The Australian Foundation Investment Company Ltd (ASX: AFI) share price is in focus today after the listed investment company posted a 3% rise in full-year net profit to $293.5 million for FY26, with revenue from operating activities up 1.2% to $331.9 million.
Image source: Getty Images
What did Australian Foundation Investment Company report?
- Net profit after tax: $293.5 million, up 3.0% from last year
- Revenue from operating activities: $331.9 million, up 1.2%
- Net tangible assets per share (pre-tax): $7.93 (FY25: $8.33)
- Management expense ratio (MER): 0.14%, down from 0.16% last year
- Fully franked final dividend: 14.5 cents per share, unchanged
- Fully franked special dividend: 2.5 cents per share
What else do investors need to know?
AFIC's total fully franked dividend payout for FY26, including both ordinary and special dividends, is 31.5 cents per share—matching last year. The final and special dividends will be paid on 28 August 2026, with shares trading ex-dividend from 4 August.
Despite the profit lift, AFIC's portfolio returned just 0.9% (including franking credits) for the year, compared to the S&P/ASX 200 Accumulation Index's 7.2% return. Most underperformance occurred in the first half of the year, due mainly to underweight exposure to the high-flying Materials sector and overweight positions in healthcare and select tech-driven stocks that saw sharp price declines.
What's next for Australian Foundation Investment Company?
Looking ahead, AFIC's Board says the company will continue to focus on providing stable, fully franked dividends and a diversified exposure to quality ASX-listed companies. The Board highlighted ongoing capital management initiatives, such as special dividends funded by a strong franking credit balance, and plans to provide further updates at the company's AGM in October 2026.
Management remains optimistic about delivering on AFIC's long-term income and growth objectives, despite ongoing challenges in sector performance and broader market conditions.
Australian Foundation Investment Company share price snapshot
Over the past 12 months, AFIC shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.
