S&P/ASX 200 Index (ASX: XJO) dividend share IPH Ltd (ASX: IPH) is taking a beating today.
Shares in the international intellectual property (IP) services group closed yesterday trading for $5.59. In earlier trade, shares crashed to $4.37 each, down 21.8%. After some likely bargain hunting, shares are swapping hands for $4.49 apiece, down 19.7%.
For some context, the ASX 200 is up 0.8%.
This follows the release of IPH's full-year results for the 12 months to 30 June (FY 2025).
Here's what's got ASX investors spooked.
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ASX 200 dividend share grows revenue amid acquisitions
At first glance, IPH delivered solid growth over the year, with the company noting that its acquisitions in Canada drove improved financial performance.
The ASX 200 dividend share reported a 16.5% year-on-year increase in revenue to $710.3 million.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $207.2 were up 6.0%.
And underlying net profit after tax and amortisation (NPATA) of $120.6 million increased by 7.3% from FY 2024.
On the passive income front, the board declared a final dividend of 19.5 cents per share, up 2.6% from last year's final dividend. With a full year payout of 36.5 cents per share, that sees IPH trading on a partly franked dividend yield of 8.1%.
If you'd like to bank that final dividend, you'll need to own IPH shares at market close on 27 August. IPH shares trade ex-dividend on 28 August.
So why are IPH shares getting hammered?
The ASX 200 dividend share looks to be under heavy pressure as investors compare the company's like for like performance, rather than focusing on the underlying results.
The company noted:
Underlying results include an incremental 5.5 months' contribution from ROBIC (acquired 15 December 2023); incremental 3 months' contribution from Ridout & Maybee (acquired 29 September 2023) and also includes 9 months' contribution of Bereskin & Parr (acquired 28 September 2024) compared to the prior corresponding year.
Investors will also have picked up that on a like for like currency adjusted basis, IPH's revenue was flat year on year. And on that same basis, the company's underlying FY 2025 EBITDA was down 3.9% from FY 2024.
Declining patent filings, particularly in the company's US market, also look to be adding to today's selling pressure.
"IPH continues to be disproportionately impacted by our larger exposure to US patent filings which declined by 7.9% compared to an overall market decline of 1.7% in FY25," IPH CEO Andrew Blattman said.
What's ahead for the ASX 200 dividend share?
Looking to what's ahead for IPH, Blattman said, "Our focus remains on organic growth with business development initiatives targeting Western Europe, Japan, South Korea and Chinese incoming filings."
He added:
IPH maintains a strong balance sheet with continued high cash generation, and our focus remains on delivering improved returns to shareholders.
Despite short-term economic disruptions, the medium-term fundamentals for IP remain supportive for growth. Companies' intellectual property remains one of their most valuable assets and that requires protection across global markets.
With today's big fall factored in, shares in the ASX 200 dividend stock are down 26% since this time last year.
