Consumer staples shares weren't far behind, surging 7.62%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 2.07% to 8,804 points by Friday's close.

Experts are now predicting an eventual cut for interest rates due to crumbling consumer confidence and low GDP growth.

Consumer sentiment fell in May to one of its weakest levels ever in the 50-year history of the benchmark monthly survey.

Softer-than-expected inflation also enhances the case for rates to be kept on hold or cut at some point.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to Bureau of Statistics figures.

On Friday, the ASX 200 rallied 1.98% after US President Donald Trump said a peace deal with Iran could be reached this weekend.

This would likely lead to the reopening of the Strait of Hormuz, a vital shipping route that carries 20% of the world's oil and gas.

The ongoing oil shock has contributed to resurgent inflation and three interest rate increases in Australia this year.

The Reserve Bank will announce the next interest rate decision on Tuesday.

It may seem counterintuitive that signs of economic weakness boosted ASX 200 retail shares last week.

But remember, share markets tend to look six to 12 months into the future.

Thus, economic weakness today is pushing retail stocks up as investors anticipate a greater likelihood of interest rate cuts.

Let's see how some individual retail stocks performed last week.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price leapt 9.55% over the short trading week to finish at $86.47.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) rose 5.07% to $53.91.

The Lottery Corporation Ltd (ASX: TLC) share price soared 8.81% to $5.68.

The Light & Wonder Inc (ASX: LNW) share price ripped 9.8% higher to $127.26.

JB Hi-Fi Ltd (ASX: JBH) shares ascended 7.6% to finish the week at $77.24.

The Harvey Norman Holdings Ltd (ASX: HVN) share price increased 7.88% to $4.79.

Temple & Webster Group Ltd (ASX: TPW) shares soared 13.09% to $5.27.

The Nick Scali Limited (ASX: NCK) share price rocketed 11.71% to $15.46.

Eagers Automotive Ltd (ASX: APE) shares rose 7.06% to $22.29.

The Super Retail Group Ltd (ASX: SUL) share price lifted 8.39% to $12.27.

Lovisa Holdings Ltd (ASX: LOV) shares surged 8.66% to $22.20 apiece.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) edged 0.36% higher to $11.07.

The Guzman Y Gomez Ltd (ASX: GYG) share price lifted 3.63% to $19.40.

ASX 200 market sector snapshot

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

Over the shortened trading week:

The post Why did ASX 200 retail shares outperform last week? appeared first on The Motley Fool Australia.

Let's see if the broker is bullish or bearish on these names. Here's what it is saying:

G50 Corp Ltd (ASX: G50)

Morgans has initiated coverage on this mineral exploration company's shares with a speculative buy rating and $2.14 price target.

The broker likes G50 due to its exposure to exposure to gold, silver, and critical metals. It notes the latter are becoming increasingly important for semiconductor, AI, and defence related supply chains.

Commenting on the stock, Morgans said:

We initiate coverage on G50 Corp with a SPECULATIVE BUY rating and price target of A$2.14ps. A US-centric asset portfolio (Golconda and White Caps) provides growing exposure to both precious metals (gold and silver) and critical metals gallium and antimony, both of which are being increasingly recognised as strategic commodities by the US given their importance across semiconductor, AI and defence related supply chains.

Lottery Corporation Ltd (ASX: TLC)

The team at Morgans is feeling positive about this lotteries company. However, not quite enough for a buy recommendation. It has put an accumulate rating and slightly trimmed price target of $5.90 on Lottery Corp's shares.

The broker highlights that its investor day event revealed how management is resetting the business and reframing its growth potential. It also likes how licences covering 90% of lotteries turnover are now secured until at least 2050. Morgans explains:

The Lottery Corporation's (TLC) Investor Day in Sydney highlighted two key areas: resetting the operating model and reframing how the market should think about TLC's growth potential. Three standalone business verticals (Lotteries, Digital, Keno) will replace the prior structure from 1 July, generating ~$10m of annualised savings on a full run-rate basis, which will be reinvested into digital capability, AI and product development.

No medium-term financial targets were provided. Importantly, the VIC licence extension to 2068 means that over 90% of lotteries turnover is now licenced until at least 2050. Near-term opex guidance was trimmed $10m at the midpoint and all existing guidance was reaffirmed.

Treasury Wine Estates Ltd (ASX: TWE)

Morgans was pleased with this wine giant's investor day update. As well as its performance continuing to improve, the broker was pleased with Treasury Wine's transformation program.

This has seen Morgans upgrade its earnings estimates and reaffirm its buy rating with a new $5.95 price target. It commented:

TWE's Investor Day was the positive share price catalyst we were expecting. Solid depletions growth continues and the mid-point of FY26 EBITS guidance was slightly ahead of consensus estimates. Importantly, Ascent or TWE's transformation program is expected to deliver sustainable, high-quality earnings growth and deleverage the balance sheet over the medium to long term.

We have upgraded our FY27 and FY28 forecasts. Given TWE's low trading multiples and our belief that new management can deliver more acceptable returns overtime, we reiterate our BUY recommendation with a new A$5.95 price target.

The post Buy, hold, sell: G50, Lottery Corp, and Treasury Wine shares appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) rose 0.86% amid volatile trading to 8,731.7 points by Friday's close.

There was a strong 1.62% rally on Friday on fresh hopes of an imminent deal between the US and Iran.

Meanwhile, softer-than-expected inflation data on Wednesday quelled fears of further interest rate hikes ahead.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to the Australian Bureau of Statistics.

That's why consumer discretionary shares outperformed their peers last week.

