NAOS Ex-50 Opportunities Company Limited reported a strong FY25 with a 28.92% portfolio return and maintained its annual dividend at 6.0 cents per share, reflecting robust capital management and investor confidence.
- Investment portfolio outperformed benchmark by over 10%
- After-tax profit of $7.55 million for FY25
- Final quarterly dividend of 1.50 cents per share, 50% franked
- Share buyback program repurchased 1.67 million shares in FY25
- Dividend yield stands at 11.11% based on recent share price
Strong Portfolio Performance
NAOS Ex-50 Opportunities Company Limited (ASX – NAC) has announced a standout financial year for FY25, with its investment portfolio delivering a remarkable 28.92% return. This performance notably outpaced the benchmark S&P/ASX 300 Industrials Accumulation Index, which rose by 18.90% over the same period, underscoring the company’s effective investment strategy and asset selection.
The after-tax profit of $7.55 million reflects the strength of NAC’s portfolio management, particularly following a challenging FY24. Sebastian Evans, NAOS Asset Management’s Chief Investment Officer and Managing Director, highlighted the resilience of their core investments and expressed confidence in their ability to generate strong risk-adjusted returns over the next one to two years.
Dividend Stability and Shareholder Returns
In line with its consistent track record, NAC declared a final quarterly dividend of 1.50 cents per share, 50% franked, maintaining the total FY25 dividend at 6.0 cents per share. This marks the eleventh consecutive year the company has maintained or increased its annual dividend, a testament to its commitment to shareholder value. The dividend yield stands at an attractive 11.11% based on the closing share price as of August 20, 2025, or 13.89% on a grossed-up basis including franking credits.
The company’s dividend reinvestment plan (DRP) remains an appealing option for shareholders seeking to grow their holdings without incurring brokerage fees, especially when shares trade at a discount to net tangible assets (NTA). This approach aligns with NAC’s broader capital management strategy aimed at enhancing shareholder returns.
Active Capital Management Through Share Buybacks
Continuing its proactive capital management, NAC repurchased 1.67 million shares during FY25, bringing the total shares bought back since April 2019 to over 15 million, representing nearly 30% of shares on issue. The board views this buyback program as accretive to NTA and integral to maintaining capital efficiency.
This disciplined approach to managing capital, combined with strong portfolio returns and steady dividends, positions NAC as a compelling option for investors seeking exposure to Australian industrials outside the ASX 50, with a focus on long-term value creation.
Bottom Line?
With robust returns and disciplined capital management, NAOS Ex-50 is poised to sustain its momentum amid evolving market conditions.
Questions in the middle?
- How will NAC’s portfolio adapt if market volatility increases in FY26?
- What sectors or stocks are driving the portfolio’s outperformance?
- Will the company consider increasing dividend frankness or payout ratios going forward?