The market was closed on Monday as Australians celebrated Easter.

The S&P/ASX 200 Index (ASX: XJO) ripped 4.41% to 8,960.6 points over the four trading days.

The remarkable recovery followed news of a two-week ceasefire deal between the US and Iran.

ASX investors hope this will pave the way toward an end to the war in Iran.

Investors continued to buy the dip last week following the steep sell-off over the first three weeks of March.

ASX 200 shares fell 9.1% between 2 March and 23 March before a rebound began, with the index now up 7.1% since then.

James Gerrish from Shaw and Partners says "war fear" in the market is fading but "we're not out of the woods yet".

Businesses across multiple sectors are still assessing the impact of the oil shock, which is likely to reverberate for months to come.

Let's recap the week.

Financial shares led the ASX sectors last week

The ASX 200 financial sector incorporates bank shares, insurers, fund managers, financial services providers, and more.

Let's take a look at how some of these ASX financial stocks performed last week.

The Commonwealth Bank of Australia (ASX: CBA) share price rose 5.98% to close at $183.38 on Friday.

ANZ Group Holdings Ltd (ASX: ANZ) shares lifted 6.31% to $38.84.

Westpac Banking Corp (ASX: WBC) shares ascended 6.87% to $42.77.

The National Australia Bank Ltd (ASX: NAB) share price spiked 9.06% to $45.36.

The Macquarie Group Ltd (ASX: MQG) share price soared 9.3% to finish the week at $225.

Among the ASX 200 investment companies and fund managers, GQG Partners Inc (ASX: GQG) shares fell 0.28% to $1.78.

Magellan Financial Group Ltd (ASX: MFG) shares fell 0.84% to $9.45 amid a shareholder vote on the Barrenjoey merger on Friday.

Magellan announced it had received more than 90% approval from shareholders.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares lifted 3.92% to $42.98.

Among the financial services providers, AMP Ltd (ASX: AMP) shares lifted 6.06% to $1.37.

The Challenger Ltd (ASX: CGF) share price lost 2.6% to close at $8.07 on Friday.

ASX 200 buy now, pay later share Zip Co Ltd (ASX: ZIP) ripped 16.5% to $1.85.

Among the insurers, Insurance Australia Group Ltd (ASX: IAG) shares fell 1.03% to $7.21.

Medibank Private Ltd (ASX: MPL) shares lifted 1.92% to $4.52.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 4.13% to $22.46.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the four trading days:

Looking for inspiration after the March sell-off?

Check out these 7 ASX 200 shares just upgraded to strong buy consensus ratings after last month's turmoil.

The post ASX 200 shares rip with financials leading a remarkable recovery last week appeared first on The Motley Fool Australia.

Four ASX shares that are avoiding the market weakness today are listed below. Here's why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 1.5% to $1.29. Investors have been buying the energy producer's shares following a rise in oil prices on Friday. Traders have been bidding oil prices higher this month in response to supply concerns caused by the conflict in the Middle East. Following today's move, Beach Energy shares are now up almost 20% since this time last month.

Block Inc (ASX: XYZ)

The Block share price is up almost 2% to $84.39. This follows the outperformance of its shares on the NYSE in the United States on Friday night. Unlike many tech stocks, this payments company's shares pushed higher on Wall Street. Last week, analysts at Truist Securities upgraded Block's NYSE shares to a buy rating (from hold) with an improved price target of $77.00 (from $72.00). This equates to a price target of approximately A$109 for its ASX listed shares, which implies potential upside of almost 30% for investors.

Life360 Inc. (ASX: 360)

The Life360 share price is up almost 4% to $18.78. As with Block shares, Life360's shares on Wall Street outperformed on Friday night and are playing catchup on Monday. A number of brokers are likely to be supportive of this buying. For example, last week, Morgan Stanley put an outperform rating and $30.00 price target on its shares. This implies potential upside of approximately 60% for investors from current levels.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price is up 3% to $4.33. This appears to have been driven by a broker note out of Ord Minnett. According to the note, the broker has retained its accumulate rating on the private health insurer's shares with a $5.10 price target. This suggests that Medibank's shares could rise 18% from current levels. The broker believes that the company is well-placed to benefit from higher interest rates and premium increases.

The post Why Beach Energy, Block, Life360, and Medibank shares are rising today appeared first on The Motley Fool Australia.

Three well-known ASX companies that have built reputations for dependable payouts are Telstra Group Ltd (ASX: TLS), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Medibank Private Ltd (ASX: MPL).

Here's why these dividend shares might be worth considering.

Telstra Group

Telstra is Australia's largest telecommunications provider, with millions of mobile, broadband, and enterprise customers across the country.

The ASX dividend share benefits from its dominant market position and essential infrastructure. The telecommunications giant has been investing heavily in 5G infrastructure and digital services while lifting average revenue per user.

Despite its scale, Telstra operates in a highly competitive industry. Rivals such as Optus and TPG Telecom Ltd (ASX: TPG) can pressure pricing.

The company also faces ongoing capital expenditure requirements to maintain and upgrade its network, which can weigh on free cash flow in certain periods.

Telstra has long been popular with income investors thanks to its regular, fully franked dividends.

In its earnings report last month, Telstra lifted its FY2026 interim dividend by 10.5% to 10.5 cents per share. If the ASX dividend share maintains this pace through the rest of the year, shareholders could be on track for a fourth consecutive annual dividend increase.

Telstra shares remain close to their 52-week high at $5.24 at the time of writing. That means the ASX dividend share offers a solid yield of about 4%.

