Many in retirement are travelling comfortably, with three key factors contributing to their happiness – good physical and mental health and enough money to enjoy life.
Perhaps the assumption that markets are still anchored by predictable economic policies needs to be challenged. For the first time since the fall of the Berlin Wall, political volatility – once background noise – is potentially reshaping investment risk at a structural level.
Soul Patts’ payout record second to none on the ASX
Through two world wars, the Great Depression and numerous recessions, Washington H. Soul Pattinson and Co (ASX:SOL), or Soul Pattts as it is better known, has never failed to pay a dividend since listing on the ASX in 1903.
It’s a stellar performance, one that chairman Robert Millner (pictured) proudly noted at the annual general meeting when he told shareholders that Soul Patts had achieved an unbroken run of increasing dividends that no other ASX-listed company could match.
“Since 2000, ordinary dividends have increased every year, resulting in a compound annual growth rate of 9.6 per cent,” Millner said. “This exceptional performance is complemented by nine special dividend payments totalling 105 cents a share over the same period.”
In keeping with this time-honoured commitment to shareholders, Soul Patts, which closed on Tuesday at $34.57 (up four per cent for the past 12 months), announced a final fully franked dividend of 55 cents a share, bringing the total dividend for the financial year to June 30, 2024, to 95 cents a share, up 9.2 per cent compared with the previous corresponding year.
Responding to shareholder feedback, Soul Patts introduced a dividend reinvestment plan in September 2024, allowing investors to reinvest their dividends into additional shares.
For the 2024 final dividend, 11 per cent of shareholders elected to participate, representing 2.5 per cent of the total shares on issue. This initiative supports the company’s efforts to bolster long-term value creation while offering shareholders flexibility in managing their investments.
Todd Barlow, chief executive officer and managing director, highlighted the company’s strategic priorities, focusing on cash generation, portfolio growth and risk management.
“Soul Patts achieved a 10.3 per cent increase in cash generation from investments and a 12 per cent increase in pre-tax net asset value (NAV) a share after adding back dividends.
“The NAV growth reflects the resilience and strategic allocation across the company’s diversified portfolio, including equities, private markets, credit and property.”
Soul Patts continues to outperform market benchmarks with a 20-year total shareholder return (TSR) of 11.7 per cent a year, outpacing the All-Ordinaries Accumulation Index by three per cent annually.
Millner illustrated this growth with a compelling example: a $1,000 investment in Soul Patts in 2004 is now worth $9,200, significantly higher than the $5,340 return for the same investment in the broader market index.
Barlow added that the company’s portfolio diversification had been pivotal in achieving these results, with notable performances across asset classes in 2024, with private equity up 15.9 per cent, property (20.1 per cent) and credit (14.9 per cent).
Soul Patts’ forward-looking strategy emphasises resilience and adaptability, with Barlow outlining the company’s active investment approach, with $4.7 billion in transaction activity in 2024, including $2.8 billion deployed into public equities and private investments.
The company raised additional capital through equity and bond offerings in August 2024, ensuring financial flexibility for future opportunities.
“Our key strength is our ability to make smart, long-term investment decisions and adjust our portfolio to benefit from the changing economic landscape,” he said. “We believe the TSR is one of the best measures of success over the long term because it offers a holistic view of a company’s ability to generate value for its shareholders and includes the reinvestment of dividends.”
