Soul Patts’ 27-Year Dividend Streak Faces Test as Merger Looms
Washington H. Soul Pattinson reports a solid FY25 with rising net asset value and a 27th consecutive dividend increase, outperforming market benchmarks despite volatility.
- Net Asset Value estimated between $12.18 billion and $12.68 billion
- Net Cash Flow From Investments expected between $485 million and $535 million
- Final fully franked dividend raised to 59 cents per share
- Total shareholder return of 17.5%, beating the All Ords Accumulation Index by 5.7%
- 27 consecutive years of dividend increases maintained
Solid Financial Performance Amid Market Uncertainty
Washington H. Soul Pattinson and Company Limited (Soul Patts) has delivered a robust preliminary trading update for the financial year ending 31 July 2025. The diversified investment house anticipates its Net Asset Value (pre-tax) to rise to between $12.18 billion and $12.68 billion, up from $11.8 billion the previous year. This growth underscores the resilience of Soul Patts’ diversified portfolio during a period marked by heightened market volatility.
Net Cash Flow From Investments, a key metric reflecting the cash generated from the company’s investment activities after expenses and taxes, is expected to be between $485 million and $535 million, an increase from $468 million in FY24. This strong cash flow underpins the company’s ability to sustain and increase shareholder returns.
Dividend Growth Continues Uninterrupted
In line with its dividend policy, Soul Patts’ board has declared a fully franked final dividend of 59 cents per share, raising the total ordinary dividends for FY25 to 103 cents per share. This marks the 27th consecutive year of dividend increases, a remarkable track record dating back to 1998. The dividend will be paid on 5 September 2025 to shareholders on record as of 22 August 2025.
Managing Director and CEO Todd Barlow highlighted the company’s performance, noting a total shareholder return of 17.5% for FY25, outperforming the All Ordinaries Accumulation Index by 5.7%. He emphasized the strategic focus on private credit and private equity investments, which have contributed to both capital growth and income generation, supported by a strong liquidity position that enables new investment opportunities.
Looking Ahead, Merger and Final Results
The update comes amid ongoing discussions about a proposed merger with Brickworks, first announced in June 2025. While the final audited financial results are pending and expected by 30 September 2025, this preliminary report provides confidence in Soul Patts’ current trajectory. Investors will be watching closely for how the merger might impact the company’s portfolio and future dividend policy.
Overall, Soul Patts continues to demonstrate the benefits of a diversified investment approach, balancing listed equities, private markets, credit, and property to deliver steady growth and income even in uncertain markets.
Bottom Line?
Soul Patts’ steady growth and dividend resilience set the stage for a pivotal merger and future investment opportunities.
Questions in the middle?
- How will the proposed merger with Brickworks affect Soul Patts’ portfolio and dividend policy?
- What impact will the final audited FY25 results have on the preliminary estimates?
- Can Soul Patts sustain its dividend growth amid ongoing market volatility and economic uncertainty?