Washington H. Soul Pattinson

Soul Patts is a diversified investment company with stakes across industries including telecommunications, resources, agriculture, and property.

One of the company's biggest strengths is diversification, which helps smooth earnings through different market cycles.

Another standout feature is its extraordinary dividend history. Remarkably, the ASX dividend share has paid shareholders a dividend every year since listing in 1903, weathering wars, pandemics, and economic crises.

On top of that, Soul Patts has increased its dividend every year since the late 1990s, giving it one of the longest dividend growth streaks on the ASX.

Soul Patts recently delivered a total dividend of about $1.03 per share for FY2025, representing another year of growth.

The stock typically offers a yield around 3% to 4%, with fully franked payments.

Importantly, management prioritises steadily growing dividends over time. This makes it a favourite among long-term income investors.

Medibank Private

Medibank Private is one of Australia's largest private health insurers, serving millions of members through its Medibank and AHM brands.

Health insurance is generally considered a defensive industry. Demand for healthcare coverage tends to remain stable regardless of economic conditions, supporting reliable revenue streams.

Medibank's large customer base and recurring premium income also provide predictable cash flow. That supports consistent shareholder returns.

Rising healthcare costs and claims inflation are always a risk, particularly if premium increases fail to keep pace with rising medical expenses. The health insurance sector is also heavily regulated and government policy changes can influence profitability.

Medibank has become a solid income stock. The ASX dividend share targets a payout ratio of around 75% to 85% of underlying profit, helping maintain relatively generous and sustainable dividends.

Broker UBS is expecting dividend growth from the ASX dividend share over the next few years.

The broker forecasts that the annual dividend per share could be 19 cents in FY26. This translates into a potential grossed-up dividend yield of 4.4%, including franking credit.

The post 3 legendary ASX dividend shares worth a closer look appeared first on The Motley Fool Australia.

While attractive yields alone don't guarantee strong returns, companies with durable businesses and disciplined capital management can reward shareholders for years.

Two ASX 200 shares that stand out for their dividend potential are Medibank Private Ltd (ASX: MPL) and Wesfarmers Ltd (ASX: WES).

Medibank Private Ltd (ASX: MPL)

This ASX 200 share is one of Australia's largest private health insurers, providing health insurance to millions of Australians through its Medibank and AHM brands.

One of Medibank's key strengths is the defensive nature of the health insurance industry. Demand for health cover tends to remain relatively stable even during economic downturns, which helps support consistent earnings and cash flow.

Another advantage is its predictable revenue model. Premium income provides recurring cash flow, allowing the ASX 200 share to maintain a reliable dividend profile. The recent FY26 half-year result showed a number of positive growth numbers. This bodes well for future growth of its dividend payouts.

The company is also exposed to rising healthcare costs. If claims inflation accelerates faster than premium increases, margins could come under pressure. Health insurers face ongoing regulatory oversight, and changes to government policy could affect profitability.

Competition from other insurers is another factor to watch, particularly as providers compete to attract younger members to the private health system.

Medibank has developed a reputation as a strong ASX 200 income share. Medibank's dividend policy is to distribute between 75% and 85% of underlying net profit after tax to shareholders, helping support consistent and relatively generous payouts.

Broker UBS is expecting dividend growth from the ASX 200 share over the next few years.

The broker forecasts that the annual dividend per share could be 19 cents in FY26, which translates into a potential grossed-up dividend yield of 5.4%, including franking credit at the time of writing.

Analysts have set an average 12-month price target at $5.03. That points to an 18% upside and could bring total earnings to well over 20% at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of Australia's largest diversified companies, with leading retail businesses including Bunnings, Kmart, Officeworks, and an expanding industrial and chemicals portfolio.

The $86 billion ASX 200 share's biggest strength is its portfolio of dominant retail brands. Bunnings remains Australia's leading home improvement retailer, while Kmart continues to grow thanks to its strong value proposition.

Wesfarmers also has a long track record of disciplined capital allocation. Management regularly reinvests in high-return projects while returning excess capital to shareholders through dividends and special distributions.

Retail is inherently cyclical and sensitive to consumer spending. In addition, Wesfarmers' earnings are heavily reliant on a handful of major divisions, meaning any weakness in key segments like Bunnings or Kmart could affect overall performance.

Wesfarmers has built a reputation as a reliable dividend payer. UBS predicts that the business could deliver an annual dividend per share for FY26 of $2.13. That would be a grossed-up dividend yield of 4%, including franking credits, at the time of writing.

Brokers have set a price target for the ASX 200 share of $81.85, a potential gain of 8% over 12 months.

The business is expected to increase its payouts in the subsequent years, which is great news for investors wanting passive income.

In the 2027 financial year, the ASX 200 share is projected to pay an annual dividend per share of $2.31.

The post 2 ASX 200 shares with eye-catching dividend yields appeared first on The Motley Fool Australia.

But, given how share prices have drifted lower this year, I'm seeing a great opportunity for investors to grab ASX shares while dividend yields are higher.

Don't forget, we saw a few years ago how some businesses were able to accelerate their revenue growth amid the inflationary period – they were not just helpless bystanders in the situation.

Why do interest rates matter for ASX shares?

Interest rates play an important role in how much investors are willing to pay for an asset. It acts like gravity – when interest rates go lower, asset prices can jump higher. But, the opposite is typically true when interest rates go up – it's a significant headwind for asset valuations.

But, share prices can still go up in a rising rate environment if the operating profit/net profit of the business or asset increases. The multiple of earnings that investors are willing to pay is just one part of the equation.