Let's take a look at some individual stock price movements.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price lifted 6.84% over the week to finish at $79.79.

The Lottery Corporation Ltd (ASX: TLC) share price rose 4.43% to $5.42.

The Light & Wonder Inc (ASX: LNW) share price ascended 1.68% to $116.73.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 2.45% to finish the week at $74.49.

Shares in furniture retailer Harvey Norman Holdings Ltd (ASX: HVN) lifted 5.01% to $4.61.

Super Retail Group Ltd (ASX: SUL) shares rose 5.77% to $11.73 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares increased 6.08% to close at $23.22.

ASX 200 travel stock Flight Centre Travel Group Ltd (ASX: FLT) ripped 9.08% to $10.93 per share.

Shares in Premier Investments Limited (ASX: PMV) zoomed 7% higher to $12.53.

Some ASX 200 retail shares did not follow the broader sector trend last week.

Eagers Automotive Ltd (ASX: APE) shares fell 2.61% to $20.89 apiece.

The Guzman Y Gomez Ltd (ASX: GYG) share price eased 0.76% to $19.66.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) dipped 0.63% to $50.10.

The Breville Group Ltd (ASX: BRG) share price moderated 0.21% to $28.94.

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 Why did ASX 200 retail shares lead the market last week? appeared first on The Motley Fool Australia.

But not all dividend shares are created equal. The best income options usually have dependable earnings, strong market positions, and the ability to keep rewarding shareholders through different market conditions.

With that in mind, here are three ASX dividend shares that are rated as buys by analysts and could be worth a closer look.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods Properties is an ASX dividend share that could appeal to income investors.

The property developer has a diversified portfolio of residential communities, townhouses, apartments, and commercial projects across Australia. This gives it exposure to long-term demand for housing, particularly in markets where population growth and housing shortages remain important themes.

Bell Potter is bullish and expects Cedar Woods to pay dividends of 38 cents per share in FY 2026 and 41 cents per share in FY 2027. Based on its current share price of $6.84, this represents dividend yields of 5.5% and 6%, respectively.

The broker has a buy rating and $9.65 price target on its shares.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share that could be a top pick is Lottery Corporation.

It operates lotteries and Keno across Australia, giving it exposure to a highly cash-generative and relatively defensive form of consumer spending. While jackpot activity can influence short-term performance, lotteries have historically shown resilience through different economic conditions.

That defensive profile can be attractive for income investors. The company benefits from well-known brands, large customer reach, and exclusive or long-dated licences in key markets. These characteristics can support strong cash generation, which is important for dividends.

The team at UBS believes this will underpin fully franked dividends of 17 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.34, this would mean dividend yields of 3.2% and 3.9%, respectively.

UBS has a buy rating and $6.35 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most popular ASX dividend shares for income investors and it isn't hard to see why.

The telco giant has a defensive earnings profile, supported by millions of mobile, broadband, and enterprise customers across Australia. Its services are essential for households and businesses, which gives the company a level of resilience that many other businesses do not have.

The mobile division is the key growth driver. Telstra has the largest mobile network in Australia and continues to benefit from strong demand for data, connectivity, price increases, and premium network coverage. This has been supporting steady earnings growth and cash flow generation.

Morgan Stanley expects this to lead to franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.23, this represents dividend yields of 3.8% and 4%, respectively.

The broker has an overweight rating and $5.40 price target on its shares.

The post Why Telstra and these ASX dividend shares could be top buys for income appeared first on The Motley Fool Australia.

But which ones could be top buys in May?

Listed below are three ASX dividend shares that could be worth buying this month. Here's what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

Amcor is a global packaging company that supplies flexible and rigid packaging products to customers across food, beverage, healthcare, personal care, and other consumer markets.

This gives the business exposure to everyday demand. Packaged food, medicine, and household goods continue moving through supply chains regardless of short-term market sentiment.

It is thanks to this that some analysts are expecting Amcor shares to offer dividend yields of more than 7% in both FY 2026 and FY 2027.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth looking at is Rural Funds Group.

It owns agricultural properties across Australia and leases them to operators in sectors such as cattle, cropping, almonds, macadamias, and vineyards.

The appeal here is the nature of the company's assets. Farmland is a real asset tied to long-term demand for food and agricultural production. Rental income can also provide a clearer earnings stream than direct exposure to farm operating conditions.

Rural Funds still faces risks from interest rates, weather conditions, and tenant performance. But its portfolio gives income investors access to a part of the property market that looks very different from offices, shopping centres, or warehouses.

Its shares are expected to offer dividend yields of around 6% in FY 2026 and FY 2027.

Lottery Corporation Ltd (ASX: TLC)

A third ASX dividend share that could appeal is Lottery Corporation.

The company operates lottery and keno licences across much of Australia. These licences provide exposure to a large, regulated market with strong brand recognition and recurring customer activity.

Lottery earnings can be influenced by jackpot cycles, but the business has a cash-generative model and limited capital intensity compared with many other industries.

This can support dividends over time, particularly when trading conditions are favourable.

For income investors seeking exposure outside the usual sectors, Lottery Corporation offers a dividend stream backed by a defensive and highly cash-generative business model.

It is expected to offer dividend yields of 3.2% in FY 2026 and then 3.7% in FY 2027.

The post 3 excellent ASX dividend shares for income investors to buy in May appeared first on The Motley Fool Australia.

Every one of the 11 market sectors is in the red today.

Losses range from 0.03% for the ASX communications sector to 2.47% for property shares.

The world is waiting for Iran's response to a US peace plan that would end the war and reopen the Strait of Hormuz.

