Pengana locks in a 1.4 cent fully franked quarterly dividend

Quarterly dividend set at 1.4 cents per share

Pengana International Equities Limited (ASX:PIA) has declared a fully franked quarterly dividend of 1.4 cents per share, giving shareholders a defined cash distribution after a period of sharp change in the listed investment company’s capital structure.

At PIA’s closing share price of $1.135 on 9 October, the dividend equates to an annualised yield of 4.93% if the 1.4 cents per share rate is maintained each quarter. Including franking credits calculated at a 25% tax rate, the annualised grossed-up yield is 6.58%.

Distribution follows major capital reset

The payment comes after PIA completed a major capital reshaping, including the cancellation of 151.1 million shares through a $183.28 million buy-back. The company’s latest distribution therefore arrives against a much smaller share base than earlier in the year, although the announcement does not state the total cash amount payable.

The new quarterly payment is also distinct from the special dividend declared as part of PIA’s earlier capital management package, which included a buy-back proposal and board changes. The current announcement provides no new decision on the deferred question of whether the company will pursue a rights issue.

NTA remains above the market price

PIA reported pre-tax net tangible assets of $1.25 per share at 30 September, compared with the $1.135 closing share price used for the dividend calculation. That gap is relevant for a listed investment company, where the market price can trade above or below the value of its underlying portfolio, but the filing does not explain the reason for the difference.

Shareholders can take the dividend in cash or elect to participate in the Dividend Reinvestment Plan and receive shares instead. The dividend will go ex on 30 November, with payment due on 15 December 2026.