Warren Buffett, the legendary American investor from Omaha, once explained why interest rates are so important for valuations. Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Investor expectations of rate rises this year has led to lower share prices for some businesses, along with the oil price volatility.

How does it affect the passive income?

When the share price of an ASX dividend share falls, it can lead to a double whammy of a better valuation and a better dividend yield.

A dividend yield is determined by the size of the payout and the valuation of the business. When share prices go lower, the dividend yield increases.

For example, if a business had a dividend yield of 5% and the share price falls 10%, the dividend yield becomes 5.5%. If it fell 20%, the dividend yield would be 6%.

I like investing at times like these, as it really boosts the potential dividend yield.

Is it a once-in-a-decade opportunity to buy passive income shares? The 2020s have already seen COVID-19, the inflation and tariff related sell-offs, so the declines have been more than once-in-a-decade.

But, this is certainly a rare opportunity to buy ASX dividend shares with a good dividend yield.

What I'd invest in

There are a wide range of ASX dividend shares that are trading at attractive prices with a good dividend yield.

I'm thinking names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Australian Foundation Investment Co Ltd (ASX: AFI), WCM Global Growth Ltd (ASX: WQG), JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), Nick Scali Ltd (ASX: NCK) and Lovisa Holdings Ltd (ASX: LOV).

I'm optimistic that the above names can provide investors with a diversified and growing source of passive income over time.

The post A once-in-a-decade chance to earn a supersized passive income from ASX shares? appeared first on The Motley Fool Australia.

Businesses with a strong market share, cost advantages, larger margins, and a good outlook can be very appealing investments. Rising profits can lead to capital growth over time and, typically, dividend growth too.

With their current dividend yields and appealing prospects for further growth, I'm optimistic about what the following two businesses can accomplish.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia, and it's steadily growing its exposure to other healthcare businesses.

The ASX blue-chip share is delivering exactly the growth I'd want to see if I were a shareholder.

In the FY26 half-year results, the business reported adding 38,300 net resident policyholders and 1,500 net non-resident policy units. These are key metrics which maintain/grow its market share, add to scale advantages, and hopefully deliver rising profit margins over time.

HY26 revenue climbed by 5.5%, group operating profit increased by 6% to $360.1 million, and the interim dividend per share was increased by 6.4% to 8.3 cents per share.

I view healthcare as a defensive sector, and health insurance is an effective way to invest across a broad range of healthcare areas, including the growing demand for services amid Australia's ageing population.

I'm expecting dividend growth to continue for the foreseeable future. Its latest two declared dividends come to a grossed-up dividend yield of 6.4%, including franking credits. That's a great starting point for income, in my view.

Telstra Group Ltd (ASX: TLS)

Telstra is a leading ASX telecommunications share that has built an impressive 5G network, helping it stay ahead of competitors.

Its excellent mobile division is key for delivering long-term growth, and there was good news across the board in the FY26 half-year result. The average revenue per user (ARPU) rose by 5.1% year over year, and mobile handheld users increased by 135,000, with growth across postpaid handheld, prepaid handheld, and wholesale users.

These growth figures allowed the business to deliver net profit growth of 9.4% to $10.5 billion. This saw earnings per share (EPS) grow by 11.2% and the dividend per share increase by 10.5% to 10.5 cents. Cash EPS increased by 19.7% to 14 cents.

It seems to me like the ASX blue-chip share is very effectively balancing investing for growth, delivering net profit growth, and rewarding shareholders.

If I assume that Telstra will repeat the same dividend in another six months, it would have a grossed-up dividend yield of approximately 5.8% for FY26, including franking credits, at the time of writing.

As Australia becomes increasingly digital, I believe Telstra will benefit from that tailwind and continue winning new subscribers. I'm also optimistic that the business can continue growing its wireless broadband subscriber count, providing 5G-powered broadband, which means capturing the margin that the NBN is currently taking.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

Medibank is the leading private health insurance business in Australia, with its Medibank and ahm brands.

The recent FY26 half-year result showed a number of positive growth numbers, which bodes well for long-term growth of its dividend payouts.

ASX blue-chip share's earnings recap

A key driver of value for the business is policyholder growth. Net resident policyholders grew by 1.9% (or 38,300) and net non-resident policy unit growth was 1,500 (or 0.4%).

The policyholder growth helped group revenue from external customers increase by 5.5% to $4.5 billion.

Health insurance operating profit rose 3.5% to $361.5 million, Medibank Health (a separate division) saw operating profit increase 28.5% to $48.3 million. This led to group operating profit increase 6% to $381.7 million.

Net profit after tax (NPAT) declined 11% to $302.9 million, though that was largely because of a reduction in the ASX blue-chip share's net investment income.

This helped fund a 6.4% increase in the interim dividend per share to 8.3 cents.

Is it a buy for the solid dividend yield?

The business continues growing its operating profit and this is a key driver for the dividend payments.

For the company, it's also pleasing to see that Medibank Health is growing with an "increase in community and acute reflecting strong volume growth and increase in ownership of Amplar Health Home Hospital and growth in wellbeing in line with increased Live Better members and financial wellbeing policies." The business has unlocked another growth avenue that offers defensive earnings.

Medibank is aiming to grow its market share in FY26 in a "disciplined way" in the resident health insurance market, though the industry is expected to see slower growth in FY26 compared to FY25. Non-resident health insurance aims to deliver solid gross profit growth.

Broker UBS is expecting steady earnings per share (EPS) and dividend growth from the business over the next few years. The broker forecasts that the annual dividend per share could be 19 cents in FY26, which translates into a potential grossed-up dividend yield of 6.2%, including franking credits.

