ANZ Bank (ASX: ANZ): Time to Cash In or Stay the Course?

Riding the Momentum: ANZ’s Stellar Run

2024 and early 2025 have been kind to ANZ investors. With its share price rallying close to A$30, ANZ has jumped nearly 15% in the last six months alone. Solid earnings, a strong balance sheet, and a resilient Australian economy have helped lift investor sentiment.

But after a strong rally, questions are now emerging: Has the stock run too far too fast? Or is there more upside left in the tank?

In this blog, we break down ANZ’s latest financials, examine market risks, and help you decide whether it’s time to take some profits—or keep collecting dividends.

Big Numbers, Balanced Growth: ANZ’s 1H FY25 Performance

ANZ delivered a stable performance in the first half of FY25, supported by growth in lending and decent cost control.
Here are some key highlights from the H1 FY25 results:

Total Revenue: $35.63 billion

Net Profit After Tax (NPAT): $3.64 billion

Net Interest Margin (NIM): Down to 1.56%

Loan Impairments: Rose 48% YoY

Dividend: $0.83 per share (70% franked)

While earnings remained strong, the squeeze on margins and a sharp rise in loan impairments are causing some discomfort. Margin pressure is mainly driven by competitive home loan pricing and rising deposit costs.

Still a Dividend Magnet

One of ANZ’s major attractions is its reliable dividend yield of ~5.4%, placing it among the most attractive income-generating stocks on the ASX.

The bank’s capital position remains robust, with a CET1 ratio above 11%, meaning it has more than enough buffer to continue paying dividends—even if conditions worsen.

If you’re an income investor, ANZ still ticks the boxes for yield, reliability, and long-term dividend stability.

Warning Signs on the Radar

Despite the strong topline, some concerns are beginning to surface beneath the numbers:

Margin Pressure

ANZ’s net interest margin slipped to 1.56%, the lowest in several years. Fierce competition in mortgages and rising deposit rates are compressing profits, a trend that could persist if the RBA begins cutting rates.

⚠️ Rising Bad Debts

Loan impairment charges spiked 48% YoY, especially within the retail segment. This signals that households are starting to feel the pinch of elevated interest rates, potentially leading to higher defaults ahead.

💸 Valuation No Longer Cheap

At a P/E ratio of ~13.5×, ANZ is slightly above its historical average. While it isn’t overvalued, it’s certainly not trading at a bargain either. Much of the recent upside has likely priced in the positives.

Market Mood: Taking Chips Off the Table?

Between July 19–21, 2025, ANZ shares fell 2–3%, part of a broader sell-off in major banks. Investors appear to be booking profits ahead of the upcoming August reporting season, wary of slowing growth and macro uncertainty.

The ASX 200 index also pulled back after hitting record highs, suggesting this isn’t an ANZ-specific issue but rather a broader sector rotation. Still, the timing raises eyebrows.

Should You Take Profits on ANZ?

Yes, If:

1. You bought in at 2023–24 lows and are sitting on double-digit returns.
2. You’re worried about margin erosion and rising credit defaults.
3. You want to shift capital into sectors with higher growth potential in the short term.

No, If:

1. You rely on ANZ’s dividend for steady passive income.
2. You expect RBA rate cuts later this year to support lending and reduce funding costs.
3. You view ANZ as a long-term anchor stock in a diversified portfolio.

What Lies Ahead?

As we head into the second half of FY25, several factors will influence ANZ’s performance:

1. August to November earnings updates – Will margins stabilize or keep slipping?
2. Loan growth outlook – Especially in mortgages and business lending
3. Impairment trends – Are household and SME borrowers coping?
4. RBA policy – Any cut in rates could offer relief, but also hurt bank margins

Essentially, ANZ is at a crossroads—awaiting cues from both internal performance and broader economic shifts.

Final Take: Be Strategic, Not Emotional

ANZ remains one of the top-tier banks in Australia, backed by strong fundamentals, high dividends, and a solid capital position. However, signs of strain are creeping in—narrowing margins, rising impairments, and valuation fatigue.

A smart strategy at this stage might be partial profit-taking. Lock in gains if you bought early, and reduce your exposure if you’re wary of near-term risks. But for long-term investors, keeping a core position still makes sense—especially for the consistent dividend stream and potential compounding returns.

 Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The ASX small-cap scene has a new disruptor—and its name is MTM Critical Metals. With a jaw-dropping 1,870% share price rally over the past year, this once-obscure player has quickly become one of the most talked-about names on the Australian exchange. But is the buzz justified, or are we looking at yet another overhyped early-stage company?

Let’s dig deeper into MTM’s operations, its promising Flash Joule Heating (FJH) technology, financials, and the looming risks behind the glowing headlines.

From E-Waste to Equity Rockstar

MTM’s 2025 rise is nothing short of spectacular. Central to its story is its Flash Joule Heating (FJH) technology, a proprietary process (licensed from Rice University) that extracts critical metals—including lithium, rare earths, niobium, gallium, and antimony—from electronic waste and mineral residues.

At a time when the world is scrambling for sustainable ways to source critical minerals, MTM’s value proposition sounds like a dream. And investors have responded: its stock has gained almost 2,000% YTD, making it one of the top-performing ASX stocks of the year.

Flash of Data

Behind the hype, MTM has been putting together a story of execution and progress—albeit in the pre-revenue stage.

• Cash Position: As of H1 FY25, MTM reported over $5.38 million in cash, largely from strategic fundraisings, including support from Pengana Capital Group and Terra Capital.
• Supply Agreements: MTM has secured 1,100 tonnes/year of electronic waste feedstock, ensuring future raw material supply for its commercialisation plans.
• Operational Milestones: It has met all key milestones ahead of schedule and aims to kick off commercial-scale operations by 2026.
• Funding Runway: With over $10 million available (including committed capital), the company has coverage for nearly 7 quarters, suggesting strong financial discipline for an early-stage tech venture.

Still, no commercial revenues have been reported. MTM remains in its investment phase, with net losses and negative EBITDA continuing to reflect the cost-heavy early cycle.

