Soul Pattinson (ASX:SOL) share price dips as investors digest AGM

The company presented trading highlights at its annual general meeting today.

| More on:
asx share price fall represented by woman shrugging

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in conglomerate Washington H Soul Pattinson & Co Ltd (ASX: SOL) spent a day in the red on Friday, closing 1.79% lower at $31.85.

The downtrodden Soul Pattinson share price performance came as investors digested the takeouts from its annual general meeting (AGM) today. Here are the investment highlights.

What did Soul Pattinson announce?

In today's presentation, Soul Pattinson noted several key investment achievements in the past year including the merger with Milton, which chair Robert Millner said "brought together two of Australia's great investment companies".

The company advised that the merger provided many synergies given its "highly strategic" nature. These included portfolio diversification and additional liquidity for future investments, and higher cash generation from increased portfolio dividends.

As a result of the merger, the strategic portfolio is now less than 45% of its total portfolio, whereas the pre-tax value of the portfolio (per share) increased by 17.3% over the year to 30 November 2021.

Millner told the AGM that Soul Pattinson also increased its dividend payment this year to 62 cents per share, making it now "the only company in the top 500 listed companies in Australia to have increased its dividend every year for over 20 years".

"We are extremely proud of the fact that the company has never missed paying a dividend since listing in 1903," he said.

The company also has an ungeared net working capital position of $78 million as of 31 July 2021, and it raised $225 million in convertible bonds maturing in 2026. These notes will pay an annual coupon of 0.625% which are favourable terms for the company.

Finally, the company's portfolio has a net asset value (pre-tax) of $9.25 billion as of 30 November. As such, NAV per share is up 17% for the last 12 months, per the release.

Moving forward, the company says it is focused on "key thematics" such as health and ageing, energy transition, agriculture, financial services and education.

Soul Pattinson share price summary

It's been a difficult year for the Soul Pattinson share price, which gained just over 5% in the past 12 months, and is up 5% since 1 January.

In comparison, the S&P/ASX 200 index (ASX: XJO) has returned around 10% in the past year.

The author has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Arcadium Lithium, Block, Jumbo, and Mineral Resources shares

These shares are ending the week in the red. Why are investors selling them?

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Clearview, NAB, Resolute Mining, and Westpac shares are dropping today

These shares are under pressure today. But why?

Read more »

A man looking at his laptop and thinking.
Bank Shares

Why is the Bendigo Bank share price tanking today?

There are a few things that could be driving this bank lower today.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Bellevue, Domain, Skycity, and Wildcat shares are tumbling today

These shares are having a tough time on hump day. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Domino's, Lynas, Paladin Energy, and St Barbara shares are sinking today

These shares are having a tough session. What's going on?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Amcor, Boss Energy, Brickworks, and Mineral Resources shares are tumbling today

These shares are starting the week in the red. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »