Buying when share prices have taken a hit seems like a smart move to me because of the better price/earnings (P/E) ratio valuation and potentially a larger dividend yield.

I think Nick Scali Ltd (ASX: NCK), a furniture retailer, is one of the most underrated businesses on the ASX. I reckon this is a great time to think about buying shares.

It has fallen well over 30% since mid-January 2026, as the chart below shows.

The business saw significant declines in 2022 and 2023, with both years proving, in hindsight, to be great times to invest. I think this is another time to invest in one of Australia's top shares.

Store network potential

I like to invest in businesses that have plenty of room to expand in the coming years. For Nick Scali, one of the easiest ways to deliver growth is by adding more stores and reaching new customers.

There are a number of ways it can grow its store count. In Australia and New Zealand, it has 110 Nick Scali and Plush stores. The business thinks it can reach between 180 to 200 ANZ locations, which would represent growth of between 63% to 82%. Enlarging the ANZ network could bring significant scale benefits and margin improvements.

Nick Scali also recently bought a small UK furniture business called Fabb Furniture and it's rebranding those stores to Nick Scali. The ASX share is selling Nick Scali furniture in those UK stores, which is leading to a large uptick in the gross profit margin.

The company thinks the UK network could grow from the current 19 locations to between 60 to 70, a rise of between 215% to 268%.

Profit margins to improve?

The business has lost some market confidence in the last few months, but I still think the long-term looks very promising. I reckon the market is underestimating how much the company's earnings could rise.

Nick Scali's FY26 half-year result was a great example of how the company's profit margins could rise as the business grows. Operating leverage is a powerful attribute for Australia's top shares.

In HY26, group revenue rose by 7.2% to $269.3 million, the group gross profit margin improved by 310 basis points (3.10%) to 65.4%, operating profit (EBITDA) rose 18.1% to $96.6 million and net profit after tax (NPAT) grew 23.1% to $41 million.

Aside from a potential headwind of high inflation and rising interest rates in 2026, I think the company is on track to increase its profit margins and return on equity (ROE) over time.

Pleasing dividend

An added bonus when it comes to this business is a solid dividend that has grown significantly over the past decade. Impressively, in the HY26 result, the interim dividend was hiked by 30% to 39 cents per share.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 78 cents in FY26. That translates into a grossed-up dividend yield of close to 7%, including franking credits, at the time of writing.

The post A rare buying opportunity to buy 1 of Australia's top shares? appeared first on The Motley Fool Australia.

Lovisa Holdings Ltd (ASX: LOV) and Nick Scali Ltd (ASX: NCK) both slipped again on Thursday afternoon, falling 4% and 3% respectively at the time of writing.

That adds to a painful trend. Lovisa is now down 21% year to date, while Nick Scali has tumbled 31%.

So, is this a red flag or the kind of dip investors dream about?

Let's break it down.

Lovisa: expansion in Europe, Asia and US

Lovisa has built a global fashion jewellery empire and it's still growing.

The fast-fashion model of this ASX retail stock allows it to quickly adapt to trends, while its expanding international footprint continues to drive store growth. Lovisa has successfully scaled across Europe, the US, and Asia, giving it a long runway for expansion. That growth story is the key attraction.

But the market has cooled. Rising costs, softer consumer spending, and concerns about margins have weighed on sentiment. Retail is a tough game in uncertain economic conditions, and Lovisa isn't immune.

And analysts are becoming more cautious on the ASX retail stock. Bell Potter recently retained its hold rating but slashed its price target to $24.00 from $33.50 — a significant downgrade. From current levels, that implies only around 5% upside over the next 12 months.

Still, for long-term investors, the global growth story remains intact if execution holds.

Nick Scali: strong margins, UK growth

Nick Scali has also been under pressure, but its fundamentals remain solid.

The furniture retailer is known for strong margins, disciplined cost control, and a premium product offering. It has also expanded through acquisitions, including its UK growth push, which could unlock new revenue streams. Like Lovisa, it benefits from brand strength and a loyal customer base.

But the risks are clear. Furniture is highly cyclical. When consumer confidence drops or interest rates rise, big-ticket spending is often one of the first areas to be cut.

That's likely a big reason behind the recent share price weakness.

Even so, analysts see potential. Sentiment is cautiously optimistic, with five out of ten analysts rating the ASX retail stock as a buy or strong buy, and the other five sitting at hold. The average price target is $22.37, suggesting potential upside of around 39%.

That's a meaningful gap from current levels.

Foolish Takeaway

Lovisa and Nick Scali have both been hit hard, but that's exactly what makes them interesting.

For investors willing to look past short-term retail headwinds, these ASX stocks could offer a mix of recovery potential and long-term growth.

The key question: are you buying the dip or avoiding the risk?

The post Got $7,500? Here are 2 strong ASX retail stocks to buy now appeared first on The Motley Fool Australia.

I think the best businesses to buy are ones that have strong compounding potential of the earnings. Some companies are already large and aren't likely to grow earnings strongly, while others could multiply their own profit over the next several years.

I'm excited by the long-term trajectory of the investments below.

Nick Scali Ltd (ASX: NCK)

Nick Scali is a leading furniture retailer in Australia (and New Zealand) with a large store network. In recent years, it has acquired both Plush in Australia and Fabb Furniture in the UK, giving it more avenues for earnings growth.

The ASX share is exposed to consumer spending, so there are certainly cycles in how much demand there is for furniture. But, I think Nick Scali is one of the best operators in the furniture space, for example with its high return on equity (ROE) and strong gross profit margin.

I don't know how consumer demand will perform in the next several months, but it's clear that the Nick Scali share price is already down 35% this year. I think that the size of the decline makes this a great time to invest.

