BKI lifts FY26 profit and dividend as resource stocks rebound

BKI Investment Company (ASX:BKI) reported a 3.3% rise in net operating result after tax to $62.8 million for FY26, with total revenue from its investment portfolio climbing 4.2% to $67.8 million. Net profit after tax increased 4.1% to $64.4 million.

The company declared a fully franked final dividend of 4 cents per share, lifting the full-year payout to 7.95 cents, up from 7.90 cents in FY25. BKI said the materials sector became the standout performer during the year, supported by strength in gold and critical minerals and growing demand for copper as global investment shifted toward AI infrastructure and data centres.

A standout contributor was BHP, which lifted its dividends by 31% during the January-to-June period as expanding copper production supported earnings. BKI also benefited from higher dividends from a range of holdings: Harvey Norman Holdings (up 21%), Telstra Group (up 11%), Macquarie (up 8%), Wesfarmers (up 7%), Commonwealth Bank (up 4%), Dalrymple Bay Infrastructure (up 9%), Transurban Group (up 6%), APA Group (up 4%), and Sonic Healthcare (up 2%).

BKI's portfolio delivered a 12% return for the year, outperforming the S&P/ASX 300 Accumulation Index by 4.4 percentage points. The index returned 7.6%.

During FY26, BKI invested $203 million into existing holdings, including Woodside Energy, BHP Group, Sonic Healthcare, APA Group, Amcor, and Smartgroup Corporation. It sold $172 million of investments.

As of June 30, the investment portfolio, including cash, was valued at $1.7 billion. Cash holdings of $86 million represented 5.1% of the portfolio. Net assets rose to $1.52 billion from $1.44 billion a year earlier.

BKI shares traded at $1.85, up 0.27% on the day.