Of course, an analyst's projection is not a guarantee of upcoming returns, but I think it's a good sign of how undervalued some brokers believe a business is.

With projections indicating that the following stocks could deliver strong double-digit returns, they could be worth considering.

Paladin Energy Ltd (ASX: PDN)

The first ASX share I want to look at is Paladin Energy, a uranium miner that owns three-quarters of the Langer Heinrich Mine.

There are also other elements to the business, such as its progression of the tier-1, high-grade Patterson Lake South project in the north of Saskatchewan. On top of that, the ASX share has a portfolio of exploration assets which are within the province's highly prospective Athabasca Basin as well as at the Michelin project in Newfoundland and Labrador. Additionally, it owns uranium exploration assets in Queensland and Western Australia.

According to CMC Invest, there have been 14 analyst ratings on the business within the last three months. Of those 14 ratings, 12 were buy ratings, and just two were holds.

A price target is the level brokers expect the share price to reach 12 months from the investment call. According to CMC Invest, the average price target among those 14 brokers was $12.70, implying a possible 70% rise.

In October, the business reported its quarterly update for the three months to 30 September 2026. In that update, it said it produced 1Mlb of U3O8 and sold 1.16Mlb of U3O8. Paladin continues to make progress on its projects.

Pleasingly for the company, the average realised (sold) price for its uranium was US$79.4 per pound, up 12.4% year over year.

Propel Funeral Partners Ltd (ASX: PFP)

The other ASX share I'll highlight is funeral operator Propel Funeral Partners, which operates in both Australia and New Zealand. As of the latest count, it operates from 213 locations, including 42 cremation facilities and 9 cemeteries.

According to CMC Invest, there have been five expert ratings on the business within the last three months. All five ratings were buy, so analysts are unanimous in their view of the business' appeal.

The average price target from those five analysts is $4.29, implying a possible 61% rise over the year ahead.

Propel is exposed to long-term demographic tailwinds due to the ageing populations of Australia and New Zealand. Additionally, the company regularly makes acquisitions to boost its geographic presence and overall scale, giving it an inorganic option to expand its market share.

In its FY26 results release in August, the funeral business reported that in July 2026, it generated $21.5 million in revenue, driven by more than 3% growth in comparable average revenue per funeral, despite a benign winter flu season.

This could be a smart time to look at the ASX share amid (pleasingly) weaker death volumes.

The post 2 ASX shares tipped to grow up to 70% or more in the next 12 months appeared first on The Motley Fool Australia.

If we consider the last 30 years, it's not common for the Reserve Bank of Australia (RBA) to hike as many times as it has in one year.

This year, the cash rate has gone from 3.60% to 4.60%. It's also possible the RBA could hike again to 4.85% in November to try to tame inflation. That has negatively impacted valuations across a number of Australian businesses, including Propel – the funeral operator's share price has fallen 45% over the past year.

Interest rates act like gravity on valuations, the higher rates go, the harder it pulls down on valuations.

In my view, Propel Funeral Partners Ltd (ASX: PFP) is one of the ASX's leading opportunities because of the exposure to a long-term tailwind and how much cheaper it has become.

Long-term tailwind

I'm sure every company wants to grow revenue over time. It's a lot easier to increase its top line when there's a compelling demand tailwind.

Propel Funeral Partners is the second-largest funeral provider across Australia and New Zealand. It currently operates from 213 locations, including 42 cremation facilities and nine cemeteries.

While it's a morbid idea, it comes with a very long-term tailwind of projected increasing death volumes.

According to the Australian Bureau of Statistics (ABS), projected deaths are expected to rise at a compound annual growth rate (CAGR) of 2.8% between 2026 and 2035 and then a further CAGR of 2.3% between 2036 and 2045. In other words, that's essentially two decades of expected growth of the industry. Not many of Australia's other top shares can point to growth like that.

Despite being the number two player in the industry, it's a highly fragmented industry – the company's market share was only around 10% as at June 2026, according to Propel. Since the start of FY26, it has completed five acquisitions costing about $12 million, adding 10 locations and about $8 million in annual revenue, at a price-to-sales multiple of 1.5x.

I believe the business is likely to continue enacting bolt-on acquisitions in the coming years, expand its geographic exposure and increase its scale benefits.

Additionally, the company's revenue is getting a boost from inflation because the average revenue per funeral continues to climb. In August, the company noted that the month of July 2026 saw comparable average revenue per funeral growth of more than 3%.

Why one of Australia's top shares looks so appealing

According to the projection on CMC Invest, the business could generate earnings per share (EPS) of 15.9 cents. I calculate it's trading at 17x FY28's estimated earnings at a Propel Funeral Partners share price of $2.64. This came after a 45% decline in the past year.

According to CMC Invest, it had an average annual price/earnings (P/E) ratio of 29 in FY26, and it was above 30 in FY25 and FY24. I think it looks very cheap based on FY28's projected earnings, so an investment now could be very rewarding in two or so years. Additionally, it's forecast to pay an annual dividend per share of 14.9 cents in FY28.

According to my calculations, that's a dividend yield of 5.6% excluding franking credits and 8% including franking credits, at the time of writing. That's a very appealing potential yield, in my view.

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

I'm always on the lookout for potential buys that could mean strong returns.

Sometimes that means investing in businesses that consistently grow earnings year after year. But there can also be excellent cyclical opportunities when we buy at the weaker point of the cycle.

High interest rates are a headwind for some areas of the ASX share market, and I think that opens up an opportunity to buy during a temporary dip. Hopefully, interest rates will start coming down again at some point, and that could lead to a significant turnaround of investor confidence.

I'm going to highlight three areas that now look significantly undervalued.

Real estate investment trusts

A lot of real estate investment trusts (REITs) now trade at significant discounts to their underlying net asset value (NAV) or net tangible asset (NTA).

