A sky-high yield alone can be a trap. The better strategy is to focus on companies with defensive cash flows, strong market positions, and dividend yields above 5%.

Right now, three ASX dividend shares stand out.

APA Group Ltd (ASX: APA)

The first is APA Group, which managed to climb to a new multi-year high on Tuesday.

In afternoon trade, the APA share price was up 1.3% to $9.99, after touching $10.00 in morning trade, its highest level since July 2023.That puts the ASX dividend share up about 30% over 12 months, easily beating the S&P/ASX 200 Index (ASX: XJO).

The energy infrastructure giant currently offers a dividend yield of roughly 6.1%, with annual distributions of 57 cents per share. 

APA owns critical gas pipelines, electricity transmission assets, and renewable infrastructure across Australia. These assets are difficult to replicate, highly regulated, and supported by long-term contracts. That helps make cash flows more predictable than most industrial businesses.

That reliability is exactly what income-focused investors want in retirement.

ANZ Group Holdings Ltd (ASX: ANZ)

The second ASX dividend share is ANZ Group, which is trading at $37.24 at the time of writing.

Australia's major banks remain among the best dividend machines on the ASX, and ANZ continues to screen well for yield and valuation. While it may not offer the explosive upside of growth shares, it combines a solid dividend stream with a business model built around recurring lending income.

According to CommSec, the bank is expected to pay partially franked dividends of $1.68 per share in FY26 and $1.72 per share in FY27. That puts its forward dividend yield at roughly 4.5% for FY26 and 4.6% for FY27.

With interest rates likely to stay higher than the ultra-low levels of the past decade, bank margins should remain supportive of earnings, helping ANZ continue to reward shareholders.

Spark New Zealand Ltd (ASX: SPK)

The third and perhaps more contrarian option is Spark New Zealand. Its dividend yield is currently sitting near a huge 11.3% on ASX pricing. 

That sort of yield naturally comes with more risk, but Spark's defensive telco operations and recurring subscription revenue make this ASX dividend share worth a closer look for investors comfortable with some uncertainty.

The market is clearly pricing in concerns around dividend sustainability, which is why I would rank it behind APA and ANZ for conservative retirement portfolios.

Still, if management stabilises earnings, today's valuation could look very attractive in hindsight.

Foolish Takeaway

If I had to choose just one best blend of value and income, APA Group would be my top ASX 200 retirement pick today.

Its combination of infrastructure-style earnings, a 6%-plus yield, and essential energy assets gives it the kind of resilience that can help retirees sleep well at night, while still collecting a meaningful passive income stream.

The post 3 top ASX dividend shares for retirement income in 2026 appeared first on The Motley Fool Australia.

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

ASX 200 set to sink

The Australian share market looks set to fall on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 138 points or 1.6% lower this morning. In late trade in the United States, the Dow Jones is down 1.7%, the S&P 500 is down 1.3% and the Nasdaq is 1.4% lower.

Core Lithium shares on watch

Core Lithium Ltd (ASX: CXO) shares will be on watch on Thursday. That's because the lithium miner has raised $120 million to support the restart of the Finniss Lithium Project. The company notes that the restart repositions Finniss as a lower cost, long-life, brownfield lithium operation with a shorter path to nameplate production of 214ktpa. Unit operating costs are expected to be A$762 per tonne. This compares favourably to the current spodumene concentrate spot price of US$2,200 per tonne.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$97.88 a barrel and the Brent crude oil price is up 5.3% to US$108.89 a barrel. Oil prices charged higher after Iran threatened to strike oil facilities in Qatar, Saudi Arabia, and the UAE.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes infant formula company A2 Milk Company Ltd (ASX: A2M), hearing solutions company Cochlear Ltd (ASX: COH), transport services provider Kelsian Group Ltd (ASX: KLS), telco Spark New Zealand Ltd (ASX: SPK), and coal miner Yancoal Australia Ltd (ASX: YAL). The latter will be paying its shareholders a fully franked 12.2 cents per share dividend next month on 15 April.

Gold price sinks

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Thursday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 3.1% to US$4,853.3 an ounce. Traders were selling the precious metal after the US Federal Reserve kept interest rates on hold.

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

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

As we've reported, some of the biggest dividend increases among ASX mining shares this season came from the gold miners.

Next week, two of them go ex-dividend.

Ramelius Resources Ltd (ASX: RMS) shares will pay a fully-franked interim dividend of 3 cents per share on 15 April.

This exceeds the company's commitment to pay a minimum annual dividend of 2 cents per share for FY26.

Ramelius Resources reported a 13% increase in EBITDA to $347.7 million but a 6% fall in net profit after tax (NPAT) to $160 million.

The ASX gold share goes ex-dividend on Monday.

Capricorn Metals Ltd (ASX: CMM) shares will pay a maiden fully franked interim dividend of 5 cents per share.

