Our Best Stock Picks for Strong Dividends this Season

In tonight’s Australian Stock Market Show, Filip, Janine and Pedro reveal their best sock picks for strong dividends this season.

• 0:01Speaker 00

  This podcast is brought to you by Wealth Within, a global leader in stock market education. For more information on our courses, head over to wealthwithin.com.au. Please note that the information in this podcast should not be considered personal financial advice. Enjoy.

• 0:19Speaker 01

  Dividend season is right around the corner, which makes now the perfect time to revisit your portfolio and work out which stocks could deliver the best income opportunities for the rest of the year. We've done the heavy lifting and uncovered some very interesting opportunities. A few even offer what we're calling the triple opportunity. Strong recent results, attractive dividends and share prices that still look cheap. Stick around because we'll reveal which stocks tick all three boxes. At Wealth Within, we don't just talk about the market. We've spent decades teaching Australians how to understand it and trade it through our accredited education. I'm Philip Tortevsky and joining me is Senior Analyst Janine Cox and Pedro Banyales. Good evening.

• 1:01Speaker 02

  Good evening. How are you?

• 1:02Speaker 01

  I'm a bit warmer today. We're normally cold at this point, but-

• 1:04Speaker 02

  I know. We're sort of thawing out down here in Melbourne, aren't we?

• 1:08Speaker 01

  We are. And we're going to be talking about some hot topics today, which are the dividends. Pedro, welcome aboard.

• 1:15Speaker 03

  Good evening, guys. I'm quite the opposite. I'm boiling up here. So yeah, I'll send a little bit of warmth down your way.

• 1:21Speaker 01

  Yeah, nice. Thanks for rubbing it in to start us off. But let's dive right in as we enter dividend season and finish off earnings season. Has there been any major takeaways for investors with respect to how they should be looking at picking their stocks for the dividends moving forward into 2027? Because we have had, you know, we have had companies raising yields, not just companies offering attractive yields while the share prices are getting pummeled. What do you make of this reporting season?

• 1:48Speaker 02

  Yeah, I think the market is actually really rewarding investors who are upping their dividends. So that's one thing to look out for. And genuine lifts, not just, you know, little token gesture.

• 2:00Speaker 01

  Yeah.

• 2:01Speaker 02

  And we've got BHP as a great example that's reported and profit up 30%, dividend up around 57%, which, you know, investors are really excited about. So I think BHP is a good story, but not every company will be. And so just because a company ups their dividend doesn't automatically mean that their share price is going to appreciate. And you sort of have to look underneath, you know, read between the lines and look at what's actually going on and whether the company's healthy and how, what are the prospects for it? Because the market is going to really be harsh on those companies that are downgrading when they're expecting more profit.

• 2:38Speaker 01

  Yeah. And I mean, you've got a perfect marker in terms of what we've just seen for our earnings season. But out in the US, we've seen the best reporting season since the second quarter of 2021, whereby early August, 86% of S&P 500 companies had beaten earnings estimates. Now, given the US is usually the benchmark for Australia, in terms of where to next, I want to ask Pedro, does this result mean that investors can start to get more risky when it comes to stock selection, especially looking for some of those smaller cap attractive yield stocks that have been beaten up and that everyone loves to look at? Pedro, is the health of the US reporting telling us something that we should be more upbeat about our market?

• 3:21Speaker 03

  Well, yes and no. I mean, our market usually does follow the American market, but it's strange because our market is largely led by the materials and the banks. So we're a completely different market to America, whereas, you know, they're more software and AI related. That's recent boom. But we have seen, you know, it's been the strongest earnings since 2021 over in America reported. And we've actually seen some small caps at record highs over there. So for us, it means that the large end of the market has started to move. And like we've mentioned, at BHP and at Rio, we've seen that new all time highs

• 4:02Speaker 03

  as well. So now it does give us a bit of room to start looking at those lower end cap stocks, obviously in the resources sectors and, you know, export commodities of the like. So definitely that is looking like a very interesting part of the market and usually pays out pretty nice dividends.

• 4:22Speaker 01

  Fantastic. All right. Let's not waste any more time, Janine. Stocks?

• 4:26Speaker 02

  Yes, let's get into that. And FMG is the first one on our list. This has really been an unloved company over recent times. And this is where sometimes the opportunities can come up. We've seen the share price come back and I'm just waiting for that next uptick, which could, you know, come pretty soon. So we're seeing this strong support level. I was hoping that FMG wasn't going to come all the way down here to test support, that it would just find support where it is, because there are some important levels around where it's currently trading. If you've studied our courses, then you would know what these levels are to look for. And more importantly, what the upside potential is. And that's the real challenge, I guess, when people are buying stocks in the stock market and

• 5:07Speaker 02

  they're reading reports around reporting season and hearing about dividends that, well, okay, how do I determine whether that's real or not? And that's the advantage of being able to look at a chart and actually test what's actually being verbalized in the commentary about, you know, that they say there's a consensus estimate that says that FMG's got a target price of whatever it is. Well, you know, why would you want to just believe that? Why wouldn't you want to test that and be able to do that and apply that yourself? So anyway.

