Geoff Wilson chaired-Future Generation Global boosts dividend

Future Generation Global lifts dividend payment after committing to paying both interim and final fully franked dividends on the back of a solid investment performance.

Future Generation Global, chaired by Geoff Wilson, lifts dividend after committing to paying both interim and final fully franked dividends on the back of a solid investment performance. Picture: Damian Shaw/NCA NewsWire

Future Generation Global will ramp up its dividend payments after committing to paying both interim and final fully franked dividends on the back of a solid investment performance.

For the first time since its inception in 2015, the Geoff Wilson chaired listed investment company declared a final dividend of 3c a share fully franked, taking its total to 6c a share for the 2021 financial year, up 200 per cent on the previous year.

On that basis, its shares traded on a fully franked full year dividend yield of 4.2 per cent versus the average global share market yield of 1.8 per cent and the US share market average of 1.4 per cent.

FGG shares rose 2.1 per cent to a three-day high of $1.45, despite a 0.4 per cent fall in Australia’s benchmark S&P/ASX 200 index late Tuesday morning.

The listed investment company said it held a profits reserve of 48.3c a share as at December 31, representing 8.1 years of dividend coverage.

“We are pleased to deliver on our commitment of paying fully franked dividends to shareholders, with the company now paying interim and final fully franked dividends each year,” said Mr Wilson.

“This has been achieved through the profits reserve available, with 8.1 years dividend coverage providing a positive outlook for the Company’s future fully franked dividends.”

The profits reserve available has been boosted by the performance of the investment portfolio since inception and the change in accounting policy reported with its interim financial results.

At the end of December, the investment portfolio was comprised of 12 fund managers with investments in 12 unlisted unit trusts and one direct listed investment company.

The investment portfolio increased nearly 12 per cent last year, while holding an average cash holding of 6.2 per cent.

Since inception to the end of 2021, its investment portfolio has increased more than 11 per cent per annum, with less volatility than the Index, as measured by standard deviation.

The company’s audited annual results will be disclosed on February 28.

Future Generation Global invested a record $6.4 million in Australian not-for-profit organisations and its eight charity partners working with young Australians experiencing mental ill-health.

The final dividend of 3.0c a share is on top of the 3.0c delivered to shareholders last year.