I love being able to buy assets for less than they're worth, and I think, on a long-term basis, that the current unit prices are trading too cheaply.

With how taxes have changed for investing in residential property, I think there could be stronger investor demand for commercial property, which could be supportive for REIT unit prices in the medium term.

I don't necessarily think that every single REIT is a buy, but I'd focus on the ones with positive long-term outlooks and rising rental income.

I think industrial properties and farmland are two areas with promising outlooks. That's why I currently really like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Each of those four ASX shares has declined recently, but they're offering strong distribution yields, making them particularly appealing today.

ASX retail shares

The high cost of living and higher interest rates are likely to be a headwind for retail spending, particularly for discretionary retailers.

Retail spending is notoriously cyclical, and it can lead to volatile businesses during an economic cycle.

Even if consumers do reduce spending somewhat, I don't think the current prices reflect the long-term prospects of the retail businesses, largely just the shorter-term pain.

I'd look at names like JB Hi-Fi Ltd (ASX: JBH), Nick Scali Ltd (ASX: NCK), Universal Store Holdings Ltd (ASX: UNI), Lovisa Holdings Ltd (ASX: LOV), Temple & Webster Group Ltd (ASX: TPW), and Wesfarmers Ltd (ASX: WES).

I think they could be great opportunities to buy today for the longer term.

ASX defensive shares

Higher interest rates can make defensive businesses look less appealing because investors can get a solid return from safe investments like savings accounts, term deposits, and quality bonds.

I think ASX defensive shares could be a great investment amid higher interest rates, and lower rates in the future could make the current valuations very attractive.

After recent falls, I think names like Propel Funeral Partners Ltd (ASX: PFP), Transurban Group (ASX: TCL), Telstra Group Ltd (ASX: TLS), Medibank Private Ltd (ASX: MPL), and Sonic Healthcare Ltd (ASX: SHL) look appealing.

These aren't the only ASX shares on my watchlist after the RBA interest rate rise, but they're among my favourite ideas today.

The post Where I'd invest in ASX shares after the recent RBA rate rise appeared first on The Motley Fool Australia.

The investments I'm going to talk about have already demonstrated their strategies are working and I'm expecting plenty more success in the years ahead.

The first is one of the ASX's leading exchange-traded funds (ETFs) and the second is a business exposed to one of Australia's longest-term tailwinds.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This investment gives investors exposure to 100 of the largest non-financial companies on the NASDAQ. The NASDAQ is home to many of the world's leading technology businesses, so investors are getting significant exposure to tech businesses that are changing the world.

On 24 September 2026, its biggest positions were Nvidia, Apple, Alphabet, Microsoft, Micron Technology, Advanced Micro Devices, Amazon.com and Meta Platforms.

It's hard to say how the world will change from here, but I imagine technology will remain a key driver of change. New products and services can unlock earnings and expand existing revenue streams, like cloud computing and online shopping.

By the way, I'm calling this an ASX share because it's about investing in shares and we can buy it on the ASX.

The NDQ ETF holdings continue to see earnings growth, which can drive their share prices higher, which is a big tailwind for the returns of the NDQ ETF.

Impressively, the NDQ ETF has returned an average of 19.4% per year since inception in May 2025. In the past five years, it has returned an average of 14.2% per year. Of course, past performance is not a guarantee of future returns.

Over the next decade, I expect this collective group to continue delivering pleasing earnings growth, probably stronger than the overall global share market. Great businesses have a habit of continuing to deliver good performance.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the other ASX share I want to highlight. It is the second-largest funeral operator in Australia and New Zealand. Propel operates from 213 locations, including 42 cremation facilities and nine cemeteries.

Australia and New Zealand both have growing and ageing demographics, which means there's a tailwind for funeral volumes.

According to Propel and the Australian Bureau of Statistics (ABS), the number of deaths in Australia is projected to increase at a compound annual growth rate (CAGR) of 2.8% between 2026 and 2035 and then rise at a CAGR of a further 2.3% between 2036 to 2045.

FY26 was thankfully a challenging year for funeral volumes, with funeral volumes contracting by around 2%. To me, that suggests that funeral volumes are likely to be stronger in the medium term.

Funeral prices are steadily rising over time, which is another tailwind for revenue. In FY26, the average revenue per funeral was $6,673 – a comparable rise of 2% year-over-year.

The company is steadily expanding its geographic presence and scale, which should provide advantages in the coming years. Since FY26, it has deployed around $12 million on five acquisitions in New Zealand.

In July 2026, the first month of FY27, comparable average revenue per funeral rose 3%, and funeral volumes remained resilient despite the lowest recorded winter flu season in five years.

With Propel Funeral Partners' share price down 45% over the past year, it looks like a great time to be brave and invest.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

Of course, just because something has fallen doesn't mean it's going to rise again quickly. But I think investing at the lower price gives brave investors a much better margin of safety and will hopefully lead to stronger returns.

With the above in mind, let's look at two compelling ASX shares.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in Australia, selling hundreds of thousands of products across homewares, furniture and home improvement.

A significant majority of the products sold are shipped directly by suppliers to customers. This means the company operates with a capital-light model and can offer a vast range compared to competitors with physical stores.

The digital nature of its operations also means it can provide digital tools to customers such as AI chat, augmented reality (see a product in your room) and so on.

While the current retail conditions are challenging – with a higher cost of living and lower house prices – I think things will improve at some point, we just don't know when. I believe this is why the Temple & Webster share price has fallen so far and why it makes sense to invest now.

Overall FY26 revenue may have only increased by 11% to $665 million, but home improvement revenue increased by 39% to $59 million. I think the home improvement segment could become increasingly important to the overall business as the years go by.

I believe online shopping adoption will help the company grow earnings in the coming years. The ASX share looks like great value to me, trading at 23x FY29's estimated earnings after falling around 80% in the past year (and close to its 52-week low).