• 5:36Speaker 01

  I was about to ask that because I mean, to me, there's two parts of this, you know, and I often get asked the question, hey, you know, earnings are coming, should I just buy this stock and get the yield? And it's like, well, hang on a second. Do you know that the stock's more than likely or going to fall the day of, you know, ex-dividend day? And is the stock placed in a good location that it makes sense to buy it at that point? Are you buying based on the stock giving you signals on the chart with price that it's going to head up? Or are you just buying for a yield? Because the worst thing you could do, and we see it time and time again, is just buying a stock because the yield's attractive. And that yield is attractive because the stock's trying to keep investors in the market.

• 6:18Speaker 02

  Yeah, it's amazing how people get that sort of tunnel vision and they think, oh, this is going to pay a good dividend. I'll pick that up ahead of the dividend going ex-dividend. But it's just, there's a bigger story than that that you've got to look for.

• 6:29Speaker 01

  Yeah.

• 6:30Speaker 02

  Looking at FMG back on the chart again, you can see there this pullback I was talking about. Now, ideally, I'd like to see it pull back here and start to move up higher and challenge this 22, 23. Then we really know that FMG is going to be moving in the right direction. That's what we've got to see first. So this is where reporting season is so critical for stocks like FMG and dividend as well. But, you know, if it comes back and hits this level, then it's still not the end of the world for FMG. But it's really got to show us a nice turnaround and a strong rise out of any low that comes up. The potential is for it to come up and challenge this all time high. I'd be thinking somewhere around

• 7:12Speaker 02

  the $26, $28 mark could be realistic once it actually shows that move.

• 7:18Speaker 04

  Hey, podcasters. You're here for a reason, to become a more confident and profitable trader. And you can achieve this because it's all about having the right knowledge. We have a course that will suit you and improve the profits you take from the market. Curious to learn more? Head over to Wealth Within and check out our trading courses.

• 7:42Speaker 01

  Awesome. All right. That is it for FMG. Now, Pedro, can you take us to the next one, please?

• 7:48Speaker 03

  All right. Next up on the list is DXS, Dexes. So on the chart, we have seen it get beat up quite dramatically here on the monthly, obviously monthly on the left, weekly on the right. And it really has gone through that whole cycle of, you know, that kind of, you know, that rise that we had since 2009. And now we have, you know, in that kind of bear market, we're kind of in the midst of it at the moment. But eventually, this stock will likely find support. And this level at around the $5 is looking like a likely support level for Dexes. It's already gone through all of this period, you know,

• 8:28Speaker 03

  sideways action, and then that continuation of that move down. So right now, if we look at the weekly chart for a little bit of a shorter term perspective, and this one is paying out good dividends at the moment, it's getting sold off a little bit, but we are basing out. You can see the price action here does look like it's been supported. I'd like to see what happens when it comes back to that $5.40 mark to see if price gets supported. But obviously, if it does break above these highs above here, it'll be a different story. We'd like to obviously see confirmation. Whenever you see a stock

• 9:07Speaker 03

  for so, for so long and for such, you know, a percentage, then you want to see that confirmation of the rebound. So for the moment, the dividend story is there. The growth isn't there yet, but could likely be in the future.

• 9:27Speaker 01

  All right. One to watch for next time, Janine?

• 9:29Speaker 02

  Yeah. Another interesting one is you've got, you can't go wrong with banks generally when you're looking for dividends.

• 9:35Speaker 01

  Yep.

• 9:35Speaker 02

  And Bank of Queensland is a bit of an outlier because it's been unloved for some time. This could change and it's really on the crux of it. I mean, you can just look at the angle of this run all the way down into the low here. It's clear to see that this stock has been really stuck underneath the angle of that, but I don't think that that will last. I think that BOQ is going to try to make a comeback. We're going to see it push back up. Just look at the situation in Queensland. The property market's tight in Queensland and people can't get enough supply. So, you know, is that going to change anytime soon? Well, there's a lot more stock coming on the market as well, so that can help it. That could be helping banks like Bank of Queensland,

• 10:20Speaker 02

  but it's all about the net interest margin and the amount of profit that they're making. So that's really what you've got to watch. But if they continue to pay a good dividend and they move up around above this $7 level, then I'd definitely be interested in what BOQ are doing.

• 10:36Speaker 01

  Awesome. All right. Well, stick around because we have more amazing stocks to show you. But now time for our trending topic this week, Janine.