The payout could rise again to 20 cents per share in FY27. This would be a grossed-up dividend yield of 6.5%, including franking credits.

For a ASX blue-chip share that's steadily growing the payout, I think this ASX blue-chip share is a solid opportunity.

The post Is this ASX blue-chip share a buy for its 6.5% dividend yield? appeared first on The Motley Fool Australia.

Last week, we heard from two ASX 200 blue-chip shares in this manner. In my view, both of these shares have dividends that suggest they could make for fantastic long-term passive income investments.

Two top ASX dividend shares to buy for passive income right now

Telstra Group Ltd (ASX: TLS)

Telstra has long been one of my top picks for passive income on the ASX. This telco offers an established business model and wide economic moats in the form of Telstra's strong brand and superior national mobile network.

It also offers a highly defensive earnings base. In our modern world, I think there are plenty of goods and services customers would be willing to give up in tough economic times before their mobile phones and internet connections.

Telstra has long been known for its passive-income chops thanks to its habit of paying large dividends. Last week's earnings report from Telstra did nothing to dent that reputation. The company announced that its interim dividend for 2026 would come in at 10.5 cents per share. Unusually for Telstra, it will only come 90.5% franked. But even so, passive income investors would have been pleased with this 10.5% dividend hike.

Telstra shares are currently (at the time of writing) trading on a dividend yield of 3.91%.

Medibank Private Ltd (ASX: MPL)

Next up, we have private health insurer Medibank Private. I think Medibank Private is another defensive stock worth considering for anyone looking for passive income in the share market today.

Medibank is the largest and most dominant private health insurer in Australia, enjoying significant market share through both its Medibank Private and budget-friendly ahm brand. As there are several government policies that encourage Australians to buy private health insurance, I tend to think of Medibank as another stock with a defensive earnings base.

Medibank's earnings from last week also contained good news for dividend investors. The company unveiled a 6.4% increase to its interim dividend, with investors to receive an 8.3 cents per share dividend as the company's first 2026 passive income payment. This dividend will come with full franking credits attached to it.

Medibank shares are currently trading on a dividend yield of 4.13%.

The post 2 top ASX dividend shares to buy for passive income this week appeared first on The Motley Fool Australia.

But it wasn't just Telstra and Wesfarmers that hiked their next dividends last week. So today, let's go through another two ASX 200 blue chip stocks that have a pay rise for their investors in store over the coming weeks.

Two more ASX 200 blue chip stocks that just hiked their dividends

BHP Group Ltd (ASX: BHP)

First up, we have the ASX 200 blue chip stock and mining giant BHP. BHP is known amongst the dividend community for its commodity-linked dividends, which can wax to enormous proportions when resources markets are hot (although it does also tend to wane dramatically in lean times too).

Fortunately for investors, the interim dividend that BHP revealed on Tuesday was a waxer. The Big Australian unveiled a payout worth 73 US cents per share. That's a 46% hike over the equivalent payment of 50 US cents that we saw doled out in 2025. It will come with full franking credits attached, as is BHP's habit. Interestingly, this dividend is notable as it is the first one in a very long time (perhaps ever) to draw more of its funding from BHP's copper division than from its iron ore business.

Medibank Private Ltd (ASX: MPL)

Next up, we have another ASX 200 blue chip stock to discuss with private health insurer Medibank Private. Medibank delivered its own half-year earnings report on Thursday. It contained a lot for the ASX's income investors to like.

Medibank reported a few green metrics across the board, with revenues and earnings both up year-on-year. Saying that, the company did report a flat underlying profit after tax. Despite this flat profit, Medibank announced that its first dividend payment of 2026 will come in at 8.3 cents per share. Like BHP's next dividend, this one will also come fully franked.

This latest dividend represents a 6.4% rise over last year's interim payment of 7.8 cents per share. As we pointed out on Thursday, it continues an impressive dividend streak for this ASX 200 blue chip stock, which is now entering its sixth year of annual payout hikes.

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

Goodman Group (ASX: GMG)

The Goodman share price is down almost 7% to $28.96. Investors have been selling this industrial property giant's shares following the release of its half-year results. Goodman reported an operating profit of $1.2 billion thanks to a combination of new developments, 95.9% portfolio occupancy, and like-for-like net property income growth of 4.2%. Looking ahead, management reiterated a target of 9% growth in FY 2026 operating earnings per share. However, it notes that this remains subject to stable market conditions. It is possible that the market was expecting an upgrade to its guidance.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 11% to $27.60. This is despite the fashion jewellery retailer releasing its half-year results and reporting a 23.3% increase in revenue to $500.7 million and a 21.5% jump in underlying net profit to $69.6 million. However, Lovisa's statutory net profit after tax, which includes its Jewells investment, was up just 2.6% to $58.4 million. The Jewells business recorded a loss of $11.2 million for the period.

Medibank Private Ltd (ASX: MPL)

The Medibank share price is down 6.5% to $4.48. This morning, the private health insurer released its half-year results and reported a 0.3% decline in underlying net profit after tax to $297.8 million. The main drag on its performance was its net investment income, which fell 17.1% to $94.9 million. Despite this, the Medibank board elected to increase its interim dividend to 8.3 cents per share. Medibank's CEO, David Koczkar, said: "This is another good result for the Medibank Group, reflecting strong customer engagement and positive progress in driving the health transition forward. We have delivered on our growth commitments, with improved momentum in our health insurance business and strong growth in Medibank Health."

