The listed investment company BKI outperformed the ASX 300 capitalization index during the six-month period ended September 30, but is lagging one year behind. However, he is confident that he will increase dividends in 2021-2022 through special dividends and off-market share buybacks.
The fund received approximately $ 30 million in dividends in the last reporting season and expects to receive an additional $ 20 million in special dividend income. This compares to an annual dividend income of $ 39.7 million in 2020-21.
BKI shares are stable at $ 1.59 today.
“Barring unforeseen circumstances, BKI is confident to increase dividends paid to shareholders over the period 2021-2022,” portfolio manager Tom Millner told shareholders at today’s annual general meeting.
Over six months, BKI’s total shareholder return is 13.8 percent against a benchmark of 11.1 percent, while over the past year, the total return is 25.1. percent against a benchmark of 32.2 percent.
During the September quarter, the $ 1.2 billion fund was sold to Brambles, Platinum Asset Management and Magellan Financial Group.
He supplemented shares of BHP Group, Fortescue, Rio Tinto and Suncorp due to high grossed-up dividend yields. He also added some more Harvey Norman and bought freight company Aurizon Holdings.
He briefly owned Endeavor Group after receiving shares from Woolworths, “The shares were transferred to BKI’s trading account with the shares sold making trading profits of $ 350,000,” Millner said.
“Our exposure to ASX Ltd was reduced after the company announced lower profits, lower dividends and poor execution of its capital spending program. The stock has experienced a rapid rise in value which we believe has not been supported by the company’s current performance and proposed dividends.
ASX Ltd shares fell from a 12-month low of $ 67.30 in March of this year to a high of $ 88.75 on August 23.