If you're thinking about parking your money in a blue-chip bank or a diversified investment house, it's hard to look past Commonwealth Bank of Australia (ASX: CBA) and Washington H Soul Pattinson and Co Ltd (ASX: SOL) for different reasons. One's a household name with massive financial firepower, the other's an Aussie investment icon with fingers in a lot of pies. If I could only pick one to back with my own cash, here's how I'd break it down.

The case for Commonwealth Bank of Australia

Commonwealth Bank is Australia's largest bank and a true titan on the ASX. It operates across retail, business, and institutional banking, plus wealth management, insurance, and broking. CBA's brand is one of the most recognisable locally, offering a broad selection of financial services across Australia, New Zealand, and beyond, as highlighted in its company profile.

Looking at the numbers, three things stand out. First, it's a $249.83 billion giant by market cap, vastly larger than most ASX peers. Its current P/E ratio sits at 22.91, reflecting a premium to many other financials. The dividend yield comes in at 3.38% (fully franked), with $5.05 paid out per share over the last twelve months, and a long, consistent history of fully franked dividends. Its earnings per share are 6.517, lining up with its profile as a mature, profit-generating business.

For income investors, CBA's commitment to reliable, fully franked dividends – paid like clockwork over decades – is very hard to go past.

The case for Washington H Soul Pattinson and Co

Washington H Soul Pattinson, or Soul Patts for short, is an Australian investment house with a track record stretching back over a century. Today, it's best described as a diversified holding company – imagine it as a listed mini-conglomerate – with major positions in listed companies (like TPG Telecom and New Hope Corporation), private business holdings, emerging companies, property, resources, and more. Its stated aim is a blend of capital growth and steady, growing dividends.

On the numbers, Soul Patts is much smaller than CBA with a market cap of $17.62 billion. But its valuation paints an interesting picture: the P/E ratio is just 7.89 – much lower than CBA's – suggesting the market ascribes less growth or more risk here, but potentially also some value appeal. Earnings per share clock in at 5.876. The dividend yield is currently 1.03% (also fully franked), translating to $1.11 per share over the last twelve months. Its year-to-date return really pops out: up 26.2%. There's also been a recent merger with Brickworks Limited (now a subsidiary), further boosting its diversification.

Soul Patts appeals to those who want long-term capital growth with a diversified portfolio in one ticker, even if it pays a less generous dividend than the bank.

Valuation comparison

Here's how the headline numbers stack up:

CBA's P/E is far higher than Soul Patts, which is typical for big banks, but that doesn't automatically make the bank "expensive" or Soul Patts "cheap" – they're in quite different sectors, so these ratios reflect varied business models and risk appetites. Both offer 100% franking on dividends, but CBA's yield is notably higher. If you're seeking dividends, CBA stands out; if you're seeking a lower P/E and possible value, Soul Patts may appeal.

Recent share price momentum

Let's see how they've moved recently, using closing prices as of 9 October 2026:

• Commonwealth Bank closed at $149.29, having slipped -3.9% year to date. Its price has been relatively steady, with small moves both up and down in recent weeks.
• Washington H Soul Pattinson closed at $46.38, up a strong 26.2% year to date. It's shown robust positive momentum, with most recent sessions edging higher.

Which is the better buy?

If I could only choose one, my pick would be Washington H Soul Pattinson. Here's why: despite its lower yield, Soul Patts is trading on a much more attractive P/E ratio and has delivered substantial share price growth this year (+26.2% YTD). Its structure gives me exposure to multiple sectors and companies under one roof, including large names like TPG Telecom and New Hope Corporation, as well as the newly added Brickworks. That diversification could help smooth the ride if the banking or resources sector wobbles.

CBA is an absolute bedrock for dividend hunters, with a yield over three times higher than Soul Patts, unwavering dividend payments, and unrivalled market presence. But with a P/E that's almost three times higher and lacklustre share price momentum (-3.9% YTD), I'm more drawn to Soul Patts' forward-looking mix of growth and value right now.

Both businesses are proven and resilient, so there's merit on each side. But forced to tip my money into one? I'd lean to Soul Patts for its recent performance, low valuation, and unique diversification.

The post CBA vs Soul Patts: Which ASX share wins in 2026? appeared first on The Motley Fool Australia.

Many Aussie investors looking to boost their portfolios with reliable dividends or diversified exposure will likely end up weighing up Washington H Soul Pattinson and Co Ltd (ASX: SOL) against GQG Partners Inc (ASX: GQG). Both companies have reputations for generating solid returns in very different ways. But which is actually the more attractive buy right now? Let's take a closer look at what sets these two apart, and where the more compelling opportunity may lie.

The case for Soul Patts

Washington H Soul Pattinson, often called Soul Patts, is one of Australia's oldest listed companies and a true investment conglomerate. With its roots in pharmacy, Soul Patts today holds a sprawling and diversified portfolio across listed and unlisted companies, real assets, emerging businesses, and even a credit arm. Its most recent public profile highlights large stakes in TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Ltd (ASX: NHC), and it now controls Brickworks following a 2025 merger.

What stands out most for Soul Patts is its impressive track record of stable, fully franked dividends and long-term capital growth. As of the latest data:

• Market cap sits at $17.24 billion – making it a heavyweight by Australian standards.
• P/E ratio is 7.7, which looks quite reasonable for such a diversified portfolio.
• The current dividend yield is 2.37%, fully franked, with consistent payments over many years.
• Earnings per share are $5.876, supporting that sustainable payout.
• The company boasts a strong year-to-date return of 23.1%.

If you're after resilience backed by a long-running, diversified business, Soul Patts.

The case for GQG Partners

GQG Partners is a global asset manager with a boutique approach to actively managed equity portfolios. Headquartered in Florida, the company serves big institutional clients and private investors worldwide, offering exposure to international equity markets and diversified strategies. GQG has built its reputation on performance-driven portfolio management.

Key highlights from the most recent numbers:

• Market cap is $3.22 billion – a fair bit smaller than Soul Pattinson, but still substantial.
• P/E ratio is just 4.81, indicating a much lower multiple on recent earnings.
• Dividend yield is a whopping 18.86%, although these dividends are unfranked.
• Earnings per share currently sit at $0.159, with dividends per share at $0.21.
• Year-to-date return is -28.3%, showing investors have had a tough run recently.

GQG's headline yield is eye-catching, but investors should look at what's happening underneath the surface, as high yields can sometimes be a red flag depending on business health and recent share price changes.

Valuation comparison

Here's how the key figures stack up side by side:

Soul Pattinson trades at a higher multiple but has delivered stronger share price returns and full franking on its dividends. GQG's sky-high yield must be weighed against recent heavy share price losses and the fact that dividends are unfranked – a big consideration for tax-advantaged Aussie investors.

