However, if earnings decline a bit in FY26, which is expected according to the forecasts on Commsec, the dividend is forecast to decline a little in FY26 as well.

The 2026 financial year dividend is projected to drop to 17.5 cents per share, which translates into a grossed-up dividend yield of 10.3%, including franking credits.

The annual dividend per share is then expected to rise to 20.5 cents per share in FY27 and 25 cents per share in FY28.

If those projections come true, the poultry business could deliver significant passive income over the next few years as its earnings recover.

The post 1 ASX dividend stock down 37% I'd buy right now 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:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 3% to $12.08. This has been driven by the travel agent giant's shares going ex-dividend this morning for its latest payout. Last month, the company declared a fully franked final dividend of 29 cents per share, which was down slightly year on year. This will be paid to eligible shareholders next month on 16 October.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 4.5% to $2.54. This has also been driven by the poultry producer's shares going ex-dividend this morning. Last month, Inghams released its FY 2025 results and declared a fully franked final dividend of 8 cents per share. This was flat on the prior corresponding period. It will now be paid to eligible shareholders at the start of next month on 1 October.

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 6.5% to $4.28. This may have been driven by a broker note out of Macquarie Group Ltd (ASX: MQG) this morning. In response to the coal miner's FY 2025 results, the broker has downgraded New Hope's shares to an underperform rating with a reduced price target of $3.80. Macquarie commented: "Downgrade to Underperform: Whilst we see merit in a yield maximisation strategy, we downgrade to Underperform on a weaker production outlook and earnings outlook. Valuation: Our target price has decreased 5% to A$3.80ps due to a lower Malabar valuation and weaker short term earnings outlook."

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down 27% to 88.7 cents. Investors have been selling the clinical-stage biotechnology company's shares after it announced the sudden exit of its CEO, executive director, Dr Rohan Hockings. He will be replaced temporarily by chairman Alan Tribe as its managing director. Mr Tribe commented: "I would like to thank Rohan for his significant contributions to the Company and wish him well in the future. There will now be a robust search to select a successor who can lead the future growth and development of the Company for its Shareholders." The company also stressed that Tribe will "ensure that each drug development programme remains on track and is progressing in line with expectations, timelines and budgets."

The post Why Flight Centre, Inghams, New Hope, and PYC shares are sinking today appeared first on The Motley Fool Australia.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back yesterday's gains on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.3% lower this morning. In the United States, the Dow Jones was down 0.3%, the S&P 500 fell 0.1%, and the Nasdaq edged 0.1% lower.

Oil prices charge higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$64.55 a barrel and the Brent crude oil price is up 1.55% to US$68.49 a barrel. This was driven by concerns over Russian supply.

Shares going ex-dividend

Another group of ASX shares are going ex-dividend today and are likely to trade lower. This includes travel agent giant Flight Centre Travel Group Ltd (ASX: FLT) and poultry producer Inghams Group Ltd (ASX: ING). Flight Centre is paying a fully franked 29 cents per share final dividend to shareholders on 16 October, whereas Inghams will be rewarding its shareholders with an 8 cents per share fully franked final dividend on 1 October.

Gold price rises

It looks set to be a decent session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.3% to US$3,729.2 an ounce. Increasing US rate cut bets boosted the precious metal.

Hold New Hope shares

New Hope Corporation Ltd (ASX: NHC) shares are fully valued according to analysts at Bell Potter. This morning, in response to the coal miner's FY 2025 results, the broker has held firm with its hold rating and $4.10 price target. It said: "NHC's low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting strong shareholder returns. Beyond ramp-up of New Acland Stage 3, we see a limited organic production growth pipeline and believe NHC may participate in industry consolidation."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.