• 10:46Speaker 02

  Yes. Now, popular retailer JB Hi-Fi shares slump this week after announcing a record result. Is this the canary in the coal mine indicating trouble for the sector? JB announced a record profit for financial year 2026 and total sales up 4.8% to $11.06 billion, which was largely in line with estimates. You'd think the market would be happy with that, especially after JB raised its full year dividend to 2.5%. Is the market becoming too picky? And are we being measured on US standards? You don't want me to get started

• 11:24Speaker 02

  on that. Take a look at this. Total quarterly sales growth was 6%, 6.5%, 4% and 0.3% for financial year 26, while comparable sales were 5%, 5%, 2.6% and negative 0.8. These are for the quarters. So you can see the market is concerned about the drop in the last half compared to last year. Historical performance looks quite good, actually, if we compare financial sales growth. The table shows the total sales for each year in dollar terms. So you can see the progression down the column and the record profit this year,

• 12:04Speaker 02

  as well as the corresponding sales growth for each year. Now, last year's sales growth at 7.5% was particularly high and this year is reasonable at 4.4%. But last year's spike makes this year's comparable sales appear low. Despite the challenging conditions, JB still produced a good result. But it's the quarter four data and the 0.5% fall in sales growth in July that the market's focused on. The reality is, historically, quarter four is a slower period for JB. Retailers make the most of their money in the first half and particularly quarter two, which covers Black Friday, Cyber Monday and Christmas.

• 12:48Speaker 02

  Still, commentators are talking JB down based on the decline in comparable sales and a high P/E ratio. Coinciding is that US retail stocks are about to report to the market, which adds to the woes of Aussie retailers, particularly as last month US retail sales dropped by 0.6%. Let's take a look at JB and the sector. All right, I've got JB Hi-Fi on the screen there. Now, you can see it's been falling anyway prior to this. So if we look at the decline, this is based on the perception of what's going on. And we know that even the CEO mentioned that's a challenge to get

• 13:31Speaker 02

  the stock, you know, that sales could be down because of stock issues. So if that's the case and things improve in that area, then you would expect to see retailers like JB Hi-Fi improve their bottom line.

• 13:44Speaker 01

  You know what's interesting to me? Last year, that run that JB went on was on the back of efficiency, you know, cost cutting through AI. Nick Scully this reporting season, the 40 or 60% increase in efficiency in the business.

• 13:58Speaker 02

  Right. And they loved it.

• 14:00Speaker 01

  Loved it.

• 14:00Speaker 02

  Yeah.

• 14:01Speaker 01

  And so now JB is in a situation where, you know, you're saying that that is not working anymore. So to me, that's the deeper story. It's like, it's all good and well to use, you know, AI or whatever you're using to become more efficient. But there are some cracks now that it's not working for everyone. It's becoming a lot more expensive than initially thought. And I think that's the bigger story for these retailers. Some will thrive, but some may have got it wrong.

• 14:31Speaker 02

  Yeah. And look, it can also be that they do something in one year and they can't repeat it. The next year, you're not going to get the same level of growth once you've implemented it the following year. So, you know, last year they had fantastic growth. It was 7.5% comparable growth versus what happened the following year, I think. So, you know, there's a drop and that's what the market's actually really focused on that, plus the fact that July is down. But I still think that JB will surprise later in the year anyway with, you know, with Black Friday and Cyber Monday. It always goes nuts at that time.

• 15:05Speaker 01

  Yeah, you're right. And I think we've, this world has fallen in love with these results that the AI stocks have been giving. Like, they've been shooting it out.

• 15:15Speaker 02

  Straight away you mention that and all of a sudden that's positive, accretive to the share price if a company's going down that path, isn't it?

• 15:22Speaker 01

  I think we're falling in love with amazing results that we need to settle a little bit. But anyway.

• 15:26Speaker 02

  All right. Let's have a further look at these beautiful charts here. The first one is obviously JB Hi-Fi itself. And we can see there that stellar rise like Phil was talking about with the AI coming in. And we've seen the pullback as the market sort of readjusts itself. But look, I think that we're going to see a return to trend and that's what's happening right now. And I don't think there's too much risk to the downside for JB Hi-Fi right now. I think if anything, it's going to be short-lived and then I would expect it to go back up. This means that, and generally with JB Hi-Fi, it's going to happen quick because, you know, because they sell it off and all of a sudden they come back in again. So, you know, we could see it hit that angle a few times and

• 16:08Speaker 02

  then it might bounce through after that. But you just have to be patient. You've got to make sure you put your analysis on the chart, look for where the best support levels are, working out a confluence of analysis to determine the price, time and pattern all coming together. You know, that's one of the biggest aha moments that I'm getting from people who have come through our, you know, with us when they want to become an advanced trader. And they're being able to put all of that together and it's amazing what they're discovering.

• 16:38Speaker 01

  Before we move on, can I ask you quickly on this stock? Is this one of the ones that falls in that category of okay earnings, not bad, a beat down share price and the

• 16:52Speaker 02

  A great dividend.