I'm particularly excited by the potential of the company to bring its Nick Scali products (and margins) to the UK business, expanding its UK store network, and paying a good dividend.

According to CMC Invest, the Nick Scali share price is currently trading at 17x FY26's estimated earnings, at the time of writing.

Tuas Ltd (ASX: TUA)

I view Tuas as one of the most underrated ASX growth shares. I'm going to highlight a few exciting elements of the business.

Firstly, it's a fast-growing Singaporean business which is rapidly gaining market share.

The company reported that in the first six months of FY26, revenue increased 26% to $91.9 million and underlying operating profit (EBITDA) climbed by 27%.

This revenue growth was largely driven by a 21.7% rise in the number of active mobile subscribers to 1.4 million. Broadband subscribers grew by approximately 32,000 to 46,133 as it started to gain traction.

Another big positive is that its underlying profit is improving, as shown by EBITDA margin increasing to 46%, up from 45%. That means each new revenue dollar this year is more profitable than last year, which bodes well for net profit growth to accelerate in the coming years.

I'm also excited by the potential of Tuas merging with M1, one of its main smaller rivals in Singapore, giving the business a significant boost in scale benefits and profit.

In five years, I think the ASX share could be a much bigger business as it wins more subscribers thanks to its focus on offering value. Additionally, expansion into another country by Tuas would significantly improve its growth prospects.

The post 2 incredible ASX shares to buy in April appeared first on The Motley Fool Australia.

It's not often that share prices go through a decline of 10% or more. Widespread selling is painful as a shareholder but there are lower valuations (almost) across the board for brave prospective investors.

Sell-offs give us the chance to search across the S&P/ASX 300 Index (ASX: XKO) (or smaller) to find beaten-up opportunities which could then bounce back when market confidence returns.

Assuming the investment still has a positive long-term outlook, a large decline is a great opportunity to see big returns if/when there's a recovery.

For example, if a share price drops by 50%, then returning to the previous position would be a return of 100%! Of course, it's not as easy as that to find the right opportunities. I'd only go for investments I believe can deliver higher earnings in three years from now.

Where I'm seeing exciting ASX share opportunities

In my view, there are multiple areas where the market is being too bearish on certain ASX shares.

The ASX tech share (and tech-related) space is awash with names that have been hit by AI worries, then hit again by the prospect of inflation and higher interest rates. I'm thinking of names like Siteminder Ltd (ASX: SDR), TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), REA Group Ltd (ASX: REA) and Pro Medicus Ltd (ASX: PME).

Businesses in the funds management space are certainly feeling the pain of lower share markets, as well as a hit to market confidence. I think the businesses of Pinnacle Investment Management Group Ltd (ASX: PNI), L1 Group Ltd (ASX: L1G) and Australian Ethical Investment Ltd (ASX: AEF) are very compelling options right now.

The ASX retail share space is appealing as well because market confidence in them can be cyclical. I think growing retail businesses could be particularly good long-term investments during this period, such as Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Ltd (ASX: NCK).

Finally, I want to highlight some other ASX growth shares that have been caught up in the sell-off but could be generate significantly higher profit in three to five years. I'm attracted to Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), Tuas Ltd (ASX: TUA) and Guzman Y Gomez Ltd (ASX: GYG).

The post Why buying ASX shares in March could supercharge your wealth appeared first on The Motley Fool Australia.

Compounding is a very powerful financial force that helps businesses grow into larger ones over time.

It's very easy to underestimate the power of compounding. For example, you'd think it'd take around a decade for an investment to double in value if it's growing at an average of 10% per year. But, it actually takes less than eight years to double.

Growing even faster than 10% can deliver significant compounding. I think the below three ASX growth shares are very good prospects for delivering solid net profit growth and I'd happily invest $20,000 into them.

Tuas Ltd (ASX: TUA)

Tuas is a rapidly-growing Singaporean telco. At its annual general meeting (AGM), the business reported it had reached 1.34 million active mobile subscribers and 36,200 active broadband services.

I'm confident the business can continue gaining market share in Singapore with its value-focused offerings. More users means more operating leverage as its costs are spread across a greater number of subscribers.

The ASX growth share is becoming increasingly profitable – in the first quarter of FY26 it made $9.1 million of net profit, which is more profit than it made in the entire 2025 financial year (of $6.9 million). It also made $44.2 million of revenue and $19.9 million of operating profit (EBITDA) in the first quarter of 2026.

With the bonus of the acquisition of Singapore competitor M1 on the horizon to boost its scale, I think Tuas' profit outlook is very compelling. If it can successfully expand beyond Singapore to other Asian countries then it could have an even stronger growth outlook.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a leading business in the investment world. It has invested in stakes in a number of funds management businesses including Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah, Aikya, Five V, Life Cycle and Pacific Asset Management.

It's not just a passive investor in these businesses, it helps them grow with services like seed funds under management (FUM), distribution and client services, middle office and fund administration, compliance, finance, legal, technology and other important infrastructure.

The FY26 half-year result saw net profit decline 11%, but that was only because of a reduction in performance fees generated (which are not likely to grow every year). Excluding performance fees, Pinnacle's half-year net profit increased 37% year-over-year and 11% half-over-half.

Its FUM may have reduced during the last few months because of the volatility, but the 33% drop of the Pinnacle share price since October 2025 looks like a great time to invest to me.  

Nick Scali Ltd (ASX: NCK)

Nick Scali is one Australia's largest furniture retailers through its Nick Scali and Plush brands.

Rising inflation and the prospect of higher interest rates may be causing the market to push the Nick Scali share price. At the time of writing, it's down around 38% since the high in January 2026.

This looks like a great time to invest because the company is increasing its growth potential with its expansion in the UK. It's rebranding the Fabb Furniture stores in the UK to Nick Scali stores.

