Perpetual Equity Investment Company (PIC) has reported a net profit after tax of $7.6 million for the year ended 30 June 2016 – significantly higher than the previous year’s results.
The company will increase the dividend payout following the strong result, which saw this year’s net profit after tax (NPAT) increase by 106 per cent on the previous year’s results.
PIC portfolio manager Vince Pezzullo attributes the increase in returns to changes made at the start of 2016.
“The second half of this financial year represents the first full six months where the portfolio was fully invested and this has improved capacity to deliver an increased dividend,” he said.
Mr Pezzullo added that the high volatility that markets had experienced in the past year was likely to continue to affect asset prices, and this could allow investors to buy “high quality companies at attractive prices”.
“Volatility can be uncomfortable in the short term for many investors, but it also provides opportunities to purchase assets at prices below their true value,” he said.
PIC’s total dividend payout for the 2015-16 financial year sits at 2.8 cents per share, a 2.3 cents per share increase on the previous financial year.