• 16:53Speaker 01

  And a great dividend.

• 16:53Speaker 02

  Yeah.

• 16:54Speaker 01

  Is this it?

• 16:55Speaker 02

  Yeah, I think this is it. And it's just a matter of waiting for the when.

• 16:58Speaker 01

  Awesome. All right. Did you want to look at the discretionary sector as well?

• 17:01Speaker 02

  Yes, if we've got time, let's do that because discretionary is actually up overall. So what is that telling?

• 17:07Speaker 01

  That's what I was saying.

• 17:08Speaker 02

  Yeah. So US has had record earnings overall. The market's scratching and is concerned about what's going to happen in the discretionary space. All we need to see is a little pullback now in this sector and then another further push up. And we know where that's heading. So I'm just waiting for the low to come in, this next move down to come in. And then we'll have a good gauge for where or how high it's likely to go from there.

• 17:30Speaker 01

  Yeah. All right. If you want the skills to analyze the stocks, just like you've seen us do tonight, visit our website, wealthwithin.com.au. Check out our accredited diploma of share trading and investment. Also, please check out our testimonials. They are up to date. You'll see what is possible and the amazing results our students and clients are having. If you want to take things slower, check this book out, How to Beat the Managed Fund by 20%. It is free. You just have to pay the shipping by Dale Gillum. The link is in the description in this video. It gives you a nice introduction to all the things we show in terms of portfolios, setups. And now's probably never a better time, given what we're walking into in terms of dividend season, to really have a good look at your

• 18:11Speaker 01

  portfolio. Get the book. Have a think about how you can use some of those techniques to better your performance. But let's get back into our topic and get into some more stocks. Pedro, what's the next one?

• 18:25Speaker 03

  All right, I've got a beauty for you guys next, and that's the Terra Royalties, ticket code D R R now. This one does tick all the boxes. It's got a dividend yield of 5.76 currently, and I'll add in a little bit of an extra metric there. It's got a 13 P E ratio. So that's actually quite good for this type of stock. And it recently reported and came out with a 5% increase in statutory net profit after tax and a 6% rise in revenue from continuing operations. So it's ticking all the boxes in terms of good reporting, a good dividend, and it looks like the the share price is rising. You can see from this low in April 2025,

• 19:07Speaker 03

  this stock has been consistently rising. And what they're involved in is in royalties as the main, you know, insinuates. And it's in the the materials sector. So they've got royalties in different mines and things like that. So like I said, from this low in April 2025, you can see that the trend is nice and up. It is getting to this period here, though, this this price action that's really between the $5 mark and I would say roughly the $4. Certainly, where between $4 and $5 has been a big point of price agreement in the past.

• 19:45Speaker 03

  You can see that it trades a lot around that price level. So I would just be aware of that $5 level that's coming up. But that range is well intact. But I think that it's got a nice upside still. Like I said, good reporting. When we go to the weekly chart, obviously, you want to have rules around this. And this is a stock that you can definitely use rules to trade. You know, when I'm having my intro call with new students, you know, they ask me, well, how can I have that shorter term income? And a lot of them are looking for that kind of, you know, not many come to us for day trading as such. They're a little bit smarter than than

• 20:27Speaker 03

  that, I would say. But they are looking for that income type play. And I would say, look for these type of stocks that that tend to to offer those opportunities. You can usually tell. And once you go through the course and you're, you've had a look at so many charts, you start to get that sense of how a stock moves. And when it moves like this, and you've got all these opportunities to buy and sell, you know, really, that's what you want to see. And and you want to have those setups and be in those setups at the the right time. So I think that this one is setting up quite nicely. You can see that the chart is pointing up. This is a weekly chart here. I think that this one is looking quite nice, if I haven't said that enough.

• 21:06Speaker 01

  Yeah, yeah, no, it's definitely shows you you're liking that one. But I think you made a very important point. I want to get your thoughts on this, Janine, because, you know, Pedro mentioned day trading. And and so, you know, it is obviously the popular form of of trading. But, you know, he mentioned that not many people come to us for day trading, which is, which is, you know, right. But at the same token, the things you learn in this book, or you learn in our diploma, you can use for any timeframe of trading. So if you are someone out there that is thinking short term trading, that's what you like, just know that knowing to read price action is far more powerful than just locking yourself in one form. Because when you have the tool belt, then it's up to you to decide and construct the type of portfolio,

• 21:51Speaker 01

  the type of strategy, the type of momentum that you're going to trade. And that's the biggest thing for me from buying or anyway, when it's like, one of the biggest questions a trader needs to ask themselves when they start is, especially if you're going to trade, it's different if you want to invest, which you can do too. But if you're going to trade, you need to, the first question I would be asking myself is, okay, what level of volatility do I want to trade? What swing am I trying to capture? Long movements? Am I trying to capture short movements? And you can measure all of this if you know how. And then when you when you get to that part, then it's about constructing the strategy with the the stuff, you know, we teach with the rules and that. But most people don't even get to that part saying, oh, I want to be a short term trader. But you need to know what level of volatility,

• 22:33Speaker 01

  what level of timeframe, all of this stuff that matches with your goal. Because so many times I've seen, I want to trade short term, and somebody's looking at, you know, for example, a monthly chart to to execute. So I'm not getting enough trades. Was a reason for that.

