Hearts and Minds Investments (ASX:HM1): What Do Its Fully Franked Dividends Reveal?

Aditi Sarkar

28 October 2026 09:26 PM AEDT

Hearts and Minds Investments (ASX:HM1): What Do Its Fully Franked Dividends Reveal?

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Highlights

Hearts and Minds Investments declared a fully franked final dividend of 10.0 cents per share for FY26.
The final dividend was paid on 15 October 2026, following a 9 September ex-dividend date.
FY26 profit after tax was A$46.4 million, compared with A$106.8 million in FY25.
The September investment update placed post-tax net tangible assets at A$3.20 per share.
Dividends remain subject to board discretion, profit reserves and franking balances.

Hearts and Minds Investments Limited (ASX:HM1) manages a concentrated portfolio of global listed equities drawn from investment ideas contributed by selected fund managers. At A$2.79 on 28 October 2026, its shares offered exposure to both portfolio performance and a record of fully franked distributions. The company operates a philanthropic model under which an amount equivalent to 1.5% of net tangible assets annually supports Australian medical research. Its latest dividend payment followed the publication of FY26 results and came ahead of further portfolio updates and the November annual general meeting.

The Final Dividend and Payment Timetable

ASX:HM1 declared a final fully franked dividend of 10.0 cents per share in its 26 August 2026 results announcement. Shares traded ex-dividend on 9 September, the record date was 10 September, and shareholders received the payment on 15 October 2026. The interim fully franked dividend was 9.5 cents per share, paid on 16 April 2026. Together, these two declared dividends amounted to 19.5 cents per share. They are historical payments, not a commitment to maintain the same distribution in future periods.

A fully franked dividend carries Australian company-tax credits, which may have different effects for shareholders depending on their individual tax circumstances. The board has expressed an intention to continue fully franked distributions, conditional on sufficient profit reserves, franking credits and prudent business practices. That distinction matters because dividends and franking status are determined by future board decisions and available resources.

What the FY26 Accounts Show

For the financial year ended 30 June 2026, ASX:HM1 reported total net investment income of A$79.3 million, down from A$165.5 million for FY25. Profit from ordinary activities after tax declined to A$46.4 million from A$106.8 million, while total comprehensive income after tax fell to A$29.6 million from A$124.8 million. These changes show that the investment company remained profitable, although its earnings were substantially lower than in the preceding year.

Post-tax net tangible assets per share stood at A$3.38 at 30 June 2026, compared with A$3.44 one year earlier. The company reported a profits reserve equivalent to 77.8 cents per share and described franking capacity partly dependent on future settlement of tax liabilities. ASX:HM1 therefore distinguished resources available for distributions from the cash and tax conditions governing future payments.

September Portfolio Update and Investment Exposure

The investment update released on 13 October covered the month to 30 September 2026. ASX:HM1 reported pre-tax NTA of A$3.44 per share and post-tax NTA of A$3.20 per share. Its portfolio declined 2% during September, while the reported three-year investment return was 13.97% per annum. The portfolio held around 8% in cash at month-end. These figures reflect the September reporting date and should not be treated as values for 28 October.

Dividends and Portfolio Valuation

Dividends reduce company assets when paid. Changes in portfolio values can also affect the difference between ASX:HM1’s share price and reported NTA; future distributions are not assured.

Key Insights

Hearts and Minds Investments combines a global equities portfolio with fully franked shareholder distributions and funding for Australian medical research. Its October 2026 dividend had been paid by the 28 October reference date, while FY26 earnings had moderated from the prior year. Dividend continuity depends on the board’s assessment of profits, franking credits and market conditions, and the September NTA figures provide a separate measure of portfolio value.

FAQs

Q: What was the latest HM1 dividend?

A: The final FY26 dividend was 10.0 cents per share, fully franked, paid on 15 October 2026.

Q: When did HM1 shares trade ex-dividend?

A: The final FY26 dividend had an ex-dividend date of 9 September 2026.

Q: How much did HM1 report in FY26 profit after tax?

A: Profit after tax from ordinary activities was A$46.4 million for the year ended 30 June 2026.

Q: What was the September 2026 post-tax NTA?

A: The company reported A$3.20 per share at 30 September 2026.

Q: Are future fully franked dividends guaranteed?

A: No. Future payments depend on board decisions, available profits, franking credits and other conditions.

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