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Future Generation Australia declares increased dividend amid strong investment performance
Invest
Future Generation Australia declares increased dividend amid strong investment performance
Future Generation Australia (ASX: FGX) has announced a significant outperformance against the S&P/ASX All Ordinaries Accumulation Index, reporting a 14.1% increase in its 12-month investment portfolio performance as of 31 December 2025. This achievement marks a 3.5% lead over the market, allowing the company to declare a fully franked final dividend of 3.6 cents per share, bringing the total fully franked dividend for the year to 7.2 cents per share.
Future Generation Australia declares increased dividend amid strong investment performance
Future Generation Australia (ASX: FGX) has announced a significant outperformance against the S&P/ASX All Ordinaries Accumulation Index, reporting a 14.1% increase in its 12-month investment portfolio performance as of 31 December 2025. This achievement marks a 3.5% lead over the market, allowing the company to declare a fully franked final dividend of 3.6 cents per share, bringing the total fully franked dividend for the year to 7.2 cents per share.
The company's continued success in delivering robust returns has resulted in a fully franked dividend yield of 5.1% and a grossed-up dividend yield of 7.3%. This marks the eleventh consecutive year that Future Generation Australia has increased its dividend, reflecting its commitment to providing shareholders with a reliable and growing income stream. Since its inception, the company has distributed 81.6 cents per share in dividends, including the value of franking credits.
Dr Philip Lowe, Chair of Future Generation Australia, expressed his satisfaction with the company's performance, stating, "Future Generation Australia has continued to deliver strong outperformance, enabling the Board to increase the fully franked full year dividend. The Board is pleased in the Company’s ability to deliver strong investment returns and a sustainable stream of fully franked dividends to shareholders while supporting our social impact partners who help build a better future for Australia’s most vulnerable children."
The company's investment strategy, which focuses on a diversified portfolio managed by leading active fund managers, has proven effective in reducing concentration risk and volatility. This approach has enabled Future Generation Australia to offer attractive, risk-adjusted returns over the medium to long term.
Chief Investment Officer Lee Hopperton highlighted the role of the company's pro bono fund managers and Investment Committee in achieving these results. "We are pleased to have outperformed the market since inception and delivered strong investment portfolio performance for shareholders during a period of market uncertainty. Thank you to our pro bono fund managers and Investment Committee, whose generosity allows us to deliver strong returns for shareholders, while supporting our social impact partners," Hopperton said.

In 2025, Future Generation Australia made its eleventh annual donation of $5.7 million to its social impact partners and other not-for-profit organisations. This philanthropic effort is part of the company's broader commitment to supporting vulnerable Australian children, a mission guided by the findings of the 2023 Australian Child Maltreatment Study.
The study, which revealed the scale and impact of childhood trauma, prompted Future Generation Australia to refine its philanthropic focus. The company conducted a national Expression of Interest process to identify high-performing organisations working with children at risk. Out of 320 applications, six new social impact partners were selected: Brave Foundation, GUTS Dance, Karinya House, KidsXpress, Yawarda Services, and Yiliyapinya. These organisations complement the company's existing partners, forming a balanced portfolio that supports continuity and renewal.
Dr Lowe emphasised the importance of this initiative, stating, "Early adversity shapes a child’s entire future – with implications for individuals, the economy and broader society. That’s why the work carried out by our impact partners is both a moral imperative and long-term investment."
Financially, Future Generation Australia reported an operating profit before tax of $71.3 million for the year, up from $62.8 million in FY2024. The operating profit after tax also increased to $52.9 million from $47.9 million in the previous year.
The company's investment portfolio is heavily weighted towards small and mid-cap companies, diverging from the S&P/ASX All Ordinaries Accumulation Index's emphasis on large-cap companies. This strategy aims to achieve better long-term returns with lower volatility and concentration risk.
Future Generation Australia's investment portfolio performance since inception has been impressive, with an annual performance rate of 9.7%, outperforming the market by 1.2%. This consistent outperformance underscores the effectiveness of the company's investment strategy and its commitment to delivering value to shareholders while making a positive social impact.
The company has also announced the final dividend dates, with the ex-dividend date set for 30 April 2026, the dividend record date on 1 May 2026, and the payment date on 13 May 2026. The Dividend Reinvestment Plan (DRP) will be in operation, allowing participating shareholders to reinvest their dividends without a discount.
As Future Generation Australia continues to navigate market uncertainties, its commitment to delivering strong returns and supporting vulnerable children remains unwavering, setting a benchmark for responsible and impactful investing in the Australian market.
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