BKI lifts FY26 profit and dividend as resources rebound powers portfolio

BKI Investment Company (ASX:BKI) has this morning reported higher profit, increased dividends and portfolio outperformance for FY26, with a rebound in resource stocks helping drive earnings growth.

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Net operating result after tax and before special investment revenue rose 3.3% to $62.8 million, while net profit after tax increased 4.1% to $64.4 million. Total ordinary revenue from BKI’s investment portfolio increased 4.2% to $67.8 million, with total revenue rising 2% to $70.7 million.

The investment company declared a fully franked final dividend of 4cps, taking total FY26 dividends to 7.95 cents per share, up from 7.90c in FY25.

BKI said its long-term strategy of investing in high-quality, dividend-paying companies was validated during the year, as major portfolio holdings accelerated dividend growth in the second half despite weaker payouts from resource companies earlier in the financial year.

A standout contributor was BHP, which lifted its dividends by 31% during the January to June period as expanding copper production supported earnings.

The company also benefited from higher dividends from 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 said the materials sector became the standout performer over FY26, supported by strength in gold and critical minerals and growing demand for copper as global investment shifted toward AI infrastructure and data centres.

The portfolio delivered a 12% return for FY26, outperforming the S&P/ASX 300 Accumulation Index, which returned 7.6%, by 4.4 percentage points.

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

As at June 30, 2026, BKI’s investment portfolio, including cash, was valued at $1.7 billion, with cash holdings of $86 million representing 5.1% of the portfolio. Net assets increased to $1.52 billion from $1.44 billion a year earlier.

BKI is up 0.27% today, currently trading at $1.85/sh.

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