There are some businesses that may well see their earnings increase because of the flow-on effects of the inflation. Even excluding these shorter-term effects, both of the businesses I'm going to talk about have an attractive long-term future, according to experts.

Experts from the fund manager Wilson Asset Management have picked out two leading ASX 200 blue-chip shares worth owning that are in the WAM Leaders Ltd (ASX: WLE) portfolio, which is a listed investment company (LIC) that targets the "highest quality Australian companies".

Let's take a look at what the experts like about the two businesses and what they're seeing right now.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price rose in March as it benefited from the higher oil and LNG prices amid the events in the Middle East and the disruption to the shipping flows in the Strait of Hormuz.

WAM notes that Woodside has no operations in the affected area, leaving it well positioned to benefit from the supply shock.

Last month, the ASX energy share also confirmed the permanent appointment of Liz Westcott as managing director and CEO, who reaffirmed the growth strategy, with a focus on project execution and shareholder value creation.

On top of that, an investor site visit to the Louisiana LNG project affirmed that the development remains "on schedule and on budget", with de-bottlenecking opportunities identified.

The fund manager concluded its thoughts on the ASX 200 blue-chip share:

The company continues to be a key holding in the WAM Leaders investment portfolio with its geographical diversification and pipeline of growth projections positioning the company well in the current environment.

Ampol Ltd (ASX: ALD)

The other business that WAM Leaders highlighted is Ampol, which also saw its share price rise during March following higher oil prices and "materially stronger refining margins following the disruption to Middle Eastern oil supply".

Refining economics are, according to WAM, "highly sensitive to margin movement", therefore the near-term refining environment is "expected to improve as global supply tightens and as China restricts diesel and gasoline export contracts from major state refiners".

The fund manager also noted that the Australian Government has lifted the fuel security services payment thresholds, providing greater downside protection for the ASX 200 blue chip's refining business through the cycle.

The ACCC's phase 2 review of Ampol's proposed acquisition of EG Australia's fuel and convenience retail network also progressed, with sites under review narrowing from 115 to 54. A determination is due by 5 June 2026.

The post 2 ASX 200 blue-chip shares worth owning in April 2026 appeared first on The Motley Fool Australia.

Each state has a different school holiday period, with NSW, Queensland, and Victoria among the states commencing holidays today.

Tasmania has the latest school holiday schedule this Easter season. The school break in our smallest state runs from 18 April to 3 May.

So, here's a list of all the ASX shares due to go ex-dividend over the coming weeks through to 3 May.

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

Ex-dividend dates give ASX investors two opportunities.

Either buy before the date to receive the dividend, or wait until ex-dividend day, when the share price will likely drop, to buy then.

ASX shares with ex-dividend dates this month

The post 21 ASX shares going ex-dividend over the school holidays appeared first on The Motley Fool Australia.

What did WAM Leaders report?

• Interim fully franked dividend of 4.8 cents per share
• Dividend relates to the period ending 31 December 2025
• Record date: 16 April 2026; Ex-dividend date: 15 April 2026
• Payment date: 30 April 2026
• Dividend Reinvestment Plan (DRP) available with no discount

What else do investors need to know?

The declared dividend will be paid entirely in Australian dollars, with a franking credit of 30% attached. Shareholders who wish to participate in the company's DRP must submit their election by 5pm on 20 April 2026. Those who do not elect to reinvest will receive their dividend as a cash payment.

The DRP price will be based on the volume weighted average market price (VWAP) of WAM Leaders shares traded on the ASX over the four trading days commencing on the ex-dividend date.

What's next for WAM Leaders?

Shareholders can look forward to receiving their dividend at the end of April 2026. Eligible investors may choose between cash dividends or reinvesting via the DRP, depending on their individual investment strategies and goals.

WAM Leaders Limited's continued commitment to fully franked dividends may appeal to income-focused investors, particularly those seeking reliable distributions in the listed investment company sector.

WAM Leaders share price snapshot

Over the past 12 months, WAM Leaders shares have risen 6%, which is in line with the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post WAM Leaders announces fully franked interim dividend for 2026 appeared first on The Motley Fool Australia.

These picks are companies currently in the portfolio of the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE), which aims to actively invest in the highest-quality ASX shares. These picks are usually larger businesses.

One of the ASX 300 shares is a large steel producer, while the other is a uranium business.

BlueScope Steel Ltd (ASX: BSL)

WAM describes BlueScope as a global supplier and manufacturer of steel products for the building and construction industries.

In January, the business announced it had received a non-binding indicative takeover proposal of $30 per share from a consortium that included SGH Ltd (ASX: SGH) and Steel Dynamics (NASDAQ: STLD). This helped the BlueScope share price rise around 25% during January 2026.

The BlueScope Steel board decided to reject the proposal, saying that it materially undervalued the company, particularly when taking into account the company's $2.8 billion property portfolio.

After that, the board decided to declare a $1 per share unfranked special dividend. The new CEO, Tania Archibald, pointed out additional cost-reduction opportunities totalling an additional $150 million for the ASX 300 share.

The fund manager noted that BlueScope Steel has been a core holding in the WAM Leaders investment portfolio, and it continues to see "upside not yet reflected in the current share price, underpinned by strong US spreads and an improving outlook for the demand amongst the North American market."

Nexgen Energy (Canada) CDI (ASX: NXG)

The fund manager describes Nexgen Energy as a Canadian uranium explorer and developer, with its key asset being the Rook I project in the southwestern Athabasca Basin.

Uranium prices rose 25% in January 2026, supported by an ongoing supply-and-demand imbalance and increased focus on data centres and the materials required to outfit and expand construction.

In January, the business announced a further expansion of the Patterson Corridor East uranium deposit, located 3.5km from the Rook I project, which may provide an extension of high-grade uranium ore and meaningfully extend the mine life at Rook I.

WAM said:

We remain positive towards NexGen Energy given the favourable near-term uranium market outlook and a pipeline of catalysts, including the receipt of final federal permits for Rook I, which would enable construction activities ahead of targeted commercial production in 2030.

All of that bodes well for the ASX 300 share, it seems.

The post Experts think these 2 ASX 300 shares are great buys in February appeared first on The Motley Fool Australia.

The businesses I'm going to talk about can provide the stability that investors are after.

I'm also expecting both of the following ASX blue-chip shares to provide investors with good passive income in FY26 and beyond.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that targets large businesses to generate investment returns for the portfolio. It aims to actively invest in the highest-quality Australian companies.

So, instead of just being one ASX blue-chip share, it owns a portfolio of shares.

Some of the businesses that it owns a larger position in compared to the ASX share market's position sizing include Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), Alcoa Corporation (ASX: AAI), James Hardie Industries plc (ASX: JHX) and Medibank Private Ltd (ASX: MPL).

As a company, the board of directors can declare the size of the dividend they want to pay, as long as there is a profit reserve to support the payout. WAM Leaders' portfolio has delivered an average return of 12.1% per year since inception in May 2016 (before fees, expenses and taxes), outperforming its ASX share benchmark by close to an average of 3% per year, which is an impressive record, in my view.

At 31 December 2025, the LIC had built up its profit reserve to 27.4 cents per share, which is enough to pay a dividend close to three years at the size of the FY25 payout. It has increased its annual dividend every year between FY17 and FY25, which is a pleasing record of consistency.

Its FY25 annual dividend translates into a grossed-up dividend yield of approximately 10%, including franking credits. I'm optimistic about slight dividend increases in the coming years.

Transurban Group (ASX: TCL)

Transurban is one of the largest toll road businesses in the world, with roads in Sydney, Melbourne, Brisbane and North America.

Growing populations in cities are a good tailwind for Transurban's ASX blue-chip share, increasing average daily traffic (ADT) on its roads. In the first quarter of FY26, group ADT rose 2.7% year-over-year, with Sydney ADT up 1.7%, Melbourne ADT up 3.2% year-over-year, Brisbane ADT up 2.6% and North America ADT up 6.8%.

Additionally, the business occasionally completes a new road (such as WestConnex or the West Gate Tunnel project) that can increase its potential to serve traffic and increase the volume of tolls.

The business is also benefiting from rising tolls over time, which is a promising outlook for revenue and earnings growth. The ASX blue-chip share is planning to increase its distribution per security by 6% in FY26 to 69 cents. That translates into a forward distribution yield of approximately 5%.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

Portfolio managers of listed investment company (LIC) WAM Leaders Ltd (ASX: WLE) revealed their purchase in an update this month.

Whitehaven is a thermal and metallurgical coal producer with six mines in the Gunnedah Basin of NSW and Bowen Basin of Queensland.

Wilson described Whitehaven Coal as a leading Australian producer with high quality assets and a robust balance sheet.

Why this fundie bought more Whitehaven shares

The portfolio managers explained their decision:

We increased our holding in Whitehaven Coal as coal prices began to firm after bottoming earlier in the year.

The company continues to deliver sound operational results despite a challenging backdrop and is executing cost out initiatives, with increased volumes at Blackwater and Daunia mines expected to drive unit cost reductions from FY2027.

Whitehaven Coal also maintains strong capital management flexibility, supporting shareholder returns through buybacks and dividends.

Recovering coal prices are a tailwind for Whitehaven shares.

Demand from China is ramping up, with the government intending to open more than 100 coal-fired power generators this year to supply electricity domestically and via export.

China is the world's largest coal producer, importer, and consumer.

Despite China's moves to adopt nuclear power as part of the green energy transition, coal continues to provide more than 50% of the nation's energy requirements.

China's coal production reached a record last year at 4.83 billion tonnes, but they still needed imported coal to keep the lights on.

Analysts at Trading Economics said:

China, by far the world's largest coal consumer, producer, and importer, continues to rely on the fuel to power its economy alongside the ongoing expansion of renewable energy.

However, Beijing has pledged to begin phasing down coal use before 2030.

What's happening with coal prices?

The coking (metallurgical) coal price is US$240.75 per tonne, up 1.5% over the past month and up 26% year over year.

Met coal has risen from a 12-month low of about US$169.70 per tonne in March.

The thermal coal price is US$109.35 per tonne, up 1% for the month and down 6% over 12 months.

It has risen from a 12-month low of US$93.70 per tonne in April.

This chart shows that Whitehaven shares have risen over the same period, rebounding strongly after the US tariff-inspired rout.

Should you buy this ASX 200 coal share, too?

The Whitehaven share price is $9.01 on Thursday, down 0.39%.

On the CommSec trading platform, 15 professional analysts offer a rating on Whitehaven shares.

The consensus rating is a hold. Four analysts say the ASX 200 coal share is a buy, and two say it's a moderate buy.

Six say hold, and three think Whitehaven shares are a strong sell following a 42% rally over 12 months.

This week, UBS reiterated its sell rating on Whitehaven and raised its 12-month share price target from $7.15 to $8.45.

Bell Potter kept its hold rating but also increased its price target from $7 to $8.40.

Ord Minnett reiterated its buy rating with a price target of $9.50.

The post Which ASX 200 coal share is this fundie buying more of? appeared first on The Motley Fool Australia.

One business is from the WAM Leaders Ltd (ASX: WLE) portfolio, which is a listed investment company (LIC) that focuses on the larger companies on the ASX. The other company is from the WAM Microcap Ltd (ASX: WMI) portfolio.

Let's get into those ideas. While they may not be some of the most well-known businesses on the ASX, they may be just as capable of delivering good returns for investors, if not more because the market isn't paying them a lot of attention.  

Whitehaven Coal Ltd (ASX: WHC)

WAM described Whitehaven Coal as a leading Australian coal producer with "high-quality assets and a robust balance sheet".

The investment team in charge of WAM Leaders revealed that the LIC recently increased its holding of Whitehaven Coal shares as coal prices began to "firm" after bottoming earlier in the year.

The ASX blue-chip share continues to deliver sound operational results despite a challenging backdrop and is executing cost-reducing initiatives with increased volumes at Blackwater and Daunia mines expected to "drive unit cost reductions from FY27".

The fund manager also noted that Whitehaven Coal maintains strong capital management flexibility, supporting shareholder returns through share buybacks and dividends.

Artrya Ltd (ASX: AYA)

WAM said that Artrya is a medical technology company focused on the detection and management of coronary artery disease and utilises artificial intelligence (A) to deliver accurate and non-invasive diagnoses in emergency and primary care settings.

The fund manager noted that the Artrya share price increased in December after Artrya announced it had secured its second US commercial customer, signing a three-year agreement with Northeast Georgia Health System (NGHS), one of its US foundation partners.

The agreement has a minimum value of US$0.3 million for the Salix Coronary Anatomy platform, with additional upside from per-scan fees for add-on modules.

It also supports Artrya's US growth strategy by moving a foundation partner into a paying customer and creating a reference site for further hospital contract wins.

Importantly, the Salix platform is expected to be rolled out across NGHS' five hospitals and broader network, signalling scope for wider adoption beyond an initial implementation.

WAM said Artrya also pointed to its Atlanta-based customer success team as a key enabler of smooth deployment and scalable customer onboarding as it grows in the US. The approval of Artrya's Heartflow Analysis module and additional customer contract wins are key near-term catalysts.

Both of these ASX shares could be pleasing opportunities at the current share prices.

The post 1 ASX blue-chip share and one small-cap share to buy in 2026: experts appeared first on The Motley Fool Australia.

The investment team from listed investment company (LIC) WAM Leaders Ltd (ASX: WLE) say they are investing in the highest-quality Australian companies.

While it owns many of the most recognisable names on the ASX, it holds less of some the biggest ASX blue-chip shares than the ASX 200 Index. The businesses it's most 'underweight' are: Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and National Australia Bank Ltd (ASX: NAB).

The names that it's most actively overweight on include the two that I'm going to cover in this article. The other three businesses that are most overweight include Rio Tinto Ltd (ASX: RIO), Aristocrat Leisure Ltd (ASX: ALL) and Whitehaven Coal Ltd (ASX: WHC).

Two of the businesses that the WAM team are excited about are the following large ASX 200 shares.

Alcoa Corporation CDI (ASX: AAI)

WAM described Alcoa as a global producer of aluminium, alumina and bauxite.

The fund manager noted that Alcoa delivered outperformance during November as the global aluminium market "tightened", with China reaching its capacity ceiling, structural deficits in the US and Europe, alongside accelerating demand across the globe.

The investment team highlights that Alcoa Corporation is also implementing several initiatives to increase productivity, reduce costs and optimise the ASX 200 share's asset portfolio.

WAM Leaders believes that the structural demand-supply imbalance in aluminium persists. With Alcoa Corporation's "attractive valuation" relative to global peers and ongoing operational improvements, WAM Leaders has made the business a core holding in the portfolio.

CSL Ltd (ASX: CSL)

The WAM investment team described CSL is a global biotechnology company developing plasma therapies, vaccines and treatments for rare diseases.

WAM Leaders attended the CSL capital markets day in the US during November and also met the management team. The investment team toured the manufacturing facilities and plasma collection centres in Kankakee (Illinois) and Holly Springs (North Carolina).

