Why Future Generation Global Raised Its Dividend 49% in FY2025

Dividend Growth Signals Confidence

Future Generation Global Limited (ASX, FGG) has delivered a standout announcement for FY2025, declaring a 49% increase in its fully franked full year dividend to 8.0 cents per share, complemented by a special fully franked dividend of 3.0 cents per share. This move underscores the company’s strong financial position and its commitment to rewarding shareholders amid a competitive market environment.

The combined dividend yield, including the special dividend, reaches an impressive 7.3% fully franked, or 10.4% on a grossed-up basis when accounting for franking credits. This yield notably surpasses the dividend yield of the MSCI World Index, highlighting Future Generation Global’s attractive income proposition relative to global equities.

Robust Portfolio Performance Backing Dividends

Behind the dividend increase lies solid investment performance. The company’s portfolio, managed by a diverse group of 16 pro bono fund managers, grew by 11.5% over the 12 months to December 31, 2025. Over the past three years, the portfolio has delivered an annualised return of 18.1%, combining strong growth with lower volatility, a balance that appeals to investors seeking both capital appreciation and risk mitigation.

Chief Investment Officer Lee Hopperton emphasised the value of the diversified, professionally constructed portfolio, which benefits from a range of investment styles and strategies. The pro bono management model not only reduces fees but also enables Future Generation Global to channel 1% of its average net tangible assets annually to social impact partners, reinforcing its dual mission of financial and social returns.

Sustained Dividend Growth and Social Impact

Future Generation Global has a track record of increasing dividends every year for seven consecutive years, a testament to the sustainability of its business model. Chair Jennifer Westacott AC highlighted that the special dividend recognises the strong investment performance delivered to shareholders while maintaining a robust capital structure.

Beyond financial returns, the company’s unique approach integrates social impact, supporting not-for-profit organisations focused on youth mental health and other causes. Since inception, Future Generation has invested $100 million in Australian not-for-profits, blending philanthropy with investment in a way that resonates with socially conscious investors.

Looking Ahead

With the ex-dividend dates set for May and June 2026, investors have clear timelines for participation in the upcoming dividends. The company’s ongoing strategy of leveraging pro bono fund management and delivering consistent returns positions it well for future growth, though market conditions and portfolio performance will remain key factors to watch.