Clime Capital Signals Steady 1.35c Fully Franked Dividend for March Quarter

• March quarter dividend guidance of no less than 1.35 cents per share
• Dividend to be fully franked, reflecting strong franking credit balance
• Retained profit reserves stand at $37.3 million as of 31 December 2024
• Interim audited results and final dividend declaration expected end of February
• Board maintains positive outlook on dividend sustainability

Dividend Guidance and Financial Position

Clime Capital Limited (ASX: CAM) has provided shareholders with a clear signal of confidence by announcing its intention to declare a March quarter dividend of no less than 1.35 cents per share, fully franked. This guidance underscores the company’s commitment to delivering consistent returns to investors amid a stable financial backdrop.

As of 31 December 2024, Clime Capital holds retained profit reserves of $37.3 million, a robust buffer that supports the dividend payout. Additionally, the company maintains a positive franking credit balance even after the December quarter dividend payment, allowing it to continue offering fully franked dividends, which are particularly attractive to Australian investors seeking tax-effective income.

Upcoming Interim Results and Market Implications

The Board has indicated that the interim audited results, along with the formal declaration of the March quarter dividend, will be released at the end of February. This upcoming announcement will provide further clarity on the company’s financial performance and the sustainability of its dividend policy.

Investors will be watching closely to see if Clime Capital can maintain or even improve its profitability in the face of evolving market conditions. The firm’s ability to sustain fully franked dividends is a positive signal, suggesting disciplined capital management and steady earnings generation.

Strategic Outlook and Investor Confidence

Chairman John Abernethy’s endorsement of the dividend guidance reflects a board confident in the company’s financial health. The sizeable retained earnings and franking credits provide a cushion that could support future dividend growth or buffer against unforeseen market volatility.

While the dividend guidance is reassuring, the final payout will depend on the interim results and broader economic factors. Nonetheless, Clime Capital’s approach aligns with investor expectations for reliable income streams from their investment in the finance sector.

Bottom Line?

Clime Capital’s steady dividend guidance sets the stage for a pivotal interim results release that will test the resilience of its earnings and dividend policy.

Questions in the middle?

• Will Clime Capital’s interim results confirm the sustainability of the 1.35 cents dividend guidance?
• How might changing market conditions impact Clime Capital’s retained profits and future dividend capacity?
• Could Clime Capital consider increasing dividends if franking credits and profits continue to grow?