The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is on watch after announcing a 70% interim dividend increase.
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The Pinnacle Investment Management Group Ltd (ASX: PNI) share price is one to watch after announcing a 70% increase in interim dividends. Shares in the Aussie listed investment company (LIC) jumped 7.1% higher ahead of its half yearly report.
Why is the Pinnacle share price on watch?
The Aussie investment group released its half year results for the period ended 31 December 2020 (first half 2021) just after Wednesday’s market close. The Pinnacle share price surged higher im anticipation of a strong result.
Pinnacle announced net profit after tax (NPAT) attributable to shareholders up 120% to $30.3 million. Basic earnings per share (EPS) surged 116% to 17.5 cents, up from 8.1 cents in 1H 2020. Diluted EPS similarly jumped 117% to 16.7 cents in a strong turnaround in the first half.
Importantly for shareholders, Pinnacle’s dividend is also set to surge thanks to higher earnings. The investment group announced a fully franked interim dividend of 11.7 cents – up 70% from this time last year. The Pinnacle share price may be one ASX share worth watching in early trade as investors evaluate the latest earnings bump.
Pinnacle’s Aggregate Affiliates funds under management (FUM) climbed to $70.5 billion as at half-year-end. That is an $11.8 billion (20%) increase on 30 June 2020 numbers and $8.9 billion (14%) up on 31 December 2019.
Aggregate retail FUM totalled $16.7 billion at 31 December 2020, up 28% on 30 June 2020 figures. Net inflows for the first half came in at $5.5 billion, with $1.9 billion from retail investors. That was a strong turnaround given the “dislocated” end to 2H 2020, with a rising market buoying investor confidence and stronger investment performance.
Pinnacle recorded total FUM of $70.5 billion comprising that $16.7 billion in Retail and $53.8 billion in Institutional capital. Record inflows, solid investment performance and continued FUM growth make the Pinnacle share price worth watching in early trade.
The Pinnacle share price is on watch following the results release and yesterday’s share price surge. With earnings metrics more than doubling in the first half, Pinnacle’s interim dividend has also surged 70%.
Pinnacle shares closed at 8.03 yesterday and is up 10.9% in 2020 compared to a 2.1% gain in the S&P/ASX 200 Index (ASX: XJO).
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.