At a glance

  • At $3.36 on 24 September 2026, IPH carries a trailing Dividend Yield of 11.46%, based on 38.5c of dividends with ex-dates in the past 12 months.
  • The dividends were only partly franked (20% on the interim, 30% on the final), giving weighted franking of about 25% and a grossed-up yield of 12.69%.
  • There were no special dividends. The whole 38.5c came from ordinary payments.
  • The shares fell 8.3% on FY26 results day and sit about 24% below their 52-week high of $4.42.
  • A Payout Ratio of 112--131% means IPH is distributing more than it earns.

IPH (ASX:IPH) is an intellectual property services group. It owns Patent and trade mark attorney firms across Australia, Asia and Canada, helping businesses, inventors and research organisations protect their ideas and brands in multiple jurisdictions.

It is a professional-services Business rather than a capital-heavy manufacturer. Revenue comes from filing, prosecuting and maintaining patents and trade marks. For an established professional-services group, a yield this high stands out.

IPH's index status has also shifted. It was removed from the S&P/ASX 200 effective 22 December 2025 and now sits in the S&P/ASX 300. Index exits generally reflect a company's Market Value shrinking relative to peers, and they can prompt selling from funds that track the larger benchmark.

Which dividends make up the 11.46% yield?

Interim dividend: 19.0c per share, 20% franked, ex-dividend 26 February 2026.

Final dividend: 19.5c per share, 30% franked, ex-dividend 27 August 2026 and paid 22 September 2026.

Together that is 38.5c. Divide 38.5c by the $3.36 share price and you land on 11.46%.

Unlike many of the ASX's top yielders, IPH did not get here through a special dividend. Its figure is built entirely from ordinary dividends, and the final was a touch higher than the interim.

Franking is where IPH differs from many local income favourites. With weighted franking of about 25%, the grossed-up yield rises to 12.69% for investors who can use the credits, a much smaller boost than a fully franked payer would deliver.

Is IPH really paying out more than it earns?

On the reported figures, yes. IPH's payout ratio is quoted at 112--131%, meaning dividends exceed the Earnings they are measured against.

Boards sometimes hold dividends above earnings for a period to signal confidence, particularly when Cash Flow is or management expects earnings to recover. Non-cash charges, such as Amortisation linked to acquired businesses, can also make reported profit look weaker than the cash a business produces.

Even so, paying out more than you earn is not a permanent setting. It relies on earnings catching up or on the Balance Sheet absorbing the gap. With underlying EBITDA edging down 0.6% in FY26, that gap has not started to close yet.

What could change for IPH shareholders?

Dividend sustainability: with a payout ratio of 112--131%, headroom is limited. If earnings keep drifting, the board may trim the dividend, and a lower dividend at the same price means a lower yield.

Earnings momentum: a return to growth would ease pressure on the payout; a deeper decline would add to it.

Franking and tax: the 12.69% grossed-up figure only applies to investors who can use the credits.

Index demand: IPH now sits outside the S&P/ASX 200, the benchmark many large funds track.

Backward-looking maths: a trailing yield describes dividends already declared, not what will be paid next.