The gold miner reported a 130% jump in underlying NPAT to $144.8 million for 1H FY26.

The ASX gold share also goes ex-dividend on Monday.

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

ASX shares about to go ex-dividend

The post 26 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

What did Spark New Zealand report?

• Reported H1 FY26 revenue of $1,893 million, down 1.2% on H1 FY25
• Adjusted revenue (including data centre business) of $1,917 million, down 1.1%
• Reported EBITDAI of $448 million, up 10.3%, and adjusted EBITDAI of $471 million, up 5.1%
• Net profit after tax of $64 million, up 82.9%; adjusted NPAT of $73 million, up 30.4%
• Free cash flow rose 84% to $107 million
• Interim dividend of 8 cents per share declared, 50% imputed

What else do investors need to know?

Spark's mobile service revenue grew by 1.6% to $499 million, with the strongest growth coming from higher value post-paid plans. Broadband revenue also nudged up by 0.3%, while cloud revenue increased 1.7%. However, ongoing declines were seen in legacy voice services and other connectivity revenue, mainly due to the Digital Island divestment and customers moving off older products.

The company completed the sale of a 75% stake in its data centre business ('TenPeaks Data Centres') at the end of January, receiving $453 million in cash and potential further deferred proceeds, aiming to reduce net debt in the second half. Spark also launched a new financing partnership for handset payment plans and emphasised its continued investment in 5G, customer experience, and AI projects to support growth and improve efficiency.

What did Spark New Zealand management say?

Spark CEO Jolie Hodson said:

Today's result shows that focused execution in the first six months of our new five-year strategy is building momentum. Mobile remains central to our SPK-30 strategy, and we have delivered a return to revenue growth and ongoing connection stabilisation. Our strategic focus on delivering a better network and better customer experiences is central to our success, and we were pleased to maintain network coverage leadership off the back of more than 100 cell site upgrades and new builds during the half.

What's next for Spark New Zealand?

Spark reaffirmed its full-year FY26 guidance, expecting adjusted EBITDAI between $1,010 million and $1,070 million, and free cash flow of $290 million to $330 million (subject to no material changes in outlook). BAU capital expenditure is forecast at $380 million–$410 million, with an additional $55 million of data centre strategic capex. The company will pay out 100% of free cash flow as dividends for FY26.

In the coming months, Spark plans more than 100 additional mobile site builds and upgrades, new roaming products, and the launch of satellite-to-mobile services. Management remains focused on cost discipline, digital transformation, and sustainability—highlighted by progress on emissions and expanding social connectivity through products like Skinny Jump.

Spark New Zealand share price snapshot

Over the pat 12 months, Spark New Zealand shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Spark New Zealand earnings: profit rebounds, dividend declared appeared first on The Motley Fool Australia.

What did Spark New Zealand report?

• Entered a new receivables financing partnership with Challenger
• Sale of existing interest free payment (IFP) receivables to reduce net debt by ~$240 million in H1 26
• Ongoing sale of future IFP receivables to Challenger will support growth in mobile handset payment plans
• The new structure improves Spark's capital efficiency and return on invested capital
• No material impact on Spark's net debt to EBITDAI ratio under S&P's methodology

What else do investors need to know?

Spark will use proceeds from the sale of its IFP receivables to reduce net debt, but this won't significantly change the company's net debt to EBITDAI ratio according to S&P's calculation. The funds from the receivables sale will not be included in Spark's free cashflow for the upcoming dividend calculation.

Spark will retain control of the overall customer experience, including how customers enter into IFP plans, carry out payments, and manage credit checks or collections. The company will continue collecting repayments directly from customers and transferring eligible receivables to Challenger at market value.

What did Spark New Zealand management say?

Spark CEO Jolie Hodson said:

Our mobile customers highly value interest free payment options as a convenient way to purchase the latest devices and manage costs over time. The value of IFP as a highly effective acquisition and retention tool only continues to grow, particularly as mobile device prices increase.

Mobile is our number one priority as a business, and this new partnership with Challenger will enable us to support the ongoing growth of IFP while improving capital efficiency – allowing us to reinvest in areas that deliver the most value for our customers and shareholders.

What's next for Spark New Zealand?

Looking forward, Spark will regularly sell future IFP receivables to Challenger, supporting further growth in its interest free device payment offerings. This approach will help Spark expand its mobile business, manage working capital more efficiently, and target investments in areas that deliver value for both customers and shareholders.

Spark's strategy remains focused on growing its mobile segment as its top priority, using innovative funding partnerships to support sustainable long-term growth.

Spark New Zealand share price snapshot

Over the past 12 months, Speak New Zealand shares have declined 26%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Spark New Zealand cuts debt by $240m via Challenger financing deal appeared first on The Motley Fool Australia.