The fund manager said its investment team were encouraged by the additional disclosures by the ASX 200 share on demand drivers for immunoglobulin products and CSL's initiatives to grow market share, as well as progress in reducing plasma collection and fractionation costs.

WAM said the insights gained during these meetings have strengthened its confidence in the ASX 200 share's earnings profile and it sees valuation support for the current CSL share price.

The post 2 big ASX 200 shares this fund manager rates as buys appeared first on The Motley Fool Australia.

Rio Tinto is one of the most diversified miners in the world, with exposure to commodities such as iron ore, aluminium, copper, and other key resources.

Fund managers from listed investment company (LIC) WAM Leaders Ltd (ASX: WLE) are optimistic on the company. WAM Leaders aims to actively invest in high-quality Australian companies, with a focus on businesses listed within the S&P/ASX 200 Index (ASX: XJO).

The five businesses that WAM Leaders has the largest allocation to, compared to their size in the ASX share market, are Rio Tinto, Orora Ltd (ASX: ORA), WiseTech Global Ltd (ASX: WTC), Challenger Ltd (ASX: CGF), and Iluka Resources Ltd (ASX: ILU).

Wilson Asset Management pointed out that its key commodity exposures, supported by new policy signals from the Chinese government, helped drive the Rio Tinto performance in September. The Rio Tinto share price rose by 5.7% last month.

Why is the Rio Tinto share price a buy right now?

The investment team at WAM Leaders explained that major Chinese state-run iron ore purchaser China Mineral Resources Group (CMRG) blocked iron ore purchases from mining competitor BHP Group Ltd (ASX: BHP). This situation reportedly positively impacted Rio Tinto's iron ore pricing environment.

China still needs to purchase iron ore for its steel mills, so if it's not buying from BHP, then other ASX-listed iron ore shares can benefit.

WAM Leaders' fund managers also said that the company benefits from stronger relations with China because of the joint venture mining project, Simandou. This giant new project in Africa could have a sizeable impact on the global iron ore market. WAM said the Rio Tinto-Chinese relationship is significant given the volume of global iron ore demand influenced by Chinese policy decisions.

The investment team also said that the well-established pattern of supply chain interruptions in the industrial metals sector supported both aluminium and copper prices, offering further upside for Rio Tinto during the month.

WAM believes the Rio Tinto share price "effectively assumes an iron ore price well below the current market price", and the fund managers continue to see value in Rio Tinto, particularly over competitors in the sector.

Valuation snapshot

In 2025 to date, Rio Tinto shares have gone up by approximately 5%. According to the ASX, the business now has a market capitalisation of $46 billion.

The post Why the Rio Tinto share price looks like an undervalued buy right now appeared first on The Motley Fool Australia.

Argo Investments Limited (ASX: ARG)

The venerable Argo Investments is one of Australia's oldest and largest listed investment companies. Established in 1946, it has delivered consistent returns to shareholders. The firm now invests about $8 billion on behalf of more than 89,000 shareholders and has delivered an annualised total shareholder return of 6.2% over the past decade.

Australian Foundation Investment Company (ASX: AFI) 

AFIC's 10-year returns are almost a carbon copy of Argo's, coming in at 6.5%, and the similarities don't end there. AFIC is even older than Argo, established in 1928, and similarly looks to invest over the long term, focusing on safety and dividend payments. Investing in AFIC gives exposure to Australia's top blue-chip shares, with its largest holdings in stocks such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

Washington H Soul Pattinson & Company (ASX: SOL)

Soul Patts, as this investment outfit is generally known, has hit it out of the park over the past 12 months, delivering shareholders a return of 31.7%, and 14.4% over the past decade. The fund boasts that it has not missed a dividend payment since it was listed in 1903 and has increased dividend payments in each of the past 24 years.

WAM Leaders (ASX: WLE)

This fund looks to invest in large-cap companies "with compelling fundamentals, a robust macroeconomic thematic and a catalyst''. It claims to have returned 12.5% per annum since May 2016 and now manages just under $2 billion, so it must be doing something right. Currently, the fund's fully-franked dividend yield is sitting at 7%.

Ophir High Conviction Fund (ASX: OPH)

This fund looks to find high-quality companies which are generating good cash returns before the rest of the market catches on, or in their own words, when they are "typically under-researched and undervalued by the investment market''. The fund has notched up more than 300% in total net returns since inception in August 2015 and an impressive 26.7% over the past 12 months.

The post These are the five stocks I'd build a long-term portfolio around appeared first on The Motley Fool Australia.

A lot of investors are excited about the potential of Nextdc Ltd (ASX: NXT), including the fund managers of the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE).

WAM Leaders aims to actively invest in the highest-quality Australian companies and outperform the ASX share market.

WAM describes Nextdc as a leading Australian technology company providing the critical infrastructure underpinning the digital economy, delivering secure, high-capacity power and connectivity for global cloud providers, enterprises and government clients.

The business is working on data centres in a number of locations including Sydney, Melbourne, Geelong, Kuala Lumpur, Darwin, Perth, Tokyo, Gold Coast, Auckland and Sunshine Coast.

