Sandon Capital Investments Limited (ASX:SNC) continues to pay a monthly Dividend of 0.47 cents per share, fully franked, and shareholders can reinvest that income through a Dividend Reinvestment Plan (DRP) that operated for its latest monthly dividend. The company is an activist listed investment company (LIC).

Sandon's annualised dividend rate is 5.64 cents per share, based on twelve monthly payments of 0.47 cents. One important detail: Sandon franks its dividends at a 25% company tax rate, not 30%, which affects the value of the attached franking credits.

Latest developments

Sandon reported a net loss of about $17.9 million for FY26, compared with a profit of about $24.7 million in FY25, reflecting falls in the value of its investments. In its September Shareholder presentation, the company attributed weak performance over the period to unrealised marked-to-market losses on certain holdings and the administration of QPM Energy, a position that was written down to nil.

Despite the loss, the board has kept the monthly dividend steady, announcing dividends of 0.47 cents per share, fully franked, for each of October, November and December 2026. Sandon's pre-tax Net Tangible Assets (NTA) were $0.8178 per share at the end of August 2026.

Key numbers

The latest dividend, 0.47 cents per share for September, is payable at the end of the month. Sandon's annualised dividend rate is 5.64 cents per share. The company moved to monthly payments from October 2025, having previously paid larger dividends less often, including quarterly payments of 1.4 cents per share in 2025.

Each 0.47 cent dividend carries a franking Credit of about 0.16 cents at the 25% company tax rate. The value of franking credits depends on each investor's tax position.

About the company

Sandon Capital Investments is an LIC that applies an activist investment approach to companies where it sees unrecognised value, mostly small and medium-sized ASX-listed businesses. It seeks to unlock value through engagement with boards and management. The portfolio is managed by Sandon Capital Pty Ltd, founded by chairman and chief investment officer Gabriel Radzyminski.

Its largest holdings include Fleetwood, COG Financial Services, BCI Minerals and Carbon Conscious, and the portfolio also includes Southern Cross Media. The portfolio is concentrated, so individual positions can move overall returns significantly.

How the DRP works

Sandon's DRP lets shareholders take new shares instead of cash. According to its dividend notice lodged with the ASX, the DRP price for the September dividend is the volume-weighted average price (VWAP) of Sandon shares sold on the ASX over the applicable pricing period following the ex-dividend date, with no discount applied. Sandon confirmed the final DRP price in an updated dividend notice. DRP shares are newly issued on the payment date, and shareholders who make no election receive cash.

Each upcoming monthly dividend has its own DRP election date, set shortly after the relevant record date. Because Sandon pays monthly, shares issued under the DRP are eligible for subsequent monthly dividends. Investors should check the latest DRP rules and each dividend notice for current terms, as the board can change pricing or discounts.

Why it matters for income investors

Monthly payments give Sandon holders more frequent dividend income, and the DRP provides a mechanism to reinvest that income in new shares. The company's pre-tax NTA moves with the value of the portfolio and is reported to the ASX each month.

Sandon says it had a profits reserve of 46.7 cents per share and a franking balance of 6.8 cents per share at the end of August 2026, which it estimates could support the current dividend for about 3.6 years, all else being equal. That gives some visibility over the payout, although the company notes future dividends are not guaranteed and are reviewed each quarter.

What comes next

The September dividend and DRP shares are due at the end of September. The October, November and December dividends are scheduled with their own ex-dividend, record and payment dates, with payment at the end of each month.

The board has said it will consider each quarter whether further dividends remain appropriate. Areas of focus include whether portfolio performance recovers, how the QPM Energy administration is resolved, and the direction of NTA. Monthly performance and NTA updates lodged with the ASX will be the main guide to how the portfolio is tracking.

Risks and context

Past dividends are not a forecast of future payments. Sandon made a loss in FY26, so dividends are currently funded from its profits reserve rather than that year's earnings, and the franking balance also limits how long fully franked payouts can continue at the current rate.

Activist positions can take years to play out, and a concentrated portfolio of smaller companies can be volatile. LIC shares can trade at a discount to NTA for long periods. Reinvested dividends are still assessable income, and each DRP parcel sets a new cost base for Capital Gains Tax purposes, which can mean many small parcels for a monthly payer.

Conclusion

Sandon Capital Investments (ASX:SNC) continues to pay a monthly dividend of 0.47 cents per share, fully franked at the 25% tax rate, and its DRP is operating at no discount. The company reports a sizeable profits reserve supporting the current dividend rate, while its FY26 loss and quarterly board review of dividends are part of the picture.

Key Insights

Sandon Capital Investments (ASX:SNC) has maintained its 0.47 cent monthly fully Franked Dividend through the December 2026 quarter despite reporting an FY26 loss, with the payout supported by a profits reserve and franking balance that the company estimates could sustain the current rate for about 3.6 years, all else equal.

Its DRP issues new shares at the VWAP over a set pricing period with no discount, and franking is attached at a 25% tax rate. Future dividends remain subject to quarterly board review and to portfolio performance, including the outcome of holdings such as QPM Energy.