Future Generation Australia (ASX: FGX) has delivered strong total shareholder return (TSR) of 20.1% in the 12 months to 30 June 2026, including the value of franking credits. The Board of Directors has declared an increased fully franked interim dividend of 3.8 cents per share, bringing the annualised fully franked interim dividend to 7.6 cents per share, representing a 5.6% increase from 2025.
The increased dividend represents an annualised fully franked interim dividend yield of 5.7%* and a grossed-up dividend yield of 8.1%*. The Company has increased its dividend every year for thepast eleven years, demonstrating its ability to provide shareholders with a reliable stream of fully franked income throughout varying market conditions. At 31 May 2026, the Company had 5.5 years of dividend coverage, based on the profits reserve of 41.8 cents per share.
Future Generation Australia Chair Dr Philip Lowe said, “Future Generation Australia’s long term investment portfolio performance has enabled the Board to increase the fully franked interim dividend to 3.8 cents per share. The increased dividend demonstrates the strength and sustainability of the Company’s model, delivering value for shareholders while supporting social impact partners working to improve outcomes for Australia’s most vulnerable children.”
Investment portfolio update
Since inception to 31 May 2026, the Future Generation Australia investment portfolio has increased 9.1%^ per annum, outperforming the S&P/ASX All Ordinaries Accumulation Index by 0.9% per annum with less volatility**.
Future Generation Australia Chief Investment Officer Lee Hopperton said, “We are pleased to have outperformed the market since inception. Our diversified portfolio of leading active fund managers, selected by the experienced Investment Committee, is designed to reduce concentration risk and volatility** while generating attractive risk-adjusted returns.”
The Future Generation Australia investment portfolio aims to deliver attractive returns with lower volatility than the market and is positioned to reduce concentration risk through diversification.
The Australian share market remains concentrated in a small number of large stocks and industries with the top 10 companies representing 45.3%^^ of the index. The Future Generation Australia investment portfolio is significantly more diversified with 16.6%^^ exposure to these companies. The portfolio is notably underweight the banks and has a significant bias to small and mid-cap companies. As a result, shareholders benefit from exposure to a broader range of companies and investment themes, some of which are shown in the charts and graphs below.
The Investment Committee is confident in the portfolio’s positioning and believes this diversified portfolio of 16 leading active managers, investment strategies and styles will continue to deliver attractive long term investment growth for shareholders, as it has since inception in 2014.
Read the full Media Release here.
*Based on the 7 July 2026 closing share price of $1.335 per share and the annualised FY2026 fully franked interim dividend of 7.6 cents per share. Grossed-up dividend yield includes the value of franking credits and is based on a tax rate of 30.0%.
^Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes.
**Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility is measured by standard deviation, and can be thought of as an assessment of the risk in the investment portfolio. In most cases, the higher the volatility, the riskier the investment.
^^The Future Generation Australia underlying fund managers’ investment portfolios’ analysis referenced, including the investment portfolio’s exposure compared to the S&P/ASX All Ordinaries Accumulation Index, is at 31 December 2025 and has been prepared by JANA, an independent consultancy firm, on a pro bono basis.
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