Djerriwarrh Investments (DJW) H2 2026 earnings summary

Executive summary

• Net operating profit for the year was AUD 41.4 million, up 1% year-over-year, driven by higher dividend and option income, with a total portfolio value of AUD 855 million at 30 June 2026.

• Dividend yield reached 7% on portfolio value (8% on share price), well above the S&P/ASX 200 Index, with dividends growing for the fifth consecutive year and fully franked dividends per share increased to 15.75c, now paid quarterly.

• Portfolio underperformed the S&P/ASX 200 Index by 4.4%, mainly due to overweight positions in healthcare stocks that experienced significant declines.

• The company remains committed to its quality-focused, income-oriented investment philosophy, aiming to deliver enhanced fully franked income above the S&P/ASX 200 Index at low cost.

Financial highlights

• Dividend and distribution income rose 1% to AUD 35 million; option income increased 11% to AUD 18.6 million.

• Operating income grew 3% to AUD 54.6 million; net operating result per share up 2% to 15.74c.

• Management expense ratio (MER) decreased to 0.41%, aided by a one-off profit contribution from AICS.

• Net tangible asset backing at year-end was AUD 3.22 per share; portfolio value was AUD 855 million across 47 stocks, with share price at AUD 2.82, reflecting a 12.3% discount.

• Portfolio dividend yield reached 7.0%, significantly above the S&P/ASX 200 Index yield of 4.1%.

Outlook and guidance

• Australian share market viewed as moderately expensive; portfolio positioned for continued strong dividend and option income, with resources sector driving recent gains.

• Dividend income expected to be supported by increased bank holdings, offsetting lower resources income.

• Option income yield around 2% anticipated for future periods, with flexibility to write more premiums.

• Confident in achieving long-term objectives through a diversified, high-quality portfolio.