Investment powerhouse Washington H. Soul Pattinson (ASX:SOL)
is slated to reward investors with its highest dividend in 19 years, after its profits nearly doubled in the financial year 2021.
Soul Patts declared an after-tax profit attributable to members of $273.2 million for the year, which was 71 per cent lower than the year before. However, the numbers were injected by a one-off accounting gain of over $1.0 billion after TPG’s merger with Vodafone. This resulted in their profits looking quite large last year. The adjustment was due to the investment house “derecognising” telco company TPG Telecom Ltd following their merger with Vodafone.
Looking at their net profit after tax numbers, this came in at $328.1 million, up 93 per cent from the year before. With net cash flows from investments down, 29 per cent on the year at $180.3 million.
Brickworks, New Hope, and Round Oak Minerals were strong contributors to the overall performance.
Brickworks contributed $82 million, a 95 per cent surge from the year before as single family construction strengthened. New Hope contributed $61 million, a jump of 45 per cent as coal prices strongly recovered. Round Oak Minerals contributed $103 million from the growth in the commodity markets.
Soul Patts has declared a full year dividend of 62 cents per share, an increase of 3 per cent compared to the prior year set to be paid in December this year.
“We are very pleased to report significant uplifts in the underlying profitability of most of the major assets in our portfolio,” said WHSP chairman Robert Millner.
“Our goal at WHSP is to pay consistent and growing dividends to shareholders and increase their capital wealth over the long term.”
Shares in Washington H. Soul Pattinson (ASX:SOL)
are trading 5.2 per cent higher at $37.48.