Meanwhile, brokers have indicated new confidence in several ASX 200 shares with rating upgrades this week.

Let's take a look.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.33, down 0.5% today.

This ASX 200 consumer discretionary share has risen 2% in the year to date (YTD).

Morgans upgraded Lottery Corporation shares from hold to accumulate yesterday.

The broker raised its 12-month price target from $5.70 to $6, suggesting 12% upside from here.

Morgans said:

The Lottery Corporation (TLC) has secured a 40-year extension of its Victorian Public Lottery Licence to 30 June 2068, paying a $1.145bn upfront premium funded entirely by debt.

The duration and timing of the renewal was a mild surprise given the licence was historically offered on 10-year terms and wasn't expiring until June 2028.

We view the deal as strategically positive, but near-term earnings absorb the cost. 

Light & Wonder Inc (ASX: LNW)

The Light & Wonder share price is $110.18, up 7.3% today.

Over the past month, this ASX 200 gaming share has fallen 13%.

Morgans upgraded Light & Wonder shares to a buy rating yesterday.

The broker shaved its 12-month price target from $140 to $138.

This implies a healthy potential 25% upside ahead.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $36.87, down 1.3% today.

Over the past month, this ASX 200 bank share has fallen 3.8%.

Morgans upgraded ANZ shares from a sell to trim rating this week.

The broker lifted its 12-month price target by 4% to $31.85.

This suggests a potential 13% downside ahead.

After reviewing the bank's 1H FY26 results, Morgans said:

1H26 revenues were flat on an underlying basis, but cost decline and credit impairment charges were better than expected.

Target price increased 4% to $31.85/sh, given 3-6% earnings upgrades and decision to recommence neutralising the DRP.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $38.53, down 2.5% today.

Over the past month, this ASX 200 financial share has fallen 13.5%.

Morgans upgraded NAB shares from a sell to a trim rating this week.

The broker lifted its 12-month price target by 4% to $36.10.

This implies a potential 6% moderation ahead.

Morgans said 1H FY26 earnings "were a mixed bag and a touch below expectations".

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $37.84, down 1.9% for multiple reasons on Friday.

Over the past month, this ASX 200 bank share has fallen 9.8%.

Morgans upgraded Westpac shares from a sell to a trim rating this week.

The broker cut its price target by 3% to $33.07, implying a 13% fall ahead.

Morgans commented on Westpac's 1H FY26 results:

Strong volume momentum but earnings leverage dissipated with margin compression and credit risk pressures.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $28.37, up 3.4% on Friday.

Over the past month, this ASX 200 tech share has fallen 3.6%.

Bell Potter upgraded TechnologyOne shares to a buy rating yesterday.

The broker raised its 12-month price target from $31 to $31.75, suggesting 12% upside ahead.

Atlas Arteria Ltd (ASX: ALX)

The Atlas Arteria share price is $4.80, down 0.1% today.

This ASX 200 industrials stock surged recently on news of a hostile takeover bid from IFM Investors.

Atlas Arteria's independent directors have recommended that investors reject the $4.75 per share offer.

Morgans upgraded Atlas Arteria shares from trim to hold this week.

The broker said:

ALX recommended its investors ignore IFM's hostile off-market takeover bid, citing the offer price as too low, the timing opportunistic, and the offer highly conditional. It also disclosed it initiated a sale process for its interest in Chicago Skyway which, if successful, could be value accretive (at least to our valuation).

While the Chicago Skyway divestment process is underway we moderate our rating from TRIM to HOLD given potential for value realisation above what we consider to be the intrinsic value of the asset and hence driving our ALX valuation up close to where the share price is currently trading.

Morgans has a share price target of $4.22 on the toll roads operator.

This suggests a 12% downside from here.

The post 7 ASX 200 shares just upgraded this week appeared first on The Motley Fool Australia.

Meanwhile, brokers have lowered their ratings on five ASX 200 shares this week.

Let's take a look.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price finished yesterday's session at $5.35, up 1.1%.

This ASX 200 consumer discretionary share has risen 2.9% in the year to date (YTD).

Morgan Stanley downgraded Lottery Corporation shares to a hold rating this week.

The broker has a 12-month price target of $5.70, implying a 7% upside from here.

Sigma Healthcare Ltd (ASX: SIG) 

The Sigma Healthcare share price finished Thursday's session at $2.89, down 1%.

Sigma Healthcare shares have risen 8.2% over the past month.

Morgans downgraded the ASX 200 healthcare share from buy to accumulate this week.

This means Morgans is still positive on the stock, but it says recent share price strength has necessitated a moderated rating.

SIG has provided a solid trading update to 30 April (domestic) and to 31 March (international), noting continuing GLP-1s tailwinds.

SIG continues its international expansion with entry into the UK market and expanding distribution capacity in New Zealand.

We have made minor upgrades to forecasts however a higher risk-free rate sees our valuation reduce modestly to A$3.30 (was $3.36).

The broker's target price implies a potential 14% capital gain over the next year.

Coles Group Ltd (ASX: COL)

The Coles share price closed at $21.81, up 0.4%, on Thursday.

This ASX 200 consumer staples share has fallen 2.5% over six months.

Bell Potter downgraded Coles shares from buy to hold this week.

The broker raised its price target from $22.35 to $22.80, suggesting a 4.5% upside from here.

Bell Potter said:

The shortfall between retail shelf price inflation and underlying food inflation in both Woolworths Group Ltd (ASX: WOW) and COL has widened in the recent quarter.

The competitive backdrop appears to be lifting and liquor remains challenged in a rising cost environment.

