Fresh off of yesterday’s red hot gains, the Hub24 Ltd (ASX: HUB) share price is once again on fire this Friday. Hub24 shares are, at the time of writing, up a very pleasing 5.54% to $32.98 a share. That’s directly on top of the 8.77% gain this company saw yesterday.
It looks like Hub24 is going to cap off one of its best weeks in a long time. Since Monday, the company is now up more than 20%.
This all stems, of course, from Hub24’s first-quarter update that the company released yesterday. Investors were evidently excited by what Hub24 had to say. The company reported net inflows of $3 billion for the 3 months ending 30 September.
That boosted its overall funds under administration to $63.2 billion, an impressive increase of 229.1% over the prior corresponding period. Further, the company also crowed over pipping Netwealth Group Ltd (ASX: NWL) for the top spot for net inflows for the quarter.
Hub24 shares pay out
But today, Hub24 shareholders have something else to look forward to. The wealth management company is set to pay out its final dividend for FY2021. Shareholders can look forward to seeing a payment of 5.5 cents per share, fully franked, hit their bank accounts sometime today. Well, shareholders who held Hub24 shares prior to the 13 September ex-dividend date, that is.
This final dividend represents some significant dividend growth for Hub24. Its last dividend, an interim FY21 payment, came in at 4.5 cents per share. Its previous final dividend for FY20 was 3.5 cents per share, meaning that today’s payment represents a dividend growth rate of 57% over last year’s final payout.
At Hub24’s current share price, this dividend puts Hub24’s annual yield at 0.3%. While that might sound too impressive, remember this. For a shareholder that purchased Hub24 shares exactly a year ago, Hub24’s last two dividend payments would give that investor a yield-on-cost of 0.46%.