The UK has a much larger population than Australia, giving the ASX growth share a large addressable market to target. Additionally, Nick Scali can sell its own furniture in the rebranded Nick Scali UK stores, which comes with a significantly higher gross profit margin.

If Nick Scali can continue adding to its ANZ and UK store networks, it can grow sales and net profit, even if sales at existing stores don't grow as fast in 2026 as 2025.

The FY26 half-year result saw the company grow its total net profit by 36.4% to $41 million, while underlying net profit increased 23.1% on revenue growth of 7.2%, showing its ability to deliver rising margins.

The post Where I'd invest $20,000 into ASX growth shares right now 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.

To narrow things down, let's take a look at two that Bell Potter thinks could be among the best to buy in March.

Here's what it is recommending to clients:

Elders Ltd (ASX: ELD)

Bell Potter thinks this agribusiness company could be a top pick for income investors.

The broker continues to believe that the market is undervaluing its Delta acquisition and thinks the ASX dividend share looks cheap at 12x forward earnings. It explains:

Elders is a leading Australian agribusiness and rural services company. It has an expansive network across Australia, providing a diverse range of services to rural and regional Australia, including livestock and wool agency and marketing, real estate services, agricultural supplies, financial services, and insurance. Elders supports primary producers across various sectors like livestock, cropping, and wool, and also operates a feed-lotting business.

We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 12x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.

As for income, forecasting fully franked dividends of 39 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $6.99, this equates to dividend yields of 5.6% and 6.4%, respectively.

Nick Scali Limited (ASX: NCK)

Another ASX dividend share that could be a buy according to Bell Potter is furniture retailer Nick Scali.

The broker likes the company due to its expansion in the UK, which it sees as a key growth driver in the coming years. It said:

Nick Scali is an Australian retailer specialising in household furniture and related accessories, operating under the core Nick Scali brand as well as the Plush banner. >90% of sales are completed in-store, with the company maintaining a substantial physical presence with over 100 showrooms across Australia and New Zealand, and has recently expanded into the UK, which now contributes around 8% of total revenue.

Looking ahead, the key growth drivers include the continued roll-out of Nick Scali stores in the UK, supported by the refurbishment of acquired Fabb locations, and the ability to leverage the group's established supply base to drive scale efficiencies and margin expansion.

With respect to income, the broker is forecasting fully franked dividends of 61.9 cents per share in FY 2026 and then 75.1 cents per share in FY 2027. Based on the current Nick Scali share price of $16.97, this would mean dividend yields of 3.65% and 4.4%, respectively.

The post Bell Potter names the best ASX dividend shares to buy in March appeared first on The Motley Fool Australia.

Nick Scali is a furniture retailer that sells through three different business divisions – in Australia, it has Nick Scali and Plush. Nick Scali is also working on a UK expansion plan.

It has an impressive dividend history. The company increased its annual dividend each year between FY13 and FY23. However, profitability has struggled in the annual results since then due to inflation, interest rates, and challenging trading conditions.

But the FY26 half-year result saw a recovery in conditions, profit, and the dividend. It was the largest interim dividend since FY23. Let's look at why this is a good time to invest in the ASX stock for passive income.

Exciting outlook for the ASX stock

The numbers the business reported for the first six months of the 2026 financial year were very positive.

In HY26, the business revealed that group revenue increased 7.2% to $269.3 million, the gross profit margin improved 310 basis points to 65.4%, operating profit (EBIT) climbed 25% to $68.5 million, and underlying net profit after tax (NPAT) increased 23.1% to $41 million.

Looking at the individual markets, the UK business is going through a transition to Nick Scali branding. It's refurbishing and rebranding a number of stores, which is why UK revenue declined 38.5% to $17.6 million and the underlying net loss worsened by 100% to $5.6 million.

ANZ revenue increased 13.1% year over year, and ANZ net profit jumped 29.4% to $46.6 million.

Statutory net profit jumped 36.4% to $41 million, allowing the business to hike its interim dividend per share by 30% to 39 cents per share.

The performance in January was positive too, with ANZ written sales orders increasing by 3.1% year over year. A further five new stores are confirmed to open in ANZ, and additional opportunities are being reviewed. Extra stores are a big driver of earnings.

A majority of the UK store refurbishment program is now complete, and it has "seen improvement in written sales compared to the prior year". Total January written sales came to $6.7 million.

The four Nick Scali-branded stores in the UK that were trading in both January 2025 and January 2026 saw like-for-like sales growth of 32%. The gross profit margin is steadily rising in the UK, too, as it sells more Nick Scali items.

The projection on CommSec suggests that Nick Scali could pay an annual dividend per share of 78.1 cents in FY26. That translates into a forward grossed-up dividend yield of 6.3% after today's 5% decline in the Nick Scali share price, following a volatile weekend of geopolitical events.

Making $200 a month of passive income

The ASX stock doesn't pay dividends monthly, so it's good to think of the annual total and then divide it by 12.

To reach $200 per month of annual passive income, we're talking about a total of $2,400. To receive that amount, that would require 3,033 Nick Scali shares, assuming the forecast becomes correct.

With the prospect of rising dividends in the coming years, I think this ASX stock is a solid long-term buy, particularly with its potential in the UK for store network growth and margin improvements.

The post I'd buy 3,033 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

Will the market be able to build on 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 following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.2% lower. In the United States, the Dow Jones was down 1.05%, the S&P 500 dropped 0.4%, and the Nasdaq tumbled 0.9%.

Oil prices rise

It could be a positive 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 1.8% to US$67.02 a barrel and the Brent crude oil price was up 2.9% to US$72.87 a barrel. Since then, the US has launched attacks on Iran, which could lead to higher oil prices when Asian trade begins.

