Soul Pattinson keeps payout record in tact
Investment group Washington H. Soul Pattinson has again said it increased dividends every year for 20 years, but an analyst warned those who might be lured by the claim.
The business, which invests in telecommunications, mining, financials and more, on Thursday reported first-half profit rose 35 per cent to $68.9 million.
Soul said a reduction in write-downs helped produce the higher profit.
Shareholders will receive a fully franked interim dividend of 26 cents per share, up from a previous interim payout of 25 cents per share.
Soul executives used the announcement to repeat their claim payouts have improved each year for the past 20.
AAP has confirmed interim and final dividends have increased.
The total dividend has not always increased, although this has been due to the occasional special dividend.
ThinkMarkets analyst Carl Capolingua said the dividend record was impressive.
"Think of the things that have happened over the past 20 years. The global financial crisis, a pandemic," he said.
While retail investors often favour banks and blue chip stocks for dividends, Mr Capolingua warned these slices of company profits may not be the most important measure.
"Dividends are not earnings, and earnings are what the market is focused on," he said.
"You can have a company with fantastically growing earnings, but no dividends, because they're using the earnings to reinvest in the business."
Investors had to decide whether to grow their investment through dividends or capital growth, Mr Capolingua said.
"Dividends can be money diverted away from growth," he said.
Soul shares hit a record $32.33 then eased to be higher by 3.19 per cent to 32.18 at 1549 AEDT.
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