Propel Funeral Partners Ltd (ASX: PFP)

The Propel share price is also near its 52-week low after dropping more than 40% over the past year. I think the market is punishing Propel partly because of higher interest rates (hurting the valuations of stocks like Propel), as well as higher inflation.

Propel is one of the largest funeral providers in Australia and New Zealand. It operates from more than 210 locations, including 42 cremation facilities and nine cemeteries.  

It's a morbid idea, but the company has compelling long-term growth tailwinds because of Australia's ageing and growing population.

Propel says that Australian projected deaths are expected to grow at a compound annual growth rate (CAGR) of 2.8% between 2026 to 2035 and then a further 2.3% between 2036 to 2045. In other words, there's clear revenue tailwinds for two decades.

With rising average revenue per funeral and an ageing demographic, I think the ASX share is a good long-term hold while it trades near a 52-week low.

The post 2 cheap ASX shares near 52-week lows I'd buy today appeared first on The Motley Fool Australia.

In good news for prospective investors, price targets now indicate almost 50% upside. 

Here is what the broker had to say. 

Cedar Woods Properties Ltd (ASX: CWP)

The Australian property development company reported its full-year results yesterday.

Overall, the broker believes Cedar Woods delivered a stronger-than-expected FY26, with NPAT growth of 36%, ahead of its 30% to 35% guidance. 

Management guided to 15% NPAT growth in FY27, well above Bell Potter's prior 7.3% forecast and consensus at 7.9%.

CWP is well placed to weather a weaker residential sales environment with FY27 and FY28 revenues 90% and c. 40% (BPe) de-risked, as well as modest gearing (18%). Beyond FY27, we see +5.9% NPAT growth in FY28 as settlement volumes continue to grow and margins remain broadly steady.

Based on this guidance, Bell Potter retained its buy recommendation and increased its price target to $9.80 (previously $9.30). 

From current levels, this indicates an upside potential of roughly 27% for these ASX shares.  

GenusPlus Group Ltd (ASX: GNP)

GenusPlus Group is an Australian infrastructure services provider specialising in the end-to-end design, construction, and maintenance of electrical transmission networks, substations, battery energy storage systems, and telecommunications infrastructure.

The company released full-year results yesterday, which included record revenue of $1.281 billion, surging 70.5% year on year, and normalised EBITDA of $100.8 million, up by nearly 50%.

The team at Bell Potter viewed the result as largely positive, with recurring revenue set to rise sharply to $764 million, a $2.2 billion orderbook, and $3.6 billion tender pipeline, while the balance sheet strengthened significantly to $380 million net cash.

GNP enters FY27 with a materially higher tender pipeline of $3.6b (vs $2.6b at 31December 2025) across the transmission, BESS, rail and wind development markets. GNP's FY27 PE of 17.9x is undemanding; we see potential for a re-rate towards 20-22x in the short-term, a justified premium to the peer group average.

The broker retained its buy recommendation on these ASX shares, and has a $12.80 price target, indicating 47% upside from current levels. 

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners also reported full-year results yesterday.

The company posted FY26 revenue of $226.6 million, and declared a fully-franked final dividend of 6.9 cents per share.

Bell Potter said this came in at the mid-point of the guidance. 

The broker has retained its buy recommendation, and now has a $3.70 price target on these ASX shares. 

This indicates 16% upside from current levels. 

The post Three ASX shares set to rise up to 47% – Expert appeared first on The Motley Fool Australia.

What did Propel Funeral Partners report?

• Revenue: $226.6 million, up 0.3% on FY25 and within guidance
• Operating EBITDA: $55.3 million, down 1.6% year on year
• Operating NPAT: $20.7 million, a 4.0% decline from the prior year
• Total fully franked dividends: 14.4 cents per share (unchanged from FY25)
• Five acquisitions completed in FY26 and since, totalling ~$12 million
• Funding capacity of ~$169 million and strong cash flow conversion of 100.7%

What else do investors need to know?

Propel carried out roughly 22,850 funerals in FY26, marking a 1.1% increase on the previous year, despite a contraction in comparable volumes of about 2%. Average revenue per funeral climbed ~2% to $6,673, supported by recent acquisitions and pricing, but was impacted by foreign exchange movements.

Over the year, Propel made five acquisitions in New Zealand, broadening its network of funeral homes and memorial businesses. The company notes continued focus on its core strategy of investing in death care assets across Australia and New Zealand.

The balance sheet remains solid with about $650 million in total assets, $252 million in freehold property, and a recently extended $275 million debt facility now maturing in October 2029. Gearing sits at roughly 31%, and the net leverage ratio is well within covenant limits at about 2.2 times.

What's next for Propel Funeral Partners?

Looking ahead, Propel says it is well placed for growth thanks to strong funding, favourable demographics, and contributions from its latest acquisitions. The company notes the industry remains highly fragmented, presenting further acquisition opportunities, though timing is yet to be determined.

In July 2026, Propel produced revenue of approximately $21.5 million, supported by increased average revenue per funeral and ongoing resilience in funeral volumes, despite lower industry death volumes. The company will update shareholders on FY27 trading at its AGM in November.

Propel Funeral Partners share price snapshot

Over the past 12 months, Propel Funeral Partners shares have declined 32%, trailing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Propel Funeral Partners posts steady FY26 earnings and maintains dividend appeared first on The Motley Fool Australia.

When one analyst thinks a business is a buy, that's an interesting idea to look into. When multiple experts thinks a business is a buy, it could be a clear opportunity for investors to consider.

Let's look at two ASX share ideas that are backed by multiple analysts where they think the share price (as indicated by the price target) could rise by at least 40% in the next year.

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners operates funerals in Australia and New Zealand; it's the second-largest operator in the industry. It currently operates from over 200 locations, including 41 cremation facilities and nine cemeteries.

