The Australian Foundation Investment Co. Ltd (ASX: AFI) share price set a new all-time high today during a somewhat bumpy ride in the green.
At the market close, the AFIC share price was right back where it started at $8.42, a major step down from its intraday record high of $8.49.
Despite the flat end to today’s run, shares in the listed investment company have gained almost 8% in the last month alone.
Let’s examine the tailwinds behind the AFIC share price.
Net tangible asset growth
Back in early July, AFIC gave us an update on its core portfolio’s performance for the month of June.
As at 30 June, AFIC’s net tangible assets (NTA) per share grew to $7.45 per share, a sequential growth from $6.19 the month prior.
The AFIC share price has climbed 14% since this announcement.
Return of the dividend
AFIC also announced it will resume its dividend in its preliminary quarterly earnings report. It detailed that it will return 14 cents per share back to its shareholders this payment.
The shares will go ex-dividend on 11 August and shareholders will enjoy the return of the dividend in their bank accounts on 31 August.
The announcement balanced sentiment on AFIC’s quarterly results, which saw revenue contract 0.6% year on year. In addition, AFIC saw net profits decrease by 2.2% to $235 million in the quarter.
AFIC shares have climbed a further 4% since this announcement on 26 July.
AFIC share price snapshot
The AFIC share price has lifted 14.2% year to date, extending the previous 12 month’s return of almost 35%.
These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 23% over the past year.