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 38% to $1.74. Investors have been selling the buy now pay later provider's shares following the release of its half-year results. Although Zip delivered a record result, investors appear concerned by a number of metrics. Zip's revenue margin edged lower to 7.9%, net bad debts increased slightly to 1.73% of TTV, and its second-half cash EBTDA is expected to be broadly in line with the first half. This suggests that profit growth may moderate from here rather than accelerate further.

The post Why Goodman, Lovisa, Medibank, and Zip shares are falling today appeared first on The Motley Fool Australia.

Yep, just like Telstra and Wesfarmers, Medibank reported its latest earnings to the markets this morning. As we covered, it was a mixed set of numbers that the ASX 200 private health insurance stock came up with.

Medibank reported a 5.5% rise in group revenues to $4.5 billion. Group operating profit increased 6% to $381.7 million, although underlying net profit after tax (NPAT) was effectively unchanged at $297.8 million.

Investors don't seem to be impressed, to be frank, with the Medibank Private share price, which is currently down a nasty 6.16% at $4.50 a share. Saying that, the company is essentially now back to where it was on Tuesday, before yesterday's near-6% share price spike. This spike came after news that the government will allow private health insurers to hike premiums by at least 4.41% from April. That's the largest premium increase Australians have seen in many years.

But let's dig into Medibank's new dividend announcement today.

Medibank shares slip despite dividend hike

In some pleasing news for income investors, Medibank has just revealed that it will hike its next dividend. The company revealed an interim dividend of 8.3 cents per share as its first payout of 2026. Like most dividends from Medibank Private, it will come with full franking credits attached.

This interim dividend represents a 6.4% increase over the 7.8 cents per share payout that Medibank doled out this time last year. Together with the final dividend of 10.2 cents per share from October last year, it takes Medibank's 12-month dividend total to 18.5 cents per share, a record high for the company.

It is a significant payout on another level for Medibank. This latest dividend is the sixth consecutive payout in a row that has been increased annually. That's quite a streak that Medibank is cultivating.

Medibank shares will trade ex-dividend for this payout on 26 February next week. Payday has then been scheduled for 18 March next month. Medibank is not running a dividend reinvestment plan for this dividend, so investors will have to take it in cash.

As it stands today, Medibank Private shares are trading on a trailing dividend yield of 4%. However, with this new payout revealed, we can give the stock a forward dividend yield of 4.11%.

The post Medibank just raised its dividend. Here's what you need to know appeared first on The Motley Fool Australia.

What did Medibank report?

• Group revenue from external customers rose 5.5% to $4,503.5 million
• Group operating profit increased 6.0% to $381.7 million
• Underlying net profit after tax (NPAT) was largely flat at $297.8 million
• Medibank Health segment profit jumped 28.5% to $48.3 million, now around 13% of group profit
• Interim fully franked dividend up 6.4% to 8.3 cents per share
• Net resident policyholder growth of 1.9% (+38,300 over 12 months)

What else do investors need to know?

Medibank continued to expand its health services, completing the acquisition of Better Medical for $163.5 million and increasing the number of national clinics. More than half of resident policyholders (55%) are now engaged with health and wellbeing services, while digital offerings and Live Better rewards programs gained traction.

Customer retention slightly improved despite heightened competition and industry switching rates. The business also delivered productivity gains and rolled out new AI technology to streamline customer and claims experiences.

What's next for Medibank?

The company is on track to meet its FY26 outlook with a disciplined approach to growth, targeting further policyholder gains, steady expense management, and investment in new products and digital health offerings. Medibank is also focused on scaling its primary care network and health services, with both organic growth and a healthy pipeline of potential acquisitions.

Looking further ahead, management reaffirmed its goals to increase group earnings, expand in health, and achieve its long-term aspirations to 2030, underpinned by continued customer engagement and innovation.

Medibank share price snapshot

Over the past 12 months, Medibank shares have risen 21%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 7% over the same period.

View Original Announcement

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At the time of writing, the Medibank share price is up 7.08% to $4.84. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up modestly 0.5%.

Let's take a closer look at what the company announced.

Premium changes locked in for 2026

According to the release, Medibank confirmed that its health insurance premiums will rise by an average of 5.10% from 1 April 2026, following approval from the Federal Health Minister.

The change applies across both Medibank and ahm branded policies. This equates to an average increase of $2.14 per week, or $4.46 per week for a family policy.

Management said the increase reflects rising costs across the healthcare system. These include higher hospital charges, increased claims activity, and broader inflationary pressures.

Medibank also highlighted its efforts to manage costs. The company said it has removed around $125 million from operating expenses over the past eight and a half years, which it believes has helped limit premium increases.

It added that the group continues to focus on efficiency while investing in digital services and preventative health programs to improve long-term member outcomes.

Customer support measures were also outlined, including hardship support options and no gap arrangements for certain services.

A snapshot of Medibank's operations

Medibank is one of Australia's largest private health insurers, operating under the Medibank and ahm brands. The group provides hospital and extras cover to millions of members, along with a range of health services through its Amplar Health division.

The company has around 2.75 billion shares on issue and a market capitalisation of roughly $12.4 billion.

Over the past 12 months, Medibank shares have traded between $3.93 and $5.31. At around $4.84, the stock remains below its 12-month high but well above its yearly low.

Medibank also returns capital to shareholders through dividends. Based on the current share price, the stock offers a dividend yield of approximately 4%.

What comes next for Medibank

Premium adjustments are important in supporting margins as healthcare costs continue to rise across the system.

The key issue for the market will be whether higher pricing is sufficient to offset claims growth and utilisation trends in the months ahead.

Medibank is due to report its half-year results tomorrow morning. That update should provide clearer details on underwriting margins, claims experience, and capital management settings for the remainder of the year.

