NAOS Boosts Dividend Yield to Nearly 15%, Eyes Growth in FY26
NAOS Small Cap Opportunities Company Limited has declared a strong final dividend for FY25 alongside continued share buybacks, signaling confidence in its portfolio’s earnings growth and valuation potential.
- Final quarterly dividend of 1.25 cents per share declared for FY25
- Full-year dividend totals 5.0 cents per share with a 14.93% yield based on August 2025 share price
- 2.07 million shares repurchased in FY25 as part of ongoing buyback program
- Board and management optimistic about investee companies’ earnings growth and re-rating prospects
- Dividend Reinvestment Plan available to shareholders to increase holdings without brokerage fees
Strong Dividend Performance Caps FY25
NAOS Small Cap Opportunities Company Limited (ASX, NSC) has announced a final quarterly dividend of 1.25 cents per share for the financial year ended 30 June 2025. This brings the total dividend for FY25 to 5.0 cents per share, representing a robust 14.93% dividend yield based on the closing share price on 20 August 2025. Since its inception in December 2017, NSC has returned a cumulative 38.5 cents per share in dividends, underscoring its commitment to delivering shareholder value.
Active Capital Management Through Share Buybacks
Alongside dividend payments, NSC continued its active share buyback program, repurchasing 2.07 million shares during FY25. This ongoing buyback initiative has now reduced the shares on issue by over 21%, a move the Board views as accretive to net tangible assets and a key component of its capital management strategy. By purchasing shares at a discount to net asset value, NSC aims to enhance returns for remaining shareholders without diluting equity.
Optimism for Portfolio Growth in FY26
Despite a challenging year, the Board and management expressed confidence in the portfolio’s prospects heading into FY26. Independent Chair David Rickards OAM highlighted a near 30% performance gain in investee companies from March to July 2025, suggesting a re-rating towards fair value is underway. Sebastian Evans, Chief Investment Officer and Managing Director, pointed to core holdings such as MaxiPARTS, Big River Industries, and newer investments like Bravura Group as poised for sustained earnings per share growth and multiple expansion over the next one to two years.
Supporting Shareholders with Dividend Reinvestment
NSC offers a Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest dividends into additional shares without brokerage fees. This plan is particularly attractive when shares trade at a discount to net tangible assets, as DRP purchases are made on-market to avoid dilution. Shareholders have until 12 September 2025 to elect participation in the DRP for the upcoming dividend payment scheduled for 30 September 2025.
Looking Ahead
As NSC closes FY25 with solid dividend returns and ongoing capital management initiatives, the company’s outlook hinges on the performance and valuation of its investee companies. Investors will be watching closely to see if the anticipated earnings growth and re-rating materialize in the coming months, potentially driving further shareholder value.
Bottom Line?
NAOS’s strong dividend and buyback strategy sets the stage for a pivotal FY26 as portfolio growth ambitions take center stage.
Questions in the middle?
- How will investee companies’ earnings growth translate into NSC’s future dividend capacity?
- What impact will market conditions have on NSC’s share price and dividend yield in FY26?
- Will the share buyback program continue at the same pace amid evolving capital needs?