According to CMC Invest, there have been four ratings on the business within the last three months. The average price target from those four analysts is $4.65, suggesting a possible rise of 41% within the next 12 months. Even the most pessimistic price target is $3.80, suggesting a possible rise of 15%.

The next decade looks positive for growth by the business – according to Propel, death volumes are expected to increase at a compound annual growth rate (CAGR) of 2.9% between 2026 to 2035.

Acquisitions are another scale-boosting growth avenue, as well as long-term growth of the funeral price. The average revenue per funeral grew by a CAGR of 2.8% per year between FY15 and the first half of FY26.

I also think the business is undervalued right now and could be a compelling long-term buy after falling more than 30% in the past year.

Integral Diagnostics Ltd (ASX: IDX)

Another ASX share that analysts right like right now is Integral Diagnostics. It describes itself as a leading provider of medical imaging services across Australia and New Zealand. It employs some of Australasia's leading radiologists and diagnostic imaging specialists.

According to CMC Invest, there have been seven ratings on the business within the last three months, with six of those being a buy and just one being a hold rating.

The average price target of those seven analysts is $3.17, suggesting a possible rise of 42% within the next year.

The ASX share is delivering rapid growth – it recently announced some preliminary FY26 numbers. Operating revenue is expected to grow by 25%, operating profit (operating EBITDA) is expected to grow by around 30% and operating net profit after tax (NPAT) is expected to grow by around 50%. 

Perhaps most importantly, operating earnings per share (EPS) is expected to grow by around 23%.

Overall, these could be two of the existing ASX shares to look at right now. I'm planning to put some money into Propel shares later this month.

The post 2 ASX shares tipped to grow 40% or more in the next 12 months appeared first on The Motley Fool Australia.

I'm going to talk about two businesses that could deliver great returns over time, particularly if their revenue and profit margins improve in the short-term and long-term.

While they're not two of the biggest businesses right now, I think they could grow significantly in the years ahead.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator on the ASX. It currently operates from 209 locations, including 41 cremation facilities and nine cemeteries.

The company said that the number of deaths is the most significant driver of revenue in the death care industry.

According to Propel, death volumes are expected to increased by 2.9% between 2026 to 2035 and then grow by a further 2.4% per year between 2036 to 2045. That's not the strongest growth rate in the world, but it's a very long-term tailwind which could mean two decades of industry growth, not just one decade.

The company has scale advantages compared to many others in the industry, and it could gain even more market share if it continues its acquisition strategy. In 2025, it had a market share of around 10%, and I think this can continue to grow in the coming years. For example, it recently announced three acquisitions that generate a total of $4 million of annual revenue.

According to the forecast on CMC Markets, the ASX share is trading at 23x FY26's estimated earnings, and it's projected to increase its earnings per share (EPS) by 4.8% in FY27 and pay a grossed-up dividend yield of 5.5%, including franking credits, at the time of writing.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a leading global retailer of affordable jewellery, which I believe has a very attractive future.

I think that all the business needs to do is keep expanding its global store network. The company already has at least one store in dozens of countries. As long as the company maintains positive comparable store growth, then its financials could continue to be compelling.

In the FY26 half-year result, Lovisa reported that its store count grew 15.5% year-over-year, underlying revenue grew 22.7% (supported by comparable revenue growth of 2.2%), and net profit grew 21.5%.

I think the business can continue to grow its store count in countries like Australia, the UK, France, Germany, Spain, the USA, Canada, South Africa and plenty more markets.

I don't know at what rate the company's store count will continue to grow, but I think it could continue to grow at high single digits (or better) for a number of years into the future.

According to Commsec's projections, the Lovisa share price is valued at 33x FY26's estimated earnings and is expected to see earnings grow by 27% in FY27.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

Once the tax changes kick in, superannuation may have a lower tax rate than what many individuals, trusts and companies experience.

Another benefit of superannuation is how effective it is for long-term investing. That's because we're typically not going to access that money for a very long time.

I love investing for passive income by owning shares. My money is working in the share market for me year-round and unlocking cash payments to my bank account.

Superannuation is important for this endeavour because of how we lose less of the income return to tax.

If a full-time working Australian receives passive income in their own name, they're likely to lose a third (or more) of the passive income to tax, significantly reducing the appeal of the passive income return.

In my view, superannuation can be the most appealing place to invest because of the better tax rate in the accumulation phase of life, compared to an individual's tax rate if they work full-time.

Impressively, an Australian's superannuation tax rate could be 0% in retirement, which is as good as it gets. 

Each Australian's tax rate is different, so I'll focus on targeting a specific income goal from here on, ignoring tax rates.  

How much is needed in superannuation for $80,000 of annual passive income?

Receiving $80,000 in dividends each year sounds good to me, although I'm certainly a long way from that goal. I hope I can reach that target in the future.

I think it's a wise idea for investors to think about what sorts of investments they want to own and the attached dividend yield that comes with that.

There are many different options for investors to consider, but I view ASX shares as the clear leader because of the appealing dividend yields and the fact that company payouts can come with franking credits.

The required portfolio size to reach $80,000 annually depends on the portfolio's dividend yield.

For example, if the portfolio had a 5% dividend yield, it would need to be $1.6 million in size. A 4% dividend yield would require a $2 million portfolio, and a 7% dividend yield would require a $1.15 million portfolio.

Every dividend yield requires a different portfolio size to reach the desired target. As a result, the ASX shares we choose play an essential part in the portfolio's dividend yield. 

Which ASX dividend shares I'd buy

Pleasingly, there are a number of ASX shares that can provide good dividend yields to retiree investors (and anyone else).

There are compelling companies, quality real estate investment trusts (REITs) and compelling listed investment companies (LICs).

Some of the businesses I like include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Propel Funeral Partners Ltd (ASX: PFP) and Universal Store Holdings Ltd (ASX: UNI).