The company says it's delivering on more than 100MW of expansion capacity and is looking to expand into new markets.

Let's take a look at what is attracting the WAM Leaders investment team to this ASX AI stock right now.

Strong outlook for Nextdc shares

WAM said that the business delivered a "solid" FY25 result, supported by strong contracted utilisation and reduced funding concerns through a "clear outline of debt capacity and a shift towards a more capital-light model."

The fund manager also said that billing utilisation is ramping up faster than anticipated, which signals "potential upgrades to consensus forecasts." In other words, the business is making faster-than-expected business progress, which could lead to analysts increasing their financial expectations, potentially boosting the Nextdc share price.

WAM Leaders revealed that it established a position in the ASX AI stock earlier in the year when the Nextdc share price was "oversold on concerns around artificial intelligence (AI) demand" and the equity raising.

Why the fund manager is bullish on the ASX AI stock

The fund manager said recent developments have "materially strengthened" the outlook. It concluded its optimistic view on the company with the following:

With new joint ventures and debt funding reducing equity issuance risk, combined with sustained demand for AI and cloud infrastructure, Nexdc remains well-positioned as a critical enabler in the digital economy, with further opportunities for major contract wins and long-term earnings growth.

In FY26, the company is expecting to achieve net revenue in the range of A$390 million to A$400 million, up from A$350.2 million in FY25. Underlying operating profit (EBITDA) is expected to come between A$230 million to A$240 million, up from A$216.7 million. In other words, the business is expecting to see another year of solid growth in the 2026 financial year.

The post Why this ASX AI stock is a buy for significant long-term growth appeared first on The Motley Fool Australia.

When large companies are able to earn stronger profit margins than the smaller competitors, they're more compelling investments and can grow profit more from each additional dollar of revenue.

The fund manager Wilson Asset Management has outlined two appealing, large businesses in the WAM Leaders Ltd (ASX: WLE) portfolio. This listed investment company (LIC) is focused on the ASX large-cap shares. Let's take a look at why they're opportunities.

CSL Ltd (ASX: CSL)

WAM describes CSL as a global biotechnology company that's developing plasma therapies, vaccines and rare disease treatments.

The fund manager pointed out that in July, the company was a "standout" beneficiary of investment flows into the healthcare sector, driven by the ongoing unwinding of ASX bank share positioning.

WAM said previous setbacks marked an inflection point for the company, and this has led to the company taking a "more disciplined approach to capital allocation" which the fund manager expects to unlock a meaningful cost reduction opportunity in the near-term.

The investment team did point out that tariff implications "remain opaque", but the market's tolerance is increasing as "uncertainty is priced in" with the ASX blue-chip share.

CSL benefits from industry dynamics that are largely uncorrelated to the economic cycle and has demonstrated resilience through consistent delivery, according to WAM.

WAM concluded its thoughts on the ASX biotech share giant with the following:

Considering its historic multiples, long-term growth profile, and earnings growth exceeding 10% per annum, the company is attractively valued and well positioned to benefit from renewed investor interest and performance ahead.

WiseTech Global Ltd (ASX: WTC)

The other ASX blue-chip share that WAM highlighted is WiseTech, a provider of software solutions to the global logistics services industry.

WAM noted that last month the business announced the appointment of a permanent CEO, easing concerns about leadership uncertainty and governance, according to the fund manager.

The investment team noted that strong results from US technology companies bolstered the ASX tech share, while falling US bond yields made growth stock valuations "easier to justify", which helped reduce investor concerns about high stock prices.

One of the reasons why WAM Leaders is attracted to the ASX blue-chip share was its recent completion of the e2open acquisition, earlier than the market had been expecting.

WAM said:            

The acquisition significantly expands WiseTech Global's product offerings and customer base, and is expected to increase earnings from year one.

The post 2 strong ASX blue-chip shares rated as buys by this top fund manager appeared first on The Motley Fool Australia.

They also dominate the Aussie share market as two of the three biggest ASX 200 miners.

BHP comfortably holds top spot with Fortescue Ltd (ASX: FMG) and its iron ore empire claiming the silver medal.

Not far behind, Rio Tinto rounds out the trio to take bronze.

So, it's no surprise that both BHP and Rio Tinto have secured positions among the top 20 holdings in the WAM Leaders Ltd (ASX: WLE) investment fund.

Tell me more

WAM Leaders is a listed investment company managed by Wilson Asset Management, a well-known Australian fund manager.

The fund focuses on identifying large-cap companies with strong fundamentals, supported by a compelling macroeconomic backdrop and a catalyst for growth.

And both BHP and Rio Tinto tick all these boxes.

The Big Aussie

BHP operates on a global scale and is a leading producer of iron ore and metallurgical coal, both essential in steelmaking.

The company also owns nickel assets in Western Australia and is advancing a vast potash project in Canada to support global fertiliser production.

Last but not least, the 'Big Aussie' claims to hold the largest copper resource base in the world – a critical metal with mass industrial applications and a key role in the global energy transition.

