BKI Investment (ASX:BKI) doubles earnings after dividend rebound

Company News

by Lauren Evans

BKI Investment (ASX:BKI) has doubled its operating profits after tax for the half year to December and increased its dividend by 75 per cent. 

The listed investment company’s operating profit after tax and before special investment revenue, climbed 104 per cent to $29.5 million as companies within the portfolio increased earnings distributions. 

The board will deliver an interim ordinary dividend of 3.5 cents per share, up 75 per cent from the prior year. The ex-dividend date is on February 11. 

BKI noted that improved economic conditions throughout FY21 continued into the first half of FY22 which saw company profits improve and dividends paid by Australian equities rise significantly.

BKI said that major holdings including BHP, Rio Tinto, National Australia Bank, Fortescue Metals, Commonwealth Bank, Macquarie Group and Reece Group all lifted their dividends by more than 100 per cent from the prior year.

“Despite ongoing concerns in 2022 with production, price rises, supply chains, inflation, serviceability and labour availability, we will continue to focus on investing in quality companies. We will target those companies that also have pricing power and the ability to pass on prices to their customers to ensure continued profitability, earnings growth and dividend growth for their shareholders,” said portfolio manager Tom Millner.

Shares in BKI Investments (ASX:BKI) are trading 0.9 per cent higher at $1.69. 
 

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.