Some of the fund-based investments that pay attractive dividends include MFF Capital Investments Ltd (ASX: MFF), WCM Quality Global Growth Fund (ASX: WCMQ), Future Generation Global Ltd (ASX: FGG) and Future Generation Australia Ltd (ASX: FGX).

In terms of property investments, I think some of the undervalued names with useful organic rental income growth are Rural Funds Group (ASX: RFF), Dexus Industria REIT (ASX: DXI), Centuria Industrial REIT (ASX: CIP) and Charter Hall Long WALE REIT (ASX: CLW).

The post How much is needed in superannuation to target a $80,000 annual passive income? appeared first on The Motley Fool Australia.

By investing in quality companies that pay consistent dividends, retirees can help support their living expenses. Dividend shares allow this while still giving their portfolio the opportunity to grow over the long term.

The balancing act 

When choosing dividend shares, it's important to look for a balanced dividend yield rather than one that is extremely high.

A high dividend yield can sometimes be a warning sign that the company's share price has fallen due to financial problems. This can make the dividend harder to sustain. 

On the other hand, a very low dividend yield may provide little income and could indicate that the company prioritises growth over returning profits to shareholders. 

A balanced dividend yield often suggests that the company is financially stable, generates consistent earnings, and is able to reward shareholders while still investing in its future.

What is considered a good yield in Australia?

For years, the ASX has been one of the best places in the world for dividend investors.

Australian companies have a long history of paying generous dividends. This has made the local share market a favourite among investors looking to build a reliable stream of passive income.

The numbers back it up. According to S&P Global, the S&P/ASX 300 Index (ASX: XKO) had a trailing 12-month dividend yield of 3.5% as of 31 December 2024. 

That's comfortably ahead of Europe (3.2%), Canada (2.8%), and the United States (1.8%).

For retirees looking to better this number, here are three ASX dividend shares that could supplement your superannuation and beat this 3.5% benchmark. 

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is a popular dividend stock due to its strong cash generation, fully-franked dividends, and a history of returning excess capital to shareholders. 

Bell Potter is forecasting fully-franked dividends of 31.1 cents per share in FY 2027. This is followed by 33.3 cents per share in FY 2028. 

This results in a dividend yield of over 6% over the next two years. 

Propel Funeral Partners Ltd (ASX: PFP)

Another option to generate passive income alongside your superannuation is Propel Funeral Partners. 

It is an attractive dividend stock because of its defensive business model, recurring demand, and consistent earnings growth.

Based on CMC Invest's forecast, the potential grossed-up dividend yield for FY26 is 5.5%, which could rise to over 6% by FY28. 

Collins Foods Ltd (ASX: CKF)

Collins Foods is another stock offering above-average yields. 

It is a solid dividend stock because its ownership of established quick-service restaurant brands, including KFC operations in Australia and overseas, provides resilient cash flows that support reliable dividend payments over time.

Morgans is forecasting fully-franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. 

This equates to a yield of around 4%. 

The post 3 shares with above-average dividend yields to supplement your superannuation appeared first on The Motley Fool Australia.

Not only do we get to buy a business at a lower price-earnings (P/E) ratio, but it also means the dividend yield is larger.

For example, if a business has a dividend yield of 4% and then the share price drops 10%, the yield becomes 4.4%. With the ASX dividend stock Propel Funeral Partners Ltd (ASX: PFP), we're talking about a much larger fall.

As the chart below shows, the Propel share price has fallen by around 34% since the start of 2026. I think this is a good time to invest in the funeral provider because of a few different reasons.

Opportunistic time to buy

One of the most important things about investing is that the price we pay has a big impact on the size of the returns generated.

There are a number of headwinds facing the Propel share price right now, which is why it's so much cheaper. Higher interest rates may have prompted investors to consider other safe assets, such as cash, term deposits, and interest rate-linked bonds, hurting the Propel share price – this effect could reverse if/when interest rates start to come down again, possibly next year.

Plus, the ASX dividend stock is expecting FY26 revenue growth to be between flat to 1.9%. This seems like a relatively low level of revenue growth for the year, and I'm expecting more in future financial years, so this could be an opportunistic time to buy as the ageing demographic tailwinds become stronger.

Long-term growth trend

According to Propel, the industry is expected to see volume growth in the coming years.

The number of deaths in Australia is expected to increase by an average of 2.9% per year between 2026 and 2035 and then 2.4% per year between 2036 and 2045. That compares to a growth rate of 1.1% between 1990 and 2025.

As the saying goes, there are only two things certain in life – death and taxes – and we can't invest in the Australian Taxation Office.

There is a certain number of deaths each year, which means the business has a certain level of earnings each year, making it very defensive.

According to the forecast on CMC Invest, the business is now valued at 22 times FY26's estimated earnings. I think this looks reasonable for the long-term growth potential.

Good dividend yield

The ASX dividend stock is delivering a solid level of dividends for investors, which could grow in the coming years.

Based on the forecast on CMC Invest, the potential grossed-up dividend yield for FY26 is 5.5% (including franking credits), and this yield could grow to 6.2% by FY28 (including franking credits).

That's not the biggest yield on the ASX, but it is a good level of payouts, and it could deliver payout growth in the years ahead.

The post 1 ASX dividend stock down 34% I'd buy right now appeared first on The Motley Fool Australia.

Pleasingly, superannuation has a lower tax rate than many individuals, trusts and companies. The way that superannuation works, and the nature of how we access the money, means it's very easy to invest for the long term inside the super system.

In my view, being paid passive income is one of the best elements of owning shares. Receiving money into our bank account every year for no effort sounds good to me.

How does superannuation play into passive income? Investors lose less of the passive income payments to tax.

Superannuation looks comparatively much more appealing because if a full-time working Aussie receives passive income in their own name, they could lose a third (or more) of that passive income to tax, significantly reducing the effectiveness of the passive income return.