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes Fortescue Ltd (ASX: FMG), Newmont Corporation (ASX: NEM), Nick Scali Limited (ASX: NCK), Origin Energy Ltd (ASX: ORG), Pinnacle Investment Management Group Ltd (ASX: PNI), and Steadfast Group Ltd (ASX: SDF). Fortescue will be paying shareholders a 62 cents per share dividend at the end of the month.

Gold price pushes higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 1% to US$5,247.9 an ounce. The precious metal is likely to rise further once trade begins in response to the war in the middle east.

Buy Coles shares

The team at Bell Potter thinks Coles Group Ltd (ASX: COL) shares are in the buy zone this week. In response to its half-year results, the broker has retained its buy rating with a trimmed price target of $22.35. It said: "Continued delivery against 'Simplify & Save' initiatives ($133m delivered in 1H25 and $698m to date vs. a target of $1Bn by FY27e) and generating a return on ADC/CFC investments (~$1.45Bn investment). COL has returned to a discount to WOW, though this is likely warranted given the lower level of forecast growth."

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

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

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

ASX All Ords shares about to go ex-dividend

Which companies will we hear from today?

The big one today is the half-yearly report from supermarket network Coles Group Ltd (ASX: COL).

Woolworths shares ripped this week after the ASX All Ords consumer staples giant reported a 16% profit lift to $859 million for 1H FY26.

We'll also hear from TPG Telecom Ltd (ASX: TPG), Michael Hill International Ltd (ASX: MHJ), and Pexa Group Ltd (ASX: PXA).

The latest report from The Star Entertainment Group Ltd (ASX: SGR) will also be interesting, as investors seek further news on the turnaround plan for the beleaguered casino operator.

Yesterday, Star Entertainment shares bounced on news of a debt refinancing deal, including extra liquidity to fund the turnaround plan.

The post 35 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 0.3% while the S&P/ASX 200 Index (ASX: XJO) is up 0.5%.

Meantime, brokers have revealed two ASX retail shares to buy and two to sell.

Let's take a look.

Nick Scali Ltd (ASX: NCK) 

The Nick Scali share price is $19.14, up 3.9% on Tuesday and up 8.6% over the past 12 months.

The furniture retailer reported a 36% increase in profit in its 1H FY26 results last week.

Nick Scali revealed a 7.2% year-on-year increase in revenue to $269.3 million and an 18.8% uplift in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $96.6 million.

The statutory net profit after tax (NPAT) was $41 million, and there was a 14.1% improvement in gross margin to 59.2%.

Nick Scali announced a fully-franked interim dividend of 39 cents per share, up 30% on 1H FY25.

Bell Potter said first-half NPAT came in 11% above expectations.

The broker retained its buy rating on the ASX retail share but lowered its 12-month share price forecast by 11% to $25 "due to softer growth into the second half, earnings revisions and the rising interest rate environment".

Breville Group Ltd (ASX: BRG)

The Breville share price is $32.17, down 0.5% on Tuesday and down 13% over the past 12 months.

The white goods manufacturer released its 1H FY26 results last week.

The company revealed a 10.1% increase in total sales revenue to $1,098.7 million.

EBITDA grew by 2.9% to $182.8 million and NPAT lifted 0.7% to $98.2 million.

Breville announced a fully-franked interim dividend of 19 cents per share, up from 18 cents in 1H FY25.

Following the report, Morgans maintained a buy rating on this ASX retail share.

The broker commented:

1H26 was better-than-feared, with double-digit sales growth (+10%) largely offset by tariff costs (~130bp GM impact) to deliver a flat NPAT outcome (+1% on pcp).

Crucially, FY26 EBIT growth guidance provides much-needed earnings visibility, alleviating some concerns for an extended transition year and improving our confidence for a resumption of sustainable EPS growth from FY27+.

We continue to be impressed by BRG's strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments).

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is $10.14, up 1.2% today and up 24% over the past 12 months.

On The Bull this week, Michael Gable from Fairmont Equities revealed a sell rating on the KFC franchise owner.

Gable explained:

We expect cost pressures to hit margins. Cost of living pressures and rising interest rates in Australia may pressure sales.

The company delivered group revenue and statutory net profit after tax growth in the first half of 2026 when compared to the prior corresponding period.

However, market reaction to the result has been negative.

The shares have fallen from $11.60 on December 1, 2025 the day prior to the half year result, to trade at $10.425 on February 12, 2026.

Share price rallies are followed by selling pressure, a sign that investors are seeking out other opportunities.

Cettire Ltd (ASX: CTT)

ASX retail share Cettire is trading at 48 cents apiece, down 2% today and down 60% over the past 12 months.

Cettire will release its 1H FY26 results next Thursday.

Christopher Watt from Bell Potter Securities reckons the luxury goods online retailer is a sell.

Watt explained:

Fiscal year 2025 was challenging in response to a slowdown in demand, macroeconomic headwinds and a heightened competitive environment.

The company posted a statutory net loss after tax of $2.6 million.

The shares have fallen from $4.66 on February 12, 2024 to trade at 51 cents on February 12, 2026.

In our view, the lack of near term catalysts suggest elevated risk, particularly if macroeconomic headwinds dampen luxury demand. 

The post ASX retail shares: Experts rate 2 to buy and 2 to sell appeared first on The Motley Fool Australia.

You probably know this, but companies that are listed on the ASX are required to lodge their accounts within two months of the end of their half- and full-year accounting periods.

What you may not know is that companies aren't obliged to use the tax- or calendar years – they can pick whatever date they like. They just have to lodge their accounts within two months of that date.

In the event, the vast majority of companies use June 30 and December 31. Most run traditional financial years – July 1 to June 30. Some use calendar years: January 1 to December 31. Either way, their half-year or full-year results are due by the end of February.