Recent share price momentum

Comparing recent share price performance up to 5 October 2026:

• Washington H Soul Pattinson closed at $45.39, having lifted from $44.11 on 8 September 2026 for a roughly 2.9% gain over that month.
• GQG Partners closed at $1.09, down from $1.21 on 8 September 2026, representing a roughly 9.9% drop over the same period.

YTD returns back this up: Soul Pattinson is up 23.1% for the year to date, while GQG is down 28.3%. These numbers highlight clearly different recent trajectories.

Which is the better buy?

For my money, Washington H Soul Pattinson looks like the far stronger pick today. Its diversified structure, reliable steadily rising fully franked dividends, and share price momentum all suggest it's the steadier, more trustworthy long-term investment. The yield on offer is modest but backed by decades of consistent payments and capital growth.

GQG Partners' 18.9% yield certainly jumps off the page, but it's unfranked and comes amidst a hefty share price decline this year. Sometimes a massive yield is more "warning sign" than "bargain." If the underlying profits (or payout) can't be maintained, dividend chasers could be left out in the cold – and with recent negative share price momentum, a cautious approach is warranted.

Personally, I'd lean toward Soul Pattinson as the more resilient and attractive buy among these two, especially if you value stability and the tax benefits of franking. GQG might suit aggressive yield hunters, but for most Aussie investors seeking long-term wealth building, Soul Patts gets my nod.

The post Soul Patts vs GQG Partners: Which is the stronger pick? appeared first on The Motley Fool Australia.

If you're a retiree thinking about income and stability, two blue-chip ASX names might be sitting on your shortlist: Washington H Soul Pattinson and Co Ltd (ASX: SOL) and Macquarie Group Ltd (ASX: MQG). They're both stalwarts, well-regarded for diversified holdings and consistent dividends—but which one really deserves a place in a retiree's portfolio? Here's how they compare on yield, franking, and all-important reliability.

The case for Washington H Soul Pattinson and Co

Washington H Soul Pattinson—often known as Soul Patts—has its roots in Australian pharmacy, but these days is best described as a diversified investment house. Over its long history (listed since 1903), Soul Patts has built a portfolio spanning listed and private companies, real assets, and emerging ventures. Some of its largest stakes, according to its most recent public description, are in TPG Telecom and New Hope Corporation. The 2025 merger with Brickworks has also made Brickworks a subsidiary under the Soul Patts umbrella.

From a fundamentals viewpoint, several things stand out. Soul Patts has a market cap of $17.29 billion and sports a price-to-earnings (P/E) ratio of 7.08, which is much lower than Macquarie's. The dividend yield clocks in at 2.36%, but perhaps most attractive for retirees, dividends come fully franked—at a rate of 100%. That means shareholders can potentially claim the full benefit of franking credits. Soul Patts has a long streak of consistently increasing dividends, rarely missing an opportunity to reward shareholders with reliable, tax-effective income.

The case for Macquarie Group

Macquarie Group is one of Australia's financial powerhouses, providing banking, funds management, advisory, and investment services in more than 30 countries. While technically a bank, Macquarie differs from the "big four," with much of its money made from asset management, infrastructure, and investment banking rather than traditional retail banking.

Looking at the numbers, Macquarie is a much larger company, with a $92.97 billion market cap and a significantly higher P/E ratio of 19.12. The dividend yield is a touch higher at 2.89%. A big plus is the generous dollar amount per share—for this year, $7.00 per share in dividends. However, only 35% of those dividends are franked, which means Australian retirees won't get the maximum tax benefit from those payments. Macquarie's size and global reputation add a layer of strength, and its dividends tend to be relatively predictable, but they may be less tax-effective compared to Soul Patts.

Valuation comparison

Here's how the two stack up side-by-side on key metrics:

Note: Dividend yields are relatively close, but Macquarie's dividends are only partially franked, while Soul Patts offers fully franked dividends—often a priority for income-focused investors. It's also notable that Soul Patts' P/E suggests a much lower valuation relative to current earnings. If you notice the gap between EPS and P/E, keep in mind that reported P/E ratios may sometimes be based on underlying or future earnings rather than trailing or statutory EPS, which can create apparent inconsistencies.

Recent share price performance

Let's consider recent share price action (up until 23 September):

• Washington H Soul Pattinson closed at $45.51 on 23 Sept 2026, up slightly by 0.2% from the previous day.
• Year-to-date return for SOL shares sits at 23.6%—a strong showing.
• Macquarie Group closed at $242.35 on 23 Sept 2026, barely changed from the day prior (+0.03%).
• Year-to-date return for MQG shares is 21.3%, also very healthy.

That's robust price momentum for both, with Soul Patts very slightly ahead on total return as of the latest figures.

Which is the better buy?

For my money, if I were a retiree primarily after dividends, my pick would be Washington H Soul Pattinson. Here's why: even though its headline yield is a tad lower than Macquarie's, Soul Patts' commitment to 100% franking maximises the after-tax cash flow for most Australian retirees, especially those who can use franking credits to reduce or eliminate tax. Soul Patts also carries a much lower P/E ratio, which suggests either a lower price relative to earnings or simply a market expectation of steadier but less spectacular growth. Its history of consistent—and growing—dividends gives me extra confidence for dependable income.

That's not to say Macquarie isn't impressive; it's a massive institution offering higher absolute dividend dollars, a slightly higher yield, and global stability. However, the lower franking cuts into the tax advantage, which is often a make-or-break factor in retirement income streams. Both are excellent businesses, but for franked, tax-effective dividends and reliable track record, I'd lean towards Washington H Soul Pattinson in a retiree-focused portfolio.

The post Soul Patts vs Macquarie Group: Best ASX dividend stock for retirees? appeared first on The Motley Fool Australia.

What did Washington H. Soul Pattinson report?

• Revenue from continuing operations rose 96% to $1.87 billion (FY25: $955 million)
• Statutory net profit after tax (NPAT) attributable to shareholders up 502% to $2.19 billion (FY25: $364 million), including one-off merger gains
• Net Cash Flow From Investments (NCFI) increased 12% to $572 million
• Final dividend of 63 cents per share, fully franked (up 6.8% on FY25); total FY26 ordinary dividends 111c (up 7.8%)
• Net Asset Value (pre-tax) up 10.4% to $13.7 billion; post-tax NAV $14.5 billion (up 27.2% per share basis)
• Available liquidity of $3.8 billion in cash and facilities

What else do investors need to know?

FY26 was transformative for Soul Patts, driven by the completed merger with Brickworks in September 2025. The new group consolidated two of the country's most recognised compounders and led to a significant reset of Soul Patts' capital structure, tax base, and portfolio mix. With the cross-shareholding unwound, Brickworks' results are now fully included from the merger date, with prior holdings equity-accounted.