Technology Spotlight: The FJH Advantage

MTM’s secret sauce is its Flash Joule Heating (FJH) process. Here’s what makes it disruptive:

• Efficiency: FJH uses intense electric pulses to rapidly heat waste materials, releasing embedded critical metals in seconds—a faster and cleaner alternative to traditional mining and smelting.
• Versatility: The process targets a wide spectrum of metals: rare earth elements, lithium, gallium, niobium, and more—many of which are essential for EVs, semiconductors, and defence.
• Sustainability: By recovering value from e-waste, MTM aligns with global ESG and circular economy trends—offering a greener path to metal recovery.
• Industry Support: MOUs with major players like Indium Corporation and alignment with the S. Department of Defense for strategic metals suggest external validation of MTM’s tech potential.

Why MTM Could Be a Hidden Gem

1. Scalable Tech with Global Relevance

MTM’s pilot plant targets one tonne/month output—just a small fraction of the 400–500 tonnes/year gallium demand in the U.S. alone. If successful, MTM could serve strategic needs of Western countries desperate for alternative, local sources of critical metals.

2. Attractive Asset Base

MTM isn’t just about tech—it holds rare earth and niobium exploration projects across Western Australia and Canada, giving it upside exposure to global mining trends.

3. Strong Funding and Execution

Despite being early stage, MTM has executed ahead of timeline and secured funding that stretches into late 2025. In a capital-intensive sector, this financial buffer gives it the time to prove its model.

Risks That Could Prove the Hype Hollow

1. Still Pre-Revenue

While the tech sounds impressive, MTM hasn’t yet generated revenue. Its operations currently run at an operating cash burn exceeding $3 million per half-year, highlighting the speculative nature of the business.

2. Scale-Up Uncertainty

FJH has been tested at pilot scale, but the commercial plant is yet to be built. There’s no guarantee the process will work as efficiently or economically on a larger scale, especially with regulatory, logistical, and technical challenges to overcome.

3. Share Price Volatility

With a 1,870% rally, MTM’s valuation may have far outpaced its business progress. If milestones are delayed—or if broader market sentiment shifts—the stock could face steep corrections.

Hidden Gem or Hype? Final Thoughts

MTM Critical Metals presents a compelling yet complex story. On one hand, it boasts proprietary, scalable technology with real potential to disrupt the critical minerals and e-waste recycling space. Its strong cash reserves, strategic partnerships, and early execution success make it an exciting prospect in a sector hungry for innovation. On the other hand, the company is still in its pre-revenue phase, with key operational milestones—like commercial production and revenue generation—still to be achieved. Its share price has soared nearly 1,870% over the past year, raising questions about whether investor optimism has outpaced reality. At this stage, MTM stands at a critical inflection point: if it delivers on its commercial rollout and scales successfully, it could indeed be a hidden gem. But until then, it remains a high-risk, high-reward play—demanding cautious optimism and close monitoring from investors.

Investor Takeaway: Vision or Caution?

If you’re an investor who embraces early-stage innovation, and you believe in tech-driven solutions for the global mineral crisis, MTM offers a bold and exciting narrative. It’s backed by smart capital, green technology, and a growing asset base.

However, if you’re risk-averse or skeptical of speculative surges, it may be worth holding back until MTM demonstrates commercial traction.

This is not a company to blindly chase on momentum. Instead, it demands close monitoring, selective positioning, and a clear understanding that the road from pilot to production is rarely smooth.

 Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The Lithium Boom Isn’t Over—It’s Just Getting Started

Lithium, often called the “white gold” of the clean energy revolution, is at the heart of major shifts in both mobility and energy. With the unstoppable rise of electric vehicles (EVs), battery storage systems, and global decarbonization targets, demand for lithium is on track to nearly triple between 2023 and 2030. While many lithium stocks reached sky-high valuations during the 2021–2022 frenzy, recent price corrections have pulled some strong contenders back into appealing territory for long-term investors.

In this blog, we spotlight three ASX-listed lithium stocks that now look undervalued based on their fundamentals and future potential:

1. Mineral Resources (ASX: MIN)
2. IGO Limited (ASX: IGO)
3. Lithium Energy (ASX: LEL)

Let’s dive into why these names deserve a place on your watchlist.

Why Now Might Be the Right Time to Invest

The price of lithium—tracked by the Global X Lithium & Battery Tech ETF (LIT)—has slumped nearly 40% from the 2022 peak, dragging many lithium miners with it. This sharp correction has left some quality stocks looking much cheaper than they were just two years ago. Yet, the long-term demand story remains robust: Benchmark Mineral Intelligence projects that global lithium demand will surge from roughly 800,000 tonnes of lithium carbonate equivalent (LCE) in 2023 to over 2.5 million tonnes by 2030, powered mainly by the EV revolution and the scaling-up of battery energy storage.

This disconnect between current valuations and future demand could be a window of opportunity for savvy ASX investors. Here’s a closer look at three undervalued lithium stocks poised to benefit as the market turns.

1. Mineral Resources (ASX: MIN) — A Lithium Powerhouse With Diversification

Recent Performance and Highlights

H1 FY25 Revenue: $2.29 billion, a 9% year-over-year decline (impacted by lower lithium prices)

EBITDA: $275 million, down 56% year-over-year

Dividend: Maintained a fully franked interim dividend of $0.20 per share

Despite falling earnings, Mineral Resources stands out thanks to its diversified business model. Alongside its significant lithium operations, MIN has profitable mining services and iron ore businesses, which offer a buffer against commodity cycles.

Key Lithium Assets

1. Mount Marion (50%) (JV with Ganfeng Lithium): One of Australia’s major spodumene mines.
2. Wodgina (50%) (JV with Albemarle): Among the world’s largest and most advanced hard-rock lithium projects.

Why It’s Undervalued

While the pullback in lithium prices hurt results, MIN is now trading below its historical price-to-earnings ratio. Its dual focus on lithium and mining services, plus ongoing expansion at its joint-venture sites, makes it a stable play in a volatile sector. When lithium prices recover—as global trends suggest they will—MIN could quickly rerate upwards.

