In major news on Australian stocks, Washington H. Soul Pattinson and Company Ltd, or Soul Patts (AU:SOL) set a new record of increasing its dividend for 24 consecutive years, despite posting a dip in its first-half profits for FY24. The company increased its interim dividend by 11.1% to AU$0.40 per share, up from AU$0.36 a year ago. For the first half period, statutory profit attributable to shareholders amounted to AU$302.5 million, marking a 33.2% year-over-year decrease.
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Soul Patts’ share price initially declined in early trading on Thursday, but ended the day with a gain of 0.43%.
With a history of operating pharmacy stores, Soul Patts has transformed into an investment house with a diverse portfolio spanning multiple industries.
More Insights from the H1 FY24 Results
Soul Patts’ pre-tax net asset value increased by 10% to AU$11.5 billion in the first half of FY24 compared to the previous corresponding period. Net cash flow from investments grew by 6.9% to AU$263.4 million, driven by the credit and strategic portfolio. However, the performance of the portfolios comprising large-caps and emerging companies weighed down overall returns.
Speaking of outlook, management is highly confident about its diversified portfolio, strategically structured to generate long-term cash flows. The company highlighted that its adaptable investment strategy enables it to invest in businesses of diverse sizes and industries, facilitating agility in responding to market fluctuations and reducing earnings volatility over the long term.
Over the last 12 months, the SOL share price has increased by more than 29%.
