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/ASX 200 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 maintained at 7.25 cents per share fully franked. Based on the interim dividend declared and final dividend paid, the dividend yield on the current net asset backing represents an enhanced yield of 1.4 percentage points higher than that available from the S&P/ASX 200 Index.
The portfolio return for the six months to 31 December 2023 including franking was 9.3%. The S&P/ASX 200 Accumulation Index return including franking over the corresponding period was 8.3%. The 12-month portfolio return to 31 December 2023 including franking was 17.6%, whereas the S&P/ASX 200 Accumulation Index return over the corresponding period including franking was 14.0%. Half Year Profit was $12.8 million, down from $21.7 million in the corresponding period last year. Key components of this result are:
> income from investments was $19.5 million, up from $18.5 million in the corresponding period last year,
> income from option activity was $9.4 million, up from $8.4 million in the corresponding period last year, and
> impact of net unrealised losses (before tax) from open option positions produced a loss of $13.0 million whereas last half year this figure was positive $0.4 million. These unrealised losses can arise when prices on the underlying stocks increase in value, but often reduce as options approach expiry.
Net Operating Result for the six months to 31 December 2023 (which excludes the impact of open option
positions and is therefore a better measure of the Company’s income from its investment activities) was
$21.9 million, up from $21.3 million in the corresponding period last year.
The ASX announcement is attached.