2. IGO Limited (ASX: IGO) — Battery Metal Exposure at a Discount

Recent Performance and Highlights

H1 FY25 Revenue: $267 million

Cash Balance: $246.6 million at period end

Dividend: No interim dividend declared

IGO faced headwinds from plummeting spodumene prices, leading to a sharp earnings drop. Still, IGO’s balance sheet remains robust, supporting its long-term play on battery metals.

Strategic Lithium Assets

1. Greenbushes JV: IGO and Tianqi Lithium jointly own the Greenbushes mine, the world’s largest hard-rock lithium project.
2. Kwinana Lithium Hydroxide Plant: IGO holds 100% interest, integrating mining and battery chemical production.

What Makes It a Standout

With a healthy cash buffer and strategic control of key assets, IGO is more than just a miner—it’s building a vertically integrated battery supply chain. Even in a weak pricing environment, IGO’s enterprise value appears attractive for investors with a long-term outlook. The company’s investments position it to capitalize as battery demand—and lithium consumption—accelerate through the decade.

3. Lithium Energy (ASX: LEL) — Pure-Play Upside With Major Potential

Performance Snapshot

Exploration Stage: No revenue or profits yet

Q2 FY25 Cash: $1.77 million

Debt: None

Lithium Energy is a smaller, pure-play lithium explorer focused on big discoveries and potential upside. It’s an early-stage bet—but the kind that can deliver outsized returns if exploration success continues.

Flagship Projects

1. Solaroz Lithium Brine Project (Argentina): High-grade brines discovered at 436mg/L Li concentrations as of July 2025, confirming the project’s strong geological potential. This project sits in South America’s “Lithium Triangle,” a region famed for low-cost, large-scale brine operations.
2. Burke Graphite Project (Queensland): Offers added exposure to battery anode materials.

Investment Case

With a market cap under $50 million, Lithium Energy offers high risk but also high reward. The company’s low overhead and focus on value-accretive exploration mean that any resource upgrade or partnership deal could ignite the share price. Given Solaroz’s recent drilling results, investors who are comfortable with volatility and want maximum leverage to future lithium demand may find LEL especially compelling.

Final Thoughts: Seize the Trend Before It Turns

The lithium sector’s current price weakness reflects a temporary supply glut, but strong demand fundamentals are lurking beneath the surface. As nations continue to push toward green energy and mobility, lithium’s strategic value is only set to grow.

Here’s why these three stocks deserve your attention:

1. Mineral Resources: Provides stability, diversification, and established production.
2. IGO Limited: Offers deep exposure to world-class lithium assets and the evolving battery supply chain.
3. Lithium Energy: A speculative play, with considerable upside tied to exploration success and favorable commodity cycles.

In the race for clean energy dominance, the biggest winners are often those who invest before the next boom. With global lithium demand forecast to more than triple by 2030, today’s undervaluations could become tomorrow’s bargains.

Introduction: Is This Aussie Tech Player Quietly Powering Ahead?

In the crowded world of tech stocks, it’s easy to overlook companies that don’t make daily headlines. But sometimes, the best opportunities lie in those under-the-radar performers that quietly build strong fundamentals and deliver consistent growth. One such name catching the eye of savvy investors is ReadyTech Holdings (ASX: RDY).

Specializing in mission-critical software for education, workforce management, and government sectors, ReadyTech doesn’t sell flashy apps or ride high-profile trends. Instead, it offers sticky, reliable SaaS (Software-as-a-Service) solutions in sectors where digital transformation is still accelerating. But is this enough to crown RDY a hidden gem—or is the buzz around it starting to overheat?

Let’s dive deep into the fundamentals, financials, market trends, and expert sentiment to decide whether ReadyTech is truly undervalued gold—or an overhyped play in disguise.

1. Business Model: Mission-Critical Software for Critical Sectors

ReadyTech provides cloud-based SaaS solutions across three main segments:

1. Education – platforms for student management, learning, and compliance used by vocational and higher education institutions.
2. Workforce Solutions – payroll, HR, and workforce compliance tools for medium-sized businesses.
3. Government & Justice – case management and community support systems for government, justice, and human services.

These industries aren’t optional—they’re essential. This gives ReadyTech a strong competitive moat and sticky customer base. The mission-critical nature of its products means high switching costs and reliable recurring revenue streams.

2. Financial Performance: Growing Steadily with Solid Margins

ReadyTech Holdings kicked off the first half of FY25 with a steady performance, pulling in $58.33 million in total revenue, up 6.6% year-on-year—a testament to the growing demand for its smart software solutions. Even better, the company kept things lean and profitable, locking in a healthy EBITDA margin of 28%. But what really stands out is its rock-solid customer retention rate of around 95%.

3. Market Opportunity: Digitization Tailwinds in ‘Old Economy’ Sectors

While most tech investors chase consumer apps or AI, ReadyTech operates in sectors that are just beginning their digital transformation journey—like government, justice, and vocational education. This puts the company in a sweet spot for long-term growth.

1. Education Sector: The push toward blended and online learning is driving demand for cloud-based solutions.
2. Public Sector: Governments are increasingly outsourcing IT to private players to improve efficiency and reduce cost.
3. SMEs: Mid-sized businesses require affordable HR/payroll software that complies with Australia’s complex workforce laws.

These long-term trends mean ReadyTech’s addressable market continues to expand—without much direct competition from global giants.

4. Valuation: Attractive Compared to Peers

As of July 2025, RDY trades at:

EV/EBITDA: ~9x

Market Cap: ~$ 302.7 million

Compared to larger ASX tech players like TechnologyOne or WiseTech Global, ReadyTech trades at a discount despite solid growth, healthy margins, and strong client retention. This suggests the market may be underpricing the stock.

5. Risks to Watch

Despite its strengths, ReadyTech is not risk-free:

1. Customer concentration: Some revenue still depends on large contracts, particularly in government.
2. Acquisition integration: Growth via acquisitions can bring challenges around integration and culture fit.
3. Macro sensitivity: Public sector and education budgets can tighten during economic downturns.

