Key Highlights

  • The final dividend was 19.5 cents, 30% franked, and the full-year dividend was 38.5 cents, up 5.5%.
  • Statutory NPAT rose 16.9% to $80.4 million, and underlying NPATA rose 1.7% to $122.7 million.
  • Cash conversion was 110%.
  • The approximate yield is near 11.0%, with franking about 25% and a reinvestment plan.

IPH Limited (ASX:IPH) is a leading intellectual property services group. It comprises a network of member firms operating from 27 offices and serving more than 25 IP jurisdictions, including AJ Park, Griffith Hack, ROBIC, Smart and Biggar and Spruson and Ferguson. It employs more than 1,700 people in Australia, Canada, China, Hong Kong, Indonesia, Malaysia, New Zealand, the Philippines, Singapore and Thailand.

The firms prepare and manage patents, trade marks and designs for clients, and they earn recurring fees as portfolios are maintained and renewed. About 58% of underlying EBITDA, excluding corporate costs, is now earned outside Australia and New Zealand, and about 37% of revenue is in US dollars. IPH has grown by acquisition, including Bereskin and Parr in Canada, so it reports earnings after adding back the amortisation of acquired intangibles as well as statutory profit.

The Dividend Picture

IPH has an approximate yield of about 11.0% at a price near $3.50, franking of about 25%, a grossed-up yield of about 12.2% and a reinvestment plan available. The company declared a final dividend of 19.5 cents per share, 30% franked at the corporate tax rate, consistent with the previous year, bringing FY26 dividends to 38.5 cents, up 5.5% from 36.5 cents. Underlying basic earnings per share were 47.2 cents, so the dividend equals about 82% of underlying EPSA, a calculation from the stated figures.

Understanding the Dividend Data for IPH

At a share price of approximately $3.5, the approximate yield is 11.0%. Franking is about 25%, which lifts the grossed-up yield to about 12.2% from a cash yield of about 11.0%. Only the franked portion carries credits, so the uplift is smaller than for a fully franked payer. A distribution reinvestment plan is available, which allows holders to take additional securities in place of cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $1,100 of cash distributions over a year before tax, calculated from the stated percentage. The release gives no numeric guidance for future dividends. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

FY26 Results

IPH Limited (ASX:IPH) announced its FY26 results on 20 August 2026. Revenue rose 0.4% to $712.8 million, and underlying EBITDA fell 0.6% to $205.9 million, affected by the higher Australian dollar against the US and Canadian dollars. Like-for-like underlying EBITDA rose 2.9%. Statutory NPAT rose 16.9% to $80.4 million, with fewer one-off costs.

Earnings Mix

58% of underlying EBITDA, excluding corporate costs, is now generated outside Australia and New Zealand. Canada improved markedly and corporate cost savings helped. Cash conversion was 110%.

Currency and Acquisition Effects

Group revenue growth of 0.4% came from the incremental contribution of Bereskin and Parr, acquired in Canada on 28 September 2024, plus organic growth in Canada, with Asia flat and Australia and New Zealand lower. Underlying EBITDA fell 0.6% to $205.9 million, mainly because the average Australian dollar rose 3.1 cents against the US dollar and 3.5 cents against the Canadian dollar. About 37% of group revenue is earned in US dollars with no US dollar cost base, so currency moves flow directly into reported earnings. The group recorded a net foreign exchange loss of $0.4 million against a gain of $0.2 million.

Earnings Quality

Underlying NPATA of $122.7 million adds back the non-cash amortisation of acquired intangibles, which the company says better reflects performance given its acquisition history. Non-underlying expenses fell to $6.6 million from $13.2 million, and related mainly to transformation projects, software implementation and cyber security upgrades. Statutory NPAT rose 16.9% because of lower amortisation and fewer one-off costs. Cash conversion of 110% supports the dividend, and the final dividend of 19.5 cents was unchanged from the prior year, so all of the 5.5% increase in the annual total came from the interim payment.

How the Payout Measure Works

The measure that matters for this dividend is underlying NPATA and EPSA. Underlying basic EPSA of 47.2 cents compares with a dividend of 38.5 cents, a payout near 82%. NPATA adds back non-cash amortisation of acquired intangibles. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 20 August 2026. The extract does not give the payment date for the final dividend. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.