Teaminvest Private Group Limited (ASX:TIP) is offering its Dividend Reinvestment Plan (DRP) on its FY26 final dividend of 1.55 cents per share, fully franked. The DRP gives shareholders the option of taking new TIP shares instead of cash, and the company's FY26 results showed statutory profit up 19.1%.

Latest developments

TIP released its FY26 results and Annual Report in August. Statutory net profit after tax rose 19.1% to $2.8 million and Basic Earnings Per Share (EPS) climbed about 40% to 10.5 cents. Look-through Revenue across its active portfolio of operating businesses rose 14% to $161.0 million, and look-through EBITDA increased 24% to $14.1 million. Operating Cash Flow was $6.6 million, which the company said represented cash conversion of more than 200%. TIP also reported a multiple on invested Capital (MOIC) of 3.1 times across its investments, up from 3.0 times, meaning it estimates about $3.10 of value created for each dollar invested.

The board declared a final dividend of 1.55 cents per share, fully franked, taking FY26 dividends to 3.10 cents, up 3.3% on FY25. The group is also pursuing the proposed Acquisition of Intelligent Investor from InvestSMART Group (ASX:INV) for $16 million, less subscriptions paid in advance. The annual report says the deal is in the final stages of Due Diligence and, if completed, will be funded with a combination of cash and debt.

Key numbers

TIP paid fully franked dividends of 1.5 cents per share for each half of FY25, and 1.55 cents per share for each half of FY26. The latest dividend is 100% franked at the 30% company tax rate. The value of franking credits depends on each investor's tax position.

Net Assets were $3.24 per share at the end of FY26, and FY26 dividends represent roughly 30% of statutory basic EPS.

About the company

TIP Group describes itself as an ASX-listed investment house with three divisions: education and advice, funds management, and investments on its own balance sheet. The Balance Sheet holds stakes in privately owned Australian operating businesses, alongside a passive portfolio of listed securities.

Its active portfolio includes GLT, East Coast Traffic, ICON Metal, Automation Group, Multimedia Technology and Wattle Court. In FY26, Multimedia Technology, Automation Group, East Coast Traffic and Icon Metal were among the strongest contributors to EBITDA growth.

How the DRP works

TIP's dividend notice confirms the DRP applies in full to the final dividend and that DRP shares will be newly issued, ranking equally with existing shares from the issue date. Shareholders who do not lodge an election by the stated deadline receive cash.

According to the dividend notice, the DRP price for the final dividend is the volume-weighted average price (VWAP) of TIP shares over the 30-day period ending at the close of FY26, with no discount applied, and the company has confirmed the resulting price in the notice. Under TIP's DRP rules, the board sets the reinvestment price at its discretion, and it can differ between dividends. The board may also offer shares at a discount or premium to the market price, and may issue new shares, arrange on-market purchases, or use a combination.

Why it matters for income investors

TIP's dividend is fully franked and has edged higher, from 1.5 cents a half in FY25 to 1.55 cents in FY26. With payouts around 30% of statutory earnings, the company retains most of its profit for reinvestment in its businesses and acquisitions.

For shareholders, the DRP offers a way to receive additional shares in place of cash, without brokerage.

What comes next

The final dividend is due to be paid in October, with DRP shares issued on the payment date. The market will also be watching whether the Intelligent Investor acquisition completes and how it is funded, given the company's comments that it would use cash and debt.

Any Interim Dividend for FY27, along with its franking and DRP terms, will be decided by the board and disclosed in a future dividend notice.

Risks and context

Past dividends are not a guide to future payments. TIP's dividends depend on the earnings of a portfolio of small private businesses, which can be cyclical and less transparent than listed companies. Its annual report notes that the Intelligent Investor purchase would use debt, which would add leverage.

Because DRP shares are newly issued, participation adds to the share count and can dilute non-participants slightly. Reinvested dividends are still assessable income, including franking credits, and each DRP parcel sets a new cost base for Capital Gains Tax purposes.

Conclusion

Teaminvest Private Group (ASX:TIP) is offering a DRP on its 1.55 cent fully franked final dividend, with DRP shares priced at a VWAP with no discount, after FY26 statutory profit and EPS rose. The pending Intelligent Investor deal and the performance of its small-business portfolio are key factors in the company's outlook.

Key Insights

Teaminvest Private Group (ASX:TIP) lifted FY26 statutory profit by 19.1% and basic EPS to 10.5 cents, while total fully franked dividends rose to 3.10 cents per share, representing a payout of roughly 30% of earnings. Its DRP operates on the final dividend with newly Issued Shares priced at a 30-day VWAP and no discount.

The proposed Intelligent Investor acquisition, which remains subject to completion and would be funded by cash and debt, is a key development to monitor alongside the earnings of TIP's private operating businesses.