However, RDY’s consistent cash generation and diversified client base somewhat offset these concerns.

 The Verdict: Hidden Gem or Overhyped?

 Hidden Gem. ReadyTech has all the hallmarks of a company flying under the radar:

1. Robust financials
2. Sticky, low-churn customer base
3. Long-term industry tailwinds
4. Sensible valuation relative to peers

While it lacks the glamour of more talked-about tech stocks, RDY offers a balanced mix of growth, defensiveness, and recurring revenue—exactly what long-term investors seek in uncertain markets.

As digitization continues in traditionally slow-moving sectors, ReadyTech is well-positioned to ride the wave with minimal volatility. It’s not a moonshot—but that’s exactly what makes it a potentially undervalued gem in the ASX tech space.

Riding the Green Energy Wave on the ASX

As the world accelerates towards net-zero carbon goals, renewable energy is no longer a niche trend—it’s the future of global power generation. In Australia, this shift is not only gaining momentum but also reshaping the investment landscape. Rising climate awareness, government incentives, and technological breakthroughs are fueling a historic transition away from fossil fuels.

For investors, this green revolution opens up a powerful opportunity to back companies that are leading the charge. Two standout contenders on the ASX are AGL Energy (ASX: AGL) and Meridian Energy (ASX: MEZ). Both are at the heart of the renewable shift—one as a bold transformer and the other as a 100% green stalwart. Let’s dive into why these two energy stocks could supercharge your investment portfolio.

AGL Energy (ASX: AGL): From Fossil Roots to a Renewable Reinvention

The Comeback Story That Investors Love

AGL Energy is one of Australia’s oldest and largest electricity providers. Traditionally known for its coal-powered generation, AGL is now undergoing a dramatic transformation. It has committed to exiting coal by 2035 and investing in up to 12 GW of renewable and firming capacity by 2030.

Latest Financials (H1 FY25):

Revenue: $7.13 billion — up 15% YoY

Profitability driver: Higher wholesale electricity prices and improved plant reliability

EBITDA: $962 million

This financial recovery has given AGL the confidence to resume dividends, now offering a yield of ~6%, attracting income-seeking investors back to the stock.

Strategic Projects Powering Growth:

1. Torrens Island Battery: 250 MW/250 MWh capacity in South Australia, due for completion in 2025
2. Loy Yang A Closure: Scheduled by 2035, signaling its clean energy pivot
3. $20+ Billion Investment Pipeline: Focused on solar, wind, pumped hydro, and large-scale batteries

Why AGL Deserves a Spot in Your Portfolio:

1. Massive Customer Base: Over 2 million customers—making it one of the largest platforms to scale renewable adoption.
2. Turnaround Potential: Transitioning from high-emission generation to a clean, sustainable future.
3. Strong Dividend Return: Supports both growth and income-focused strategies.

AGL’s journey from a fossil-fuel legacy to a renewable future may carry some transition risk, but the upside could be substantial. If executed well, AGL could emerge as a major clean energy leader in Australia.

Meridian Energy (ASX: MEZ): Pure Green Power from the Land of the Long White Cloud

Already Net-Zero by Nature

While AGL is still in the middle of its green transition, Meridian Energy is already a fully renewable utility. Headquartered in New Zealand and dual-listed on the ASX, Meridian operates an extensive network of hydro and wind assets, supplying power to both New Zealand and growing parts of Australia.

Meridian is not only 100% renewable but also zero fossil-fuel reliant, making it a top pick for ESG-conscious investors.

Latest Financials (H1 FY25):

Operating Income: $298.36 million — up 30.73%

EBITDA Margin: 25%

Strong Hydro Inflows: Provided increased energy output at low cost

Dividend Yield: Steady ~4%

Meridian’s financial strength is bolstered by favorable hydrology and stable energy demand, helping it maintain a low operating cost structure with high margins.

Expansion into Australia:

1. Powershop Australia: Acquired in 2021, enabling access to over 180,000 Aussie customers.
2. Wind & Solar Projects: New sites in Victoria and New South Wales, building scale and diversifying revenue.
3. Sustainable Growth Model: Focused on long-term shareholder value and carbon-free energy.

Why Meridian Is a Green Investor’s Dream:

1. Zero Fossil Exposure: No stranded asset risk as global regulations tighten.
2. Strong ESG Ratings: Favored by institutional investors, including pension and superannuation funds.
3. Stable Government Stake: The New Zealand government holds a 51% share, adding political and financial stability.
4. Consistent Dividends: Ideal for long-term investors who value steady income with environmental impact.

Meridian is a compelling choice for investors who want to back proven clean energy operations rather than speculative turnarounds.

Final Spark: Should You Power Up With AGL or Meridian?

If you’re a growth investor seeking a transformational story with a high-reward potential, AGL’s renewable reinvention could electrify your portfolio. But if you value stability, long-term income, and a strong ESG profile, Meridian Energy might be the better bet.

Conclusion: Light Up Your Portfolio With Green Energy Leaders

Renewable energy is no longer an idealistic concept—it’s a global investment megatrend. With governments, industries, and consumers all leaning green, now is the time to align your portfolio with the future.

AGL Energy and Meridian Energy offer investors the chance to participate in the energy transition while benefiting from solid business models, robust dividends, and long-term growth potential.

So whether you prefer the spark of a bold transition or the steady hum of proven performance—these two ASX renewable stocks could be your portfolio’s next big power play.

In a World of Rising Prices, Energy Still Rules

Inflation is no longer a short-term headache—it’s a long-term reality for consumers, central banks, and investors. With interest rates higher and consumer spending under pressure, one key question arises: Which companies can actually benefit from inflation instead of being harmed by it?

Enter Woodside Energy Group Ltd (ASX: WDS).

As Australia’s largest independent oil and gas producer, Woodside stands tall in the energy sector—a sector that historically does well when inflation is rising. Whether it’s the surge in commodity prices, higher global demand, or supply disruptions, inflation often strengthens the outlook for oil and gas players like Woodside.