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

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

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

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

Which ASX stocks could be takeover targets?

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

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

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

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

Commenting on the stocks, the broker said:

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

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

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

4DMedical Ltd (ASX: 4DX)

The 4D Medical share price is down 24% to $1.76. This is despite there being no news out of the respiratory imaging technology company. However, with its shares more than doubling in value this month prior to today, it is quite likely that some profit taking is happening. Investors had been fighting to get hold of its shares after its ventilation-perfusion product, CT:VQ, received U.S. Food and Drug Administration (FDA) 510(k) clearance. In addition, a second announcement revealed that the U.S. Centers for Medicare & Medicaid Services (CMS) have confirmed that reimbursement for the software falls under Category III Current Procedural Terminology (CPT) codes 0721T and 0722T, and will be paid at US$650.50 per scan, effective immediately. And a third announcement revealed agreements with national lung screening sites.

BlueScope Steel Ltd (ASX: BSL)

The BlueScope Steel share price is down 2% to $22.31. This has been driven by the steel producer's shares going ex-dividend today. Last month, BlueScope released its full year results and declared a partially franked final dividend of 30 cents per share. This will be paid to eligible shareholders next month on 14 October.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price is down 2% to $7.38. This decline appears to have been caused by a combination of broad market weakness and profit taking from some investors. After all, the space and defence company's shares remain up almost 50% since this time last month despite today's slide. And year to date, the EOS share price is up more than a staggering 450%. A series of big defence contract wins has put a rocket under its shares.

Spark New Zealand Ltd (ASX: SPK)

The Spark New Zealand share price is down almost 4% to $2.25. This is also due to the New Zealand telco's shares going ex-dividend today. Last month, the company released its FY 2025 results and declared a final dividend of 11 cents per share. Eligible shareholders will be paid this at the start of next month on 3 October.

The post Why 4DMedical, BlueScope, EOS, and Spark NZ shares are falling today appeared first on The Motley Fool Australia.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Tuesday despite a good start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.3% lower. In the United States, the Dow Jones was up 0.25%, the S&P 500 rose 0.2%, and the Nasdaq pushed 0.45% higher.

ASX 200 shares going ex-dividend

More ASX 200 shares are due to go ex-dividend on Tuesday and could trade lower. Today's group includes biotechnology leader CSL Ltd (ASX: CSL), steel producer BlueScope Steel Ltd (ASX: BSL), media giant News Corp (ASX: NWS), and New Zealand telco Spark New Zealand Ltd (ASX: SPK). In respect to CSL, last month it released its FY 2025 results and declared a final dividend equating to 248.5 cents per share. This will be paid to eligible shareholders early next month on 3 October.

Oil prices rise

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.9% to US$62.43 a barrel and the Brent crude oil price is up 1.1% to US$66.20 a barrel. Traders were buying oil after deciding that OPEC's planned output increase in October is modest.

Lynas shares rated as a sell

The Lynas Rare Earths Ltd (ASX: LYC) share price is overvalued according to analysts at Bell Potter. According to the note, the broker has put a sell rating and $9.35 price target on the rare earths producer's shares. It said: "We do recognise that the current themes pushing LYC higher are likely to persist as tailwinds over the short term. We have seen the US play its hand with the MP Materials deal; this could form a blueprint for other sovereign investments. Despite this, we believe LYC is priced for perfection, with little room for error."

Gold price rises again

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price pushed higher again overnight. According to CNBC, the gold futures price is up 0.65% to US$3,676.2 an ounce. Traders were bidding gold higher on increased US rate cut bets.

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

With the August reporting season done and dusted, scores of companies have ex-dividend dates next week.

If you're keen to buy any of these ASX shares while they are still trading cum dividend, time is running out!

To receive a stock's next dividend, you must buy or already own it before the ex-dividend day.

We provide a sample of the ASX shares going ex-dividend next week below.

35 ASX shares about to go ex-dividend

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

This can help provide a steady income stream even if share price movements are all over the place. 

Stock market investors will be anxiously following Australian tariff news in the coming weeks ahead of the August 1 deadline.

Right now it seems that Australia will pay the 10% baseline tariff from next month. 

However we all remember the 'Liberation Day' stock market crash in April on the back of the US President's initial tariff announcement. 

Despite the quick bounce back for global markets, the wounds may still be fresh for some. 

If that's the case, and investors are anticipating more volatility following August 1, here are some ASX dividend shares offering strong yields and passive income. 

Spark New Zealand Ltd (ASX: SPK)

Spark New Zealand Ltd (ASX: SPK) is a New Zealand telecommunications and digital services company providing fixed-line and mobile telephone services, broadband, and digital technology services. 

It is one of three large integrated telecommunications groups in New Zealand.

Historically, it has paid two unfranked shareholder dividends a year.

