Soul Pattinson lifts dividend after strong FY performance

The news: Investment manager Washington H. Soul Pattinson has lifted its final dividend after recording a strong performance across its portfolio.

The numbers: It reported a statutory profit of $690.7 million for the year to 31 July, compared to a net loss of $12.9 million in the previous year that was impacted by a one-off impairment. Regular profit was down 9% to $759.3 million, although its total portfolio returned 12.3%. That allowed the group to lift the total dividend for the fiscal year by a fifth to 87 cents per share.

The context: The investment house, which holds stakes in ASX-listed companies ranging from coal miners to banks, said the year was marked by significant transaction activity and the group’s shift towards more private market investments that are uncorrelated with the equity market. Managing director and CEO Todd Barlow said the group is holding significantly more cash in a higher rate and inflationary environment, but can be nimble when opportunities arise.