And given it usually takes them a month or so to put all of the data (and annoyingly self-promotional 'investor presentations') together, we don't tend to see them start publishing until this month.

And so, February (and August) become 'earnings season' – when almost all ASX companies give us that biannual look under the proverbial bonnet (no, not 'hood', thank you… and get off my lawn!)

And as of Friday, we're halfway through the month. So, what have we learned?

Firstly, investors really, really hate surprises. Like, really.

There have been quite a few large falls of 20% or more when companies released results that weren't in accordance with investor expectations.

Sometimes, that's justified. Other times? Well, short-termism can be the enemy of long-term success. If your investment thesis relies on one six month period being 'just so', then you're playing with fire.

On the other hand, if you are looking at a company's long-term growth prospects, half a lap around the sun is far less consequential.

We're definitely in the latter camp at The Motley Fool. Half-year results can absolutely be milestones, so we don't disregard them, but our focus is clearly on the question: "What does this result say about the 5 and 10 year prospects".

Sometimes, it says a lot. Good or bad. Sequential profit increases from quality companies are lovely. Unexpected losses can be a warning. But sometimes it's the opposite! That's why you have to look at the detail for yourself, rather than using share price movements to try to guess.

The best bit? If other investors overreact to temporary problems, but we think the long-term story is intact, we sometimes get the chance to take advantage of their pessimism and buy at cheap prices!

Second, growth comes from a multitude of places, and knowing which is which is vital when assessing a company's long term prospects.

Compare Commonwealth Bank of Australia (ASX: CBA) and ANZ Group Holdings Ltd (ASX: ANZ), for example.

CommBank managed to grow profits by 6% by growing its lending and deposit bases, even as margins shrank a little.

ANZ's year-on-year profit growth was the same, but it achieved that result largely by cutting costs.

Which result is better?

In the short term, money spends the same, no matter its source.

In the longer term, you 'can't cut your way to greatness' as the old saw holds.

On this result alone, Commonwealth Bank shareholders should be happier than ANZ's, because the former is on a significantly stronger growth path, which may bode well for the future.

That's not to say ANZ can't find growth from here. Or that the cost-cutting wasn't justified. Just that compound returns tend to be better when a business can deliver on something I tend to look for: 'being more relevant, to more customers, more often'.

Lastly, a perennial one: earnings season really should be called 'expectations season'.

Because share prices don't react to the actual results, but rather how those results compare to the market's 'expectations'.

Take a couple of energy companies: AGL Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG). Both companies' profits fell, compared to last year. And the share prices… rose.

Now a couple of retailers, Temple & Webster Ltd (ASX: TPW) and Nick Scali Ltd (ASX: NCK). Both grew revenue strongly. Temple & Webster's profit fell, while Nick Scali's rose. And both companies' share prices… crashed.

Why?

In all four cases because the market expected something different to what the companies delivered.

By the way, don't be sucked into thinking about companies on the basis of their share prices. Sometimes, the movement in the share price tracks the business performance. But less often, in the short term, than you might think.

Too often, you hear 'Oh, XYZ is a great stock'. What those people mean is 'the share price has been going up lately'.

Or, 'ABC is a terrible stock' when they mean the price has been falling.

It's true that the investor returns have been good, and bad, respectively, in each case.

But they're talking about a really abstract issue, here, often without knowing it.

They're not really talking about the company at all – just its share price…

They're comparing two arbitrary points in time…

And they're comparing an average market expectation at those points.

Here's why. Consider a company whose shares fell from $100 per share to $10. That's unquestionably bad for those who paid $100 a share to buy it.

It's had a bad year. But does that make it a 'bad stock'? Only over that timeframe.

Now let's say the shares go from $10 back to $100 and then to $200.

Is it now a 'good stock'? Most would say yes.

But in both cases, all we're really saying is that the crowd loved, then hated, then loved the company again.

Maybe justifiably, based on the company's performance.

Or maybe not.

And here's the thing: it's all in the past anyway.

The only thing that matters is the future. Who cares if it is considered a 'good stock' or a 'bad stock' based on past activity (and past investor sentiment).

Investors hate tech companies at the moment. They loved them a year ago.

We've seen this movie before. The dot.com boom and crash, anyone? Or less remarked upon, the post-COVID tech boom and subsequent fall.

Banks are having a moment in the sun, after going nowhere for a few years, post-COVID.

Looking backward would have been somewhere between useless and expensive, if you'd used only past history to work out when to buy and sell.

So, as you look at the results of the past two weeks, and prepare for the next fortnight, here's a quick list to keep in mind:

Ignore:

– 'Great stocks' and 'bad stocks'

– Sentiment-driven share price moves

– Past share price performance

– Promotional company announcements that seek to selectively direct your attention

Focus on:

– The underlying earnings power of a business

– What the result tells you, if anything, about the long-term future

– The candour of management

– Whether today's price (not last year's price change) is attractive, based on the above

No, it's not always easy to ignore the people yelling 'the sky is falling', or a soaring share price.

But that's exactly what we have to do.

Your returns don't come from 'what just happened', but from 'what happens next'.

Invest accordingly.

Fool on!

The post What have we learned from earnings season so far? appeared first on The Motley Fool Australia.

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

Deep Yellow Ltd (ASX: DYL)

According to a note out of Morgans, its analysts have retained their speculative buy rating on this uranium company's shares with an improved price target of $2.56. The broker has been busy updating its outlook and forecasts for Deep Yellow to reflect a series of changes at the corporate, project, and macro level. It notes that key revisions include adjustments to first production timing at Tumas, its cash position, and an uplift in its bull-case uranium price assumption. This has ultimately led to a sizeable upgrade to its valuation. The Deep Yellow share price is trading at $2.38 on Monday afternoon.

