Magellan Financial hikes dividend 50% despite profit dip

Magellan Financial (ASX:MFG) has unveiled its interim financial results for the half-year ended Dec. 31, 2025, highlighting a period of disciplined capital management and strategic diversification.

Despite a volatile market backdrop, the group reported a robust operating profit after tax of $83.1 million, maintaining stability compared to the previous year.

The standout figure for shareholders is a significant 50% increase in the interim dividend, which has been set at 39.5 cents per share, fully franked.

The move reflects the board’s commitment to its revised dividend policy, which targets a payout of at least 80% of group operating profit.

Operating earnings also saw a steady climb, rising 5% to 48.6 cents per share.

While statutory net profit after tax faced a 27% decline to $68.9 million—primarily due to unrealised fair value movements in fund investments—the group's operational core remains healthy.

Average funds under management grew by 6% to $40.2 billion, supported by a total AUM of $39.9 billion at period end.

Revenue from strategic partnerships surged by a 109% to $25.7 million, offsetting a 17% dip in investment management revenue.

Magellan concludes the half-year in a formidable liquid position, boasting $504 million in liquid capital and zero debt, further bolstered by the return of $38.4 million to shareholders via an on-market share buy-back.