In my opinion, superannuation is therefore a more appealing place to invest because of the lower tax rate in the accumulation phase of life, compared to an individual's tax rate if they're a full-time earner.

In retirement, a person's superannuation tax rate could be 0%. You can't get any better than that.

Of course, each Australia's tax position is different, so I'll just look at targeting a particular income goal from here and ignore the tax rates.

How much is needed in superannuation for $100,000 of annual passive income?

Receiving $100,000 in dividends each year sounds excellent to me. I'm definitely a long way from that target, but I'd love to receive that much in dividends each year.

Australians need to consider what types of investments they want to own and what size dividend yield comes with those investments.

I think ASX shares are the best choice for passive income. The attached franking credits are an excellent bonus.

How much is needed to earn $100,000 annually depends on the dividend yield of the portfolio.

For example, a portfolio with a 6% dividend yield would require $1.67 million. Meanwhile, a 4% dividend yield would require a $2.5 million portfolio.

As you can see, different dividend yields require different-sized portfolios to reach the target. Therefore, the numbers are heavily influenced by what ASX shares superannuation investors choose.

The types of ASX dividend shares I'd buy

There are various options on the ASX that can provide good yields to investors. Aussies could choose quality companies, real estate investment trusts (REITs) or listed investment companies (LICs).

Some of my favourite ideas for dividend growth and a solid starting yield include Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), Universal Store Holdings Ltd (ASX: UNI), Lovisa Holdings Ltd (ASX: LOV), Medibank Private Ltd (ASX: MPL), Propel Funeral Partners Ltd (ASX: PFP) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

On the commercial property side of things, I like names such as Rural Funds Group (ASX: RFF), Dexus Industria REIT (ASX: DXI), Centuria Industrial REIT (ASX: CIP) and Charter Hall Long WALE REIT (ASX: CLW).

Finally, the LICs that I really like include MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), Future Generation Global Ltd (ASX: FGG) and Future Generation Australia Ltd (ASX: FGX).

These aren't the only attractive ASX dividend shares for superannuation investors, but I think they're an excellent starting point.

The post How much is needed in superannuation to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

As the name suggests, it's a funeral operator – the second biggest in Australia and New Zealand. It also operates cremation facilities.

While it's a morbid idea, it does provide an important service for the Australian community.

As the chart below shows, the Propel share price is down 33% since the start of the year. I think this is a great time to consider the business.

Let's take a look at what makes it such an appealing option right now.

Long-term tailwinds

One of the main reasons why I think it's one of Australia's top shares is that the business has some of the clearest, long-term tailwinds on the ASX.

Sadly, the business is required to perform a certain number of funerals each year, giving the business very defensive earnings. As the saying goes, it's one of the certain things in life.

The number of funerals is predicted to grow in the coming years because of Australia's ageing and growing population.

Propel says that Australian death volumes are expected to increase by 2.9% per year from 2026 to 2035 and 2.4% per year from 2036 to 2045. In other words, there's at least 20 years of an expanding addressable market for the funeral sector.

That may not sound like a strong growth rate by itself, but we should remember that the revenue growth from higher volumes can be combined with a rising funeral price over the long-term.

Between FY15 and the first half of FY26, its average revenue per funeral grew at a compound annual growth rate (CAGR) of 2.8%. When you combine mid-single-digit revenue growth, with the potential for rising profit margins from increased scale and solid dividend payments, I think that can translate into a pleasing average total shareholder return (TSR) annually over the long-term.

Valuation

Using the forecast on CMC Invest, the business is trading at 21x FY27's estimated earnings with a possible grossed-up dividend yield of 5.7%, including franking credits.

The business is expected to grow earnings by another 7% in FY28 and pay a grossed-up dividend yield of 6.1%, including franking credits, at the time of writing. Those are pleasing statistics, in my view, for one of Australia's top shares.

For a business that could continue to grow over time, I think the current valuation for such a defensive business is fair. Plus, whilst we own it over the long term, it can pay a pleasing level of passive income during the period and deliver 'real returns'.

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

The sector relies heavily on consumer confidence and everyday Australians having the disposable income to buy non-essential goods and services. 

High inflation and rising interest rates have put pressure on these purchases, subsequently hurting consumer discretionary spending. 

However, this downward pressure has also created value opportunities in the sector. 

Two consumer discretionary shares have received buy ratings from the team at Bell Potter. 

Here's what the broker is tipping for the next 12 months. 

Propel Funeral Partners Ltd (ASX: PFP)

Propel Funeral Partners is an Australian-based company that provides death care services in Australia and New Zealand. The company owns funeral homes, cremation facilities, cemeteries, and related infrastructure in almost every Australian state and New Zealand.

Its share price has fallen almost 35% year to date. 

However, it now presents as a value play.

The company just released updated FY26 guidance.

Propel Funeral Partners expects FY26 revenue of $225 to $230 million and operating EBITDA of $54.5 to $56.5 million.

The guidance was slightly weaker than the market expected. Revenue is 3% to 4% below analyst and market forecasts.

Profit (EBITDA) is approximately 7% below market expectations and 4% below Bell Potter's own forecast.

The main issue is lower funeral volumes (fewer funerals than expected).

Bell Potter had expected funeral volumes to grow in the second half of FY26, but the guidance implies volumes could actually fall by around 1%.

On the positive side, the amount of revenue earned per funeral (ARPF) is still increasing, up about 2% on a comparable basis.

Based on this guidance, Bell Potter retained its buy recommendation on the consumer discretionary stock, but lowered its price target to $3.80 (previously $5.90). 

Despite lowering its price target, the broker still projects 12% upside in the next 12 months. 

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive is the largest automotive retailing group in the Australian market.

Its share price has fallen 15% year to date. 

However, Bell Potter recently placed a $28 price target on this ASX consumer discretionary stock, indicating 34% upside from current levels. 