Beyond record profit, Soul Patts demonstrated active portfolio management, selling down equities including its TPG Telecom stake, divesting the Goodman industrial property joint venture for $1.9 billion, and expanding allocations to global private markets and fixed income. The business remains Australia's only dividend aristocrat, marking its 28th consecutive year of increased ordinary dividends.

What did Washington H. Soul Pattinson management say?

Todd Barlow, Managing Director & CEO said:

One year on, the Brickworks merger decision has delivered a cleaner capital structure, a stronger balance sheet and great firepower for new investments, without compromising the disciplined governance and capital allocation Soul Patts has always been known for.

What's next for Washington H. Soul Pattinson?

Looking ahead, Soul Patts says its strong balance sheet and cash reserves give the group flexibility to pursue new investments as opportunities arise, especially during market volatility. Management expects to continue rotating capital into global private markets, with a focus on quality and disciplined deployment. The reactivated Dividend Reinvestment Plan allows shareholders to reinvest in new shares for the 2026 final dividend, with grants expected to grow now that the Soul Patts Foundation corpus has expanded post-merger.

Market conditions remain uncertain, but management is prioritising liquidity management, a continued defensive portfolio approach, and active capital deployment to sectors with long-term structural growth. Soul Patts' history of resilience and dividend growth underpins its guidance of ongoing value creation for shareholders.

Washington H. Soul Pattinson share price snapshot

Over the past 12 months, Soul Patts has risen 16%, outpacing the S&P/ASX 200 Index (ASX: XJO), which is flat over the same period.

View Original Announcement

The post Washington H. Soul Pattinson posts 502% profit surge after Brickworks merger appeared first on The Motley Fool Australia.

Looking to start your investing journey but not sure which ASX giant is a better fit? Washington H Soul Pattinson and Co Ltd (ASX: SOL) and BHP Group Ltd (ASX: BHP) are both popular with Aussie investors, but their profiles couldn't be more different. Let's dig into how these two stack up and which might be a smoother way in for share market newcomers.

The case for Washington H Soul Pattinson and Co

Washington H Soul Pattinson ("Soul Patts") is one of Australia's oldest listed investment companies, having started out in pharmacies but now a diversified investment house. Its portfolio covers listed stocks (including big stakes in businesses like TPG Telecom and New Hope), private companies, real assets, and more. After merging with Brickworks in 2025, Brickworks is now part of the group, further boosting its diversification. Soul Patts has a reputation for steady returns and aims to deliver both capital growth and reliably increasing dividends.

Looking at the fundamentals, I think Soul Patts stands out with:

• A low P/E ratio of 7.03 – making it look attractively priced compared to the wider market and (as we'll see) BHP
• A franked dividend yield of 2.37%, not massive, but backed by a long and consistent history
• A YTD return of 22.7%, showing robust capital gains recently

And for those who like fully franked income, every dividend here is 100% franked—a plus for Aussie investors focused on after-tax returns.

The case for BHP

BHP is a global mining powerhouse, best known for producing iron ore, copper, coal and other commodities. It's not just the biggest ASX stock by market cap, but also a name synonymous with resources investing. BHP's profits—and share price—are tied pretty closely to global commodity prices, so it's naturally a bit more volatile than your typical diversified investment company.

A few standout metrics on BHP's side:

• A current dividend yield of 3.96%, fully franked
• A P/E ratio of 22.4, much higher than Soul Patts'—though that comes with sector caveats (resources are typically 'boom and bust')
• Year to date, BHP is up an impressive 39.5%, outpacing even Soul Patts' recent gains

In short, BHP is a way to gain exposure to global mining and commodities, with the kind of scale and profitability that few can match on the ASX.

Valuation comparison

When I line these two up on key numbers, here's how they look:

Note: Both companies report 100% franking on all recent dividends. Also, BHP's earnings per share and relatively high P/E ratio reflect its resources focus, and its larger size shouldn't be mistaken for a safer or "better" buy.

Recent share price performance

Comparing 21 August to 18 September 2026:

• BHP: Share price has risen from $65.16 to $61.05 in this recent stretch, with a volatile ride—including a jump as high as $67.40 and some sharp drops. Overall, BHP has delivered 39.5% YTD return as of the last recorded date.
• Soul Patts: Price moved from $44.38 to $45.08, trending higher but with smaller daily swings. Year to date, Soul Patts is up 22.7% as of 18 September 2026.
• Both shares have seen some volatility, but BHP's larger gains have come with bigger day-to-day moves—worth keeping in mind if you're new to the market.

Which is the better buy?

If I'm picking the company that's friendliest for beginners, my vote goes to Washington H Soul Pattinson. Here's why: Its low P/E signals a more conservative valuation, while its business is built on diversification—meaning no single sector or commodity determines its fate. While BHP's juicy dividend yield and huge YTD gain might tempt, its performance goes hand-in-hand with the wild swings of global commodity prices. For someone just dipping their toes in, I'd favour the relative steadiness and broad exposure of Soul Patts. BHP, for all its scale, feels better suited to those ready for a bit more risk and a rollercoaster ride. Of course, both feature fully franked dividends and proven track records—but for a beginner, simplicity and sleep-at-night-factor really matter. Based on all the numbers and characteristics here, Soul Patts is my pick as a starter stock.

The post Soul Patts vs BHP: Which ASX share is best for beginners? appeared first on The Motley Fool Australia.

It's the type of nest egg that many Aussies aspire to have. They focus hard on building their superannuation balance, ensuring the fund is performing well, and adding extra voluntary contributions wherever they can.

It's a solid plan. But did you know that if you invest your superannuation wisely, you could also generate a passive income to live off when it's time to retire?

But how much passive income could a $650,000 balance realistically generate each month?

Let's break it down.

What passive income can I earn off a $650,000 superannuation balance?

The math is simple. 

To calculate your potential passive income, you simply need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

But the problem is that the answer varies widely depending on what that dividend yield is.

For example, $650,000 x 3% = $19,500 per year in dividend payments.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will be higher. That's because $650,000 x 4% = $26,000 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $32,500 every year in dividend payments off the same superannuation balance ($650,000 x 5% = $32,500).

Then, at a 6% yield, you could earn an annual passive income of around $39,000, and at 7%, it could be even higher, at around $45,500.

And so on… 

As your dividend yield increases, the passive income you can earn from your $650,000 superannuation balance also increases.

Note too that these figures are based on cash dividends before any tax or franking credit benefits.

Give me some ideas of what ASX shares I can invest my superannuation in

There is a huge range of shares out there, and their dividend yields vary significantly.

Some of my top picks would be defensive stocks. These are companies whose earnings tend to remain relatively steady throughout times of economic instability. They typically operate in "non-discretionary" industries where demand remains relatively stable even when consumer confidence dips. 

