Hearts and Minds Investments (ASX:HM1) announced an increased interim fully franked dividend of 9.5 cents per share, scheduled for payment in April.
The move underscores the board’s commitment to a progressive dividend policy, aiming for a 0.5 cent per share increase every six months.
The company remains well-positioned to support this strategy, maintaining a robust profits reserve of 86 cents per share and a franking capacity of 83 cents per share.
Despite the shareholder reward, the half-year ended Dec. 31, 2025, presented a challenging landscape.
Total comprehensive income after tax plummeted to $3 million, a sharp decline from the $115.3 million recorded in the previous half-year.
Portfolio performance remained largely flat at 0.4%, significantly trailing the MSCI World Accumulation Index's 9.2% return for the same period.
While holdings in Cameco and TSMC provided gains, they were offset by losses in Block, Zillow, and Guzman y Gomez.
The portfolio was impacted by writing down Corporate Travel Management (ASX:CTD) to zero following its trading suspension.
Nevertheless, shareholders saw a total shareholder return of 7.9%, bolstered by a 4.9% share price appreciation.
Beyond financial returns, HM1 continues its philanthropic mission, donating $5.4 million to Australian medical research this half-year.
The company has now surpassed $90.5 million in total donations since its 2016 inception, balancing investor returns with significant social impact.
At the time of reporting, Hearts and Minds Investments’ share price was $3.03.