Spheria Emerging Companies Limited (ASX: SEC) has announced a fully franked quarterly dividend of 3.5 cents per share for the period ending March 31, 2025. The dividend, payable on May 15, 2025, comes as the company navigates a volatile market environment. The ex-dividend date is set for April 24, 2025, and the dividend record date is April 28, 2025.
The dividend is consistent with SEC’s increased dividend target, announced in June 2024, which aims to distribute 1.5% of post-tax Net Tangible Assets (NTA) each quarter, contingent on available profits, cash flow, and franking credits. The 3.5 cents per share dividend is based on a post-tax NTA of $2.356 per share as of March 31, 2025.
Spheria Asset Management Pty Ltd, the Investment Manager of SEC, noted that the portfolio outperformed its benchmark during the March 2025 quarter, declining by 2.4% compared to the benchmark’s -3.6% fall. The firm attributed market volatility to unsustainable valuations resulting from market crowding. They expressed optimism that US government spending cuts could lead to a more sustainable economic footing, particularly if coupled with tariffs and lower tax rates that incentivize private sector investment.
SEC’s dividend reinvestment plan (DRP) is available for this dividend. Shareholders wishing to participate must elect to do so by April 29, 2025. Since its IPO in December 2017, SEC has paid a total of 65.6 cents per share in dividends. As of March 31, 2025, the company’s franking account held a value of $4.1 million, equivalent to 16.2 cents per share in fully franked dividends. The Board will continue to monitor the dividend policy based on market conditions.