Their stable nature means they can help reduce the volatility of an overall investment portfolio. This is particularly valuable during times when geopolitical tensions are ongoing and inflation is stubbornly high.

These can be supermarket, telecommunications, or infrastructure stocks. Demand for food items and essential services is generally stable throughout all sections of the economic cycle. Think Coles Group Ltd (ASX: COL), TPG Telecom Ltd (ASX: TPG), and Chorus Ltd (ASX: CNU). These shares yield between 3% and 6%.

Major blue chips like Wesfarmers Ltd (ASX: WES) and BHP Group Ltd (ASX: BHP) are generally considered cyclical stocks but with strong defensive qualities (rather than pure defensive stocks). These types of shares are highly regarded for their dominant market position and stable dividends. At the time of writing, the shares yield around 3% to 4%.

Diversify your portfolio

Remember that if you want to aim for, say, a 5% yielding portfolio, not every stock in that portfolio has to yield 5%. You should aim for a diversified range of shares yielding varying amounts, which combined total 5%.

It's also best to focus on a diverse range of high-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

And you don't need to invest the whole sum in one go. Start with regular monthly investments and let compounding do some of the hard work for you.

The post How much passive income could I earn from a $650,000 superannuation balance? appeared first on The Motley Fool Australia.

For me, though, the choice is fairly clear.

If I were buying one today with a medium to long-term view, I would choose Telstra.

Telstra shares

The main reason I prefer Telstra is the strength of its core mobile business.

Australians rely heavily on mobile and internet connectivity, and Telstra has spent years investing in the network, spectrum, and infrastructure needed to maintain a leading position.

I like that combination of essential demand and an established competitive advantage.

Telstra also does not need rapid growth to produce a worthwhile result for shareholders. If it can keep customers, gradually increase earnings, and continue lifting its dividend, I think the investment case works well.

The current forecasts support that view. Consensus estimates point to earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

Fully franked dividends are forecast at 22 cents and 22.5 cents per share, respectively. That equates to a forward dividend yield of around 4.8% in FY27 and 4.9% in FY28, before considering franking credits.

For me, Telstra shares offer a fairly easy investment case to understand: strong mobile positioning, recurring demand, and attractive income.

TPG Telecom shares

TPG also has plenty going for it. The company owns established telecommunications brands and serves a large base of Australian mobile and broadband customers.

There is also the possibility of stronger earnings ahead. Consensus forecasts put earnings per share at 1.8 cents in FY26 before increasing to 4.4 cents in FY27.

The income forecasts initially look even more eye-catching. TPG is expected to pay dividends of 20 cents per share in FY26 and 22 cents per share in FY27.

At a share price of around $3.79, that represents forecast dividend yields of around 5.3% in FY26 and 5.8% in FY27.

But I would be cautious about reading too much into those numbers. The gap between forecast earnings and dividends makes the income story less straightforward than Telstra's. I would want greater confidence in the sustainability of those payments before choosing TPG primarily for passive income.

TPG may still reward investors from here, particularly if earnings recover strongly. I simply think Telstra shares give me a clearer long-term proposition today.

Foolish takeaway

This comparison comes down to which business I would feel more comfortable owning through the next several years.

For me, that is Telstra. Its leading mobile position, resilient demand, forecast earnings growth, and fully franked dividends give me more confidence in both the business and the income outlook.

TPG could still perform well, but I would put my money behind Telstra shares first.

The post Better buy: Telstra vs TPG Telecom shares appeared first on The Motley Fool Australia.

It's the type of nest egg that many strive for and one that can support a comfortable lifestyle during their retirement years. 

Many Aussies focus hard on building their superannuation balance, ensuring the fund is performing well and adding extra contributions wherever they can.

It's a solid strategy. But superannuation is more than just a savings pot to draw money from when you retire.

If invested wisely, your superannuation can also generate a passive income.

But how much passive income could the suggested $630,000 balance realistically generate each month?

Let's take a look.

What passive income can I earn off my $630,000 superannuation balance?

To calculate your potential passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

For example, $630,000 x 3% = $18,900 per year in dividend payments.

And as your dividend yield increases, the passive income you can earn off your $630,000 super balance also increases.  

The figures are also based on cash dividends before any tax or franking credit benefits.

Break it down for me by yield. What could I earn?

We already know what your portfolio can generate if it yields around 3%.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will go up too because $630,000 x 4% = $25,200 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $31,500 every year in dividend payments off the same superannuation balance ($630,000 x 5% = $31,500).

At a 6% yield, you could earn an annual passive income closer to $37,800, and at 7%, that could be even higher, at around $44,100.

And so on… 

Give me some options for ASX shares that yield around 4% or 5%

A 4% or 5% yielding portfolio on a $630,000 superannuation balance will earn around $25,200 to $31,500 every year.

That's a decent income, and there are a lot of quality high-yield ASX shares that yield around that level.

My top picks would be ASX blue chips like National Australia Bank Ltd (ASX: NAB), Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), Woodside Energy Group Ltd (ASX: WDS), Bendigo and Adelaide Bank Ltd (ASX: BEN), or Medibank Private Ltd (ASX: MPL). These blue chips are highly reputable stocks that all pay out around 4% to 5%.

Alternatively, defensive stocks like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), APA Group (ASX: APA), and TPG Telecom Ltd (ASX: TPG) are a good option because they are able to maintain stable earnings through each part of the economic cycle. And stable earnings translate to a stable dividend payout.

And what about high-yield options closer to 8%?

There are some high-yield options that could fit the bill. A yield around this level on a $630,000 superannuation balance could generate around $50,400 in annual passive income, but it comes with additional risk.

If high-yielding shares are still what you're after, these would be my top picks.

Your best bet would be to go for an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). 

If you're after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 8% at the time of writing.

The post How much passive income can I earn off a $630,000 superannuation balance appeared first on The Motley Fool Australia.

So, to narrow things down, let's see what Morgans is saying about the three in this article.

Are they buys, holds, or sells? Here's what it is recommending:

Deterra Royalties Ltd (ASX: DRR)

Morgans is a fan of this mining royalties company. It was pleased with Deterra Royalties' FY 2026 results and the quality of its earnings.

As a result, the broker has retained its buy rating with a $4.85 price target. It said:

A FY26 result that offered few surprises, but highlights DRR's quality earnings. EBITDA was -1% yoy, while underlying NPAT was +14% yoy. Final dividend of A 10.8cps trailed our estimate by 4%. A good business with an irreplaceable royalty at Mining Area C, and steady progress developing Thacker Pass (lithium royalty), but earnings growth from here is reliant on expanding its portfolio. We maintain a BUY rating, with a A$4.85 target price. DRR could benefit from a growing number of investors seeking inflation protection while also offering an above-market yield.