Trading a discount to WOW, there is a relative value argument to be made, particularly given the more limited exposure to discretionary channels in the near term, however we see more compelling GARP opportunities elsewhere in the consumer staples space at this juncture.

Imdex Ltd (ASX: IMD)

The Imdex share price closed at $3.94 yesterday, down 11.1%.

Over the past year, this ASX 200 materials share has lifted 45%.

Imdex develops cloud-connected devices and drilling optimisation products for the mining sector.

Jefferies downgraded Imdex shares to a hold rating on Wednesday.

The broker lifted its price target from $4.25 to $4.80, implying a 22% upside from here.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The Dalrymple Bay Infrastructure share price closed at $5.27 on Thursday, down 3%.

Over the past six months, this ASX 200 industrials share has leapt 22%.

Morgans downgraded Dalrymple Bay Infrastructure shares to a hold rating this week.

The change was largely due to a 17% share price surge since March.

The broker explained:

DBI's share price has increased c.17% since our high conviction upgrade of the stock's rating in March. We moderate from BUY to HOLD, given 12 month potential total return has compressed to c.3%.

Next key event is this month's AGM. We expect DBI to provide new DPS guidance for the next 12 months at or around that time and target 29.5cps.

The broker shaved its price target to $5.31, implying virtually no upside ahead.

Dalrymple Bay Infrastructure will host its AGM on Wednesday 20 May in Brisbane.

The post 5 ASX 200 shares downgraded by experts this week appeared first on The Motley Fool Australia.

Does it rate them as buys, holds, or sells? Here's what you need to know:

Imdex Ltd (ASX: IMD)

Morgans was pleased with this mining technology company's performance during the third quarter.

In response, the broker has retained its buy rating on Imdex shares with an improved price target of $5.00. It said:

The 3Q update was strong with constant FX organic revenue growth of +26% YoY. While we pare back our FY26 revenue forecast slightly on FX, we make negligible changes to our EBITDA forecast ($164m +3% vs VA consensus $160m) as mix benefits offset the lower revenue. For FY27-28, we increase our earnings forecasts on confirmation of strong volume growth and recent capital markets activity. While we see capacity for a slight beat in August, in our view, outer year upgrades will be the key driver of the share price from here.

JB Hi-Fi Ltd (ASX: JBH)

This retail giant delivered a "resilient" trading update according to Morgans.

However, it highlights that management appears somewhat cautious ahead of the important end of financial year (EOFY) period.

In response, the broker has retained its accumulate rating with a trimmed price target of $82.90. It said:

JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories. Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity. We see this as likely reflecting potential margin pressure in the 4Q. We have made minor revisions to earnings (<1%), and our valuation lowers to $82.90 (from $83.50). We maintain our ACCUMULATE recommendation.

Lottery Corporation Ltd (ASX: TLC)

Morgans was pleased to see this lotteries company secure a mammoth 40-year extension to its Victorian Public Lottery Licence.

It believes the deal is strategically positive but acknowledges that the debt taken on to pay for it will weigh on its earnings.

Nevertheless, the broker has upgraded Lottery Corp's shares to an accumulate rating with an improved price target of $6.00. It said:

The Lottery Corporation (TLC) has secured a 40-year extension of its Victorian Public Lottery Licence to 30 June 2068, paying a $1.145bn upfront premium funded entirely by debt. The duration and timing of the renewal was a mild surprise given the licence was historically offered on 10-year terms and wasn't expiring until June 2028.

We view the deal as strategically positive, but near-term earnings absorb the cost. Higher D&A and interest from the new debt drag our FY26/27/28F EPS estimates down 3%/13%/15% respectively, partially offset by a beta reduction reflecting materially lower licence renewal risk.

The post What is Morgans saying about Imdex, JB Hi-Fi, and Lottery Corp shares? appeared first on The Motley Fool Australia.

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

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down over 7% to $72.12. This follows the release of a sales update from the retail giant this morning. The company revealed that JB Hi-Fi Australia total sales rose 4% and The Good Guys sales lifted 2.5% for the third quarter. However, while this was strong, comments from CEO Nick Wells appear to have spooked investors. He said: "As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity."

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 6% to $9.03. This fund manager's shares have come under pressure this week after announcing sweeping changes to its global fund. This includes management fees being cut from 1.35% to 0.89% per annum and performance fees being removed. In addition, management of the Magellan Global Fund and Magellan Global Fund Hedged will change to Vinva Investment Management. Magellan's CEO, Sophia Rahmani, said: "We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering."

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is down 5.5% to $5.26. This appears to have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the lotteries company's shares to an equal-weight rating with a $5.70 price target. Morgan Stanley made the move partly on the belief that second-half trading has been softer than expected due to weaker jackpot activity.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 2% to $32.02. Investors have been selling Woodside shares following a pullback in oil prices. This has been triggered by optimism that the US and Iran could be close to signing a peace deal. It isn't just Woodside that is falling today. The S&P/ASX 200 Energy index is down 1.7% at the time of writing.

The post Why JB Hi-Fi, Magellan, Lottery Corp, and Woodside shares are falling today appeared first on The Motley Fool Australia.

What did Lottery Corporation report?

• Secured 40-year extension for the Victorian Public Lottery Licence, now expiring 30 June 2068
• $1,145 million upfront premium payment for the licence, fully funded by new and existing debt
• No major lottery licence renewal required until 2050 (NSW)
• Dividend policy changing from 80–100% of NPAT to 80–100% of NPATA from FY27
• Pro forma leverage expected at upper end of 3–4x target range following payment

What else do investors need to know?