At the time of writing, its yield is 10.43%. 

This means you would receive approximately $521.50 per year in dividends from a $5,000 investment.

Furthermore, broker Bell Potter has a target price of $2.57 on this ASX dividend share. 

This indicates there is upside for its stock price growth of around 12.23%. 

Inghams Group Ltd (ASX: ING)

Inghams Group Ltd (ASX: ING) is the largest vertically integrated poultry producer in Australia and New Zealand.

It supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants including McDonalds and KFC.

Historically, it has paid two fully franked shareholder dividends a year.

At the time of writing, this ASX dividend share offers a yield of 5.37%. 

You'd receive approximately $268.50 per year in dividends from a $5,000 investment at this yield. 

In addition to strong yields, its share price has risen 10.62% YTD. 

The post Expecting volatility? Two ASX dividend shares with 5-10% yields appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) edged 0.21% higher to close at 8,360.9 points on Friday.

Five of the 11 market sectors finished the week in the green.

Let's recap.

Communications shares led the ASX market sectors last week

The big news last week was the Reserve Bank of Australia cutting interest rates by 25 basis points for the second time this year.

All four of the big ASX 200 banks followed suit.

RBA Governor Michele Bullock said she expects underlying inflation to remain at about 2.5% for the next year or so.

Bullock commented:

So price increases have slowed and it's fairly broadly based, and this is very good news.

The Board's strategy over quite some time has been to bring inflation down while avoiding a sharp rise in unemployment.

I know this period of relatively high interest rates has been, and continues to be, challenging for many households and businesses, but it was essential we brought inflation down because inflation hurts everyone. 

Broker Macquarie is tipping three further interest rate cuts this year in July, August, and November.

Check out 13 ASX stocks that Macquarie considers rate-cut winners.

The ASX 200 communications sector was pulled higher by its largest company, Telstra Group Ltd (ASX: TLS), last week.

The Telstra share price jumped 4.86% over the week to close at an eight-year high of $4.75 per share on Friday.

There were no announcements from Telstra last week.

REA Group Ltd (ASX: X) shares lifted 1.73% to close at $252.33.

The CAR Group Limited (ASX: CAR) share price fell 1.66% to $36.16.

TPG Telecom Ltd (ASX: TPG) shares lifted 1.18% to $5.16.

The Seek Ltd (ASX: SEK) share price rose by 4.96% to $23.70.

The ASX 200 online job classifieds provider delivered a presentation at its investor day last Wednesday.

Spark New Zealand Ltd (ASX: SPK) shares rose by 1.97% to close at $2.07 on Friday.

Spark announced a new strategic network partnership with Nokia Oyj (NYSE: NOK) on Monday.

The Chorus Ltd (ASX: CNU) share price fell 0.93% to $7.49.

Last Monday, Chorus announced a delay with its $170 million capital notes offer to New Zealand investors.

Domain Holdings Australia Ltd (ASX: DHG) shares dropped 0.91% to close at $4.36 on Friday.

The Tuas Ltd (ASX: TUA) share price fell 2.07% to $5.68.

ASX 200 market sector snapshot

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

Over the five trading days:

The post Telstra share price hits 8-year high amid a lacklustre trading week appeared first on The Motley Fool Australia.

Then you've come to the right place.

Below, we look at three quality ASX dividend stocks that are each trading on yields north of 10%.

Now, two of these stocks have seen their share prices come under pressure over the past year, while one has enjoyed strong share price growth.

While the future remains inherently uncertain, I believe all three of these companies will deliver share price growth over the coming years from their current levels. I also think they'll continue to pay market-beating passive income.

With that said, the dividend yields you generally see quoted are trailing yields. Future yields from any ASX income stock may be higher or lower depending on a range of company-specific and macroeconomic factors.

So, let's get to it…

Three high-yielding ASX dividend stocks for market-beating passive income

The first high-yielding ASX dividend stock you may wish to consider is New Hope Corp Ltd (ASX: NHC).

Shares in the S&P/ASX 200 Index (ASX: XJO) coal miner are down 16% over the past year but remain up 192% over five years.

In a promising sign on the passive income front, New Hope's latest interim dividend of 19 cents per share was up 11.8% from the prior interim dividend.

Over the past full year, New Hope has paid out a total of 41 cents a share in fully franked dividends. At the current share price of $3.90, New Hope stock trades on a fully franked trailing dividend yield of 10.5%.

The second ASX dividend stock you may wish to add to your portfolio to boost your passive income stream is Spark New Zealand Ltd (ASX: SPK).

Shares in the New Zealand-based S&P/ASX 300 Index (ASX: XKO) telco company are down 47% over the past year. That drop followed years of fairly stable share price performance, with Spark shares now down 53% over five years.

Which could make now an opportune time to buy Spark shares for their passive income and the potential of a share price rebound.