In this blog, we explore why Woodside Energy is not just surviving inflation—but positioned to thrive. Let’s unpack the reasons that make WDS a solid inflation-friendly stock in today’s uncertain environment.

Why Energy Stocks Like Woodside Love Inflation

Inflation usually eats into profits for companies with rising costs and limited pricing power. But energy stocks operate differently. Here’s why:

1. Commodity prices rise with inflation – Oil and gas prices tend to move up when inflation climbs, especially during global supply constraints.
2. Built-in pricing power – Energy producers often pass rising costs to consumers through higher spot prices and long-term contracts.
3. Contracts linked to inflation or oil benchmarks – Woodside’s LNG supply deals often include indexation to oil or inflation.
4. High fixed asset base – Once their infrastructure is built, operational costs stay mostly stable, so higher revenues mean fatter profit margins.

In short, energy companies are structurally aligned with inflationary environments—and Woodside’s business model is a textbook example of that advantage.

Woodside’s Unique Position in an Inflationary World

1. Global Oil and LNG Exposure = Built-In Pricing Power

Woodside exports LNG, crude oil, and condensate—all of which are priced in U.S. dollars and heavily influenced by global inflation trends.

With OPEC+ cutting oil output, geopolitical tensions, and tight LNG supply chains, commodity prices have stayed elevated throughout FY23 and into FY24. That’s good news for Woodside’s revenue.

Moreover, its long-term LNG supply contracts to Asia are often indexed to oil benchmarks or inflation rates. So even if spot prices fluctuate, Woodside still receives inflation-adjusted income through these agreements.

Advantage: Revenue rises with global price trends, offering a natural hedge against inflation.

2. Strong Free Cash Flow = Flexibility and Shareholder Returns

In inflationary times, cash flow is king—and Woodside has plenty of it.

1. In FY23, Woodside generated strong free cash flow, allowing it to fund both growth projects and shareholder returns.
2. It has continued this trend into FY24 by:
   1. Paying robust dividends
   2. Executing share buybacks
   3. Reducing debt
   4. Investing in growth projects like Scarborough (Australia) and Sangomar (Senegal)

This financial strength makes Woodside resilient in tough economic environments. While other companies scramble to cover rising costs, Woodside enjoys liquidity and flexibility.

Advantage: High cash generation supports dividends and long-term investment, even during inflation shocks.

3. Operating Model That Resists Inflation

Unlike companies in manufacturing or retail, Woodside isn’t hit hard by rising labor or raw material costs. Most of its capital costs are already sunk into long-term infrastructure like:

1. Offshore drilling rigs
2. LNG processing terminals
3. Pipelines

Once these facilities are operational, ongoing costs are relatively low, and profit margins increase when oil and gas prices climb.

Advantage: Low variable costs mean rising revenues go straight to the bottom line.

4. Scarborough Project = Future-Proof Growth

The Scarborough gas project, expected to start production by 2026, is one of Woodside’s largest investments—and a strategic asset.

Key features:

1. Construction costs are largely fixed and already committed
2. Will produce 8 million tonnes of LNG per year
3. Meets growing global energy demand, especially from Asia
4. Designed with a lower carbon footprint, improving ESG alignment

As energy demand grows and global prices stay firm, Scarborough is expected to deliver strong, inflation-protected cash flows over the long term.

Advantage: Scarborough adds long-term upside with limited cost risks.

Risks to Consider

While Woodside is well-positioned, it’s not immune to external risks. Some inflation-related and general challenges include:

Environmental regulations and carbon taxes could raise project costs or delay approvals.

A global recession might lower demand for oil and gas.

Currency risks: Most of Woodside’s revenue is in USD, but it reports in AUD.

Geopolitical instability could affect supply chains or global LNG trade.

However, the company mitigates these risks through hedging, project diversification, and long-term contracts.

Financial Snapshot: Woodside in FY24

Woodside’s financial performance supports the inflation-hedge narrative:

Final dividend: $0.85 per share

Dividend yield: Approx. 7.73% (one of the strongest on the ASX)

Revenue (H2 FY24): $12.11 billion

Net Profit After Tax (NPAT): $2.47 billion

These numbers reflect both strong operational performance and effective cost control, making it attractive for income-seeking investors.

Final Verdict: Woodside is an Inflation Hedge with Yield

In a world where prices are rising and uncertainty is high, investors are looking for protection, not just growth.

Woodside Energy offers both:

 Exposure to inflation-linked commodity prices
 Strong free cash flow and dividend yield
 Low-cost, high-margin operations
 Major growth projects with inflation protection
 Solid financials and a resilient balance sheet

Whether you’re a long-term investor seeking stability or a value-seeker in volatile markets, Woodside is worth considering as an inflation-beating asset. As global energy demand and inflation persist, WDS has all the elements to deliver strong returns and income, even as the world gets more expensive.

Is FMG Still a Golden Iron Giant or a Risky Green Bet?

Fortescue Metals Group (ASX: FMG) has carved out a dominant position in Australia’s mining landscape. Best known for shipping vast quantities of iron ore to China, FMG has built a reputation for delivering robust profits and generous dividends. Yet, the company is no longer just about iron ore. Under the ambitious leadership of founder Andrew Forrest, FMG is undergoing a dramatic transformation — one that positions it as a clean energy pioneer, particularly in green hydrogen and sustainable steel.

This evolution has sparked a polarising debate among investors. On one hand, Fortescue’s green strategy could make it a future-facing powerhouse. On the other hand, its capital-intensive diversification efforts, paired with external risks, raise concerns. So, is FMG a long-term value play or a potential misfire in the making?

Let’s explore both the bull and bear case to assess if FMG is still worth a place in your portfolio.

The Bull Case: Why FMG Might Be a Long-Term Winner

1. Iron Ore Remains a Profitable Engine
   Despite global uncertainties, Fortescue’s core business remains highly lucrative. In H1 FY25, the company reported revenue of $11.55 billion, driven by strong iron ore shipments. China still accounts for over 60% of global seaborne iron ore demand, and FMG’s ability to deliver at scale and at low cost gives it a strategic advantage.