The post Why Medibank shares are jumping 7% today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) closed 1.81% lower at 8,708.8 points as earnings season got underway.

The week began with a commodities rout that pummelled ASX 200 mining shares.

Investors took profits as metals, particularly gold and silver, plunged on news of the US President's Fed chair pick.

On Tuesday, a 0.25% interest rate hike in Australia benefitted the ASX 200 financial sector but created pain for tech.

ASX 200 tech shares fell almost 12% last week. The sector is now down almost 20% in the year to date.

Out of the 11 market sectors, only two finished the week in the green.

Let's review.

Financial shares led the ASX sectors last week

Share price performance varied across the ASX 200 financial sector, which incorporates bank shares, insurers, fund managers, and more.

The Commonwealth Bank of Australia (ASX: CBA) share price soared 6.39% to finish at $158.91 on Friday.

CBA will reveal its 1H FY26 results on Wednesday.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed the week at $37.01, up 0.84%.

Westpac Banking Corp (ASX: WBC) shares ascended 1.57% to $39.43.

National Australia Bank Ltd (ASX: NAB) shares fell 0.02% to $43.36.

The Macquarie Group Ltd (ASX: MQG) share price lost 2.05% to close at $207.83.

Among the investment companies and fund managers, Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares fell 4.09% to $37.01.

GQG Partners Inc (ASX: GQG) shares rose 7.96% to $1.70.

Shares in Argo Investments Ltd (ASX: ARG), which reports on Monday, descended 0.77% to $9.02 apiece.

Among the financial services providers, AMP Ltd (ASX: AMP) shares fell 2.94% to $1.65.

AMP will release its 1H FY26 results on Thursday.

The Challenger Ltd (ASX: CGF) share price dropped 3.15% to $8.92.

Buy now, pay later share Zip Co Ltd (ASX: ZIP) fell 10.19% to $2.38.

Among the ASX 200 insurers, Medibank Private Ltd (ASX: MPL) shares fell 1.08% to $4.57.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 2.23% to $20.18.

Insurance Australia Group Ltd (ASX: IAG) shares rose 1.71% to $7.73.

IAG will release its 1H FY26 results on Thursday.

See our earnings calendar to find out when the companies you're invested in will announce their dividends.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 financials flew but tech and mining shares faltered last week appeared first on The Motley Fool Australia.

Medibank is the largest private health insurer in Australia, with its Medibank and ahm brands, as well as a number of additional healthcare businesses.

Healthcare is a defensive sector that can provide resilient earnings for the company – people don't choose when they need healthcare. Medibank is a good way to take a diversified approach to the sector without being overly exposed to any one service or treatment.

I think Medibank's earnings are resilient and offer solid growth potential, which is the foundation for good dividends.

Dividend potential of the ASX 200 share

If I were a retiree, I'd want to own investments that I had a high degree of certainty that wouldn't cut my passive income. If the payments are being increased, then they obviously aren't being cut.

Medibank has increased its annual dividend per share each year since 2020 (which was affected by COVID-19 impacts). In fact, over the past decade, 2020 was the only year that the business implemented a dividend cut – in every other year it has hiked the payout.

In FY25, the ASX 200 share paid an annual dividend per share of 18 cents. That translates into a grossed-up dividend yield of 5.5%, including franking credits.

But, the past is the past. The next dividends are more important for retirees.

The projection on Commsec suggests the ASX 200 share could increase its payout to 20.2 cents per share, representing a year-over-year increase of 12.2%. That potential increase, translates into a grossed-up dividend yield of 6.25%, including franking credits.

The forecast on Commsec shows that the annual payout could grow by another 6.4% year-over-year to 21.5 cents per share. That would be a grossed-up dividend yield of 6.6%, including franking credits. That'd be a great yield for retirees, in my opinion.

So, ultimately, analysts are expecting the business to continue delivering investors rising passive income.

Rising earnings predicted

The most important thing to fund dividends is profit generation by the ASX 200 share.

Medibank has seen ongoing growth over the years of its Australian resident and non-resident policyholders, which is a strong tailwind for earnings. The acquisitions it has made in recent times add to its earnings power and diversify its profit base.

The prediction on Commsec suggests the business could generate earnings per share (EPS) of 24.9 cents in FY26 and then increase EPS to 26.3 cents in FY27.

That means it's now trading at less than 19x FY26's estimated earnings, which looks like an appealing valuation to me.

The post Why this ASX 200 share is a retiree's dream appeared first on The Motley Fool Australia.

However, financial shares are outperforming the broader market, with the benchmark S&P/ASX 200 Index (ASX: XJO) down 0.7%.

On The Bull this week, two experts revealed three financial stocks that they've sell-rated for the new year.

Here's why.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $36.36, down 0.11% on Thursday and up 19% over the past 12 months.

ANZ was among the top 5 ASX 200 financial shares for capital growth in 2025.

However, looking ahead, Remo Greco from Sanlam Private Wealth has a sell rating on the bank stock.

Investors responded positively after the bank unveiled its 2030 strategy in late 2025.

The 2030 strategy included ceasing the $800 million share buy-back and accelerating delivery of the ANZ Plus digital front end to all retail and business customers.

Reducing duplication and simplifying the bank is part of the plan.

Greco noted that the ASX 200 financial share rose from $32.67 on 24 September to close at $38.85 on 12 November.

During intraday trading on 12 November, ANZ shares reached a new record high of $38.93.

Greco said the bounce was understandable because ANZ was the cheapest major bank in the sector, with the highest yield, at the time.