Nick Scali Limited (ASX: NCK)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this furniture retailer's shares with a reduced price target of $25.00. The broker notes that Nick Scali's half-year profit was comfortably ahead of expectations. It notes that this was driven by strong gross margins and operating leverage, which was well assisted by revenue growth of 13%. One negative was that its written sales orders in the ANZ market were only up 3.1% on the prior corresponding period. This was a slower start than it was expecting. Nevertheless, it remains positive. Bell Potter highlights that it continues to favour category outperformers such as Nick Scali and sees lower risk on margins in manoeuvring revenue growth vs other retailers in its coverage. The Nick Scali share price is fetching $18.26 at the time of writing.

Northern Star Resources Ltd (ASX: NST)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this gold miner's shares with an improved price target of $35.00. This follows the release of a half-year update that was largely in line with expectations. While the broker concedes that there is uncertainty relating to how quickly the business can rectify remaining disruptions, it believes it is worth sticking with the miner. This is especially the case given its belief that Northern Star will hit a cashflow inflection point in FY 2028. At that point, it sees potential for capital returns or buybacks should KCGM reach capacity ahead of cash outlays for the Hemi operation. The Northern Star share price is trading at $28.85 this afternoon.

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

The shares fell sharply on the day of the profit announcement, closing at $18.48 on Friday, down from $23.79 the previous day.

The shares have slid another 3.4% to be changing hands for $17.85 on Monday.

But it's fair to say analysts are divided on the company's fortunes going forward.

Firstly, let's have a look at the results.

Solid local result

Nick Scali last Friday reported a net profit after tax of $41 million, up 23.1% on the previous corresponding period, on revenue of $269.3 million, up 9.2%.

While the company's Australia and New Zealand division performed well, revenue in its much smaller UK division fell sharply by 38.5%.

Executive Chair Anthony Scali said regarding the results:

The first half delivered solid sales and profit growth in Australia/New Zealand with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders. Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in Australia/New Zealand and the improvement in gross profit margin in both the UK and Australia/New Zealand. We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the UK.

Analysts divided

Macquarie analysts have had a look at the result, and they like what they see, with an outperform rating on the stock and a price target of $21.60.

They said the first-half result was "strong, outperforming margin expectations and revenue in line".

Net profit, they said, was 9% up on consensus expectations.

Macquarie said the market was expecting a better outlook than that delivered by the company last week, which was behind its previous share price appreciation and explained the sharp falls on Friday.

Barrenjoey analysts are not so bullish on the stock, with a neutral rating and a $17 price target, indicating they think further falls are on the cards.

They said the company would be impacted by increasing interest rates, which they have factored into their valuation.

They added:

We think a major reason for Nick Scali's share price rally from less than $14 to more than $25 since April-24 is confidence around executing its UK expansion well. Longer term we think this will be a successful foray, but that there will be bumps along the way. If we assume our $200m valuation for the UK is fair (remember Nick Scali paid nothing for this business) it implies investors are paying 17.2x FY27 P/E for the Australia New Zealand business. Since listing over 20 years ago, Nick Scali has only once traded on more than 17x P/E (mid 2007), so while the quality of the business has improved over this period, we just don't think there is much margin of safety here, especially as rates move higher.

The post Buy, sell or hold? Where to from here for plunging Nick Scali shares? appeared first on The Motley Fool Australia.

I like it when a share price declines because it pushes the dividend yield higher. For example, if a business has a dividend yield of 5% and the share price drops 10%, then the dividend yield becomes 5.5%. A 20% decline unlocks a 20% dividend yield. And so on.

Both of the ASX dividend shares below have a promising future, in my view.

Centuria Capital Group (ASX: CNI)

Centuria is one of the largest property fund managers in Australia, giving the business significant exposure across a range of property sectors, including industrial and office.

As the chart below shows, the Centuria share price has fallen by around 20% since 29 August 2025, making it significantly cheaper for investors.

The business has provided guidance that expects to generate operating earnings per share (OEPS) of 13.4 cents, representing growth of 10% year over year. This means the business is trading at 14x FY26's operating earnings.

The ASX dividend share is also expecting to pay a distribution to investors that equates to a distribution yield of 5.4%, at the time of writing, which I think is a solid start for passive income investors.

Centuria is aiming for at least $1 billion of real estate transactions in FY26, as well as expanding its real estate finance with new products and capital sources. Additional revenue is expected through its AI-related investments as well. All of this is expected to drive earnings growth.

I think the business has a very promising future, and this is a good time to invest.

Nick Scali Ltd (ASX: NCK)

This ASX dividend share is one of the larger furniture retailers in Australia. The business has the Plush and Nick Scali businesses in Australia, as well as the relatively new UK operations.

The Nick Scali share price is down around 25% since 11 February 2026, as shown in the chart below. This could be an exciting opportunity to invest in the company.

The business reported a good level of growth in the FY26 first-half result. In the first six months, ANZ revenue rose 13.1% to $251.7 million, and underlying ANZ net profit jumped 29.4% to $46.6 million.

UK revenue declined 38.5% to $17.6 million, while the underlying UK net loss worsened by 100% to $5.6 million.

Total revenue grew 7.2% to $269.3 million, overall underlying net profit increased 23.1%, and the dividend per share was hiked by 30% to 39 cents per share.

We shouldn't read too much into the UK numbers because there were numerous store closures for lengthy periods because of store refurbishments. UK sales orders increased by 12.8%, which bodes well for future growth.

Additionally, the UK gross profit margin increased to 59.2%, significantly above last year's gross profit margin of 45.1%.

A number of new UK stores are currently in negotiations, with a "strong focus on growing the store network".

Trading looks positive for the second half of FY26 – ANZ written sales orders for the month of January increased by 3.1% year over year. A further five new stores are confirmed for ANZ during the year, with additional opportunities currently being reviewed.

