This week the share price of diversified wealth company IOOF Holdings Ltd (ASX: IFL) has jumped approximately 6%. In contrast, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained about 4%.

One possible explanation for IOOF’s outperformance compared with the index is buying support in response to the company’s Investor Briefing which was held on Wednesday.

Here are four highlights from the presentation:

  1. IOOF is one of the largest independent financial services groups in Australia with $133 billion in funds under management, administration, advice and supervision. These funds are administered across IOOF’s highly regarded platforms and managed within IOOF’s substantial funds management business. The funds are also supervised within IOOF’s corporate trust business.
  2. IOOF also boasts an attractive fully franked dividend. Based on the trailing last final and interim dividends paid of 28 cents per share (cps) and 28.5 cps, the stock is trading on a yield of 6.5%.
  3. IOOF has a long history of successfully growing via acquisition. The group’s recent acquisition, Shadforth, has been stated by management as being 4.1 cps accretive to earnings per share with $13 million in pre-tax cost synergies realised. What’s more the next acquisition might not be too far away with The Australian newspaper reporting that not only was IOOF a contender for financial services business StatePlus, but it was also interested in the independent wrap provider Netwealth.
  4. Investment in technology at IOOF has seen the group move from what it describes as a registry platform to a service oriented offering using web technology. The future of IOOF’s upgraded technology backbone will allow it to scale more easily, change faster and isolate faults more efficiently.

Despite its solid performance over the past week, the IOOF share price is still registering a loss of 16% over the past year. Given the positive business dynamics on display at the recent Investor Day, the stock arguably still could make a good long term portfolio addition.

Why These 3 Blue Chip Shares Look Set to Soar in 2016

Are you looking for more high quality stock ideas like IOOF? Discover The Motley Fool's top 3 blue chips for 2016. These 3 'new breed' shares pay fully franked dividends AND offer the very real prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.