The broker said the stock looks reasonably valued on its P/E ratio. 

Back in early May, Eagers Automotive announced the completion of its strategic investment in CanadaOne Auto, one of Canada's largest dealership groups, through the acquisition of 65% of the shares in its holding company.

Bell Potter's view on the CanadaOne deal appears to be cautiously positive long term, but more conservative on near-term profitability than before.

We also see the recent trading update at the AGM as effectively "cleansing" the market as the H1 result has now been largely flagged – so there should be no surprises – and the sell-side has downgraded 2026 forecasts for higher bailment charges and the negative forex impact from CanadaOne.

The post Bell Potter just tipped 12% to 34% upside for these consumer discretionary stocks appeared first on The Motley Fool Australia.

I've had a look at the broker reports published this week and selected three that make a good case for potentially lucrative upside in the shares covered.

Let's look at what they're saying.

Seek Ltd (ASX: SEK)

Shares in the employment website and technology company have struggled over the past 12 months, shedding about 45% of their value over the period.

The analyst team at Jarden thinks the shares are oversold and bases this opinion on a "proprietary tracker" it has built to assess how Seek is faring.

In short, they think the company is well-positioned.

As they said:

We believe Seek can easily achieve its 'low double digit' yield growth guidance for FY26 … 2H26's strong momentum gives us confidence that Seek can achieve its 'high single digit' % yield growth ambition in ANZ, with upside risk. Our proprietary tracker indicates that Seek has maintained its year-on-year pricing growth from 1H26 into 2H26.

Jarden notes that it believes the Australian labour market is past its peak, which will be a headwind for the company.

Jarden has a price target of $23.25 on Seek shares, down from $23.50, but still well above the current price of $13.07. If achieved, the price target would constitute a 77.8% gain.

Propel Funeral Partners Ltd (ASX: PFP)

Propel just announced three acquisitions in New Zealand, which will cost it $9.1 million and expand its network into regional markets.

Together, the companies being acquired generate about $4 million in revenue from more than 700 funerals annually and operate from four locations.

The company also gave guidance on its expected performance this year, saying revenue would be in the range of $225 to $230 million compared to last year's $225.8 million, while EBITDA would be in the range of $54.5 to $56.5 million, compared to last year's $56.2 million.

Macquarie downgraded its outlook for the company across the next three years, but still has a share price target of $5.50, well above current levels of $3.24. If achieved, the price target would constitute a 69.8% gain.

IperionX Ltd (ASX: IPX)

This company this week published a definitive feasibility study for its Titan critical minerals project in the US, which said the project could be developed over two stages for US$381.3 million.

The mine, which would produce titanium, zircon, and heavy rare earth concentrate, was expected to have a mine life of 14 years and to earn US$2.8 billion in EBITDA over that period.

Bell Potter, in a report issued this week, has a speculative buy rating on the shares, with a price target of $8.25 compared to the current price of $5.43.

If achieved, the price target would constitute a 51.9% return.

Bell Potter said the company now had the opportunity to forge ahead with funding and partnership discussions.

The post Brokers name 3 ASX shares poised for 52% to 78% gains appeared first on The Motley Fool Australia.

Propel Funeral shares closed yesterday trading for $3.54. In early-morning trade on Thursday, shares are changing hands at $3.06 apiece, down 13.6%.

For some context, the ASX 300 is down 0.9% at this same time amid investor concerns over renewed fighting in the Middle East.

This underperformance follows a trading update released before market open this morning.

Here's what's happening.

ASX 300 stock tumbles on guidance update

Propel Funeral shares are getting walloped after the company, which counts as the second largest provider of death care services in Australia and New Zealand, reported on three new acquisitions as well as its full-year FY 2026 revenue and earnings guidance.

Turning to guidance first, the ASX 300 stock is forecasting FY 2026 revenue in the range of $225 million to $230 million. Should revenue come in at the low end of that range, that would represent a decline from the $225.8 million in revenue Propel Funeral Partners reported in FY 2025.

On the earnings front, the company expects FY 2026 operating earnings before interest, taxes, depreciation and amortisation (EBITDA) to be in the range of $54.5 million to $56.5 million. As with revenue, should full-year earnings come in towards the lower end of that range, it will be well below the $56.2 million in operating EBITDA the company reported in FY 2025.

Management noted this guidance is based on a number of assumptions.

Those include the ASX 300 stock seeing a roughly 1% year-on-year increase in the number of funerals it performs, or roughly 22,850 for the full year.

The company also expects the average revenue per funeral it receives to increase by around 2% from last year.

As for those acquisitions…

Propel Funeral Partners expands in New Zealand

In news that could support the ASX 300 stock longer term, the company reported that it has inked binding agreements to acquire three funeral services providers as well as the related assets, including one cremation facility.

Propel Funerals said it will pay $9.1 million for the acquisitions, which are all located in regional markets in New Zealand.

The three businesses together were reported to generate $4 million in revenue. Operating from four locations, all of which Propel will acquire on settlement, they conduct more than 700 funerals a year.

Subject to meeting customary conditions, management expects the acquisitions to be completed in Q4 FY 2026 and/or Q1 FY 2027.

The new assets are expected to be earnings accretive in year one.

The post Why is this ASX 300 stock crashing 14% today? appeared first on The Motley Fool Australia.

We don't necessarily need to look at the biggest businesses for ideas that can deliver good performance – I'd prefer to look at businesses further down the market capitalisation list because they are earlier on with their growth plans than major ASX blue-chip shares.

I believe there's plenty of growth to come for the following two businesses.

Universal Store Holdings Ltd (ASX: UNI)

It owns a portfolio of premium youth fashion brands, with both retail and wholesale businesses. Universal Store's main businesses are Universal Store and Perfect Stranger. It also has CTC (trading as THRILLS and Worship brands).

This business currently operates 121 physical stores across Australia as well as online channels.