GQG Partners Inc (ASX: GQG)

This fund manager's half-year results were a touch short of the broker's expectations.

In response, Morgans has retained its accumulate rating (between buy and hold) with a trimmed price target of $1.52. It also highlights the potential for a significant dividend yield in the near term. It said:

GQG's 1H26 NPAT of US$228m, was -1% on the pcp, but +2% above consensus (US$225m).  We would summarise this result as resilient margins in a tough operating environment, offset by the key concern that GQG's investment performance is materially lagging its benchmarks on both a 1 and 3-year basis. In a shock, management also flagged GQG is now overweight technology and semiconductor stocks, except within its emerging markets portfolio. 

We leave GQG FY26F EPS forecasts largely unchanged, but lower outer years 3%–5% on reduced net flow assumptions; our GQG price target falls to A$1.52 (from A$1.66). The near-term operating environment remains difficult for GQG; however, we think it's hard not to see long-term value in the franchise at current levels, trading on ~7x FY1 PE with a ~>10% dividend yield. ACCUMULATE.

TPG Telecom Ltd (ASX: TPG)

Morgans notes that this telco delivered half-year results and full-year guidance that were largely in line with expectations. 

In light of this, the broker has responded by retaining its accumulate rating and $4.00 price target on TPG Telecom's shares. It commented:

TPG's 1H26 results and reiteration of full-year guidance were largely in line with expectations. For us the highlights were: a clean and easily digestible set of accounts that sets the path for growth; double-digit growth in FCF to equity; and an 11% YoY increase in the dividend to 10cps, which is now 25% franked. We make immaterial forecast changes, retaining our $4 target price and our Accumulate recommendation.

The post Buy, hold, sell: Deterra Royalties, GQG Partners, and TPG Telecom shares appeared first on The Motley Fool Australia.

Despite yesterday's green day breaking a six-day losing run, the pessimists were back in charge once more this Friday, with the index opening lower and staying in red territory all session. By the time trading wrapped up, the ASX 200 had lost 0.27%. That leaves the index at 9,058.9 points as we head into the weekend.

This rough end to the trading week for the local markets came after an even bleaker night across the Pacific on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, dropping a hefty 1.32%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did a little better than that, but still lost a flat 1% of its value.

But let's get back to ASX shares now and examine how this Friday's negativity spilled over into the different ASX sectors.

Winners and losers

Despite the market's retreat this session, there were still a few sectors that made hay.

But first, it was real estate investment trusts (REITs) that were first to the torch. The S&P/ASX 200 A-REIT Index (ASX: XPJ) was thumped today, cratering by 2.4%.

Consumer discretionary shares were slammed as well, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) tanking 1.82%.

Healthcare stocks weren't popular either. The S&P/ASX 200 Healthcare Index (ASX: XHJ) took a 1.79% plunge this Friday.

Tech shares also had a day to forget, evidenced by the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 1.36% dive.

Consumer staples stocks were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) shrank by 0.42%.

Our last losers today were industrial shares, with the S&P/ASX 200 Industrials Index (ASX: XNJ) slipping 0.03%.

Turning to the winners now, it was gold stocks that shone the brightest. The All Ordinaries Gold Index (ASX: XGD) recorded another 1.41% jump this session.

Communications shares were a little tamer, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 0.32% lift.

Energy stocks were dead even with that. The S&P/ASX 200 Energy Index (ASX: XEJ) also added 0.32% to its total.

In a rare three-way tie, utilities shares matched that figure too, with the S&P/ASX 200 Utilities Index (ASX: XUJ) advancing 0.32% as well.

Financial stocks stayed on investors' good side too. The S&P/ASX 200 Financials Index (ASX: XFJ) ended up climbing 0.23% today.

Finally, mining shares managed to record a small rise, as you can see by the S&P/ASX 200 Materials Index (ASX: XMJ)'s 0.17% bump.

Top 10 ASX 200 shares countdown

It was NRW Holdings Ltd (ASX: NWH) that topped the index chart this Friday. NRW shares roared 8.04% higher to close the week at $8.20 each.

There wasn't any news out from the company today, but NRW did drop its earnings yesterday, which still seems to be exciting investors.

Here's the rest of today's best:

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

What did TPG Telecom report?

• Service revenue up 0.5% to $2,071 million
• Mobile service revenue up 3.1% driven by 64,000 more mobile subscribers
• EBITDA up 1% to $821 million (up 4.5% pro forma)
• NPAT of $35 million, up from $32 million last year
• Operating free cash flow of $199 million, up 16.4% pro forma
• Interim dividend increased to 10 cents per share, 25% franked

What else do investors need to know?

TPG Telecom highlighted continued growth in its mobile business, propelled by its digital-first brands and network expansion, helping boost average revenue per user to $35.21. Home broadband revenue slipped by 1.9% amid fierce competition, but the business expects further subscriber improvement in the second half of FY26.

The company has realised gains from selling its fibre and enterprise assets to Vocus Group in 2025, allowing for lower borrowing costs and a stronger balance sheet. Its fixed wireless business also returned to growth, supported by new standalone 5G offerings.

What did TPG Telecom management say?

Iñaki Berroeta, CEO and Managing Director, said:

TPG Telecom delivered a strong first-half result, demonstrating the benefits of network sharing and the strength of our multi-brand strategy, along with disciplined delivery, and a continued focus on value for our customers and shareholders. We are executing our strategy with discipline, improving profitability and generating strong cash flows.

The benefits of our simplified operating structure and ongoing network and IT systems enhancements are supporting improving business performance and shareholder returns. With clear strategic foundations in place, we remain focused on delivering sustainable long-term value. TPG Telecom is well-positioned for the years ahead as we deliver ongoing growth in free cash flow, earnings per share and return on capital.

What's next for TPG Telecom?

The board has reaffirmed its FY26 guidance, targeting EBITDA between $1,665 million and $1,735 million, and capital expenditure of around $750 million. Management expects ongoing improvements in free cash flow as past investments in network and IT start to pay off, along with further momentum from mobile subscriber growth and digital-first strategies.

TPG Telecom says it will keep prioritising sustainable growth and increasing dividends in line with profit and cash flow over time. The company continues with its operational simplification and cost controls to drive long-term shareholder value.

TPG Telecom share price snapshot

The TPG Telecom share price has significantly underperformed the S&P/ASX 200 Index (ASX: XJO) over the past 12 months with a decline of around 33%.

View Original Announcement

The post TPG Telecom shares on watch as earnings and dividend edge higher in HY26 appeared first on The Motley Fool Australia.

Your superannuation offers the opportunity to receive concessional tax treatment, and you get the chance to grow your balance through the power of compounding.

Once you retire and move into the pension phase, your super can also provide a regular stream of passive income.

But how much superannuation do you need to accumulate to generate a passive income high enough to live comfortably on? 

