FGX Raises Fully Franked Interim Dividend to 3.6 Cents Amid Strong Returns
Future Generation Australia has announced its tenth consecutive annual increase in fully franked interim dividends, driven by a strong 10.8% return on its investment portfolio over the past year.
- Interim dividend raised to 3.6 cents per share, fully franked
- 12-month portfolio return of 10.8%, outperforming key ASX indices
- Focus on high-quality small and mid-cap Australian companies
- Pro bono fund managers waive fees, enabling social impact donations
- Dividend payout marks a decade of consistent growth
A Decade of Dividend Growth
Future Generation Australia (ASX, FGX) has once again demonstrated its commitment to shareholders by increasing its fully franked interim dividend to 3.6 cents per share. This marks the tenth consecutive year of dividend growth, underscoring the sustainability of its investment approach and the confidence of its Board in the company’s portfolio performance.
Strong Portfolio Performance Amid Market Challenges
The company’s investment portfolio delivered a robust 10.8% return over the 12 months to 30 June 2025, outpacing both the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index, while maintaining lower volatility. This performance is notable given the broader market environment, where large-cap stocks have led gains but smaller companies continue to offer compelling long-term potential.
Unique Investment Model with Social Impact
Future Generation Australia’s portfolio is managed by leading Australian fund managers who contribute their expertise on a pro bono basis, waiving management and performance fees. This unique structure allows the company to donate 1% of its average net tangible assets annually to social impact partners focused on children and youth at risk. Since inception, these donations have totaled $87.2 million, with a goal to exceed $100 million by 2030.
Focus on Quality Small and Mid-Cap Companies
The investment committee maintains a strategic tilt towards high-quality small and mid-cap companies, believing they offer the best opportunities for long-term outperformance. This approach has contributed to the portfolio’s consistent returns and lower risk profile compared to broader market indices.
Looking Ahead
With key dividend dates set for November 2025, Future Generation Australia continues to balance delivering attractive income streams to shareholders with its commitment to social impact. The company’s leadership highlights the importance of sustainable income in an uncertain macroeconomic environment and expresses gratitude to shareholders for their ongoing support.
Bottom Line?
Future Generation Australia’s blend of strong returns and social purpose positions it well for continued dividend growth amid market uncertainty.
Questions in the middle?
- How will Future Generation Australia sustain dividend growth if market volatility increases?
- What specific small and mid-cap sectors are driving the portfolio’s outperformance?
- How might the pro bono fund management model evolve as assets under management grow?