Lottery Corporation has held the Victorian licence since 1954, traditionally in 10-year increments. This early 40-year extension aligns the term with major state licences elsewhere in Australia, providing long-term security for the company's national lotteries footprint.

The payment for the extension will be made in two instalments from existing cash and new debt, and the company is confident it will retain a strong investment-grade credit rating. Small business lottery retailers in Victoria will benefit from a 10-year extension of retail agreements and updates to their systems, further strengthening the retail network.

What did Lottery Corporation management say?

CEO Wayne Pickup, said:

The Lottery Corporation is delighted to have agreed an extension of the Public Lottery Licence with the State, securing our future in Victoria through to 2068. The 40-year extension strengthens our national licence portfolio and will help shape the next chapter of the Company's growth. The longer term extension also significantly lowers the risk profile of the business and secures our position as the national lottery operator, with our next major lottery licence renewal now not until 2050.

Typically, almost one in two adult Victorians play our lottery games each year – some of which are among Australia's most recognised and iconic brands. Today's licence extension allows The Lottery Corporation to continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come, while supporting a vibrant lottery retail network underpinned by small businesses, and generating material lottery duty revenue to fund state and community services.

What's next for Lottery Corporation?

Looking ahead, Lottery Corporation plans to maintain steady operations under its expanded long-term licence footprint. The upcoming change to a more cash-based dividend payout ratio is designed to provide shareholders with consistent, reliable returns while keeping leverage in check.

The company will also explore long-term debt funding and continue to focus on strengthening its product range and retail network, taking advantage of the security and certainty delivered by the Victorian licence extension.

Lottery Corporation share price snapshot

Over the past 12 months, Lottery Corporation shares have risen 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Lottery Corporation secures 40-year Victorian lottery licence extension appeared first on The Motley Fool Australia.

Fortunately, there are lots of businesses on the share market that generate consistent cash flow and return part of that to shareholders as dividends.

To narrow things down, I have picked out five ASX dividend shares I would look at for income.

Rural Funds Group (ASX: RFF)

Rural Funds is an ASX dividend share I'd buy for a second income in April. It owns agricultural assets across areas like almonds, cattle, and vineyards.

Its income is supported by long-term leases with operators, which helps provide visibility over earnings and distributions.

That structure is what stands out to me. It creates a steady income stream that can support consistent payouts over time.

HomeCo Daily Needs REIT (ASX: HDN)

Another share to look at is HomeCo Daily Needs REIT. This property company focuses on convenience-based retail, including supermarkets and everyday services.

These are the types of assets that tend to see consistent foot traffic, which supports rental income.

For income investors, that stability can be appealing, especially when combined with a relatively attractive yield.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman offers a different type of income profile.

It operates in retail, which can move with the cycle, though it also has a large property portfolio backing the business.

That combination can support dividends over time, with the added benefit of potential upside if conditions improve.

Woolworths Group Ltd (ASX: WOW)

I think Woolworths is one of the most stable names on the ASX.

Its core supermarket business generates consistent cash flow, supported by demand that holds up across different conditions.

That tends to translate into reliable and growing dividends, which is what I would look for in a second income portfolio.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation rounds things out with another defensive income stream.

Its earnings are supported by demand for lotteries that tends to remain steady whatever is happening in the economy, which helps underpin regular and growing dividends.

Including a business like this can add balance alongside more cyclical income names.

Foolish takeaway

A second income from ASX shares comes back to owning businesses that can keep generating cash and paying dividends over time.

These five companies operate in different areas, though each offers exposure to income supported by underlying cash flow. That is what I would focus on when building a portfolio for a second income stream.

The post 5 ASX dividend shares I'd buy for a second income appeared first on The Motley Fool Australia.

At current levels, I don't see a lot of upside. The dividend is still there, but the starting point looks less attractive to me than it did a year ago.

That is why I would be looking elsewhere for income right now.

Here are three ASX dividend stocks I would buy instead.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman slipped to a 52-week low this week, which is where it starts to get interesting.

Retail has been under pressure as interest rates rise, and that has weighed on the share price. But this is a business with a long track record and a strong brand in Australia and overseas.

What I like here is the asset backing. The company owns a large property portfolio, which adds another layer to the investment case beyond retail earnings.

At this lower share price, its dividend yield is forecast to be over 8% in FY27 according to CommSec, which is why I think it is worth a closer look for income-focused investors.

Nick Scali Ltd (ASX: NCK)

Nick Scali is down close to 40% from its 52-week high, reflecting concerns over softening conditions in the furniture retail market.

Even so, the business has been through these cycles before.

It has a focused model, strong margins, and a history of managing inventory and costs well. That tends to support profitability even when conditions are softer.

With the share price well below previous levels, I think its forecast 5% dividend yield (according to CommSec) and potential for a recovery make this one stand out.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation offers something different as an ASX dividend stock.

It hasn't seen the same kind of pullback as the others, but it provides a steady income stream backed by a defensive business model.

Demand for lottery products tends to hold up well across different conditions, which supports consistent cash flow and dividends.

With a yield around 3%, it adds a level of stability to an income portfolio, which I think is worth having alongside more cyclical names.

Foolish takeaway

Westpac still offers income, but I think the current valuation leaves less room for upside.

These three ASX dividend stocks offer a different mix. Harvey Norman and Nick Scali bring recovery potential at lower share prices, while Lottery Corporation provides steady income backed by a more defensive model.

That balance is what I would be looking for right now.