Over the past 12 months, Spark has paid out a total of 23.8 cents a share in unfranked dividends. At the current share price of $2.02, that sees this ASX 300 stock trading on an unfranked trailing dividend yield of 11.8%.

Which brings us to the third high-yielding ASX dividend stock to buy for passive income, Helia Group Ltd (ASX: HLI).

Shares in the ASX 200 lenders mortgage insurance provider are up 28% over the past year and up 134% over five years.

As for that passive income, Helia paid a fully franked final ordinary dividend of 16 cents per share and a fully franked special dividend of 53 cents per share on 3 April. Adding in the interim dividend of 15 cents per share, Helia paid a total of 84 cents per share in dividends over the past year.

At the current Helia share price of $5.27, this ASX dividend stock trades on a fully franked trailing yield of 15.9%.

The post Hunting for passive income? These 3 ASX dividend stocks are yielding more than 10% appeared first on The Motley Fool Australia.

The definition of a market correction is a major index falling 10% from the most recent peak.

The ASX All Ords' most recent closing high was 8,825.1 points on 14 February.

Today, the All Ords is at 8,005.4 points, up 0.49% for the day and down 9.31% since the peak just one month ago.

The fall can be largely attributed to market uncertainty over how the US tariffs will impact global trade, economic growth, and inflation.

So, with capital growth prospects looking pretty grim right now, dividends may be at the forefront of investors' minds.

Following last month's earning season, a bunch of ASX shares will begin trading ex-dividend next week.

If you want to catch any of these dividend payments, you have to buy the relevant stock before it goes ex-dividend.

The Fool does not advocate buying ASX shares purely for their next dividend.

But if you've been watching any of these stocks for a while, and they pass your fundamental analysis test, then perhaps you might like to take advantage of market weakness and pick them up for a bit less while also qualifying for the next dividend payment.

So, here is a sample of ASX shares going ex-dividend next week.

21 ASX shares going ex-dividend next week

The post 21 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

To demonstrate their investment skills, in the past five years, the WAM Leaders portfolio has returned an average of 12.4% per year (before fees, expenses and taxes), compared to an 8.9% return per year for the S&P/ASX 200 Accumulation Index (ASX: XJOA).

The team aims to combine fundamental research, macroeconomic analysis and market positioning to find the best opportunities.

Let's get into two ideas that WAM Leaders has identified.

A2 Milk Company Ltd (ASX: A2M)

WAM Leaders described A2 Milk as a global dairy company that produces and sells a2 protein dairy and infant milk formula products.

The investment team noted that the FY25 half-year result was "strong," thanks to robust English label sales and market share gains in Chinese-label products.

A2 Milk also increased its full-year guidance, which was supported by increased sales for higher-margin products, improved cost efficiencies and the ongoing reduction of losses from its US and Mataura Valley Milk businesses.

WAM was also pleased to see the business declared its first dividend, which reflected "confidence in its financial position and future earnings trajectory".

Even though there are challenges in the late-stage infant formula market and a declining birth rate in China, the company continues to work on its turnaround strategy, with a strong performance in early-stage infant formula, according to the fund manager.

The investment team noted that the ASX 200 share has a strong balance sheet, with around $1 billion in cash. WAM experts A2 Milk will deploy this to improve its supply chain capabilities and fund capital returns to shareholders.

WAM concluded its thoughts with the following:

We continue to hold a2 Milk as we believe its valuation remains attractive relative to its growth prospects.

Spark New Zealand Ltd (ASX: SPK)

This business is a New Zealand telecommunications operator that offers a range of services, including fixed, mobile, and broadband, to consumers and businesses.

WAM said the company's recent result reflected a "softer-than-expected" operating environment, with ongoing weakness in enterprise and government spending due to the challenging New Zealand economy.

That broad economic pressure was compounded by higher than expected operating costs, hurting the overall profitability.

The investment team explained why they believe the ASX 200 share is an opportunity at this level:

Despite these headwinds, we continue to hold Spark as we believe current market conditions are largely reflected in the share price. The company remains well-positioned to benefit from its cost reduction program and stabilising New Zealand economy, where we anticipate operating leverage from a cyclical recovery.            

Spark also remains catalyst rich, with potential upside from its asset sales, further certainty on data centre funding and updates on its cost-efficiency targets.

The post Leading fund manager bullish on these 2 exciting ASX 200 shares appeared first on The Motley Fool Australia.

Among the flounderers today are truck operator Lindsay Australia Ltd (ASX: LAU) and telecommunications and digital services company Spark New Zealand Ltd (ASX: SPK).

Let's find out why.

What's driving major falls in these 2 ASX All Ords shares?

Spark New Zealand shares crash amid 80% profit drop

Investors are hitting the sell button on Spark New Zealand shares after the company released its 1H FY25 results today.