A global force

Rio Tinto's operations span 35 countries around the world.

The group is a major player in iron ore production with a portfolio of 17 mines in the Pilbara region of Western Australia.

It is also a global leader in aluminium production and has significant copper exposure through operations in America and Mongolia.

Curiously, Rio Tinto is actively expanding into lithium – a key ingredient in battery technology – and could be on track to become the world's second largest producer of this critical modern-day metal.

Who takes the crown?

In its investment update for June, Wilson Asset Management revealed that Rio Tinto was overweight, and BHP was underweight in its WAM Leaders portfolio.

This indicates that the fund holds a larger position in Rio Tinto shares compared to BHP shares.

At least for now, that is.

With the reporting season now on the horizon, production and earnings updates from both companies could influence the fund's positions in the weeks ahead.

The battle of the two ASX 200 mining giants is far from over.

The post Does Wilson Asset Management prefer Rio Tinto or BHP shares? appeared first on The Motley Fool Australia.

We're going to look at some businesses identified by Wilson Asset Management (WAM) as leading opportunities within the WAM Leaders Ltd (ASX: WLE) portfolio. This listed investment company (LIC) is actively investing in the highest-quality Australian shares.

Let's take a look at which businesses the fund manager is excited by.

Zip Co Ltd (ASX: ZIP)

Zip shares are one of the opportunities picked out by the WAM Leaders team.

The investment team pointed out that the buy now, pay later business released a trading update in June that increased the company's FY25 guidance, after a strong performance in the US where total transaction value (TTV) growing by over 40% year-over-year.

The WAM Leaders team decided to buy Zip shares after market concerns due to weakening consumer spending and the potential for a bad US debt cycle triggered a sharp sell-off of the stock during March and April. WAM thought the ASX 200 stock's sell-off was driven by sentiment rather than fundamentals.

In the June update, Zip said there had been no material change to loss rates despite strong volume momentum, giving it the capacity to increase marketing in the US and help win new customers.

WAM Leaders concluded:

We continue to see upside given the considerable capacity for market share gains and relatively modest valuations.

James Hardie Industries plc (ASX: JHX)

The other ASX 200 share that WAM Leaders pointed out was James Hardie, a building products business with a significant presence in the US.

James Hardie claims to be the world's number one producer of fibre cement and fibre gypsum building solutions. It's also a leader in the European premium timber frame and dry lining business.

WAM noted that a merger between James Hardie Industries and US outdoor building materials company The AZEK Company was approved by AZEK shareholders in June, with the transaction completing on 1 July 2025.

The acquisition provides the ASX 200 stock with an expanded addressable market and accelerates growth through continued material conversion, according to WAM.

The fund manager revealed that James Hardie remains a "key holding" in the WAM Leaders investment portfolio.

It said:            

Despite near-term market headwinds, we remain constructive on the long-term structural fundamentals of the US housing market, as well as the company's ability to execute on the integration with AZEK.

The post Why Zip shares and this ASX 200 stock are a buy according to this fund manager appeared first on The Motley Fool Australia.

Wilson Asset Management recently released its monthly reports for each of its listed investment companies (LICs).

The reports reveal four ASX tech shares impressing Wilson analysts today.

Here is why they're feeling optimistic about these ASX technology stocks.

4 ASX tech shares with a bright outlook: analysts

Life360 Inc (ASX: 360)

In the May update for WAM Active Limited (ASX: WAA), Wilson analysts discussed the location-tracking software company, Life360.

Life360's 1Q FY25 update exceeded consensus estimates across all key metrics, they said.

Earnings increased by 32%, and the company upgraded its FY25 subscription revenue guidance.

The analysts said:

Additionally, Life360 announced a USD25 million investment in artificial intelligence (AI) safety firm Aura, signaling a strategic move to enhance its product offerings and market position.

We believe the market continues to underappreciate the opportunity within Life360's advertising business, whilst still in its infancy, has the capacity to match the size of the subscription business in the medium-term and expand revenue growth.

The Life360 share price closed at $31.95, up 1.17%.

Catapult Group International Ltd (ASX: CAT)

In the May update for WAM Capital Ltd (ASX: WAM), the analysts said this ASX sports tech solutions provider has several tailwinds.

They said:

Catapult Group International is benefitting from strong structural tailwinds and growing demand for data-driven sports analytics.

The company's management aims to grow the annualised contract value 10 times to approximately USD1 billion.

With a clear land-and-expand strategy, global reach and success in cross-selling, we believe this long-term target is achievable and reflects the company's strong competitive position in a growing market.

The Catapult share price closed at $5.79, up 3.58%.

TechnologyOne Ltd (ASX: TNE)

This ASX tech share is Australia's largest enterprise software-as-a-service (SaaS) company.

The TechnologyOne share price reached an all-time high of $42.88 on 6 June.

The WAM Capital analysts were impressed by TechnologyOne's half-year results, including a 31% rise in net profit after tax to $63 million.

The analysts said:

The company's strong financial results, along with its upgraded full-year profit guidance, strengthened investor confidence and contributed to the notable appreciation in its share price.

