LIC/LIT dividends flow for shareholders

In this edition of the IIR LMI monthly update, we take a look at the key news for the sector in February as well as take a look at the 1H'FY22 dividends/distributions declared/paid. 

It has been a volatile start to the new year with inflation, war and environmental disasters dominating the headlines. This has been reflected in the NTAs and share prices of LMI's and no doubt will be the talking points over the next few months. First things first, the 1H'FY22 reporting period has come to a close and LIC/LIT share/unitholders were rewarded with uplifts in dividends/distributions. After reducing the interim dividend in FY21 on the back of reduced income from investments, BKI increased its interim dividend to 3.5 cents a share (not including the 0.5 cps special dividend), a 75% increase on the prior corresponding period. Ex the special dividend, this is very close to the interim dividend levels in FY20. After a prolonged period of declining dividends, DJW declared an uplift of 28.6% to 6.8cps. While still significantly below the previous highs, the uplift is positive news for shareholders.

AMH’s interim dividend was of note, given it was is only the second interim dividend declared in the last 10 financial years and is the first dividend paid since the Board revised the dividend payment policy.

There were a number of LICs/LITs that paid an inaugural interim dividend, including CDO, which paid a fully franked dividend of 7.5cps after only listing in November 2021. Upon listing the Company had an existing profits reserve and franking credit balance which has allowed the Company to declare a dividend so soon after listing.      

The attached report provides all the latest news as well as a detailed look at the 1H'FY22 dividends/distributions landscape. 

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