The ASX All Ords communications share crashed 22% to a 52-week low of $2.06 per share on Friday before partially recovering to $2.12 at the time of writing.

Spark blamed "a recessionary environment" for a 77.7% fall in its reported net profit after tax (NPAT) to $35 million.

Significant contributors were lower earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and higher depreciation and amortisation costs.

Reported revenue was 1.9% lower at $1,939 million.

The company said weakness in its mobile and IT services divisions and the continued decline of legacy voice was partially offset by growth in mobile devices, cloud, data centres, and IoT.

Spark's reported EBITDAI fell 20.9% to $419 million.

When adjusted for $29 million in non-recurring costs of the operating model transformation, adjusted EBITDAI fell 15.5% to $448 million, and adjusted net profit after tax (NPAT) fell 64.3% to $56 million.

Spark has reduced its FY25 EBITDAI guidance to a range of $1,040 million to $1,100 million.

The guidance downgrade was mainly due to lower revenue in its enterprise and government division as clients reduced spending and cut their mobile fleets. Changes in Spark's product mix and "aggressive price competition in mobile" have also affected the earnings outlook.

Spark maintained capex guidance of about $415 million to $435 million.

The ASX All Ords share is still expected to pay a full-year FY25 dividend of 25 NZ cents per share (75% franked). The interim dividend is 14.15 NZ cents.

Spark said "decisive action" was being taken to improve performance. It noted that it's looking for a capital partner to co-invest in its data centre growth strategy.

Lindsay Australia shares driven 18% lower

Integrated transport, logistics, and rural supply operator, Lindsay Australia is also having a rotten day on the market today.

The ASX All Ords industrial share dived 18% to a 52-week low of 69 cents on Friday before edging back up to 70 cents at the time of writing.

Lindsay also released its 1H FY25 report today.

The company described "challenging trading conditions" as it revealed a 19.6% decline in underlying NPAT to $15.8 million.

Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 9.2% to $47.3 million while operating revenue increased 3.6% to $432.8 million.

The company said trading conditions were difficult during the half due to a softer economy, intensifying competition, weather disruptions, and increased servicing and operating costs.

Despite this, Lindsay noted that its rural division delivered an outstanding performance during the half.

The rural division's underlying EBITDA grew by 13.3% due to improved margins and higher sales.

The ASX All Ords industrial share will pay a fully franked interim dividend of 2.3 cents per share, up 9.5% from last year.

The post 2 ASX All Ords shares crashing 16%+ on earnings updates appeared first on The Motley Fool Australia.

An ASX 200 stock with a dividend yield approaching 10% is bona fide catnip for income-seeking investors. But beware – a high dividend yield can sometimes also indicate a weakening stock price.

And if the declining stock price is driven by lower profits, it's likely that future dividend payments will also decrease. So, the income you actually wind up earning from your investment may not turn out to be what you'd originally hoped for.

In this article, we'll take a look at the reasons behind Spark's eye-watering dividend yield, so that you can decide whether it's the right investment for you.

What does Spark do?

First, let's take a quick look under the hood.

Spark is the largest telecommunications and digital services company in New Zealand. Most of its revenues comes from mobile, broadband and IT services, although revenues from data and high-tech (which includes artificial intelligence and the Internet of Things) are growing fast – up 30% in FY24.

Telcos are traditionally viewed as good defensive shares to hold in a diversified portfolio. The consensus opinion is that mobile and internet services are essential these days – which means companies in this industry should still be profitable even when the rest of the economy goes belly-up.

This has historically made stocks like Telstra Group Ltd (ASX: TLS) the favourites of 'set and forget' income investors.

However, this hasn't exactly proved true in the case of Spark – at least not recently. Headwinds from higher interest rates and a sluggish New Zealand economy weighed on Spark's FY24 performance, with adjusted net earnings down 21% year-on-year to NZ$342 million.

The company was also recently forced to reduce its FY25 earnings guidance by NZ$45 million, or 4%, due to weak consumer spending and subdued business investment. This also impacted its dividend forecast, which decreased from NZ 27.5 cents per share to NZ 25 cents per share.

How does Spark pay such a monster dividend yield?

Remember when I said a high dividend yield can sometimes indicate a weakening stock price? Well, that.

Spark's financial struggles have translated into a much lower share price over the past 12 months. Its stock price has fallen a whopping 46%, from almost $5 to just $2.62, as at the time of writing.

However, despite lower profits in FY24, Spark still managed to up its dividend by 1.9% to NZ 27.5 cents. A higher dividend coupled with a tumbling stock price caused its dividend yield to shoot upwards.

This suggests that the real driver behind Spark's eyewatering dividend yield is actually its lacklustre financial performance.

So, you're saying Spark is a lemon?

Well, let's not be too hasty.