TechnologyOne shares finished the session at $40.35, down 0.37%.

WiseTech Global Ltd (ASX: WTC)

In the update for WAM Leaders Ltd (ASX: WLE), the analysts noted WiseTech's acquisition of the supply chain software company, e2open.

They said:

Bolt-on acquisitions are core to WiseTech Global's strategy, and this is their largest acquisition yet, with a purchase price of US$2.1 billion. We are supportive of the deal, given both the strategic rationale and that it is financially accretive.

The analysts said Wisetech is their top ASX tech share pick.

The Wisetech share price closed at $107.37, up 0.2%.

The post 4 ASX tech shares impressing analysts today appeared first on The Motley Fool Australia.

The funds management team that has shared their opinion on two important S&P/ASX 200 Index (ASX: XJO) shares is Wilson Asset Management, the group behind listed investment company (LIC) WAM Leaders Ltd (ASX: WLE).

Let's take a look at two ASX blue-chip shares that are in the WAM Leaders portfolio.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia's largest telecommunications business.

WAM pointed out that Telstra held an investor day in May, where it revealed its new 'Connected Future' strategy, which is in place until 2030. According to WAM, this was evidence that the recent Telstra share price strength has been justified.

The investment team are attracted to how the company is delivering continued growth in dividends, an ongoing share buyback, and solid earnings growth, which is "laying the foundation for further returns."

The fund manager pointed out that, in Telstra's own words, they have built their 'operating muscle' in recent years and are now looking to the future as a leader in connectivity and digital infrastructure.

WAM revealed that Telstra is a core holding in the WAM Leaders portfolio.

WiseTech Global Ltd (ASX: WTC)

The other ASX blue-chip share that WAM highlighted was the logistics software giant, WiseTech.

WAM noted that the WiseTech Global share price had a strong performance in May.

At the start of last month, it seemed to WAM that the ASX tech share was being pursued by investors as an oversold quality growth exposure, with some correlation to US technology.

Later in the month, WiseTech Global announced the acquisition of e2open, which is a cloud-based supply chain software company.

WAM says bolt-on acquisitions are core to WiseTech Global's strategy, and this is the biggest acquisition yet, with a purchase price of US$2.1 billion.

The fund manager said:

We are supportive of the deal, given both the strategic rationale and that it is financially accretive. WiseTech Global remains our top pick in the technology sector.

That's a pleasing vote of confidence for the ASX blue-chip share, in my opinion.

The post Why these ASX blue-chip shares are top buys for this fund manager appeared first on The Motley Fool Australia.

With the Reserve Bank of Australia (RBA) expected to deliver further rate cuts this year, term deposits are starting to look less appealing. 

In March, the average interest rate on a $10,000 term deposit in Australia was 3.2% per annum, according to CEIC Data. That's down from 3.25% in February, following the RBA's decision to cut the official cash rate by 0.25%.

With further rates on the horizon, starting later this month, that number is likely to trend lower over the rest of 2025.

This may prompt investors after passive income to search for better alternatives.

Why do dividends appeal so much to ASX investors?

Dividend investments have always been popular among retirees who seek a predictable cash flow to mimic a pay cheque, allowing them to budget accordingly. Recently, younger Australians have sought to build a portfolio of dividend investments to offset higher inflation and meet living costs. Dividend investing also provides considerable tax benefits in Australia due to the franking credits system. Fully franked dividends are among the most popular investments in Australia.

While exchange traded funds (ETFs) have surged in popularity in recent years, there are several listed investment companies (LICs) with attractive dividend yields. 

What are listed investment companies?

Listed investment companies (LICs) are managed funds that are listed on the ASX like any other share. They may trade above or below their net asset value (NAV), providing another way for investors to make money. 

While their management fees are higher than those of ETFs, they are actively managed. That can be particularly advantageous in volatile markets, allowing fund managers to buy oversold companies.

2 listed investment companies with yields above 7%

Independently owned investment manager Wilson Asset Management, which has been around since 1997, offers two attractive LICs with yields above 7%. 

The yield on these two LICs is well above that of most popular blue-chip ASX stocks, such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), which both offer yields of 5.0% and 2.9%, respectively. 

WAM Leaders Ltd (ASX: WLE) invests in ASX 200 companies. Investments are selected based on compelling fundamentals, a robust macroeconomic theme, and a catalyst. The LIC also aims to deliver a stream of fully franked dividends while preserving capital. WAM Leaders' share price has underperformed over the past year, declining 14%. However, this has boosted the dividend yield to 7.8%. That amounts to a grossed-up yield of 11.1%, which is likely to appeal to those after passive income.  

A second LIC from the Wilson Asset Management group of managed funds to consider is WAM Microcap Ltd (ASX: WMI). This LIC invests in undervalued microcap companies, with market capitalisations of less than $300 at the time of acquisition. There is often limited coverage available on such companies due to their size, making it hard for retail investors to make an educated decision on the investment opportunity. WAM Microcap's share price is flat over the past year. While not quite as high as WAM Leaders, its dividend yield is still attractive at 7.2% (10.2% grossed up).

