Djerriwarrh Investments (ASX:DJW) reported a net operating result (excluding open option positions) of $40.8m, up slightly from $40.3m last year. Investment income was just over $36m (down from $36.8m), while option income was $16.7m, marginally higher than the prior year’s $16.6m.
The final dividend has been lifted to 8.25c per share fully franked, from 8c last year, taking total dividends for FY25 to 15.5c (FY24: 15.25c). Based on current net asset backing, the dividend yield is 6.5%, or 2.3 percentage points above the ASX 200 yield when including franking credits. The management expense ratio was 0.47%, with no performance fees.
In terms of portfolio positioning, the company achieved a strong enhanced yield but lower capital growth than the broader market — a trade-off reflecting DJW’s income focus and defensive portfolio positioning, including holding higher cash levels. Option income remained robust, aided by active management and positions in major stocks such as BHP, the big four banks, Macquarie, and Telstra.
Some outperforming holdings, notably Commonwealth Bank, NAB, Westpac, Macquarie, and Telstra, were sold after call options were exercised, with proceeds initially held in cash or redeployed into opportunities such as BHP and Rio Tinto. The market sell-off in March–April saw reinvestment into bank holdings. One new stock, Ampol, was added as a cyclical income play with potential capital growth.