Here's a breakdown, using a target of $8,000 a month in passive income as an example.

How much do I need in my superannuation to get a $8,000 monthly passive income?

First you need to work out what $8,000 per month translates to over the year.

So, $8,000 x 12 = $96,000.

Then you'll need to divide your annual passive income ($96,000) by the dividend yield of your overall portfolio. 

For example, $96,000 ÷ 3% = $3.2 million (that's the superannuation portfolio size you'd need).

The trick is that the answer varies significantly depending on the dividend yield of your portfolio.

For example, a superannuation portfolio with a dividend yield of around 6% only needs to be around half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Ok, so what balance do I need for a portfolio yielding 4%, 5% and 6%?

Say your overall portfolio has a slightly higher dividend yield of around 4%, you'll need a balance of around $2.4 million to earn the same $96,000 per year (equivalent to $8,000 per month) in passive income. That looks like: $96,000 ÷ 4% = $2.4 million.

Then, if the yield of your portfolio is around 5%, your superannuation balance would need to be closer to $1.9 million to earn the same dividend income.

For a 6% yielding portfolio, you'd need a balance of closer to $1.6 million to earn the same amount.

And so on…

Note that most ASX dividend shares pay dividends on a semi-annual or yearly basis. This means that while you could target the equivalent of $8,000 per month in passive income, you won't actually receive the money on a month-by-month basis, but instead in a lump sum.

What ASX shares can I buy that yield 3-6%?

There are a huge number of ASX dividend shares available for superannuation investment. 

Here are some of my favourites.

For ASX shares yielding around 3% I'd pick large-cap blue-chips like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), Woolworths Group Ltd (ASX: WOW), or Macquarie Group Ltd (ASX: MQG).

ASX shares yielding around 4% would be something like banking giants National Australia Bank Ltd (ASX: NAB) or ANZ Group Holdings Ltd (ASX: ANZ), Telstra Group Ltd (ASX: TLS), or Nick Scali Ltd (ASX: NCK).

For 5% yielding ASX shares, my picks would be Woodside Energy Group Ltd (ASX: WDS), Sonic Healthcare Ltd (ASX: SHL), TPG Telecom Ltd (ASX: TPG) or Servcorp Ltd (ASX: SRV).

And then for 6% yielding options, I'd opt for something like Metcash Ltd (ASX: MTS), Origin Energy Ltd (ASX: ORG), or Dexus (ASX: DXS).

The post How much superannuation is needed to target $8,000 per month in passive income? appeared first on The Motley Fool Australia.

The telco shares are now down around 9% year to date and 36% lower than this time last year.

What happened to TPG Telecom shares?

In November last year, TPG Telecom shares crashed around 33% in a single day in what was the largest one-day share-price fall in the company's history.

The share price fell because it traded ex-dividend for a very large capital return to shareholders. 

TPG had previously sold its fibre assets and Enterprise, Government & Wholesale business to Vocus, receiving about A$4.7 billion in proceeds. It then decided to return A$3 billion of that cash to shareholders. The payment totalled A$1.61 per share.

On the ex-dividend date (13th of November), anyone buying the shares was no longer entitled to receive the A$1.61 payment. As a result, the market adjusted the share price downward by roughly the value of that distribution.

While this technically isn't bad news for investors, it did cause a complete reevaluation of TPG Telecom's share price value.

And one that the company has struggled to come back from.

The shares climbed gradually higher in the first quarter of 2026, but then tumbled again in May and into early June after the company released its first-half results, and investors became concerned about its outlook. 

At the time, management reaffirmed its FY26 EBITDA guidance of $1,665 million to $1,735 million (up from $1,637 million in FY25). But, they also warned that "EBITDA delivery is anticipated to be weighted to a stronger second-half performance".

The question now is whether the company can deliver on its guidance. Can the shares stage a comeback? Or is there more downside ahead?

Here's what the experts think.

Are the shares a buy, sell, or hold?

Analyst sentiment for TPG Telecom looks to be pretty mixed right now, but there are some bullish outlooks ahead.

Market Index data shows that the majority of brokers have a hold rating on the stock. But the $3.99 average target price implies a potential 13% upside at the time of writing. 

Analysts on TradingView are more bullish. The data shows that the majority (seven out of 13) have a buy or strong buy rating on TPG Telecom shares. Another five have a hold rating, and one rates the stock as a strong sell.

The average $4.02 target price implies a potential 15% upside ahead. Although some forecast that the shares have the potential to jump 31% higher to $4.60 a piece over the next 12 months.

JP Morgan upgraded its rating on the ASX 200 telecommunications shares last month. The broker has a hold rating and $3.70 target price on the shares, implying a small 6% potential upside ahead.

The post Can TPG Telecom shares rebound from an all-time low? appeared first on The Motley Fool Australia.

This follows US President Donald Trump claiming a peace agreement with Iran could be reached this weekend.

Meanwhile, brokers have indicated new confidence in several ASX 200 shares.

Let's check them out.

Deep Yellow Ltd (ASX: DYL)

The Deep Yellow share price is $1.41, up 3.3% today.

Over the past month, this ASX 200 uranium share has fallen 22%.

Jefferies upgraded Deep Yellow shares to a buy rating on Monday.

The broker has a 12-month price target of $1.90.

This suggests a potential 35% upside ahead.

TPG Telecom Ltd (ASX: TPG)

The TPG share price is $3.70, down 0.1% today.

Over the past month, this ASX 200 telecommunications share has fallen 9%.

JP Morgan upgraded TPG Telecom shares to a hold rating this week.

The broker has a 12-month price target of $3.70.

This implies the stock is fully priced.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $5.20, up 1.6% today.

Over the past month, this ASX 200 consumer staples share has dropped 15%.

Ord Minnett upgraded Graincorp shares from an accumulate to buy rating this week.

The broker said:

We note that at the first-half FY26 results release on 14 May, there were growing concerns for the FY27 crop due to significant areas of northern NSW and Queensland not having sufficient soil moisture profiles to plant and a weather forecast suggesting a dry winter and the chance of El Nino.

Relieving rains of the past two weeks, however, have washed away these fears.‍ The FY27 crop is likely to be smaller than FY26, but it is now unlikely to be the disaster it was shaping up to be.

In Ord Minnett's view, this makes the 21% retracement in the GrainCorp share price since 14 May seem like a significant overreaction.

The broker has a 12-month price target of $7.25 on Graincorp shares.

This suggests a potential capital gain of almost 40% over the next year.

Vysarn Ltd (ASX: VYS)

The Vysarn share price is 98 cents, down 0.5% today.

Vysarn delivers production services to the resources, utilities, and construction sectors.

Morgans upgraded this ASX materials small-cap share after Vysarn announced an acquisition.