Fortescue is one of the lowest-cost producers in the world, with a competitive C1 cost per tonne, which allows it to remain profitable even when prices dip. In a commodity-heavy world, that matters — a lot.

2. Dividends That Keep Paying Off
   Income-focused investors continue to love FMG. Its fully franked dividend yield of 8.2% is among the highest in the ASX200. This reflects strong cash flows, disciplined capital management, and a clear commitment to shareholder returns.

In FY24, FMG returned billions to shareholders through dividends, supported by consistent EBITDA margins and efficient operations.

3. Green Hydrogen: A Strategic First-Mover Advantage
   FMG isn’t just reacting to the ESG trend — it’s proactively investing in it. Through its green energy arm, Fortescue Energy, the company has committed over $1 billion to develop green hydrogen, ammonia, and clean iron technologies.

Projects like the green iron pilot plant at Christmas Creek and partnerships across the globe (including the U.S., Kenya, and Germany) place Fortescue ahead of major mining peers like BHP and Rio Tinto in the clean energy race.

If these ventures succeed, FMG could transition from a pure-play miner into a dual engine — combining iron ore dominance with leadership in clean energy exports.

4. Strong Financial Position and Visionary Leadership
   FMG’s price-to-earnings (P/E) ratio of 9.51x and return on equity (ROE) of 20% highlight an efficiently run company that is still trading at attractive valuation levels.

The balance sheet remains healthy, with over $3.64 billion in operating cash flow in H1 FY25. Andrew Forrest’s bold vision for a green future, while controversial, aligns with long-term global decarbonisation trends, giving Fortescue potential access to new markets and investor segments.

The Bear Case: Why Investors Should Be Cautious

1. Iron Ore Dependency = Commodity Risk
   FMG’s fortunes are still tightly tied to the price of iron ore. And while China remains the largest customer, its property sector is under stress, and infrastructure spending is uneven. Any drop in demand or price — even a temporary one — could hit FMG’s top line.

Additionally, new supply from countries like Brazil or Africa could increase global iron ore availability, putting further pressure on prices.

2. Rising Costs Could Squeeze Margins
   Although FMG is cost-efficient, inflationary pressures and operational challenges have led to rising production costs. If iron ore prices don’t rise in tandem, FMG’s margins could shrink.

Cost per tonne is creeping up, and while manageable now, it’s a red flag for future profitability if global conditions worsen.

3. Green Energy = High Capital, High Risk
   Investing in unproven green hydrogen technology is no small feat. FMG’s clean energy projects, while visionary, are in the early stages. Despite the billion-dollar investments, there is no commercial-scale output yet.

Delays, cost overruns, or regulatory hurdles could make these projects longer-term bets with uncertain returns. The risk of burning cash without sufficient payoff is real.

4. Geopolitical and Regulatory Uncertainty
   FMG’s heavy exposure to China brings inherent geopolitical risk. Tensions between Australia and China in recent years have shown how quickly trade relationships can become strained. Any shift in China’s supply chain strategy or a preference for domestic ore could hurt FMG’s sales.

Additionally, the company faces regulatory risks at home — particularly around environmental concerns and native land rights in Western Australia’s Pilbara region. These factors can delay or restrict future operations.

Financials

Fortescue Metals Group continues to demonstrate solid financial performance, reinforcing its appeal to both income and value investors. In the first half of FY25, the company reported total revenue of $11.55 billion, reflecting continued strength in its core iron ore operations. Its operating cash flow stood at a robust $3.64 billion, underlining strong internal capital generation. One of FMG’s most attractive features remains its fully franked dividend yield of around 8.2%, consistently ranking among the highest in the ASX200 and appealing to yield-seeking investors. The stock is also trading at a relatively low price-to-earnings (P/E) ratio of approximately 9.51x, suggesting a discounted valuation compared to historical averages and industry peers. Additionally, the company has maintained a strong return on equity (ROE) of around 20%, which highlights efficient use of shareholder capital and sustained profitability despite external challenges such as commodity price fluctuations and rising costs.

Final Verdict: A Balanced Perspective

Fortescue Metals Group stands at a fascinating crossroad.

For conservative investors, FMG still delivers on its core promise: reliable dividends, low valuation, and strong margins from a world-class mining operation. For visionary investors, the green hydrogen pivot may be exactly what the future demands.

However, the transition comes with real risks — not just financially, but strategically. Execution, capital allocation, and geopolitical developments will all play a big role in determining FMG’s success.

Bottom Line:

FMG isn’t a screaming buy. Nor is it a stock to dismiss.
It’s a strategic hold for most investors — a rare ASX company with dependable returns today and ambitious (but expensive) goals for tomorrow.

If you believe in decarbonisation, green energy, and FMG’s ability to execute, there’s a strong case for being bullish.
If you’re wary of iron ore volatility, rising costs, or speculative capital expenditure, the bear case is equally valid.

Diversification, patience, and long-term vision are key when considering Fortescue’s place in your portfolio.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

When stepping into the world of investing, the stock market can feel like an ocean — deep, unpredictable, and overwhelming. Beginner investors often find themselves asking: Where do I start? Among the hundreds of companies listed on the Australian Securities Exchange (ASX), one name that consistently stands out for its stability and simplicity is Coles Group Limited (ASX: COL).

So, is Coles a good first investment? Let’s break it down.

Understanding Coles Group Limited

Coles Group is one of Australia’s biggest and most recognizable supermarket retailers. After its demerger from Wesfarmers in 2018, Coles emerged as a standalone company with a focus on essential household goods, liquor, and convenience. It operates:

Over 800 supermarkets

More than 900 liquor stores (under brands like Liquorland, First Choice Liquor Market, and Vintage Cellars)

Fuel and convenience outlets through partnerships

Its mission is simple: “To sustainably feed all Australians to help them lead healthier, happier lives.” This consumer-first strategy has kept Coles deeply embedded in the day-to-day lives of millions across the country.

Why Coles Is Ideal for Beginner Investors

1. Operates in a Defensive Sector

Coles belongs to the consumer staples sector — an industry known for its resilience. People need groceries, household essentials, and personal care items regardless of economic ups and downs. This makes the business less susceptible to market shocks compared to tech, mining, or discretionary sectors.

