Could L1’s New Dividend Policy Signal Risks or Rewards for Investors?
L1 Long Short Fund Limited reports robust investment returns well above the ASX200 benchmark and announces a shift to quarterly dividends starting December 2025, signaling confidence in sustained growth.
- Net return of 23.0% over 12 months, outperforming ASX200AI
- Dividend payments to move from half-yearly to quarterly from December 2025
- Fully franked dividend of 3.5 cents per share declared for December
- Dividends have grown at a 23% compound annual growth rate over five years
- Dividend Reinvestment Plan (DRP) participation encouraged for shareholders
Strong Performance Outshines Market
L1 Long Short Fund Limited (ASX, LSF) has once again demonstrated its investment prowess, delivering a net return of 23.0% over the past 12 months, nearly doubling the ASX200 Accumulation Index’s 12.5% benchmark. This impressive outperformance extends across longer horizons, with annualised returns of 17.0% over three years and 23.1% over five years, underscoring the fund’s consistent ability to generate value for shareholders since its 2018 IPO.
Transition to Quarterly Dividends Signals Confidence
In a notable shift, the Board has announced that dividends will now be paid quarterly rather than half-yearly, starting with a fully franked dividend of 3.5 cents per share payable on 5 December 2025. This move reflects the company’s confidence in its cash flow stability and commitment to providing shareholders with more frequent income streams. Historically, dividends have grown at a compound annual growth rate of 23% over the past five years, a trend the Board expects to continue into 2026.
Dividend Reinvestment Plan Offers Shareholders Flexibility
LSF is actively encouraging shareholders to participate in its Dividend Reinvestment Plan (DRP), which allows investors to reinvest dividends into additional shares without brokerage or transaction costs. The DRP offers flexibility, enabling shareholders to choose full or partial reinvestment on a dividend-by-dividend basis. The deadline to elect participation for the upcoming December dividend is 19 November 2025, with detailed information and forms available on the company’s website.
Looking Ahead
Chairman Andrew Larke expressed gratitude for shareholder support and highlighted the company’s commitment to transparency and engagement through regular reports, webinars, and events. As LSF transitions to quarterly dividends and continues to outperform market benchmarks, investors will be watching closely to see how these changes influence shareholder value and market sentiment in the months ahead.
Bottom Line?
L1 Long Short Fund’s move to quarterly dividends and sustained outperformance set the stage for a compelling 2026.
Questions in the middle?
- How will the shift to quarterly dividends impact LSF’s share price and investor appeal?
- What strategies are driving LSF’s consistent outperformance against the ASX200 benchmark?
- What level of shareholder uptake is expected for the Dividend Reinvestment Plan in the coming quarters?