The broker lifted its rating from speculative buy to buy.

It also raised its target price from 90 cents to $1.10.

This implies a potential 12% upside ahead.

Morgans said:

VYS is acquiring NewGround, adding highly accretive (~25% EPS) annuity-style earnings that, alongside greater customer-base diversification in the industrial division, materially increases earnings visibility.

The limited upfront cash component of $8.3m preserves balance sheet flexibility, providing further capacity to continue building out its integrated water-services platform via acquisitions.

Incorporating NewGround from early October, we raise our EPS forecasts in FY27 and FY28 by +19 and +24% respectively.

Reflecting the improvement in earnings quality and reduced volatility, we upgrade VYS from Speculative Buy to Buy.

While the Kariyarra asset management business carries a binary outcome, at the current share price, investors are getting this optionality for free.

The post 4 ASX shares upgraded by brokers this week appeared first on The Motley Fool Australia.

They are owned for yield, not growth, and they tend to move slowly in both directions.

TPG Telecom Ltd (ASX: TPG) has offered investors rather less stability than the sector's reputation might suggest, with shares down 30% over the past twelve months.

But this week's Investor Day contained a commitment that income investors specifically should pay close attention to.

What TPG said at its Investor Day

TPG Telecom held its annual Analyst and Investor Day on Tuesday 3 June 2026.

The company presented a first-half 2026 trading update alongside its medium-term strategic direction.

TPG delivered two important messages for income investors.

First, mobile service revenue continues to grow strongly. The company forecasts 70,000 to 80,000 new mobile subscribers in the first half of FY2026. EBITDA growth is also expected to outpace revenue growth as the company's cost discipline takes hold.

Second, and most importantly for dividend investors, management confirmed that dividend growth is expected to continue in line with sustainable profit and cash flow growth.

This is a meaningful upgrade to the dividend policy from prior years when capital was being prioritised for debt reduction.

The financial transformation behind the dividend commitment

The dividend growth commitment is credible because of the financial transformation underpinning.

In FY2025, TPG's operating free cash flow almost doubled to $1.91 billion. This was a dramatic improvement from prior years when heavy capital expenditure on the mobile network consumed the bulk of cash generation.

Net bank borrowings fell from $4.1 billion to $1.361 billion over the same period, dramatically reducing the financial risk that had previously constrained dividend capacity.

Total FY2025 dividends paid were $0.18 per share, franked at 30%.

Management is now guiding for FY2026 EBITDA of $1.665 billion to $1.735 billion and capital expenditure of approximately $750 million.

This combination implies continued strong free cash flow generation and growing capacity to lift the dividend.

The current yield picture

At the current TPG share price, the trailing dividend yield sits at approximately 4.9% on a partially franked basis.

This yield does not compare unfavourably to the big four banks, particularly ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), which carry their own earnings risks in the current high-rate environment.

Furthermore, the partially franked dividend does carry some franking credit value for Australian taxpayers. This should improve their effective after-tax yield above the headline figure.

The key question for income investors is not the current yield but the trajectory.

A business with nearly doubling free cash flow, dramatically lower debt, and a new dividend growth policy is precisely the setup from which reliable income growth tends to emerge over a three to five-year horizon.

The risks worth knowing

TPG's broadband subscriber base has been declining as the company shifts focus toward mobile and away from legacy fixed-line services.

This transition has created some revenue headwinds in the near term that management is working to offset through cost reduction and mobile subscriber growth.

The company also flagged that spectrum renewal costs from 2028 represent a capital expenditure risk that will need to be managed carefully.

Competition from Telstra (ASX: TLS) and Optus in the mobile market remains intense, and any meaningful loss of mobile market share would directly threaten the earnings trajectory that underpins the new dividend policy.

Foolish takeaway

TPG shares have underperformed the market significantly over the past year.

That underperformance has created a more attractive entry point for income investors than has been available in some time.

A dividend growth commitment backed by nearly doubling free cash flow and dramatically reduced debt is not something to overlook.

For patient income investors comfortable with a telco turnaround story, TPG shares deserve serious consideration.

The post TPG Telecom just raised its dividend. Here's what that means for income investors 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:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 2% to $12.17. Investors have been selling this gold miner's shares on Tuesday following a pullback in the price of the precious metal overnight. Traders were selling gold after US-Iran peace talks ended abruptly and sent oil prices charging higher. This has sparked fears that inflation will rise and lead to interest rate hikes, which would likely be bad news for the gold price.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down 3.5% to $72.44. This appears to reflect broad weakness in the retail sector today. In addition, the retail giant was the subject of a bearish broker note out of Morgan Stanley this morning. According to the note, the broker has retained its underperform rating and $70.00 price target on its shares. It believes the company could fall short of consensus expectations given the weakening housing market.

Scentre Group (ASX: SCG)

The Scentre Group share price is down 4.5% to $3.60. This morning, the team at Macquarie Group Ltd (ASX: MQG) downgraded this shopping centre operator's shares to an underperform rating (from neutral) with an improved price target of $3.45. The broker made the move largely on valuation grounds, highlighting that the company's shares have risen strongly from their lows and now trade at a premium to net tangible assets.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down 7% to $3.71. This follows the release of a first half trading update from the telco at its Investor Day event. TPG Telecom revealed that it expects mobile subscriber growth of 70,000 to 80,000 during the first half of FY 2026 driven by Digital First and MVNO. Home Broadband subscribers are expected to fall 45,000 for the half. It highlights that competitive dynamics remain challenging in NBN. Nevertheless, management has reaffirmed its FY 2026 EBITDA guidance of $1,665 million to $1,735 million (up from $1,637 million in FY 2025). However, it has warned that "EBITDA delivery is anticipated to be weighted to a stronger second-half performance."

The post Why Evolution Mining, JB Hi-Fi, Scentre Group, and TPG Telecom shares are falling today appeared first on The Motley Fool Australia.

What did TPG Telecom report?

• FY25 pro forma EBITDA: $1,637 million; FY26 guidance: $1,665m–$1,735m
• FY25 capex (additions basis): $771 million; FY26 guidance: approx. $750 million
• Operating free cash flow (FY25): $1,137 million
• Return on invested capital (FY25): 5.42%
• Dividend per share (FY25): 18 cents; intention to increase as profits grow
• Mobile service revenue growth in FY25: +4.2%

What else do investors need to know?

TPG Telecom continues its transition to a leaner, mobile‑first business, following the merger with Vodafone and peak network investment. The company is delivering solid subscriber growth, especially across its digital‑first and value segments, with around 70,000–80,000 new mobile subscribers forecast for the first half of FY26, led by strong demand for digital brands and MVNOs.

Cost control remains a priority, with TPG targeting $100 million in operating cost savings by FY29. Capex is forecast to decline as major investment projects wind down, with further reductions anticipated from FY27. Management reiterated its intention to maintain an investment grade credit rating while funding future spectrum renewals from strong cash flow and borrowing headroom.

