Key Highlights

  • The security is scheduled to trade ex-distribution on 4 August 2026 for an AUD 0.17 payment.
  • Payment is scheduled for 28 August 2026 and the stated cash yield is 2.54% at AUD 6.68.
  • The quoted AUD 0.17 payment is a combined distribution: 14.5 cents is the final dividend and 2.5 cents is a special dividend.
  • AFIC reported FY26 net profit of AUD 293.5mn, up 3.0%, while revenue from operating activities increased 1.2%.

Australian Foundation Investment Company (ASX:AFI) is approaching an important income date, with an AUD 0.17 payment scheduled after the security trades ex-distribution on 4 August 2026. Based on a price of AUD 6.68, the stated cash yield for this payment is 2.54%. The distribution is fully franked and is due on 28 August 2026.

The headline yield is only one part of the picture. The nature of the security, the source of the payment and the latest operating or portfolio result determine whether the distribution reflects recurring income, a special return or a floating-rate note payment.

Company Overview

Australian Foundation Investment Company, commonly known as AFIC, is a listed investment company that holds a diversified portfolio of Australian equities. Its objective combines long-term capital growth with fully franked income for shareholders.

Dividend and Distribution Details

The quoted AUD 0.17 payment is a combined distribution: 14.5 cents is the final dividend and 2.5 cents is a special dividend.

The ex-distribution date is 4 August 2026, while payment is scheduled for 28 August 2026. The amount is AUD 0.17 per security and the payment is fully franked. A security normally adjusts for the value of the distribution when it begins trading ex-entitlement, although the actual market movement can also reflect broader trading conditions.

Recent Company Update

AFIC reported FY26 net profit of AUD 293.5mn, up 3.0%, while revenue from operating activities increased 1.2%. The Board confirmed a 14.5-cent final dividend and a 2.5-cent special dividend, creating a combined fully franked payment of 17 cents per share. The special component followed an earlier indication that surplus realised gains could support an additional return.

Price and Yield Snapshot

At AUD 6.68, the AUD 0.17 payment represents a stated cash yield of 2.54%. This is a single-payment yield rather than an assurance of the annual income return. Future payments can change with earnings, portfolio income, interest rates, Board decisions, security terms or currency conversion.

What Investors May Watch Next

Portfolio income, realised capital gains, net tangible asset backing, the market price relative to NTA and future use of the franking balance will shape the next dividend decision.

Attention will also centre on the price after the ex-date. A mechanical adjustment for the distribution may be accompanied by movements caused by company news, commodity prices, interest rates or wider market sentiment.

Risks

  • Future dividends or note distributions may differ from the current payment.
  • The market price may decline by more than the cash distribution after the ex-date.
  • Franking availability or tax treatment may change and depends on individual circumstances.
  • Earnings, portfolio income, commodity prices or interest rates may weaken.
  • Capital-note payments are subject to their terms and may be discretionary or non-cumulative.