• 22:50Speaker 02

  Yeah, exactly. And look, I can remember some people that I've spoken to over the years, because I have spoken to a lot of people that thought that they were day traders. But when they realize what you can actually do, and you can only put that to the test, because you don't know what you don't know until you give it a go, basically. And so that's what I'd be saying to you, just give it a go. Because once you actually learn how to test a stock, as you know, you work out a better way to trade it than what you think. So they think, okay, I'm just going to make $200 or $500 or whatever it is here and there, which really is just sort of, it's not even, it's not even touching the, you know, what's possible for them. They have no idea because they're so blinkered. And it's just that really

• 23:32Speaker 02

  short term fix that they're after, which, you know, it'd be a lot less stress and a lot easier. And I've worked, I was only speaking to someone just a week ago, who was in that same position that has gone through and learned how to do it properly. Oh, my goodness, I can't believe where I was before and now where I am, you know.

• 23:50Speaker 01

  Yeah, well, the statistics, the statistics are there. 99% of day traders don't make it. And there are many studies that show that. And you would be so surprised, the percentage of success, how much it increases, when you start to do some of the things we we're talking about. But if you want to learn more, go and check out the website, go and talk to some of our traders, they'll speak to you on the phone, and they'll talk to you exactly about these things in terms of how you can stack those probabilities in your favor. But let's move on to our next stock, Janine.

• 24:20Speaker 02

  Yes, it's A G L. Now, utility stocks actually can be pretty good for dividends, and even short or medium term opportunities at times. Some people try to hold them long term. But, you know, you just have to look at this chart to see that that's probably not always the best idea. And when you look at what happened with A G L, you can see there's a time to be in and a time definitely to be out of these things. But what's really interesting now is what's happening with A G L. So it's trying to find a bottom at the moment. Now, I'd be waiting for some more confirmation. It's not quite there yet. I would want to see it really bounce off this level of potential support that's there before looking for that entry opportunity. But so this comes first. So it's step one is finding that level and

• 25:04Speaker 02

  seeing what's important. Step two, you've actually got to have an entry that you've tested on a stock like this. Because it does go up for a few months, you can make some really great gains. But then if you don't have the right exit strategy, you're going to give it all back.

• 25:17Speaker 01

  That's the key.

• 25:18Speaker 02

  And that's important, isn't it? Really important.

• 25:20Speaker 01

  Yeah, it is. It is. I mean, we constantly get the comments saying, hey, you know, you said this is going up. It's not moved now. But remember, one week changes can change our view on a stock or a market. And the reality is, we may be selling, and, you know, someone may still be holding, thinking it's a buy. The most important part is to know how to sell. That's when you realize your gains. If you don't know how to do that, then I think you're playing a very dangerous game in the market.

• 25:48Speaker 02

  Yeah, it's not a stock tipping thing. It's more about, we see an opportunity, and then you've got to find your strategy. Well, what knowledge have you got to actually determine that strategy? And I'm working with people that are between 30 and even up to people in their 70s who were doing this. So there's no age barrier. And probably one of the youngest people I've ever worked with was a lady who was teaching her son at 15, you know, through what she had actually learnt herself in the course. So, you know, it's age is no barrier.

• 26:18Speaker 01

  No, and the younger you start, the better. But anyway, let's get to, we've got another stock?

• 26:22Speaker 02

  Yep, we have M F G.

• 26:24Speaker 01

  All right.

• 26:25Speaker 02

  Magellan Financial Group, M F G. Now, we've been talking about this one for a while, and it's still holding us in suspense. We can see here this long term support, which is, and there's also resistance in there as well. But there's some really strong support in there. Now, if Magellan pays a really good dividend, and the story turns around, then we could see it break out of the blocks. And this could be a really good indication of where Magellan has, could go from here. But the setup is what we like. This is the sort of thing that looks fantastic when you see this scenario here that's unfolding on the chart, and then just to wait for that entry opportunity. It's looking really nice at the moment, I'd say.

• 27:07Speaker 01

  Awesome. All right, Pedro, last one.