In the UK, the majority of the store refurbishment program is now complete, and it has seen an improvement. Total January written sales were $6.7 million. Four Nick Scali-branded stores that were trading in January FY25 achieved like for like sales growth of 32% in January FY26, which bodes well for the foreseeable future.

The forecast on CMC Invest suggests the business could deliver an annual dividend per share of 84 cents in FY27. That would translate into a grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The post These 2 ASX dividend shares are great buys right now appeared first on The Motley Fool Australia.

As always, there were a few surprises, both good and bad, as investors reacted to fresh results. 

Here are some of the important headlines from last week. 

Banks the surprise winner

One of the biggest jumps this earnings season came from ANZ Group Holdings Ltd (ASX: ANZ). 

ANZ reported its 2026 First Quarter Trading Update on Thursday February 12. 

The update included a first-quarter cash profit of $1.94 billion and a statutory profit of $1.87 billion. 

Cash profit jumped 75% compared to the second-half 2025 quarterly average, driven largely by lower expenses and stronger revenue.

This led to an 8% share price jump as investors reacted positively to the news. 

It also prompted several brokers to re-rate ANZ shares. 

It closed last week trading at $40.89, a 52 week high.

Its share price is now up almost 31% over the last 12 months, representing the biggest gain of the big four bank shares.

Commonwealth Bank of Australia (ASX: CBA) also surprised pundits with its 2026 Half Year Results last Wednesday. 

Its share price climbed almost 7% higher on the back of earnings season results. 

It reclaimed its title as Australia's largest company, and posted statutory net profit after tax of $5.41 billion. 

Cash net profit came in at $5.45 billion,  up 6% on the prior corresponding period.

Overall it rose more than 10% last week. 

Healthcare woes continue

Whilst banks enjoyed a strong week, two of Australia's largest healthcare stocks crashed on the back of earnings results. 

CSL Ltd (ASX: CSL) posted Half Year Results last Wednesday, which led to a 17% crash by week's end. 

Things appear to be going from bad to worse for the ASX 200 company. 

A CEO exit and poor results headlined a horror week. 

The company posted an underlying NPATA of US$1.9 billion, which was down 7% on the prior corresponding period. 

Its share price is now down 41% in the last 12 months. 

It was a similar story for Pro Medicus Ltd (ASX: PME) shares. 

Following its HY26 Results last Thursday, its share price retreated 22%. 

For the six months ended 31 December, Pro Medicus reported a 28.4% increase in revenue to $124.8 million. 

Pro Medicus' underlying EBIT margin increased to 73% from 72% the year prior. 

It's share price is down 57% in the last 12 months which has attracted some buy-low attention from brokers. 

Another big miss 

Finally, another ASX large-cap company that had a week to forget was Nick Scali Ltd (ASX: NCK). 

It released 1H FY26 results on Friday. 

This sent investors running for the exit, as the share price fell 22% in a single day. 

Many financial results looked solid, however investors may have been reacting negatively to UK business losses.

The post Recap: Winners and losers from earnings season week 2 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:

Austal Ltd (ASX: ASB)

The Austal share price is down 21% to $4.99. This follows the release of a disappointing earnings guidance update from the ship builder on Friday. Austal revealed that it had previously overstated its potential earnings for the year. Its previous guidance included incentives that had already been recognised in Austal USA's forecast. As a result, there was a US$17.1 million overstatement included in its FY 2026 EBIT guidance. This led to Austal updating its EBIT guidance for FY 2026 to approximately A$110 million from A$135 million previously.

Cochlear Ltd (ASX: COH)

The Cochlear share price is down 19% to $199.69. This morning, Cochlear released its half-year results and reported a 1% increase in sales revenue to $1.176 billion and a 9% decline in underlying net profit to $195 million. And while management has reaffirmed its earnings guidance for FY 2026, it expects to be at the lower end of its $435 million to $460 million range. A slower-than-expected rollout of the new Cochlear Nucleus Nexa system was largely to blame for the soft performance.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down 19% to $19.31. This was despite the furniture retailer releasing its half-year results and reporting strong revenue and profit growth. Nick Scali's revenue was up 7.2% to $269.3 million and its net profit was up 36.4% to $41 million. Though, investors may be disappointed with the performance of its UK operations, which posted a loss of $5.6 million for the half.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down a further 10% to $42.61. This is despite there being no news out of the logistics solutions technology company. However, it is worth noting that most ASX tech stocks are falling heavily today. So much so, the S&P/ASX All Technology Index is down by almost 4% this afternoon. WiseTech shares are now down by approximately 38% since just the start of the year. Artificial intelligence disruption concerns have been weighing heavily on software stocks.

The post Why Austal, Cochlear, Nick Scali, and WiseTech shares are tumbling today appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) furniture retailer closed yesterday trading for $23.79. In early morning trade on Friday, shares are changing hands for $21.30 apiece, down 10.5%.

For some context, the ASX 200 is down 0.7% at this same time.

This underperformance follows the release of Nick Scali's half-year results for the six months to 31 December (H1 FY 2026).

Here's what we know.

Nick Scali shares sink amid UK business losses

For the six-month period, Nick Scali reported a 7.2% year-on-year increase in revenue to $269.3 million.

And Nick Scali shares could catch some longer-term tailwinds, with the company achieving a 14.1% improvement in gross margin to 59.2%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $96.6 million was up 18.8% from H1 FY 2025.

On the bottom line, the ASX 200 furniture retailer reported statutory net profit after tax (NPAT) of $41 million, up 36.4% year on year.

Breaking that down by regions, the company's UK statutory net loss after tax of $5.6 million was in line with management forecasts but still looks to be pressuring the stock today.

Nick Scali noted the UK segment loss reflected "lengthy store closures during the half associated with the refurbishment and rebranding program". UK half-year revenue of $17.6 million was down 39.5% from H1 FY 2025.