Admittedly, Spark has had its struggles recently, but its share price performance may not be a fair reflection of its underlying business. In fact, I think you could make a pretty decent argument that the market has unfairly punished it, which could make it a target for value investors.

For example, you may have noticed that I referred to a 21% drop in adjusted net earnings before. The drop in reported net earnings was 72%, but that number includes a NZ $583 million net gain on the sale of its mobile tower assets in FY23, which contributed to abnormally high (unadjusted) profits in the prior comparative period.

Still, at first glance, this could give the impression that Spark is performing far worse than it actually is.

Also, keep in mind that its lower dividend guidance for FY25 still implies a dividend yield of roughly 8.7% based on current prices – which is nothing to sneeze at! That would still put it firmly in the top tier of ASX dividend shares.

Ultimately, whether Spark is the right stock for you will depend on your personal risk tolerance and investment objectives. Ongoing economic uncertainty in New Zealand makes Spark a higher-risk investment right now, but if things start to improve, Spark could offer investors both income and growth in years to come.

The post 9.6% yield! Is the second largest dividend on the ASX 200 one to consider snapping up today? appeared first on The Motley Fool Australia.

Term deposits are still offering 5%-plus risk-free yields, so investors may be wondering which ASX 200 shares will be able to match this or better it with their dividend payouts in 2025.

In recent years, many investors have relied upon the ASX 200 mining and banking stocks for strong dividend income.

But it's unlikely the banks and miners will wow us with their dividends this year, according to expert forecasts.

A volatile iron ore price and weaker Chinese demand will likely lower dividend yields from the ASX 200 miners.

Of the six large-cap miners, only Fortescue Ltd (ASX: FMG) is tipped to pay more than a 5% dividend yield.

Exceptional share price growth for ASX 200 bank shares means dividend yields are likely to be lower this year.

Of the seven ASX 200 banks, only ANZ Group Holdings Ltd (ASX: ANZ) and Bank of Queensland Ltd (ASX: BOQ) are expected to pay a 5%-plus dividend yield.

Where can investors find 5%-plus dividend yields?

In the weeks before the first earnings season of 2025, which got underway this week, we have been researching analysts' predictions for ASX dividends this year.

Here are some examples of ASX 200 shares tipped to pay a 5%-plus dividend yield in 2025.

We have calculated these yields based on consensus analysts' dividend forecasts published on the CommSec trading platform, and share prices at the time of writing.

18 ASX 200 shares expected to pay 5%-plus dividend yields

Which sectors paid the best ASX dividends last year?

Last year, the smallest of the 11 market sectors delivered the biggest dividend returns.

The ASX 200 utilities sector, comprised of just 22 companies, delivered total returns of 17.48%. Dividends accounted for 7.05% of those returns.

The second-biggest sector for dividends was the ASX 200 financials sector. Total returns were 33.72%, with dividends making up 5.5% of those returns.

The post 18 ASX 200 shares set to pay 5%-plus dividend yields in 2025 appeared first on The Motley Fool Australia.

Earnings season has begun and investors are watching dividend announcements closely.

Let's check out the forecast for dividends in the ASX 200 communications sector this year.

Dividend forecasts for ASX 200 communications shares

Let's review the forecast 2025 dividend yields for the top 10 ASX 200 communications shares by market capitalisation.

The following table shows the consensus analysts' forecasts for 2025 dividends, as published on the CommSec trading platform.

We've calculated the dividend yields these forecasts equate to based on share prices at the time of writing.

We've also included the dividend amounts paid in 2024 so you can compare them to the 2025 predictions.

These ASX 200 communications shares are listed in order of market cap from biggest to smallest.

So, Spark New Zealand is expected to pay the highest dividend yield of this group in 2025.

The telecommunications and digital services company will announce its 1H FY25 results and interim dividend on 21 February.

Spark and the predicted second-highest dividend payer, Chorus, are both New Zealand companies so their dividends will be unfranked.

But dividends from the anticipated third highest payer, Nine shares, will come with full franking credits.

Five stocks to pay dividend yields above the market average

It's interesting to note that five of the top 10 ASX 200 communications shares are expected to pay a dividend yield higher than the long-term average for the S&P/ASX 200 Index (ASX: XJO), which is 4%.

Aussie investors are used to receiving above-average dividends from the large-cap ASX 200 mining and banking stocks, but analysts say this year only a few will manage it.

Among the six large-cap miners, analysts expect only two to pay dividends above 4%.

Among the big five ASX banks, analysts expect only three to pay dividends above 4%.

Perhaps investors will look outside the banks and miners to less high-profile sectors this year, such as communications and utilities, where more stocks are tipped to yield more than 4%.

The post Which ASX 200 communications share will pay the best dividend yield in 2025? appeared first on The Motley Fool Australia.