Looking ahead, Greco says the stock is now "trading at a premium given the early stages of an ambitious strategy".

He concluded:

We would be inclined to lock in some profits at these levels.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.82, up 0.63% today and down 29% over the past year.

John Athanasiou from Red Leaf Securities has a sell rating on the fund manager.

Magellan faces the challenges of fee pressure, potentially slower fund inflows and increasing competition from passive and low-cost global managers.

In our view, growth catalysts are limited in the longer term.

Returns can vary depending on market performance.

Existing investors may consider reducing exposure, while new capital is better allocated to businesses with stronger earnings visibility.

The analyst noted that this ASX 200 financial share has tumbled by 28% from $12.18 apiece on 24 January 2025 to $8.82 today.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price is $4.64, up 0.32% today and up 20% over the past 12 months.

Greco says this ASX 200 insurance share is also a sell, commenting:

MPL is a private health insurer, operating in a fiercely competitive sector.

Cost-of-living increases may pressure some policy holders to downgrade or cease their cover.

We expect private health cover premiums to attract Federal Government scrutiny, while private hospitals are demanding a better deal from private health insurers.

The analyst said Medibank had performed well over the past few years.

However, the outlook "appears challenging in a difficult economic environment", he said.

The Medibank share price has gone from $5.26 on 21 August to $4.64 today, a decline of 12%.

The post 3 ASX 200 financial shares to sell: experts appeared first on The Motley Fool Australia.

In Australia, retirement spending expectations are commonly broken into two broad categories: modest and comfortable.

These aren't marketing terms. They are practical benchmarks designed to show what different superannuation balances can realistically support in day-to-day life.

So, what does your superannuation actually buy you in retirement? Let's break it down.

What is a modest retirement?

A modest retirement is best described as a lifestyle that covers the basics, with a little left over for simple pleasures.

According to the Association of Superannuation Funds of Australia (ASFA), a modest retirement allows retirees to meet essential living costs. This includes housing-related expenses, groceries, utilities, transport, and basic health insurance. There is room for some leisure activities, but they tend to be low-cost and infrequent.

This might mean occasional meals out, limited domestic travel, and a fairly tight discretionary budget. Overseas holidays, frequent entertainment, and major lifestyle upgrades are generally off the table, unfortunately.

In today's dollars, ASFA estimates that both singles and couples need $100,000 in superannuation, combined with the Age Pension, to fund a modest retirement.

For many Australians, this level of retirement is achievable, but it often requires careful budgeting and reliance on the Age Pension as a core income source.

How much superannuation for a comfortable retirement?

A comfortable retirement paints a very different picture.

ASFA defines a comfortable retirement as one that enables retirees to enjoy a higher standard of living, not just get by. This includes good-quality private health insurance with Medibank Private Ltd (ASX: MPL) or NIB Holdings Limited (ASX: NHF), reliable transport, regular leisure activities, dining out, and the ability to travel both domestically and internationally with Qantas Airways Ltd (ASX: QAN) or Virgin Australia Holdings Ltd (ASX: VGN).

Importantly, it also allows retirees to absorb unexpected expenses without stress, whether that is medical costs, home maintenance, or helping family members.

To support this lifestyle, ASFA estimates that a single person needs around $595,000 in super, while a couple needs approximately $690,000 combined. This assumes they own their home outright.

At this level, superannuation becomes the primary income source, with the Age Pension playing a smaller or supplementary role.

Foolish takeaway

Your superannuation doesn't just fund retirement, it defines your options.

A modest retirement covers the essentials and relies heavily on the Age Pension. A comfortable retirement offers flexibility, security, and the freedom to enjoy life without constant budgeting.

Understanding the difference helps you set realistic goals, measure your progress, and decide whether you need to make changes now, while there is still time for compounding to do its work.

The post Modest vs comfortable retirement: What your superannuation really buys you appeared first on The Motley Fool Australia.

We all only have so much time to work for earnings. It'd be beneficial to have a portfolio of shares paying a growing source of passive income to our bank accounts that we don't have to actively work for ourselves.

How much of a second income could a $20,000 investment pay? That entirely depends on the dividend yield.

For example, if someone's portfolio had a 5% dividend yield, then $20,000 would generate $1,000 of annual income.

That's just the first year, though.

If the payout grew at a compound annual growth rate (CAGR) of 7.5% for the foreseeable future, it would grow into $1,436 of annual income after five years and $2,061 after ten years.

That sounds good, right?

The next question is what to invest in.

Many of the most popular ASX-listed exchange-traded funds (ETFs) aren't known for having good dividend yields. I'll run through some compelling options.

Portfolio investments

When we think about investing in a particular company, like BHP Group Ltd (ASX: BHP), that money is allocated to just one business.

Wouldn't it be great if we could put our money into an investment and it's already diversified instantly?

There are some investments that can provide a pleasing mixture of both a good dividend yield and capital growth. I'm thinking of investment businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF), and Future Generation Australia Ltd (ASX: FGX), which have a good long-term record of payout growth. I think these are great options for a second income.

I'll also point out a couple of impressive actively-managed ETFs that target a dividend yield for investors and have strong long-term portfolio performance, such as WCM Quality Global Growth Fund (ASX: WCMQ) and Montgomery Global Equities Fund (ASX: MOGL).

Companies

There are a number of companies on the ASX that derive their earnings from operations.

I'd only focus on businesses that have an attractive long-term future and that have a history of growing their payouts and offer a good dividend yield today.