In tough times like recessions or pandemics, companies like Coles still thrive because they sell what people can’t stop buying.

2. A Simple and Transparent Business Model

As a new investor, you might find it difficult to grasp the complex operations of biotech or artificial intelligence firms. Coles offers a welcome contrast — it earns money by selling groceries, liquor, and essentials. That’s it.

This clarity is valuable for beginners, helping you focus on learning how the market works without being confused by technical jargon or complex business structures.

3. Reliable Dividends for Passive Income

Coles is known for paying consistent dividends, which is a major plus for first-time investors looking for steady income. Historically, Coles has delivered dividend yields in the range of 3.5% to 4%, with two payments made each year.

Even if the share price doesn’t swing wildly, dividend income offers a sense of reward and builds confidence over time — especially when reinvested for compounding returns.

Coles Group’s Financial Snapshot (H1 FY25)

Coles’ recent results for the first half of FY25 show why it remains a dependable player in the Australian market:

Revenue: $23.11 billion

Net Income: $576 million

P/E Ratio: 22.98

Return on Equity (ROE): 30.41%

Let’s unpack that.

Revenue growth reflects stable consumer demand across all segments, especially as Australians continue to shop both in-store and online.

Net income of $576 million indicates Coles is managing costs well despite inflation and supply chain challenges.

A P/E ratio of 22.98 suggests investors are willing to pay a fair premium for its earnings, confident in its stability and reputation.

A ROE of 30.41% is particularly impressive, highlighting that Coles is using shareholders’ capital efficiently and generating strong returns.

For a beginner, these numbers show strength without unnecessary volatility — something you’ll appreciate as you start building your investment journey.

Intangible Strength: Brand Power

Coles is not just any supermarket — it’s a brand deeply trusted by Australians. Whether it’s the familiar “Down Down” jingle or its commitment to fresh produce and affordable prices, the brand loyalty Coles enjoys is unmatched.

As an investor, especially a beginner, it’s often wise to start with companies you understand and use. Investing in Coles means investing in a brand you likely encounter every week — and that familiarity can go a long way in making you feel confident about your investment choices.

Risks to Consider

No investment is entirely risk-free. Coles, while stable, is not a high-growth stock. Its mature business model limits explosive returns. Competition from Woolworths (ASX: WOW), Aldi, and Costco also keeps margins tight. Furthermore, rising labor and logistics costs could impact profitability in the future.

However, these risks are common in the retail space and are generally well-managed by Coles’ leadership.

Final Investment Tip: Start Simple, Diversify Gradually

While Coles can be a great starting point, it’s important to diversify. Pairing Coles with growth stocks, ETFs, or other sector-leading companies can provide a balance of risk and return. Think of Coles as the “anchor” in your portfolio — something steady while you explore other investment opportunities.

Conclusion: Take Your First Step with Confidence

If you’re a beginner trying to make sense of the ASX, Coles Group Limited (ASX: COL) offers a clear and compelling case. With its steady cash flows, robust dividend policy, and essential nature of business, Coles gives you peace of mind as you begin your investment journey.

In investing, the hardest part is often the first step — Coles might just be the right one for you.

(ASX: MQG, SHL, APA)

Let’s face it — inflation is the silent thief in the room.

You earn, you save, and you invest… and then inflation quietly chips away at your purchasing power like termites in a wooden cabinet.

This is why smart investors don’t just look for dividends — they look for dividends that grow.

In the world of investing, dividend growth is like the golden goose. It gives you passive income, but instead of the eggs staying the same size every year, they get a little bigger. That’s how you beat inflation — slowly, steadily, and with the right picks in your portfolio.

And guess what? The ASX has some hidden champions that have been quietly doing this for years.

Let’s talk about three underrated dividend growers that deserve your attention:

1. Macquarie Group (ASX: MQG)
2. Sonic Healthcare (ASX: SHL)
3. APA Group (ASX: APA)

Macquarie Group (ASX: MQG)

The Dividend Powerhouse That Doesn’t Flinch

Imagine an investment bank that’s not just about sharp suits and complex jargon — but one that consistently rewards shareholders year after year. That’s Macquarie Group for you.

Often described as the “quiet achiever” of global finance, Macquarie blends asset management, infrastructure financing, commodities trading, and banking into one powerful machine. It has its hands in nearly every major global sector.

The Numbers Behind the Curtain (H2 FY24):

Revenue: $16.30 billion

Net Profit: $2.03 billion

Return on Equity (ROE): 10.41%

Dividend Paid in FY24: $6.50 per share (fully franked)

Yes, that’s more than some people’s rent.

But what really stands out is this: Macquarie doesn’t just pay dividends — it grows them. Its dividend CAGR over the past decade is proof that MQG knows how to balance growth and reward.

Why it fights inflation well:

1. Global footprint = diversified revenue streams
2. Real asset exposure (infra, energy) = inflation-linked income
3. Strong capital management = consistency in payouts

Sonic Healthcare (ASX: SHL)

Boring Business. Beautiful Results.

Diagnostics may not sound exciting, but when you peel back the curtain, Sonic Healthcare is a beast in disguise. Operating across Australia, the US, and Europe, this company runs one of the largest pathology and imaging networks on the planet.

It’s not flashy, but it’s resilient — and the pandemic only highlighted its essential role in global healthcare.

Here’s What They’ve Done (H1 FY25):

Revenue: $4.66 billion

Net Profit: $236.68 million

ROE: 6.86%

FY24 Dividend: $1.06 per share

Sonic has been paying and growing dividends for more than two decades. That’s not just rare — it’s elite.

Why Sonic defies inflation:

1. Aging populations = long-term demand
2. Healthcare is non-cyclical = stable cash flows
3. Operations across continents = natural hedge against inflation shocks

In a nutshell: People will always need medical testing, and Sonic’s scale means it’ll always be there — growing slowly, but surely.