The post Accelerate passive income: 2 LICs with dividend yields above 7% appeared first on The Motley Fool Australia.

The fund manager, Wilson Asset Management (WAM), described APA Group as a leading energy infrastructure business. It manages a $27 billion portfolio of gas, solar, and wind assets and several electricity transmission assets.

APA is part of the WAM Leaders Ltd (ASX: WLE) portfolio, which is aimed at large, quality Australian businesses and actively invests in them.

Why does the fund manager like the ASX 200 share?

WAM said that in February 2025, APA delivered a "strong" result for the first half of FY25, with positive momentum continuing into the second half.

The fund manager also noted that market concerns about the balance sheet have been alleviated, with management providing "reassurance that the company has sufficient funding to support its dividend, its committed pipeline of projects and additional growth opportunities.

The investment team at WAM Leaders believe APA is "well positioned in the current environment, offering current environment, offering a highly defensive investment profile due to its contracted capacity and CPI-linked revenue streams."

Impressively, the APA share price has been almost flat since 2 April 2025, whereas the ASX 200 has fallen 5.3%.

How big could the ASX 200 share's passive income be?

Impressively, APA has grown its annual distribution every year since 2004, which is one of the most impressive records on the ASX.

APA has provided guidance that it expects to grow its FY25 annual distribution by 1.8% to 57 cents per security. That translates into a forward distribution yield of 7.2%.

The underlying operating profit (EBITDA) guidance for FY25 is between $1.96 billion and $2.02 billion.

Growth projects

APA is working on several growth projects that could help grow the cash flow and distribution of the ASX 200 share in the coming years.

When it announced its FY25 half-year result, APA CEO and managing director Adam Watson said:

Our growth pipeline in the Pilbara also continued to progress. Construction of the Port Hedland Solar and Battery Project was completed in December and we were awarded Priority Project status for two electricity transmission projects.

We also continued to progress growth in our core gas transmission and storage business. In December we executed an agreement to build, own and operate the Sturt Plateau Pipeline, which will ensure Beetaloo gas is available to support energy security in the Northern Territory, and today we announced our plans to deliver material infrastructure capacity expansion in our East Coast Gas Grid. We will continue to progress these plans with our customers.

Today's result demonstrates the continued delivery of strong earnings and distributions, alongside organic growth.

Things look promising for the ASX 200 share for the foreseeable future, it seems.  

The post Why this ASX 200 share could be a top defensive buy appeared first on The Motley Fool Australia.

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

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

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

A2 Milk Company Ltd (ASX: A2M)

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

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

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

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

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

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

WAM concluded its thoughts with the following:

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

Spark New Zealand Ltd (ASX: SPK)

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

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

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

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

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

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

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

Over the past full year, however, shares in the diversified property developer and investor have underperformed the benchmark, sliding by 6.6%. That compares to a 12.4% gain posted by the ASX 200 over this same period.

However, this doesn't include the 10.5 cents a share in unfranked dividends the company declared in 2024.

As you can see on the chart above, December was a tough month for stockholders, with Mirvac shares tumbling 13.0%.

That result was disappointing for Wilson Asset Management. In its December investment portfolio update, WAM noted that Mirvac detracted from WAM Leaders Ltd (ASX: WLE) performance during the month.

Despite its underperformance in December, WAM remains optimistic about the outlook for the ASX 200 real estate stock.

Here's why.

Brighter skies ahead for this ASX 200 real estate stock

WAM noted that the headwinds hitting Mirvac shares in December reflected "broader challenges faced by the real estate investment trusts sector".

The fund manager said, "Rising bond yields weighed heavily on the sector, with the US government 10-year treasury bond yield climbing 0.4% during the month. Mirvac, with its dual exposure to residential and office markets, was particularly affected."

Regardless of those headwinds, WAM said it maintained a positive outlook for the ASX 200 real estate stock.

The fund manager said:

Residential margins appear to have stabilised, supported by the strong performance of new project launches. Progress on its asset sale program has been strong and office valuations have reached their trough.

At current levels, Mirvac's valuation screens as compelling, offering upside potential for the long term.

What's the latest from Mirvac?

Mirvac released its first quarter results (Q1 FY 2025) on 22 October.

Offering some insight into what's ahead, the ASX 200 real estate stock reaffirmed its operating earnings per share (EPS) guidance of 12.0 to 12.3 cents in FY 2025. Mirvac expects to pay out full-year dividends of 9.0 cents per share.

Management noted that this guidance was subject to the completion of Mirvac's core strategic priorities, including achieving 2,000 to 2,500 residential lot settlements, executing $500 million in non-core asset sales, and securing capital partners at its key development projects.

Commenting on the outlook for the ASX 200 real estate stock, Mirvac CEO Campbell Hanan said at the time:

We have a clear strategy in place, and we continue to focus on leveraging our unique asset creation capability to maintain our leadership in the living sectors and enhance our cash flow resilient investment portfolio.

It is encouraging to see the momentum building across the business, with multiple levers for growth into the future.

The post Why this 'compelling' ASX 200 real estate stock has long-term upside potential appeared first on The Motley Fool Australia.