AGM Recap & Dividend Update
Quick Read:
- On 26 October 2026, Djerriwarrh announced a fully franked dividend of 3.75 cents per share for the first quarter of FY27, to be paid on 25 November 2026.
- The Company also announced it is targeting a second quarterly dividend for FY27 of 3.75 cents per share, fully franked, subject to no material unforeseen adverse market conditions and final Board approval.
- At the AGM, CEO and Managing Director, Alison Gibson, outlined why she returned to the business and the areas identified for improvement.
- The team provided an update on changes to the portfolio. Recent portfolio additions included Newmont Corporation, Evolution Mining, Pro Medicus, and TechnologyOne, while the portfolio remained focused on balancing income and growth.
At the 2026 Annual General Meeting (AGM) held on 5 October, CEO and Managing Director of Djerriwarrh, Alison Gibson, outlined why she rejoined the business and the areas identified for improvement. The investment team also provided an update on FY26 performance and portfolio positioning. This article recaps the key discussion points and provides details of the recently announced dividend update.
Dividend Update
On 26 October 2026, the Company announced a fully franked dividend of 3.75 cents per share for the first quarter of FY27, payable on 25 November 2026. The Board also announced that it is targeting a fully franked dividend of 3.75 cents per share for the second quarter of FY27, subject to no material unforeseen adverse market conditions and final Board approval.
Timetable
*Dates subject to change
**Subject to no material unforeseen adverse market conditions and final Board approval
The dividend approach reflects Djerriwarrh’s objective of providing shareholders with an enhanced level of fully franked income above that available from the S&P/ASX 200 Index. Dividend levels continue to be determined with regard to the Company’s Net Operating Result, option income, realised capital gains and prevailing market conditions.
While Djerriwarrh has moved to quarterly dividends, the Board does not intend to divide the full-year dividend equally across four quarters. Instead, dividends are expected to retain a higher weighting to the second half of the financial year, consistent with the Company’s historical dividend profile.
Further details are available in the dividend announcement.
CEO Address
For Alison, rejoining Djerriwarrh was about purpose, people and the opportunity to work directly for shareholders. She spoke about the Company's long history of providing a low-cost, actively managed portfolio designed to deliver an enhanced level of fully franked income through ownership of quality companies and option-writing strategies.
Building on those foundations, Alison also outlined the areas identified for improvement. The first is balancing the Company's primary objective of enhanced income with attractive long-term returns.
The second is communicating Djerriwarrh’s value proposition more effectively to current and future shareholders. With the Company trading at a discount to net tangible assets (NTA), investors currently have the opportunity to buy an actively managed portfolio of quality companies with the benefit of an enhanced yield at around 90 cents in the dollar (as at 5 October 2026).
Alison expressed confidence in the Company's experienced team and low-cost structure, noting that Djerriwarrh's enhanced income proposition continues to be supported by portfolio dividends, option income and strong franking reserves. "As I look ahead, I do so with a great deal of confidence and optimism about what comes next," Alison concluded.
FY26 results and delivering enhanced income
The team also provided a recap on FY26 performance. Net Operating Result increased to $41.4 million, while total fully franked dividends increased to 15.75 cents per share, up from 15.50 cents in FY25. Portfolio return was 2.8% including franking, compared with 7.2% for the S&P/ASX 200 Accumulation Index.
While portfolio performance was below expectations, Djerriwarrh continued to deliver on its enhanced income objective. In FY26, the portfolio's dividend yield including franking, was 7.0%, compared with 4.1% for the S&P/ASX 200 Index, including franking. This enhanced yield reflects the combination of dividends received from portfolio companies and income generated through option-writing. Over the past five financial years, the Company has consistently maintained an enhanced yield above the market, alongside steady dividend growth.
Source:S&P/ASX 200 dividend yields from FactSet.
Management also noted that enhanced income and dividend growth have been delivered on a sustainable basis, with dividends continuing to be covered by operating earnings and supported by strong franking reserves. Portfolio returns were impacted by option exercises following strong share-price performance in a number of underlying holdings, reflecting the balance Djerriwarrh seeks to strike between enhanced income and long-term capital growth.
Portfolio Update
Portfolio Manager, Brett McNeill, provided an update on recent portfolio activity and how the portfolio is positioned to deliver on Djerriwarrh's investment objectives.
Recent additions to the portfolio included Newmont Corporation and Evolution Mining, increasing exposure to gold and adding diversification to the portfolio. Djerriwarrh also added Pro Medicus and TechnologyOne, with market weakness providing an opportunity to invest in high-quality businesses with strong balance sheets and long-term growth potential.
The portfolio was also repositioned following option exercises, with additions to the major banks, BHP and Telstra. Brett noted that reinvesting option proceeds remains an important part of balancing income and growth within the portfolio.
Looking ahead
Djerriwarrh enters the year ahead with a clear focus on delivering sustainable enhanced income while generating attractive long-term returns. Its quality portfolio and option-writing strategy remain central to delivering value for shareholders. Pleasingly, the portfolio has performed strongly to begin the new financial year, outperforming the S&P/ASX 200 Accumulation Index to 31 October 2026.
Shareholders can view the full AGM presentation for further information.