S&P/ASX 200 Index (ASX: XJO) financial stock Netwealth Group Ltd (ASX: NWL) pleased passive income investors this morning with a big boost to its interim dividend.
The board declared the increased payout today when the investment platform provider released its half-year results for the six months to 31 December (H1 FY 2025).
Investors are clearly pleased with the company's performance, with the Netwealth share price up 4.9% at the time of writing at $33.38 a share.
That's especially impressive on a day that sees the ASX 200 down 1.1%.
Here's what's been happening with Netwealth.
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Netwealth share price jumps on dividend boost
- Total income of $155.4 million, up 26.0% year on year
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $78.0 million, an increase of 32.8% from H1 FY 2024
- Net profit after tax (NPAT) of $57.6 million, up 46.6%, with an NPAT margin of 37.1%
- Fully franked interim dividend of 17.5 cents per share, up 25% from last year's interim payout
What else happened with the ASX 200 financial stock during the half?
Also boosting the ASX 200 financial stock today, the company reported record funds under administration (FUA) net flows in both Q1 and Q2 of FY 2025. For the half year, FUA net flows were up 80.2% from H1 FY 2024 at $8.5 billion.
Netwealth reported operating net cash flow before tax of $75.3 million. And part of the big earnings boost was driven by a 2.60% improvement in Netwealth's EBITDA margin to 50.2%.
Passive income investors looking to bag the boosted 17.5 cents per share dividend will need to own Netwealth shares at market close on 4 March. The stock trades ex-dividend on 5 March. Eligible investors can expect to receive the Netwealth dividend payout on 27 March.
What did management say?
Commenting on the strong half-year results helping to lift the ASX 200 financial stock today, Netwealth stated:
Our platform revenue is diversified in its nature and sources, and predominantly recurring, providing stability and confidence in future earnings. We further improved the diversification of our revenue base in 1H25.
Transaction fee income increased by 48.2% to represent 14.1% of platform revenue (increased by 220 bps), and management fee income to 6.1% of platform revenue (increased by 40 bps).
What's next for the ASX 200 financial stock?
Looking at what could impact the ASX 200 financial stock in the months ahead, Netwealth said:
FUA inflows for the remainder of FY25 are also supported by a transition pipeline of recent new customer wins. Total FUA as at 18 February 2025 was $105.4B, with net flows for 3Q25 to date of $1.5B.
Netwealth said it "remains in an excellent financial position". Looking ahead, the company said:
- It is highly profitable, with a strong EBITDA margin
- Has an extremely high correlation between EBITDA and operating cash flow, resulting in strong cash generation
- Has very high levels of predictable recurring revenue
- Has a significant cash reserve, is debt-free and with low levels of capital expenditure
Netwealth share price snapshot
The Netwealth share price has had a very strong year. With today's intraday boost factored in, the ASX 200 financial stock is up 76% in 12 months, not including dividends.