The post Forget Westpac shares, I'd buy these ASX dividend stocks appeared first on The Motley Fool Australia.

While interest rates are rising, a number of shares continue to offer attractive dividend yields supported by stable cash flows and long-term contracts.

Here are three ASX dividend shares that could be worth considering.

APA Group (ASX: APA)

The first ASX dividend share that could appeal to income investors is APA Group.

It owns and operates a vast portfolio of energy infrastructure assets, including gas pipelines, storage facilities, and electricity transmission networks. These assets play a critical role in Australia's energy system.

A key strength of APA is its contracted revenue model. Much of its income is generated through long-term agreements with customers, which provides strong visibility over future cash flows.

This stability supports consistent dividend payments and has helped the company build a reputation as a reliable income stock.

With a yield above the market average and exposure to essential infrastructure, APA Group could be a solid option for income-focused investors.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share to consider is The Lottery Corporation.

It operates some of Australia's most recognisable lottery brands and generates revenue through ticket sales across its network.

What makes this business attractive is the defensive nature of its earnings. Lottery sales tend to be relatively stable across economic cycles, supported by consistent customer demand and strong brand recognition.

The company also benefits from high margins and a capital-light model, which allows it to generate strong cash flow.

This supports its ability to pay dividends, making it an appealing option for investors seeking income from a business with resilient earnings.

Transurban Group (ASX: TCL)

A final ASX dividend share that could be worth a look is Transurban Group.

It owns and operates toll roads across Australia and North America, generating revenue from millions of daily trips.

Its assets are underpinned by long-term agreements, often lasting decades, which provide strong visibility over future income.

In addition, toll prices typically increase annually, often linked to inflation. This can support steady revenue growth and underpin growing dividend payments over time.

With a dividend yield comfortably above the current cash rate and a portfolio of high-quality infrastructure assets, Transurban could be a top option for income investors.

The post 3 of the best ASX dividend shares for income investors to buy appeared first on The Motley Fool Australia.

Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are falling:

BHP Group Ltd (ASX: BHP)

The BHP share price is down almost 2% to $54.73. This has been driven by the mining giant's shares going ex-dividend this morning for its interim dividend. When a share goes ex-dividend, it means the rights to the payout are now locked in and new buyers won't be able to receive the dividend. Last month, BHP released its half-year results and declared a fully franked interim dividend of 73 US cents per share. This will be paid to eligible shareholders later this month on 26 March.

EQ Resources Ltd (ASX: EQR)

The EQ Resources share price is down 3% to 33 cents. The catalyst for this may have been a broker note out of Morgans. According to the note, the broker has downgraded the miner's shares to a trim rating with a price target of 23 cents. It said: "Our valuation and target price have lifted from A$0.16 per share to A$0.23ps. Continued strength in the tungsten price, a most critical metal, could lead to a further increase in our target price. With the share price above our target price, we lower our rating to TRIM from Speculative Buy. Tungsten concentrate production at the start of this current March Quarter may have been affected by the Wet Season in north Queensland at Mt Carbine, and to some extent at Barruecopardo, Salamanca Province, Spain."

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is down almost 2% to $5.30. This morning, this lottery company released an update on operational changes. Under the new model, Lottery Corporation will create three customer-facing business units. These are Lotteries, Digital, and Keno. The company's CEO, Wayne Pickup, said: "We have a strong foundation and our strategy has served the Company well, but we can unlock more value. This new structure gives us the clarity and accountability to accelerate our evolution as a digital entertainment company, concentrate on local market growth and make faster, better decisions."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 2.5% to $30.01. This has also been driven by the energy giant's shares going ex-dividend this morning for its latest dividend. Last month, Woodside released its full-year results and declared a final dividend of 59 US cents per share. This brought its full-year fully franked dividend to US$1.12 per share or US$2.1 billion. Eligible shareholders can look forward to receiving the final dividend later this month on 27 March.

The post Why BHP, EQ Resources, Lottery Corp, and Woodside shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX 200 stock is up 1% to $5.46.

Why is this ASX 200 stock rising?

Investors have been buying the lottery company's shares today after it announced a new operating model and changes to its executive leadership team.

The ASX 200 stock notes that these changes are designed to accelerate growth.

According to the release, Lottery Corporation has revealed a new organisational structure aimed at supporting the next stage of its strategy and helping it evolve further as a digital entertainment company.

Under the new model, Lottery Corporation will create three customer-facing business units. These are Lotteries, Digital, and Keno.

It notes that each will have a distinct strategic mandate and will report to a chief operating officer structure.

Management believes this will improve focus, accountability, and decision-making across the business.

The ASX 200 stock's CEO, Wayne Pickup, said the company is well positioned but believes the new structure will help unlock further value. He commented:

We have a strong foundation and our strategy has served the Company well, but we can unlock more value. This new structure gives us the clarity and accountability to accelerate our evolution as a digital entertainment company, concentrate on local market growth and make faster, better decisions.

Leadership changes

Several leadership changes will accompany the new operating structure.

The release highlights that Callum Mulvihill will become chief operating officer of Lotteries, responsible for growing the company's core lotteries portfolio across its retail network and digital wholesale partnerships.

Loren Somerville will take on the role of chief operating officer of Digital, with responsibility for driving digital lottery sales, improving app and web experiences, and exploring new opportunities in adjacent lottery entertainment categories.

Antony Moore will become chief operating officer of Keno, overseeing both venue-based and online Keno operations as the company looks to expand the product's reach.

Alongside these customer-facing units, the company will also establish three enterprise service divisions covering Financial & Corporate Services, Strategy, and People & Brand.