Some of the most appealing ASX dividend shares, in my opinion, are Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Medibank Private Ltd (ASX: MPL), Pinnacle Investment Management Group Ltd (ASX: PNI), Shaver Shop Group Ltd (ASX: SSG), and APA Group (ASX: APA).

Real estate investment trusts

The final area of investments that could unlock a pleasing second income is real estate investment trusts (REITs) – these are businesses that own significant commercial real estate.

There is a wide variety of REITs that Aussies can buy, including industrial, shopping centres, farms, self-storage, office, social, and healthcare.

Investors can benefit from the rental profits as well as the long-term appreciation of land prices. Some of my favourite REITs for income and capital growth are Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), and Abacus Storage King (ASX: ASK).

The post $20,000 in excess savings? Here's how to try and turn that into a second income in 2026 appeared first on The Motley Fool Australia.

There are 4 insurance stocks that sit above the rest:  

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Medibank Private Ltd (ASX: MPL)
• Insurance Australia Group Ltd (ASX: IAG)

These are the largest insurance companies listed on the ASX, ranking highest by market capitalisation and collectively serving millions of policyholders across Australia.

What's the difference?

Although these companies all operate as insurers, they target various parts of the market. 

QBE is a global insurer, focused largely on commercial, specialty, and reinsurance markets across multiple countries.

Suncorp focuses primarily on Australia and New Zealand, offering a broad mix of personal and business insurance alongside banking services.

IAG (Insurance Australia Group) focuses on general insurance, particularly personal and small business insurance, in Australia and New Zealand through well-known local brands.

Medibank is focused on health insurance, primarily serving Australian customers with private health and related services rather than general insurance.

How did they perform in 2025?

After a post-pandemic boom for insurance stocks, 2025 marked a turning point for this sector in terms of stock market performance. 

The worst-performing insurance stock amongst the four has been Suncorp. 

Suncorp shares began the year trading at roughly $22.72 each. 

With just a day left of trading this year, this insurance stock is trading close to $17.70 each. 

This represents a fall of approximately 22%. 

Also suffering a down year are Insurance Australia Group shares. 

This insurance stock has dropped more than 7% in 2025. 

Meanwhile, it was essentially a flat year of returns for QBE shares, which have risen a modest 1% in 2025. 

Finally, the clear winner this year amongst ASX insurance stocks has been Medibank Private shares, which are up almost 26%. 

What are experts tipping for insurance stocks in 2026?

Overall, it appears there is limited upside in the insurance sector moving into the new year. 

Despite their strong year of growth, it appears experts' views are mixed on Medibank shares in the near future. 

In a note out of Shaw and Partners last week, the broker placed a hold recommendation on this ASX insurance stock. 

Meanwhile, Bell Potter in late November said the insurer holds a dominant presence in the Australian health insurance market, with a 27% market share and 4.2 million members. 

"This scale provides a solid foundation for continued growth, supported by favourable demographics and negotiating leverage with private hospitals," the broker said.

According to TradingView, analysts view the stock as trading close to fair value, with an average one-year price target of $5.12 (approximately 5% upside). 

IAG shares are also trading close to value based on analyst ratings via TradingView. 

Elsewhere, Suncorp and QBE shares both received sell recommendations from experts (via The Bull). 

The post Which ASX insurance stocks performed best this year? appeared first on The Motley Fool Australia.

To narrow things down, let's look at what analysts are saying about a few popular options, courtesy of The Bull. Here's what you need to know:

Medibank Private Ltd (ASX: MPL)

Shaw and Partners isn't recommending investors buy health insurance giant Medicare just yet.

In response to its acquisition of Better Medical, the broker has put a hold rating on Medibank's shares. It said:

MPL is a private health insurer. Medibank Private has entered into an agreement to acquire Better Medical, for about $159 million, highlighting its pivot into health services. The acquisition brings a network of 61 GP and medical clinics to MPL from Victoria, Queensland, South Australia and Tasmania. The company has  also strengthened governance and leadership after appointing new non-executive directors.

MPL generated group revenue from external customers of $8.604 billion in fiscal year 2025, an increase of 5.2 per cent on the prior corresponding period. Underlying net profit after tax of $618.7 million was up 8.5 per cent. The fully franked dividend of 18 cents in fiscal year 2025 was up 8.4 per cent.

PLS Group Ltd (ASX: PLS)

Over at Bell Potter, its analysts think that this lithium miner's strong gains means that its shares are overvalued at current levels.

Especially given the risk of lithium prices staying lower for longer. It has put a sell rating on its shares. Commenting on PLS Group, which was previously known as Pilbara Minerals, the broker said:

Formerly Pilbara Minerals, this lithium miner's operational performance remains sound. Despite a strong balance sheet and long term tailwinds from electric vehicles and energy storage, lithium supplies exceed demand in the short term and overshadow any catalysts. The recent share price rally has run stronger than most share market experts expected, with the stock still pricing in a cyclical rebound. Downside risk remains if lithium prices stay lower for longer.

Woolworths Group Ltd (ASX: WOW)

One ASX share that Bell Potter is recommending as a buy is supermarket giant Woolworths.

It is feeling positive about the company after its recent update showed signs of stabilisation. It said:

After a challenging period marked by margin pressure and earnings downgrades, Woolworths is showing early signs of stabilisation. Recent trading updates indicate improving momentum in core divisions, particularly Australian Food and B2B (Business-to-Business), suggesting the worst may be behind WOW. Given the supermarket giant generates solid cash flow, WOW stands out among consumer staples. As market sentiment improves, so too should investor confidence in the group's earnings outlook.

The post Buy, hold, sell: Medibank, PLS, and Woolworths shares appeared first on The Motley Fool Australia.