Regal Partners Global Investments Limited (ASX:RG1) operated its Dividend Reinvestment Plan (DRP) for its fully franked FY26 final dividend of 5 cents per share. For this dividend, the shares allocated to DRP participants were acquired on market rather than newly issued.

Latest developments

RG1 lodged its Appendix 4E and FY26 Annual Report with the ASX. Revenue from ordinary activities, which for an Investment company includes gains on its portfolio, was $232.4 million, compared with $6.9 million in FY25. Net profit after tax was $141.6 million, or 58.28 cents per share, a turnaround from a net loss of $17.6 million in FY25.

The board declared a final dividend of 5 cents per share, fully franked at the 30% corporate tax rate, taking FY26 dividends to 11 cents per share after the 6 cent fully franked interim dividend. The final dividend has since been paid.

The company also conducted an on-market share buy-back during the year, lodging regular buy-back notices with the ASX. In its most recent weekly update, RG1 put its estimated post-tax Net Tangible Assets (NTA) at $2.80 per share, on an ex-dividend basis after the final dividend.

Key numbers

RG1's two FY26 dividends, the 6 cent interim and the 5 cent final, total 11 cents per share, and both were fully franked. Post-tax NTA per share was $2.65 at the end of FY26, compared with $2.06 at the end of FY25, according to the Appendix 4E.

Franking credits attached to the dividends reflect tax paid by the company, and how much benefit a Shareholder receives from them depends on their individual tax position.

About the company

RG1 provides access to an actively managed, concentrated portfolio of long investments and short positions in global listed securities. The portfolio is managed by Regal Partners using a fundamental, bottom-up approach. During FY26 the company changed its name and ticker from VGI Partners Global Investments Limited (ASX:VG1).

Because it is a listed investment company, RG1's profit, dividends and franking capacity depend on investment gains and the tax it pays on them, rather than on sales from an operating business.

How the DRP works

The DRP was in operation for the FY26 final dividend, with shareholders required to elect by the deadline set out in the dividend notice. Shareholders who made no election received cash. Rather than issuing new shares, RG1 engaged a broker to buy shares on market for participants, with purchases carried out over a five-business-day period after the election deadline.

Under the terms set out for this dividend, the DRP price is the lower of the average price of the shares acquired on market and RG1's most recent NTA per share announced before the ex-date, with no discount applied. RG1 confirmed the DRP price in an updated dividend notice lodged with the ASX. The same on-market approach was used for the HY26 interim dividend.

Why it matters for income investors

For income investors, the arrangement combines fully franked dividends with a reinvestment option that does not involve issuing new shares. Because DRP shares are acquired on market and the DRP price is capped at the NTA per share announced before the ex-date, the plan does not create a new share issue that would dilute existing holders.

Each DRP allocation adds shares that are themselves eligible for any future dividends. DRP shares are acquired at prevailing market prices during the purchase period, which can vary. RG1's dividends depend on realised investment gains, available profit reserves and franking capacity.

What comes next

With the final dividend paid and DRP shares allocated to participants, RG1 continues to publish weekly NTA updates and monthly performance reports on how the portfolio is tracking in FY27.

Any future dividend amount, franking level or DRP terms will be set by the board and disclosed in a dividend notice. RG1's dividends depend on realised investment gains and available profit and franking reserves, so they can change from one period to the next.

Risks and context

FY26 profit reflected a strong investment year, while FY25 produced a loss, which shows how results can vary with markets. The 5 cent final dividend was also smaller than the 6 cent interim, indicating that payments are not fixed and can move between periods.

A long and short global portfolio carries market, currency and stock-specific risk. Reinvested dividends are still assessable income, and each DRP parcel sets a new cost base for Capital Gains Tax purposes, so record-keeping matters.

Conclusion

Regal Partners Global Investments (ASX:RG1) operated a DRP for its 5 cent fully franked FY26 final dividend, with participants' shares acquired on market at no discount and the DRP price capped at NTA per share. Future payouts will depend on portfolio performance, realised gains and available franking capacity.

Key Insights

Regal Partners Global Investments (ASX:RG1) reported FY26 net profit after tax of $141.6 million, compared with a loss in FY25, and paid total FY26 dividends of 11 cents per share, all fully franked. Its DRP for the final dividend was satisfied with shares acquired on market, so no new shares were issued.

The DRP price was set as the lower of the average on-market Acquisition price and the NTA per share announced before the ex-date, with no discount. As a listed investment company, RG1's future dividends and franking levels depend on investment outcomes and will be determined by the board.