• 27:11Speaker 03

  All right, lucky last. So now we have GQG Partners, that's ticker code GQG. Now, this one has again been sold off, so it is relatively cheap compared to where it was before, back in July 2024. But hey, you know, what is cheap? It's not like a banana that you buy at the shops. That's cheap relative to the previous price. You have to realise that stocks are valued and priced relative to their earnings and so on. So but the beauty about price action and reading a chart is that we can actually see, we can let all the big institutions and all the big analysts do their thing and do all the research, then pile their money into a certain stock, and then we can

• 27:56Speaker 03

  actually see that happening on the chart and then just ride on the back of that wave, like I always say. So at the moment, I'm not seeing indication of that. I believe that these guys are due to report this Friday, so only in, what are we, we're like three days away. So it will be interesting to note and to see what they do with their dividends. Right now, the dividend yield is sitting at around like 10%. P ratio is at 6.5. But obviously, that will change once the new report comes out and those earnings come in. So if they keep their dividends on hold, or if they increase their dividends, but also report good earnings, then we could actually see a good growth story

• 28:39Speaker 03

  come out of GQG. And we also need to see their funds under management because they are an investment firm. So at the moment, we're seeing a little bit of a reversal. You usually see that happening in, you know, in anticipation of that report, especially if people and investors are looking for a positive report come out. But I'll just quickly highlight this level here because it's pretty obvious here on the chart where that support is. And it's around that $1.30, roughly to that $1.20 mark. So right now, it's at support. Let's see what happens when it breaks that momentum. Let's look out for the report. But all in all, I think that this one could have potential to tick all the boxes quite soon.

• 29:25Speaker 01

  Awesome. All right. Now shortly, we're going to get into our hot stock tip. But first, let's answer your questions.

• 29:32Speaker 05

  Hey, podcasters. I'm glad you're here to gain the knowledge to invest with confidence, which is why we're interrupting this podcast to tell you to grab Dale's award-winning book, Accelerate Your Wealth. For traders who want to take their trading to another level, this book enables you to achieve better returns and pocket the fees you otherwise pay to have someone else manage your money. Head over to Wealth Within and visit the shop to order your copy today.

• 29:59Speaker 01

  John writes, I'm seeking your insights on A2 Milk. I entered at $5.86 after it bounced off a recent low and have noticed it's been consolidating for roughly two months. There's also a large gap from April that I expect the price may come back to test. Could you please perform some technical analysis and share your perspective on where the stock might be headed next? Janine, A2 Milk.

• 30:21Speaker 02

  It was John, wasn't it?

• 30:22Speaker 01

  John, yes.

• 30:22Speaker 02

  Yeah. John, look, I love your stock choice. I think it's a fantastic selection. Well done. In terms of the point where you entered, I suppose you're going to know, you'll probably, if you watch the show regularly, you'll know what I'm about to say. But I think it was just sort of one of those moments, you know, where you lick your finger and just check to see which direction the wind's blowing. Because really, the stock was still falling, even though it had started to try to reverse here. I don't know whether you bought on the way down, or whether you've bought when it's turned around to go back up. But even so, one week up does not mean that it's going to keep rising. And the challenge here now is that it's coming back. It may push back up, but it's really a guessing game now. So, you know, you were probably looking at that

• 31:06Speaker 02

  and saying, well, I had a nice, you know, profit from my buy price. I've done well. But then all of it's got wiped out pretty much.

• 31:14Speaker 01

  Selling, again, back to selling.

• 31:16Speaker 02

  Yeah. And see, the challenge you've got here is it's, you can't avoid looking at the longer term direction. That's always a key thing. It's one of the things that we teach when we're encouraging people in the marketplace is to really understand that picture, because it's like having a view from the top of the mountain or having a view from the bottom. You know, you're going to see a totally different picture. And here, even though we had a reversal there on the monthly chart, the start of what could be the rise, it's just the sucker's rally, if you like. So it's just let that sucker's rally happen. That's the discipline that you get, and then wait till it unfolds. And I was having a conversation on our traders forum the other night, because it's the senior traders or the more advanced traders. And one of the gentlemen

• 32:01Speaker 02

  on that forum, he's actually done a testimonial for us, which was so nice of him to do that. But he was so excited to do it, because he has totally changed his whole trading scenario has changed, his outlook has changed. He's gone from, you know, really struggling in the market to making big, a big sum, which you can see if you listen to the, or hear about when you listen to his testimonial. But, but that was yes, I'm talking about, you know. And so it's just made a world of difference to him. So he now knows what's possible, and that's really exciting, I think. But just looking, and that could be you too, John, and just looking at this pullback here, I'm hoping that it's actually going to come back no more than your buy price. That's the

• 32:43Speaker 02

  ideal scenario. And then it moves back up from there. That would be a great scenario. But stocks don't have to come back anytime soon and fill these gaps. It could take years sometimes for these gaps to get filled. But it's possible that it could. If it starts moving up, and I would say, you know, once it gets back above, probably around the top of that bar there, at around 7.30, if it really goes strongly above 7.30, then I think, you know, it'll be moving up again. But, you know, it's going to get, it could even come back here at this point. You just don't know.

