Australian Foundation Investment Company (ASX: AFI) has outlined its dividend strategy and investment priorities under CEO and Managing Director Alison Gibson. Presenting at Sharecafe’s Uncovering Hidden Gems investor webinar, Gibson discusses the company’s $9.7 billion investment portfolio, its focus on quality Australian companies and plans to improve investment performance while maintaining a low-cost structure. AFIC has announced FY27 dividend guidance of 37 cents per share, fully franked, comprising a 27-cent ordinary dividend and a 10-cent special dividend, subject to final board approval and market conditions.
The company is also moving from half-yearly to quarterly dividend payments, with the first payment of 9.25 cents per share scheduled for 12 November 2026. Gibson explains how AFIC’s listed investment company structure allows it to retain capital and franking reserves to support consistent shareholder distributions. The company has maintained its ordinary dividend through periods of market disruption, including the global financial crisis and COVID-19, and is targeting stable to growing ordinary dividends over time.
Gibson also addresses recent investment performance, portfolio adjustments and the discount between AFIC’s share price and its net tangible assets (NTA). At 30 September 2026, AFIC’s NTA stood at $7.82 per share, compared with a share price of $6.65, representing a 15% discount. The company has been buying back its own shares while adding to selected holdings, including Woolworths, Telstra, Pro Medicus, TechnologyOne and gold producers Newmont and Evolution Mining. Gibson outlines how AFIC’s investment team is refining its approach to identifying quality businesses and pursuing long-term capital growth alongside dividend income.
Watch the full presentation above to learn more about AFIC’s dividend outlook, portfolio strategy and investment priorities.