The ANZ business performed strongly, with a 36.7% year-on-year lift in statutory NPAT to $46.6 million. While H1 FY 2026 revenue was up 13.1% to $251.7 million.

In light of this performance, management declared a fully-franked interim dividend of 39 cents per share, up 30% from last year's interim payout.

If you're looking to bank the Nick Scali dividend, you'll need to own the stock at market close on 27 February. Shares trade ex-dividend on 2 March.

What did management say?

Commenting on the results that have yet to lift Nick Scali shares today, CEO Anthony Scali said:

The first half delivered solid sales and profit growth in ANZ with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders.

Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in ANZ and the improvement in gross profit margin in both the UK and ANZ.

Looking ahead, Scali added, "We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the UK."

Nick Scali share price snapshot

With today's intraday fall factored in, Nick Scali shares remain up 24.3% over the past 12 months, not including dividends.

The post Nick Scali shares plunging 11% today despite big dividend boost appeared first on The Motley Fool Australia.

Nick Scali shares have climbed more than 41% in the last year. 

Northern Star Resources shares are up 52% in that same period. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up about 4.5% since February 2025. 

Both of these ASX companies will report HY26 earnings this week, and stock prices can swing significantly based on earnings results. 

Investors may be able to avoid losses, or scoop up gains by buying or selling ahead of these results. 

With that in mind, here is what experts are tipping. 

Northern Star Resources: reporting Thursday 12 February

Northern Star Resources is a global-scale Australian gold producer with projects in Australia and North America.

Like many gold shares, it has enjoyed a bull run over the last year thanks to record commodity prices. 

There has been a significant surge into safe-haven assets like gold over the last year on the back of geopolitical uncertainty and global conflict.

This has helped push Northern Star Resources shares more than 50% higher in the last year. 

It has outpaced the S&P/ASX 300 Metals and Mining Index (ASX: XMM), which is up 44.5% in that time. 

There is now a growing sentiment now is the time to cash in on gold producers like Northern Star Resources shares. 

Recently, the gold stock received a sell recommendation from one expert who said despite a positive long-term gold outlook, weaker-than-expected recent production, tempered near-term confidence. 

It's possible the current share price already reflects much of the upside, suggesting the risk-reward now favours taking profits.

Similarly, Alto Capital believes that Northern Star Resources shares are a sell. 

However, it is worth noting that brokers such as UBS still anticipate the price of gold to continue rising in 2026. 

Should these gold shares dip on earnings results news, it could create a more ideal entry point. 

Nick Scali: reporting Friday 13 February 

Nick Scali shares have also enjoyed a stellar 12 months. 

They were some of the best retail shares to own in 2025, and have continued positive momentum in 2026. 

Despite such a strong rise, sentiment remains positive on this ASX 200 stock. 

One key aspect to watch in the upcoming report is the dividend announcement.

Despite hovering around all-time highs, Nick Scali shares could still have more growth ahead. 

Bell Potter recently placed a buy recommendation and $27.00 price target on this ASX 200 stock. 

That indicates a further upside of just over 11% from yesterday's closing price of $24.25. 

The post Are Nick Scali and Northern Star Resources shares a buy, hold or sell before earnings results? appeared first on The Motley Fool Australia.

I view this time of year a bit like Christmas – we get to open the results without knowing what's inside. The dividends will be interesting to see and will be heavily influenced by how much profit the companies have been able to generate.

Hopefully, the results are solid and pleasing for shareholders in terms of both the passive income and earnings that are revealed. These are three numbers that could be very interesting.

BHP Group Ltd (ASX: BHP)

BHP shares have surged 27% in the last six months, with investors seemingly excited about the company's increasing profit potential as commodity prices remain pleasing.

I'm curious to see how much the ASX dividend stock has been able to capitalise on these higher resource prices for iron ore and copper amid its reported discussions/dispute with China Mineral Resources Group (CMRG) – a key buyer of iron ore.

BHP is usually a rewarding dividend payer for investors, and broker UBS is expecting the business to pay an interim dividend of US 60.8 cents per share, representing a dividend payout ratio of 50% of projected net profit for the first half. However, a higher payout is possible if prices remain "favourable".

As one of the two biggest businesses on the ASX, it makes an important contribution to the Australian economy, and its dividend payouts matter for a lot of shareholders.

Commonwealth Bank of Australia (ASX: CBA)

CBA is the other titan of the ASX with a market capitalisation of around $250 billion.

The numbers that the ASX bank share reports will give investors a good barometer of the banking sector and a wider view of the economy.

CBA has the most customers, the largest loan book, and the largest branch and ATM network in Australia.

After the RBA rate hike was announced yesterday, it'll be interesting to see how the ASX dividend stock navigates that and what that could do for the bank's profitability (as measured by the net interest margin (NIM) metric). I expect it may be a slight net positive for CBA.

The dividend declared will be a reflection of recent profitability and the board's view on upcoming profitability, too.  

Nick Scali Ltd (ASX: NCK)

I think Nick Scali is one of the most impressive retail businesses on the ASX, considering its high return on equity (ROE), its store network growth in Australia and New Zealand, and the initiatives it has to become a sizeable player in the UK.

As a retailer of furniture, it's exposed to household demand. I'm very curious to see how the ASX dividend stock has performed in the last six months of 2025 and its outlook for 2026, considering the solid Australian economy and the recent rate rise.

I think the dividend payout could be quite revealing of the confidence of management. It increased its payout per share every year between 2013 and 2023, but cut the dividend each year since then. Will there be a reversal of that direction towards positive dividend growth?

The post 3 ASX dividend stocks I'm excited to see the payouts of this reporting season appeared first on The Motley Fool Australia.