• 33:15Speaker 01

  Yeah, awesome. All right, John. Thank you very much for that email. Now, Henry is next. I've had Meridian Energy on my watch list for a while, and I'm wondering whether the stock is finally starting to show signs of a long-term rebound. With energy prices and demand continuing to change, do you think this could be the catalyst for Meridian to break out of the sideways move and go higher? Is this a stock you would consider for a long-term trade at current levels? All right, Pedro, Meridian, long-term trade for Henry. What are your thoughts?

• 33:46Speaker 03

  All right. Thanks for your question, Henry. Now, I'd love to understand your level of investment experience, and then whether you're, what you're looking to gain from this. And I know you mentioned from that long-term perspective. So what type of portfolio you want to put into this, if it's a growth, if it's an income, or if it's a super type of portfolio? Because the answer will vary slightly depending on that. But let's see, let's have a look on the chart to see what's happening. Now, I understand that this is New Zealand's largest renewable energy play. It's quite a, it's in the utility sector. So it's quite a notable company. At the end of the day, you would trade this and you would invest in this as with any other stock. And I

• 34:30Speaker 03

  know that it's important to know, to understand the story. But at the same time, the answer to your question is actually going to be very simple, whether, you know, this is going to be a good long-term player, and when to buy and when to sell. And that's going to be by looking at the chart. The chart will tell you everything. And really, if you strip away the story of this stock, all the fundamentals and anything like that, and you just had the price action, you know, you could actually trade it the same as you would now. And actually, some of those things sometimes get in the way, because fundamentals can sometimes be high, sometimes be low, and then the share price is sometimes going down, sometimes going up. So it can actually contradict

• 35:11Speaker 03

  itself. So I would, my advice to you would be firstly, look at price action, because it's objective, and it doesn't have all these biases. It's either been sold or it's been bought. Right now, I've just put this momentum line here on the chart, and you can see that it is trading below that momentum slightly. And it's pretty tight against, you know, those previous troughs there. So right now, I think that it is showing a little bit of weakness. I'd like, I'd like it to get above that downward momentum that you see here. Also, the reason why I asked your level of experience is because when you look at the weekly chart here, and automatically, I'm sure

• 35:51Speaker 03

  our students and our regular viewers would, would see what I'm seeing here on the chart, and that is a stock that doesn't look the most liquid. You know, when you look at that $4.63, and just the biggest volume here was 103,000. You know, you times that by 4.63, how much a dollar value was traded on this stock on Friday, August 14th? I mean, it's basically 100,000 times 4.5, just say $5 to round it off. So $500,000 worth was traded on that day. Now, I'd urge you to go have a look at a stock like ANZ, or, you know, some of the banks, some of the big stocks,

• 36:35Speaker 03

  and do that comparison. See how much volume was traded on a particular day compared to the share price. And you will see what I mean by that. There's not much liquidity in this. And I mean, that was a mathematical calculation, but you can actually, like visually see that on the chart, especially as your eyes get adjusted to it. And I'm also seeing type of patterns here that that doesn't look quite bullish. So all in all, I know I've gone on for a little bit. Long-term, no, it's more of a trading stock. Watch for price to get above this momentum if you are looking for an entry.

• 37:13Speaker 01

  Awesome. All right. We have Luca next, and he writes, I would love to know your thoughts on the recent Cochlear movement. So I'm a medium to long-term trader, and I've loved the idea of picking up Cochlear in my portfolio ever since it dropped. Wondering if this looks interesting to you all. Now, we're going to cover off, well, I shouldn't give it away, but we're covering off another stock which is very similar in that space next, Cochlear.

• 37:34Speaker 02

  Yeah, Cochlear's a good one. Really interesting that you've picked this one. It's already risen about 50% off this low. So, you know, there's the challenge. And I know, being a medium, if you're more medium to long-term, that's, you know, great that you're thinking over the broader view. Upside potential, I see potentially around 180 is where it could end up. However, it could also come back and test this bottom, which would bring it back to maybe 110, 120 as part of this run-up. So that's the real risk with it at the moment. So when these stocks come off lows, it's probably the riskier time to be picking it. So, you know, if it comes back 10%

• 38:16Speaker 02

  or 11%, that's probably reasonable, 12% even. If we look at the last run, and I'll just expand that up, that little one there, it came back about 15%. So, you know, if it comes back 15%, that's probably normal. If it comes back any more than that, I would say that there's a cause for concern. So that would be around 115.

• 38:37Speaker 02

  There's a possibility for it to come back to that level because then the trend's still nicely intact moving up and that would really bode well for the share to further move up. If it keeps moving up from here, then it could eventually make its way. But we're going to see, I think we're going to see, it's going to rise in stairs and we're going to see the elevator drop at some point. It's not going to be a necessarily smooth sailing, given where it's come from.