This company may not be familiar to Aussies because most of its operations are in New Zealand. It's the largest telecommunications company in New Zealand and serves a wide range of customers, including households, small businesses, not-for-profit organisations, government entities and large enterprise clients.

Spark offers services in mobile and broadband, entertainment, cloud services, AI, the Internet of Things, and 5G.

ASX investors may already own a defensive telco stock like Telstra Group Ltd (ASX: TLS) in their portfolio. But, after a big valuation decline, Spark shares could be an appealing addition to a dividend-focused portfolio.

How big is the ASX dividend stock's yield?

The Spark share price has declined due to profit headwinds amid higher inflation and elevated interest rates. The company recently reduced its dividend guidance for FY25 from 27.5 cents per share to 25 cents per share.

At the current valuation, that implies Spark could pay Aussie shareholders a dividend yield of approximately 8.75%.

This compares to Telstra's fully franked dividend yield of 4.5% and a grossed-up dividend yield of 6.5%, including franking credits. In other words, Spark's yield is guided to be much larger than Telstra's current yield.

Why is the payout so large?

When a share price drops, it increases the dividend yield available. For example, if a business had a 6% dividend yield and its share price dropped 10%, the dividend yield would become 6.6%. If it fell 20%, the yield would become 7.2%, and so on.

As Spark's share price has declined heavily (more than 40%), it has really boosted the dividend yield.

While the company has reduced its FY25 dividend guidance a little, that was probably the prudent thing to do. Shareholders are still expected to receive a good payout because of that lower valuation and the company's continuing commitment to a generous dividend payout ratio.

Why I think the ASX dividend stock is a buy

Its profit has been impacted by a number of headwinds such as weak economic activity in New Zealand, increased cost of debt and higher depreciation charges due to increased capital expenditures.

While I'm not expecting a huge recovery this year, I believe the tide could start to turn. For starters, New Zealand's central bank has reduced the official interest rate materially, which could have a helpful medium-term impact on the country's economy (and Spark).

The ASX dividend stock is working hard to improve its cost profile through automation and simplification, which would also help efficiencies.

Another long-term benefit for the company could be the growth of data demand. As New Zealand's biggest telco, it will play an important part in the country's ongoing adoption of digitalisation.

Over the next five years, I believe the business will be able to deliver a solid amount of passive income and, hopefully, a share price recovery.

The post 1 ASX dividend stock down 47% in 12 months I'd buy right now appeared first on The Motley Fool Australia.

I should point out that, as the name suggests, Spark New Zealand is a true blue Australian stock, though it is listed on the ASX, and a small amount of its revenue is made in Australia. So, like a pavlova, I'll say that's good enough for me to say it's Australian for the purpose of this article.

Spark is New Zealand's largest telecommunications and digital services company. Its customers include individual New Zealanders, households, small businesses, not-for-profits, government and large enterprise clients.

Its main offerings include mobile and broadband, entertainment, cloud services, and tech offerings such as AI, the Internet of Things, and 5G.

Why I think the 'Australian stock' could rebound

FY24 was a rough year for the company. Underlying operating profit (adjusted EBITDAI) fell 2.5%, underlying net profit (adjusted net earnings) declined 21%, and statutory net profit sank 72.2%.

There was a large decline in statutory earnings because the prior year (FY23) benefited from the combined effect of the TowerCo and Spark Sport transactions, whereas FY24 did not have that.

The business also saw lower broadband revenue, IT revenue, procurement and partners revenue, and voice revenue. Earnings were also impacted by higher depreciation and amortisation charges (from higher capital expenditures) and net finance expenses.

The company recently reduced its FY25 guidance because of weak economic activity, despite the reduction of inflation in New Zealand and the official cash rate cuts.

It's understandable why the Spark share price has fallen so far, given its pain. But I think it's an opportunity to rebound.

I believe New Zealand's economy can start to recover following the rate cuts, which could increase spending across various parts of Spark's business.

The company also points out that demand for data continues to grow, and it will try to stimulate revenue growth in the second half of the year through pricing, new campaigns, and new data plans.

It's also looking to improve efficiencies across the business, focusing on "automation, simplification, and resilience while delivering materially higher value over FY25 and FY26".

The business will provide more details on the benefits (and costs) of its 'SPK-26 operation program in February 2025, which I think could be a catalyst for the business.'

Like the Australian stock Telstra Group Ltd (ASX: TLS), I think Spark can benefit from the growing demand for mobile data. Plus, the dividend income should be sizeable at this lower valuation.

Spark is expecting to pay a dividend yield of close to 9% in FY25, which is a strong return by itself. I believe Spark's overall return (dividends plus capital return) can beat the S&P/ASX 200 Index (ASX: XJO) in 2025.

The post Is this Australian stock poised for a big comeback in 2025? appeared first on The Motley Fool Australia.