What's next for TPG Telecom?

Looking ahead, TPG Telecom expects EBITDA growth to outpace revenue growth, supported by ongoing cost reductions and a greater customer shift toward digital-first brands. The business is well positioned to benefit from its simplified brand portfolio and improved network capabilities, targeting further market share gains in both consumer and business mobile.

Dividend growth is expected to continue in line with sustainable profit and cash flow growth. The company is also keeping a close eye on regulatory and technological changes, particularly spectrum renewal costs from 2028, and is leveraging digital and artificial intelligence to enhance customer experience and operating efficiency.

TPG Telecom share price snapshot

Over the past 12 months, TPG Telecom shares have declined 23%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post TPG Telecom posts mobile growth and strong free cash flow in 2026 update appeared first on The Motley Fool Australia.

In morning trade, the ASX 200 telco share is down a massive 69% to a two-year low of $1.91.

This has knocked more than A$2 billion off the Singapore-based mobile and broadband operator's market capitalisation.

What is Tuas?

As mentioned above, Tuas is a Singapore-based telco, chaired by former TPG Telecom Ltd (ASX: TPG) CEO and founder David Teoh.

In March, the company released its half-year results and revealed a 25.5% increase in revenue to S$91.9 million. Things were even better for its earnings, with EBITDA rising 27% to S$42.1 million, and net profit after tax increasing over 500% to S$18.7 million.

The key driver of this growth was its SIMBA mobile business, which has recorded strong subscriber growth in broadband services and mobile services.

However, the shock news today is that Tuas' SIMBA business has allegedly been using spectrum that it doesn't own.

As a result, the Infocomm Media Development Authority of Singapore (IMDA) has suspended its review of Tuas' proposed acquisition of M1 Limited.

M1 acquisition

Last year, Tuas raised A$435 million from institutional and retail investors to partly fund the acquisition of M1 Limited.

It believed that the deal would create a stronger, more competitive telco in Singapore by combining SIMBA's fast-growing digital consumer business with M1's established network and enterprise capabilities, enabling greater scale, efficiency, and innovation.

The two parties agreed on a deal valued at S$1,430 million on a debt-free and cash-free basis.

However, there appear to be concerns that this deal could now be on the rocks following this news.

In a release this morning, Tuas stated:

The circumstance identified by the IMDA as giving rise to its decision to suspend the review is that it had learned that Simba may have been using radio frequency bands that it was not authorised to use, which would be a breach of the Telecommunications Act and the conditions of Simba's Facilities-Based Operations Licence. Simba is fully co-operating with the IMDA. The Board of Tuas will also be reviewing the circumstances concerning the alleged unauthorised use of spectrum.

Speaking about the share purchase agreement, the company added:

Tuas notes that the Share Purchase Agreement for the Transaction has a long-stop date of 21 May 2026. At this time, discussions with the counterparties to the Share Purchase Agreement are ongoing. Tuas will keep the market advised as developments occur.

It also remains to be seen if there will be penalties imposed on Tuas if it is found to have breached the Telecommunications Act in Singapore.

The post Why are Tuas shares crashing 69% on Monday? appeared first on The Motley Fool Australia.

And he liked what he saw.

Enough so that he issued a buy recommendation for engineering and professional services company Worley Ltd (ASX: WOR), which has a market cap of around $6.0 billion.

Grimm also has a buy recommendation on ASX 200 telco TPG Telecom Ltd (ASX: TPG), which commands a market cap north of $8 billion.

Here's why he expects their share prices, and market caps, are set to grow (courtesy of The Bull).

Should you buy Worley shares today?

"Worley is an engineering and construction group," said Grimm. "It recently stepped back from underlying earnings before interest and tax growth due to delays on Middle East projects."

That news was delivered in a market update on 20 April.

While Worley reported that its projects in the Middle East have not been cancelled following the outbreak of hostilities, the ASX 200 heavyweight did say there were some delays.

As such, management forecast that the company's full year FY 2026 earnings before interest, tax and amortisation (EBITA) will take a hit in the range of $30 million to $40 million.

Despite these impacts, Worley said it still expects to achieve year on year revenue growth in FY 2026.

According to Baker Young's Grimm:

We believe the longer-term outlook remains supportive. Structural trends, such as de-globalisation of supply chains and increasing investment in energy efficiency, align closely with WOR's core capabilities.

Summing up his buy recommendation on the ASX 200 shares, Grimm said, "Earnings volatility and missed expectations have weighed on sentiment. But the company is trading on an undemanding valuation relative to its medium-term growth potential."

Worley shares trade on an unfranked 4.1% trailing dividend yield. The stock is down just over 2% in 12 months.

Which brings us to…

ASX 200 telecom accelerating growth

Commenting on his buy recommendation for TPG Telecom, Grimm said:

Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue.

And he noted that the ASX 200 share's strategic operational shift is starting to pay off.

According to Grimm:

Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum. The company's strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth.

The stock screens as relatively attractive compared to peers.

TPG shares are down about 20% over 12 months and trade on a partly franked 4.4% trailing dividend yield.

The post Why these 2 ASX 200 heavyweights just got a big buy call appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about three big names, courtesy of The Bull.

Are they buys, holds, or sells this week? Let's find out:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Baker Young has labelled gaming technology company Aristocrat Leisure as a hold this week.

Although it thinks that its valuation is reasonable, it has a few concerns with promotional intensity. It said:

Aristocrat Leisure designs, develops and distributes gaming content, platforms and systems. The company has experienced a steep share price fall despite a solid underlying operational performance. Attention is likely to focus on promotional intensity and machine level margins in the upcoming interim result.

Outside the early COVID-19 period, the stock was recently trading towards the lower end of its historical range. Supported by a modest dividend yield and ongoing buy-back capacity, we consider the current valuation reasonable and maintain a hold position.

TPG Telecom Ltd (ASX: TPG)

Baker Young is more bullish on this telco and believes its shares could be a buy this week.

The broker highlights TPG Telecom's strategic shift away from infrastructure ownership as a positive. And compared to peers, it feels that the company's shares are attractively priced. It said:

Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue. Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum.

The company's strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth. The stock screens as relatively attractive compared to peers.

Westpac Banking Corp (ASX: WBC)

Over at Fairmont Equities, its team has put a sell rating on Westpac shares this week.

It has concerns over current trading conditions, with higher interest rates potentially causing challenges for the bank. It said:

We had previously been bullish on the banks when they were trending higher from high levels of momentum. However, they are stalling at current levels. A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks. In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC's share price.

The post Buy, hold, sell: Aristocrat, TPG Telecom, and Westpac shares appeared first on The Motley Fool Australia.