The company says its strategy is to grow and develop its premium fashion apparel brands and retail formats targeting fashion-focused customers.

It's still growing revenue at a strong pace – it gave an update that said that retail sales for the first 43 weeks of FY26 showed 14% growth, with Universal Store growth of 11.8%, Perfect Stranger growth of 39.8% and CTC growth of 14.5%.

The company's mid-point of its FY26 guidance suggests the business could grow sales by 11.5% and operating profit (underlying EBITA) is expected to grow by 15.4%. It's a great sign for a business when profit is rising faster than sales, as it's usually the net profit that investors value a business on, rather than its revenue growth.

The ASX share has grown its annual dividend each year since 2021 when it first started paying a dividend. According to the forecast on CMC Invest, it's projected to pay an annual dividend per share of 41.7 cents in FY26, which translates into a grossed-up dividend yield of 8.8%, including franking credits.  

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral provider in Australia and New Zealand. It operates from 208 locations, including 41 cremation facilities and nine cemeteries.

While morbid, the business is exposed to long-term growth tailwinds because of Australia's ageing and growing populations.

According to Propel, the number of deaths in Australia is expected to rise by an average of 2.9% per year between 2026 to 2035, and then another 2.4% per year between 2036 and 2045. That's not the biggest growth rate, but the steady progression could lead to solid compounding over time.

Propel can benefit from both the rising number of funerals, as well as growth of the average revenue per funeral, which is roughly in line with inflation.

Additionally, the business is steadily growing its geographic presence through acquisitions – helping grow its top line and scale.

According to the forecast on CMC Invest, the Propel dividend per share could climb to 16.6 cents by FY28. That translates into a possible grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The post 2 ASX shares that I rate as buys today for both growth and dividends appeared first on The Motley Fool Australia.

Passive income received in superannuation during the retirement phase has a good chance of being tax-free. How great is that?

So, the question is, how much would it take to receive a sizeable amount of dividends each year? Let's take a look.

$3,000 of passive income each month from superannuation

Receiving $3,000 equates to $36,000 per year. That's not a gigantic amount, but it could be enough to be an essential part of a retiree's finances.

How large the nest egg needs to be to receive $36,000 per year is largely related to what the portfolio yield is.

For example, if someone's portfolio had an average dividend yield of 3.6%, then they'd need a $1 million portfolio to receive $36,000.

But, if the portfolio average dividend yield was actually 7.2%, then an investor would only need a $500,000 portfolio.

If the portfolio had a 4.8% dividend yield then an invest would need a portfolio value of $750,000.

There are plenty of options when it comes to aiming for these sorts of yields, so I'll highlight a few names below. For my own portfolio, I have invested in a mix of names to create a strong dividend portfolio.

Which ASX dividend shares I'd buy

If an investor is targeting a relatively low (3.6%) passive income yield in superannuation, or outside of superannuation, then I'd consider names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES), global jewellery business Lovisa Holdings Ltd (ASX: LOV) and funeral provider Propel Funeral Partners Ltd (ASX: PFP).

Among the mid-range yield (around 5%) names, I appreciate listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), industrial property owner Centuria Industrial REIT (ASX: CIP), farmland landlord Rural Funds Group (ASX: RFF), telco Telstra Group Ltd (ASX: TLS) and quality global shares-focused exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

Some of the higher-yield (more than 7%) names that I like include LICs WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), WAM Microcap Ltd (ASX: WMI), and diversified property landlord Charter Hall Long WALE REIT (ASX: CLW).  

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

While the recently announced tax changes are not ideal for share investors, capital gains tax changes may not necessarily have a major negative impact if we don't sell any investments on a short-term holding basis, and instead allow the inflation indexation to become meaningful.

Let's dive into why I view the two ASX share investments below as appealing options for an ultra-long-term holding.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is one of the largest funeral providers in Australia and New Zealand. It also has 41 cremation facilities and nine cemeteries. The business can deliver long-term revenue growth thanks to three key tailwinds.

Firstly, Australia's long-term ageing demographics are, morbidly, leading to increasing demand for the business and industry as a whole.

According to Propel, death volumes are expected to rise by an average of 2.9% per year between 2026 to 2035 and then 2.4% per annum from 2036 to 2045. This can help the company's revenue for the next two decades.

Another tailwind for revenue is rising funeral costs. While this isn't likely to help profit rocket higher, it can help offset rising costs over time. Since FY15, the average revenue per funeral has increased at a compound annual growth rate (CAGR) of around 2.8%.

The third way the company is expanding its market share is through acquisitions. In the first-half of FY26, it made two acquisitions that come with a combined revenue of $4 million across six locations.

Over time, I expect the ASX share's profit margins to rise thanks to its larger scale.

iShares Global 100 ETF (ASX: IOO)

The other investment I want to tell you about is this exchange-traded fund (ETF), which invests in 100 of the largest global businesses. These are multinational, blue-chip companies that are very important to the global share market.

They can come from whichever country they're listed in – it's not a market-specific ETF. Countries with an allocation of more than 1% of the fund include the US (80.1%), the UK (4.2%), Switzerland (3%), Germany (2.6%), France (2.2%), South Korea (2%), Japan (1.8%) and the Netherlands (1.6%).

Unsurprisingly, some of the largest positions include Nvidia, Apple, Microsoft, Amazon.com, Alphabet and Broadcom.

The 100 largest businesses in the world are likely to become more profitable as time goes on thanks to their scale benefits and market power, so I think this is an attractive group of businesses to own. Some businesses in the fund may change over time as new names rise and older names fade. This isn't an ASX share exactly, but it is listed on the ASX so that we can buy exposure to shares.

Past performance is not a guarantee of future performance, but the IOO ETF has returned an average of 17.4% per year over the five years to April 2026. I believe the global growth of the companies inside the portfolio are very compelling for further long-term returns.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.