Cadence Opportunities Fund Announces Fully Franked 15 Cents Per Share Dividend and Special 2 Cents Payout Following 30.3% FY2026 Return

Cadence Opportunities Fund Finalizes 15 Cents Per Share Fully Franked Dividend for FY2026

Cadence Opportunities Fund Ltd has announced a fully franked final dividend of 7.5 cents per share for the 2026 financial year, completing a total fully franked full-year dividend of 15 cents per share. This follows an earlier interim dividend of 7.5 cents per share. The final dividend ex-date is 29 September 2026, with payment scheduled for 15 October 2026. Shareholders must be registered before the ex-date to qualify.

Using the share price of $2.31 at the time of the announcement, the full-year dividend yields 6.5% fully franked, which translates to a 9.3% gross yield when grossed up for franking credits. These yields vary with share price fluctuations. The Board, chaired by Karl Siegling, attributes the dividend to the fund’s strong financial performance during FY2026.

Profits Reserve of 73 Cents Per Share Supports Over Four Years of Dividend Payments

The company disclosed a profits reserve of 73 cents per share, equating to more than four years’ worth of dividend capacity based on the final dividend. This sizable reserve offers a significant buffer for income investors, suggesting the fund can maintain dividend payments even during periods of weaker portfolio returns.

Additionally, Cadence Opportunities Fund holds franking credits of 16.2 cents per share, covering approximately 2.5 years of franking credit needs. Franking credits are valuable for Australian resident shareholders as they offset personal tax liabilities, enhancing after-tax dividend returns. Together, the profits reserve and franking credit balance provide strong indicators of dividend sustainability, though investors should review full financial statements for comprehensive analysis.

Strong FY2026 Performance Drives 2 Cents Per Share Special Dividend

The Board highlighted the fund’s robust 30.3% return for FY2026 and a 41% total shareholder return—including share price growth, dividends, and franking credits—as the rationale behind the special dividend declaration. This special dividend represents a portion of the fund’s strong performance distributed directly to shareholders, separate from the regular dividend cycle.

This capital allocation decision reflects the Board’s strategy to reward shareholders with near-term income while preserving the fund’s reserves. The special dividend is an additional non-recurring payout for shareholders on record by the ex-date.

Details of the Fully Franked 2 Cents Per Share Special Dividend Scheduled for December 2026

Alongside the final dividend, Cadence Opportunities Fund will pay a fully franked special dividend of 2 cents per share in December 2026. The ex-date is 15 December 2026, with payment on 23 December 2026. Like the final dividend, this special payout includes franking credits, offering potential tax advantages for eligible Australian shareholders.

The special dividend enhances the fund’s overall fully franked yield. Although smaller than the final dividend, its fully franked status increases its grossed-up value. Shareholders should consult tax professionals to understand the implications of franking credits based on individual tax circumstances.

Dividend Reinvestment Plan (DRP) Available for Final Dividend

Cadence Opportunities Fund confirmed the Dividend Reinvestment Plan (DRP) will be available for the final dividend of 7.5 cents per share. This allows eligible shareholders to reinvest dividends into additional fund shares instead of receiving cash, facilitating compounding without brokerage fees.

Shareholders not yet registered for the DRP who wish to participate should contact Boardroom, the fund’s share registry, at 1300 737 760. Although no specific registration deadline was provided, prompt contact is advised to ensure eligibility before the 29 September 2026 ex-date. The availability of the DRP for the special dividend was not disclosed.

Overview of Cadence Opportunities Fund and Its ASX Investment Strategy

Cadence Opportunities Fund Ltd is an ASX-listed investment vehicle headquartered at Level 6, 131 Macquarie Street, Sydney NSW 2000, managed by Cadence Capital (ABN 37 627 359 166). The fund focuses on equity market opportunities to generate shareholder returns. The Board is chaired by Karl Siegling.

The fund’s income derives from active portfolio management rather than operating revenues, with dividends paid from realised investment gains. Fully franked dividends are supported by corporate tax paid on investment income, generating franking credits attached to dividend payments. The company did not disclose specific portfolio holdings in this update.

Implications of 9.3% Gross Full-Year Dividend Yield for Income Investors

Income investors may find the gross yield of 9.3%—which includes the value of franking credits—an attractive benchmark compared to other ASX-listed income funds. This yield is based on the $2.31 share price at announcement time and will fluctuate with market prices. The special 2 cents per share fully franked dividend, while separate from the regular dividend, adds to total income received in 2026.

Investors should consider the distinction between regular and special dividends, review full financial disclosures, and evaluate personal tax implications of franking credits before making investment decisions.

Important Dividend Dates for Cadence Opportunities Fund Shareholders

Key dates include the final dividend ex-date on 29 September 2026, with payment on 15 October 2026. Shareholders must be on the register before this ex-date to qualify. The special dividend ex-date is 15 December 2026, with payment on 23 December 2026. Investors should confirm settlement timing with brokers or the share registry to ensure eligibility. No record dates were specified, but these typically follow ex-dates under ASX settlement conventions.