The company's chief financial officer Adam Newman will remain in his role, with expanded responsibilities including legal, risk, cyber and technology services.

When will the changes take effect?

The new operating model and leadership structure are expected to take effect from 1 July 2026, subject to regulatory approvals.

And based on its share price performance this morning, investors appear to be welcoming the announcement.

The post Guess which ASX 200 stock is pushing higher on big news appeared first on The Motley Fool Australia.

What did Lottery Corporation report?

• Introduced a new operating structure with three core business units: Lotteries, Digital, and Keno
• Announced changes to the Executive Leadership Team, including new COO appointments for each business unit
• Expanded accountability for enterprise services, with Adam Newman's role as CFO broadened to cover Legal, Risk, Cyber, and Technology
• Advised of the planned departures of two executives: Andrew Shepherd and Nicholas Allton

What else do investors need to know?

Lottery Corporation's shake-up is designed to provide clearer mandates and strategic focus across its expanding digital and retail operations. The new operating structure groups offerings under distinct chief operating officers, with digital set to play a larger role as the company moves towards becoming a digital entertainment business.

Adam Newman, currently CFO, will temporarily serve as Company Secretary from 31 March 2026 while a permanent appointment is found. The company emphasised continuity and stability through these changes, thanking outgoing executives for their service.

What did Lottery Corporation management say?

Managing Director & Chief Executive Officer Wayne Pickup said:

We have a strong foundation and our strategy has served the Company well, but we can unlock more value. This new structure gives us the clarity and accountability to accelerate our evolution as a digital entertainment company, concentrate on local market growth and make faster, better decisions.

What's next for Lottery Corporation?

Looking ahead, Lottery Corporation plans to sharpen its focus on digital growth and local market expansion. By streamlining the executive team and creating specialised business units, management aims to make faster decisions and adapt swiftly to changing market conditions.

The company's priorities include maximising the performance of its lotteries products, enhancing digital experiences for customers, and growing its Keno offering both online and in venues.

Lottery Corporation share price snapshot

Over the past 12 months, the Lottery Corporation share price has risen 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Lottery Corporation shakes up leadership with digital-first strategy appeared first on The Motley Fool Australia.

From infrastructure and banks to retailers and asset managers, there are many companies that return a meaningful portion of their profits to shareholders through dividends. For investors building a portfolio designed to generate reliable income, that creates plenty of choice.

Here are five ASX dividend shares that I think are worth considering.

Dicker Data Ltd (ASX: DDR)

Dicker Data is one of Australia's leading technology distributors, supplying hardware, software, and cloud services to resellers across Australia and New Zealand.

The business has built a strong reputation with vendors and partners, which has allowed it to grow consistently over many years. What I like about Dicker Data from an income perspective is its approach to shareholder returns.

The company has a long track record of paying regular dividends and typically distributes a large portion of its profits. While earnings can fluctuate with technology spending cycles, the underlying business model has proven resilient.

For investors seeking income exposure to the technology sector, Dicker Data is an interesting option.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre's shares have been under pressure over the past year, but the company remains confident in its long-term outlook.

The company has rebuilt its earnings following the pandemic and remains one of the world's largest travel retailers. Its global footprint across leisure and corporate travel gives it scale and diversification that can support profits over time.

As I wrote here this week, consensus forecasts suggest Flight Centre's dividend could continue growing in the years ahead.

And if travel demand remains healthy and recent acquisitions deliver on their promise, Flight Centre's dividend potential could improve meaningfully over time.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group is widely regarded as one of Australia's highest-quality financial institutions.

Its diversified business spans asset management, infrastructure investing, commodities trading, and banking services. That diversification helps smooth earnings across different market cycles.

Macquarie also has a solid record of returning capital to shareholders through dividends. While payouts can vary depending on profitability, the bank's global platform and strong capital position give it flexibility to keep rewarding investors over the long term.

For income investors looking for exposure beyond the traditional big four banks, Macquarie stands out as a compelling alternative.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation operates some of Australia's best-known lottery brands, including Powerball and Oz Lotto.

Lottery businesses tend to be highly cash generative and relatively defensive. Ticket sales can hold up well even during softer economic conditions, and operating costs are relatively predictable.

That combination allows Lottery Corporation to pay attractive dividends to shareholders. The company has positioned itself as a reliable income play since its demerger, supported by steady cash flow from lottery products.

For investors seeking income with a defensive tilt, it is an ASX dividend share worth keeping on the radar.

GQG Partners Inc (ASX: GQG)

GQG Partners is a global asset manager that has grown quickly in recent years thanks to strong investment performance and significant inflows.

Asset management businesses can be highly profitable when funds under management are expanding, and GQG has been returning a substantial portion of its earnings to shareholders.

Because its dividends are linked to profitability, payouts can fluctuate with markets and flows. However, when conditions are favourable, the income generated for shareholders can be very attractive.

For investors comfortable with some variability in dividends, GQG Partners offers exposure to the growth of global funds management alongside appealing income potential.

Foolish takeaway

Building an income portfolio on the ASX doesn't have to mean sticking to the same handful of companies.

Dicker Data, Flight Centre, Macquarie Group, Lottery Corporation, and GQG Partners all offer different sources of dividend income across technology distribution, travel, financial services, gaming, and asset management.

For investors focused on generating income from shares, I think these five ASX dividend shares are worth considering.

The post 5 ASX dividend shares to buy for income in 2026 appeared first on The Motley Fool Australia.

Here are three I consider strong income options right now.

Transurban Group (ASX: TCL)

Transurban is one of my favourite income-focused infrastructure plays.

