Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares are in focus on Thursday morning.
At the time of writing, the investment company's shares are up over 2% to $39.11.
Why are Soul Patts shares rising today?
Investors have been buying the company's shares this morning following the release of its half-year results for FY 2026, which mark the first set of results since its merger with Brickworks.
According to the release, Soul Patts delivered strong growth in key investment metrics, supported by its diversified portfolio and increased activity during the period.
Soul Patts reported a 14.6% increase in pre-tax net asset value (NAV) to $13.8 billion for the half. Net cash flow from investments rose 15.4% to $334 million, highlighting the strength of its portfolio in generating income.
Management also noted that the portfolio delivered a 9.7% return for the period, outperforming its benchmark by 6.6%.
Importantly, this performance was achieved following a transformational period for the company, including the completion of the Brickworks merger.
Profit boosted by one-offs
On a statutory basis, Soul Patts reported net profit after tax of $2.3 billion, which represents a whopping 604% increase on the prior corresponding period.
However, this result was driven largely by one-off items, including the Brickworks merger and asset sales.
On a more comparable basis, group regular net profit after tax rose 6.7% to $304 million. This reflects higher trading gains and contributions from its expanded portfolio.
Dividend growth continues
In positive news for income investors, Soul Patts declared a fully franked interim dividend of 48 cents per share.
This represents a 9.1% increase on the prior corresponding period and continues the company's remarkable track record of dividend growth.
Management highlights that 2026 marks the 28th consecutive year of increasing dividends, underlining Soul Patts' reputation as one of the most consistent dividend payers on the ASX.
Management commentary
Soul Patts' managing director and CEO, Todd Barlow, was pleased with the half. He said:
Our 1H26 result reflects a landmark period of portfolio transformation, increased activity and value creation. The breadth and resilience of the portfolio, with strong cash generation and capital growth across the majority of asset classes, delivered a solid performance against our three key investment measures.
Outlook
While no guidance was given for FY 2026, management spoke positively about its prospects in the second half. It stated:
The breadth and resilience of our multi-asset portfolio ensures Soul Patts is well positioned to navigate market volatility and protect shareholder capital. Our strong balance sheet and ample liquidity means we have increased capacity to act on new investment opportunities, with the flexibility to deploy capital selectively in a rapidly changing macroeconomic environment.
With a constant focus on risk management, cash generation, and diversification, we are committed to delivering long-term value creation for shareholders.
The post Soul Patts shares push higher on profit jump and 28th dividend increase in a row appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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