APA Group (ASX: APA)

The Reliable Tortoise in the Dividend Race

If you love consistency, APA Group might just be your spirit animal. While others chase high-growth tech or ride speculative waves, APA has been quietly building Australia’s energy backbone — gas pipelines, wind farms, and soon, hydrogen.

The business model is straightforward: build essential infrastructure, lock in long-term contracts (many inflation-linked), and collect steady income.

What They Delivered (H1 FY25):

Revenue: $1.61 billion

Net Income: $18 million

FY24 Distribution: 56 cents per share

Distribution Growth: 20+ years without a cut

This is the kind of stock that doesn’t make headlines — but it makes a difference in your dividend income.

Why APA quietly beats inflation:

1. Inflation-linked contracts = built-in pricing power
2. Essential services = stable demand
3. Renewable transition = long-term growth optionality

APA doesn’t just pay. It compounds. Like a good habit or a smart decision.

Final Thought: Growth You Can Count On

When inflation runs wild, you need more than just returns — you need resilience.

All three companies — Macquarie, Sonic, and APA — have proven they can thrive in changing economic conditions, reward shareholders consistently, and raise the bar each year. These aren’t meme stocks or moonshots. They’re long-term companions in the journey to financial freedom.

If you’re tired of watching inflation erode your savings, it’s time to start focusing on dividend growers, not just dividend payers.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Featuring: Dubber Corporation (ASX: DUB) and Pointerra Limited (ASX: 3DP)

When we think about tech investing, the conversation often turns toward Silicon Valley behemoths. But savvy investors know that some of the most explosive growth stories begin quietly — far from the NASDAQ limelight. On the Australian Securities Exchange (ASX), a number of small-cap tech players are making waves in niche segments.

In particular, two penny stocks — Dubber Corporation Limited (ASX: DUB) and Pointerra Limited (ASX: 3DP) — are emerging as high-potential candidates to watch heading into FY26. While still trading under $1, both companies are carving out unique positions in rapidly growing tech domains: AI-powered voice intelligence and cloud-based 3D geospatial data.

Let’s dive into what makes them so promising.

1. Dubber Corporation Limited (ASX: DUB)

Sector: Cloud-Based Voice Intelligence & Compliance
Current Price Range: Under $1

Dubber is at the forefront of voice data capture and call recording solutions. Its platform allows service providers and enterprises to record conversations across devices — mobile, desk phones, video conferencing apps — directly from the network, without hardware. But it doesn’t stop there. The real game-changer? Dubber’s AI layer that analyzes and transcribes voice data, transforming conversations into actionable business intelligence.

What Makes Dubber Stand Out?

1. Surging Demand for Voice Compliance and AI Insight
   In today’s hybrid working world, compliance regulations are tightening — especially in sectors like finance, healthcare, and legal. Dubber helps organisations meet these obligations with real-time, cloud-native call recording.

More than just storing calls, Dubber’s AI technology transcribes and analyses them, extracting patterns, sentiment, and keywords — enabling better customer service, risk monitoring, and even employee training.

2. Strategic Global Partnerships
   Dubber’s growth engine is fuelled by partnerships with over 170 service providers, including heavyweights like AT&T, Cisco, Telstra, and Optus. These collaborations embed Dubber’s services into network infrastructure, making user acquisition almost frictionless and allowing global scale.
3. SaaS Model with Recurring Revenue
   The company runs on a SaaS (Software-as-a-Service) model, ensuring stable, recurring revenue. It continues to expand its Average Revenue Per User (ARPU) by layering advanced AI analytics and enterprise-grade features.

Financial Snapshot: H1 FY25

Revenue: $20.52 million

Net Loss: Narrowed by 45% YoY, thanks to tighter cost controls

Cash Position: Significantly improved, offering better liquidity and investment runway

Dubber’s path to profitability seems clearer with every quarter, and its recurring model positions it strongly for margin expansion by FY26.

2. Pointerra Limited (ASX: 3DP)

Sector: 3D Geospatial Data & Cloud Computing
Current Price Range: Under $1

Pointerra operates in the fast-growing geospatial data space. Its cloud platform stores, visualizes, and processes massive 3D datasets — often collected using drones, LiDAR scanners, or satellites. These data layers are critical in industries like energy, utilities, mining, defense, and construction.

Why Pointerra Has Breakout Potential

1. Solving a Real Bottleneck
   Handling large 3D datasets has traditionally been clunky, expensive, and time-consuming. Pointerra’s solution eliminates the need for heavy infrastructure. Using its patented platform, users can visualize and collaborate on geospatial data in real time — from anywhere in the world.

This functionality is key for industries shifting toward digital twins, remote asset management, and infrastructure modernization.

2. U.S. Market Momentum
   Pointerra is gaining traction in the U.S. — the world’s biggest infrastructure and defense market. It has secured deals with utility companies and U.S. government agencies, and is actively involved in grid modernization projects.

Its collaborations in defense and aerospace further widen its moat, particularly as these sectors demand real-time, high-resolution spatial intelligence.

3. Sticky SaaS Revenue and Enterprise Loyalty
   Like Dubber, Pointerra also enjoys the benefits of a SaaS model. Once integrated into an enterprise’s workflow, its platform becomes essential — which results in high client retention and predictable revenue streams.

Financial Snapshot: H1 FY25

Revenue: $6.99 million, up 185.49% YoY

Net Income: Turned positive, a huge turnaround from previous year losses

Gross Margin: 40.57%, reflecting efficient operations and product scalability

Pointerra’s combination of strong revenue growth, improving profitability, and U.S. exposure makes it a compelling story heading into FY26.

Final Thoughts: Why These Tech Penny Stocks Deserve a Closer Look

Dubber and Pointerra may be small in market cap today, but their disruptive technologies, global market exposure, and scalable SaaS models put them on track for significant long-term growth.

While penny stocks inherently carry higher risk, these two stand out because they aren’t just speculative plays — they’re real businesses solving real problems in sectors with strong future demand.

For forward-thinking investors ready to ride the next wave of tech innovation in Australia, Dubber and Pointerra are names worth bookmarking. FY26 could be the year these penny stocks finally punch above their weight.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.