Strong Lift in Interim Dividend
Half Year Report to 31 December 2021
- Djerriwarrh seeks to provide shareholders with a total return comprising an enhanced level of fully franked income that is higher than is available from the S&P/ASX200 together with long term capital growth, delivered at a low cost. The enhanced yield is achieved through a bias to investing in companies with higher dividend income, produced over the short and long term, as well as using option strategies to generate additional income.
- The interim dividend has been increased to 6.75 cents per share fully franked, up 28.6% from 5.25 cents per share fully franked for the corresponding period last year. The increase was as a result of higher company dividends and improved income from option activities.
- The Portfolio return for the six months to 31 December 2021 including franking was 6.7%, ahead of the S&P/ASX 200 Accumulation Index return including franking of 4.6%. The 12-month portfolio return to 31 December 2021 including franking was 20.6%, whereas the S&P/ASX 200 Accumulation Index return over the corresponding period including franking was 18.7%. In strong markets we would not expect the portfolio to match index returns given call options can detract from capital growth in such markets. In this context this was a strong result, particularly given the increase in income and the interim dividend for the half year.
- At 31 December 2021, the yield on the portfolio (net asset backing) was 5.6%, including franking, whereas the yield on the S&P/ASX 200, including franking, was 3.8%.
- Half Year Profit was $19.6 million, up from $8.1 million in the corresponding period last year. Key components of this result were:
- income from investments, up to $15.1 million from $9.6 million in the corresponding period last year; and
- income from option activity was $7.9 million, higher than the corresponding period last year, which $6.1 million.
- Net Operating Result (which excludes the impact of open option positions and is therefore a better measure of the Company’s income from its investment activities) was $18.1 million. The figure for the corresponding period last year was $11.8 million.