• 39:01Speaker 01

  Well, unless it's really been beaten up that much unfairly, that we see like mineral resources, that really sharp. But what's interesting to me is when you look at the situation it's in, because right now, the big question that I would assume, because we've had a lot of questions about Cochlea and CSL, is what's really being asked under the hood is, or between the lines, is this the major load? That's really what's being asked.

• 39:31Speaker 02

  Yeah.

• 39:32Speaker 01

  And when you talk about a stock of this caliber, I understand why that question's being asked, because if you were to pick this up around these levels, or a hundred bucks, which someone went out and called that on media again.

• 39:45Speaker 02

  Yeah, I know, and you did call it out. And you also had some of your mentories you were working with come up with strategies to trade this one. And so that's great. But I just think, looking at this stock, it was a short-term opportunity that happened already. For medium to long-term, I don't even think the setup's happened for that yet.

• 40:07Speaker 01

  Okay, so there's still time for someone like Luca, who's thinking more long-term.

• 40:12Speaker 02

  Well, yeah, didn't he say he's already got it? I mean, that was the point.

• 40:17Speaker 01

  No, no, he was looking and he's seen it go up and he's thinking.

• 40:19Speaker 02

  Oh, okay.

• 40:20Speaker 01

  Yeah.

• 40:21Speaker 02

  Yeah, well, it's all about risk and reward. You've got to know how to set a stop-loss for this, regardless of whether you think you're medium to long-term. Because a stock like Cochlea, even though you think it's an amazing stock, these stocks can always go lower. And that's one of the things that I realised when, having lived through the GFC and seeing really good quality stocks that you thought weren't going to go lower. Rio went to 90%, fell 90%, who'd have thought?

• 40:46Speaker 01

  That's such a good point.

• 40:48Speaker 02

  So I think this is another good example of that. Nobody thought Cochlea was going to fall this far.

• 40:52Speaker 01

  Yeah, and it's so true. I mean, at the end of the day, that is one of the biggest things that is forgotten. It's like you fall in love with the story and then you forget. Hang on a second, there's this thing called market movement and volatility that could forget about how well you think about the story and destroy you.

• 41:07Speaker 02

  Well, it's always got to go up, right?

• 41:08Speaker 01

  Well, yeah, that's what they say, right? Anyway, now time for our hot stock tip this week. Pedro, what have you got?

• 41:13Speaker 03

  All right, our hot stock tip for today is CSL. Basically CSL Limited, ticker code. You guessed it, CSL. Now, CSL reported today a FY26 statutory net loss of $1.6 billion driven by asset impairments. But they announced a $1.1 billion share buyback and strong underlying profit. So it's basically a company that's gone through a restructure. And I think that they've actually gone through the worst and 2027 is going to be a good financial year for them.

• 41:54Speaker 03

  And what's promising as well is that they actually kept their dividend as it is. So they maintained it at $1.62 US dollars per share, 100% fully franked. So it fits with the theme of today as well. Now that the share price is up around 16% today on that news, so it looks like the investors took well to that. So let's go on to the chart and let's see if there's still some opportunities or if you've missed out. Now, I would say that the first move is done, right? So you haven't necessarily missed out because there's a long way that CSL can still go. But there was a nice setup here that if you picked it up, you would have actually been

• 42:39Speaker 03

  in a nice little profit here. And sometimes you can pick these up at the lows when it makes these type of moves. And volume was indicating as well that it was getting picked up. I mean, you can go back to this bar here in June 2026, have a look at the volume on that one. And this goes back to what I was saying about that other stock earlier, 15 million, almost 16 million, and the share price was at around $116. So you know, do that math and you can see how much of CSL was traded on that day, on that week, actually.

• 43:16Speaker 03

  So right now, from that low, we are around, I think, 60, 70% here, around that 76 to 80% from the low. But when you think about it, we're also, from the all-time high, we are still, we were down 75% and we're still down around that 50%. And our traders would know what that means. And it's a very important dynamic that's happening here with the share price, the fact that it is down that much and now it's trading around that level, 160. So I would suspect that there's a little bit of short-term assistance at around 160. But all in all, good news for the long-term.

• 43:57Speaker 03

  And we do have a new kind of medium to longer trend, longer-term trend established. We might see price come back slightly to that angle of the rise. But I think that this is great news for CSL. They've got that out of the way. They've got those losses out of the way, they can move on. And a lot of people have been really, we've been getting asked about CSL for a long time now, they've been aching to get back into it. So I think that this is all that pent-up need and want to get back into CSL. So one final thing, I'll just note that we have broken above that momentum there that we established from the high of July 2025.

• 44:37Speaker 03

  So we've poked our head around for now, just watch for the retracement, watch for what happens around that $160. But I think we're good to go for CSL.

• 44:49Speaker 01

  All right, if you want more from us, check out this video.