It owns and operates toll roads across major Australian and North American cities. These are long-life assets with high barriers to entry. Once built, they tend to generate steady traffic volumes supported by population growth and urban congestion.

What I like most is the predictability of cash flow. Many of Transurban's toll concessions include inflation-linked price increases. That provides a built-in mechanism for revenue growth without needing aggressive expansion.

For retirees, that kind of contractual and regulated income stream is attractive. While distributions can fluctuate with traffic conditions and capital expenditure cycles, I see Transurban as one of the more dependable infrastructure income vehicles on the ASX.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation offers something slightly different: defensive consumer exposure.

Lotteries are remarkably resilient. Even during economic downturns, ticket sales tend to hold up well. The business benefits from strong brand recognition, long-term licences, and limited competition.

Cash flow generation is robust and highly visible. Because lottery products are low-ticket discretionary purchases, they don't tend to be cut from household budgets in the same way larger expenses might be.

For retirees seeking income, I like the combination of recurring revenue, high margins, and a business model that isn't capital intensive. That supports consistent dividend payments over time.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT focuses on large-format retail centres anchored by non-discretionary tenants such as supermarkets, healthcare providers, and essential service operators.

This matters. Daily needs retail is far more resilient than fashion or luxury retail. Tenants provide goods and services people rely on regularly, which supports rental stability.

The REIT structure also means a high proportion of rental income is distributed to investors. While property trusts are sensitive to interest rates, I believe exposure to essential retail tenants helps underpin earnings stability.

For retirees comfortable with property exposure, HomeCo Daily Needs REIT offers an attractive yield backed by assets tied to everyday spending.

Foolish takeaway

When building an income-focused portfolio in retirement, I prioritise durability over excitement.

Transurban provides infrastructure-backed cash flows. The Lottery Corporation offers defensive consumer earnings. HomeCo Daily Needs REIT delivers property income linked to essential spending.

No dividend is ever guaranteed, but in my view, these three ASX dividend stocks have the kind of underlying businesses that retirees can build income portfolios around.

The post 3 strong ASX dividend stocks for retirees to buy appeared first on The Motley Fool Australia.

Here are three ASX dividend shares I would consider.

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend share I would look at is Charter Hall Retail REIT.

This real estate investment trust (REIT) owns a portfolio of convenience-based shopping centres across Australia. These are typically anchored by supermarkets and essential service providers, which means foot traffic tends to be steady even during softer economic periods.

Long leases with built-in rental increases provide income visibility, and the trust structure means a large portion of earnings is paid out as distributions.

Retail property is not immune to economic cycles, but convenience-focused centres with strong tenants can offer more resilience than discretionary retail assets.

It currently trades with a 6.3% dividend yield, making it one of the most generous shares on the market.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share that I would consider for the $3,000 is Lottery Corporation.

As its name implies, it operates well-known lottery brands across Australia. Lotteries are a unique business. They generate strong cash flows, require relatively modest capital investment, and tend to hold up even when consumer confidence wobbles.

Because earnings are highly cash generative, a large share of profits can be returned to shareholders via dividends.

The defensive characteristics of lotteries, combined with stable demand, could make Lottery Corporation an interesting option for income investors.

According to consensus estimates, the market is currently expecting a 3.1% dividend yield from its shares in FY 2026.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share I would look at is Universal Store.

It operates a portfolio of youth-focused fashion brands and has been steadily expanding its store network. While retail can be cyclical, Universal Store has demonstrated an ability to manage inventory tightly and maintain healthy margins.

The company has also been returning a meaningful portion of profits to shareholders through dividends.

This means that Universal Store offers a blend of income and growth. And if earnings continue to increase as its store rollout continues, dividend payments could grow strongly over time.

It currently offers an estimated 4.4% FY 2026 dividend yield.

The post 3 ASX dividend shares I would buy with $3,000 appeared first on The Motley Fool Australia.

ASX All Ords shares have risen 1.7% over the week as more companies revealed strong earnings results and dividends.

Next week, a large group of ASX shares go ex-dividend. We provide a sample of these stocks below.

To pick up a dividend payment, you must own the share before the ex-dividend date.

ASX shares about to go ex-dividend

Here are 16 ASX shares going ex-dividend next week.

Which companies are reporting next week?

According to the calendar, we will hear from Adairs Ltd (ASX: ADH), Ampol Ltd (ASX: ALD), and Nib Holdings Ltd (ASX: NHF) on Monday.

On Tuesday, ARB Corporation Ltd (ASX: ARB), Woodside Energy Group Ltd (ASX: WDS), and Monadelphous Group Ltd (ASX: MND) are up.

On Wednesday, we'll get reports from Bapcor Ltd (ASX: BAP), Domino's Pizza Enterprises Ltd (ASX: DMP), and Fortescue Ltd (ASX: FMG).

Light & Wonder Inc (ASX: LNW), Wisetech Global Ltd (ASX: WTC), and Woolworths Group Ltd (ASX: WOW) will also report on Wednesday.

On Thursday, Karoon Energy Ltd (ASX: KAR), Monash IVF Group Ltd (ASX: MVF), and Qantas Airways Ltd (ASX: QAN) will release their earnings.

Ramsay Health Care Ltd (ASX: RHC), Super Retail Group Ltd (ASX: SUL), and Worley Ltd (ASX: WOR) will also be in the spotlight.

On Friday, we'll see reports from Coles Group Ltd (ASX: COL), Star Entertainment Group Ltd (ASX: SGR), and TPG Telecom Ltd (ASX: TPG).

The post 16 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.