One of the dividend growth stocks has declared 10% higher dividends than the prior corresponding period. With 2025 marking its, 25th consecutive year of increasing dividends, it emerges as one of the best long term dividend stocks
Washington H. Soul Pattinson and Company Limited (ASX:SOL)
Washington H. Soul Pattinson and Company Limited (Soul Patts) has reported a strong financial performance for the first half of 2025, ending January 31, 2025, demonstrating resilience and steady growth despite a challenging market environment.
The company’s net asset value (NAV) increased to $12.1 billion, reflecting a 2.6% growth, while net cash flow from investments rose by 9.9% to $289.5 million. This increase was achieved despite low dividend growth across the broader market, highlighting Soul Patts’ ability to generate consistent cash flow through strategic investment decisions and portfolio adjustments.
Its revenue from continuing operations increased by 27% to $492.7 million. The net cash flow from investments also grew by 10% to $289.5 million, reflecting strong cash generation across its diverse portfolio.
The company’s statutory net profit after tax (NPAT) rose by 8.1% to $326.9 million, with regular NPAT seeing an 18% increase to $284.8 million. This growth was driven by higher operating results from strategic investments and expanding cash flow from the credit portfolio. The statutory NPAT included a one-off gain from the partial sell-down of Tuas, though this was partially offset by impairments in Aeris and Brickworks.
Reflecting its commitment to long-term value creation, Soul Patts has declared an interim fully franked dividend of 44 cents per share, representing a 10% increase from the prior year. This marks the 25th consecutive year of dividend growth, reinforcing the company’s reputation for delivering stable returns to shareholders. The company’s total shareholder return (TSR) has averaged 13% since 2000, outperforming the broader market by 4.5%.
The company’s investment strategy focuses on long-term value creation, with a well-diversified portfolio spanning strategic large-cap investments, private equity, credit, emerging companies, and property. The strategic portfolio, which includes holdings in Brickworks, New Hope Corporation, and TPG Telecom, delivered a net asset value of $5.65 billion and remained a strong contributor to cash flow. The private equity and credit portfolios also performed well, benefiting from increased capital deployment and higher returns from strategic investments.
During the period, Soul Patts continued to optimize its investment portfolio, executing $1.9 billion in buying and selling transactions. The company invested $1.0 billion across public equities, private investments, and new loans, reinforcing its commitment to disciplined capital allocation.
Soul Patts remains well-positioned to navigate economic uncertainties, supported by a strong liquidity position and low gearing. The company’s net cash position increased by $502 million, bringing total cash and liquid income funds to $716 million. With a disciplined approach to investment risk management, Soul Patts continues to seek high-quality opportunities that align with its long-term growth strategy. The company remains focused on building a resilient portfolio that balances capital growth and stable income, ensuring enduring value for its shareholders.
(Source: Company's Report)
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