Record Gains Boost Dividends
Cadence Capital and Opportunities Fund Post Record Profits and Boost Shareholder Dividends
Key Points
CDM shares were trading about 6% below pre-tax NTA, with 5.4 cents per share of franking credits — enough to fully frank around two years of dividends at the current level.
Cadence Capital sold more than 80% of its gold and resource holdings in the second half to raise cash and redeploy into quality growth names such as CSL, Cochlear, Pro Medicus and A2 Milk.
Cadence Opportunities Fund Ltd posted a record after-tax profit of $5.7 million for the year to 30 June 2026, up 30.3%, and outperformed the All Ordinaries Accumulation Index by 24.6%; the share price rose about 41% including dividends.
Cadence Opportunities Fund reported NAV after tax of $2.26 per share, revenue from ordinary activities of $10.57 million (up 202%), net profit after tax of $5.66 million, and declared a fully franked final dividend of 7.5c per share plus a fully franked special dividend of 2.0c (with a 7.5c interim dividend already paid); a dividend reinvestment plan will operate for the final dividend.
Cadence Capital announced a final dividend of 3.0c per share and a special dividend of 1.0c per share for FY2026, with a fully franked yield of about 7.9% (11.4% gross) at the announcement price of about $0.755; ex-date 29 September 2026 and payment 15 October 2026.
Australian investment firm Cadence Capital posted record profits for the year ending June 30, 2026, with a 20.1% fund return and after-tax profit of $33.4 million finnewsnetwork. The company raised dividends and made a strategic shift away from gold and resource stocks, selling over 80% of those holdings to redeploy capital into quality growth names like CSL, Cochlear, and Pro Medicus finnewsnetwork.
Cadence's sister fund, Cadence Opportunities Fund, delivered even stronger gains with a 30.3% rise in value and record profit of $5.7 million finnewsnetwork. Together, the results show a disciplined pivot toward growth stocks as the firms took advantage of a favorable commodity backdrop earlier in the year sharecafe.
Massive Pivot Away From Gold Holdings
Cadence Capital made a bold portfolio shift in the second half of 2026. The firm dumped more than 80% of its gold and resource stock positions finnewsnetwork. This move freed up cash while commodity prices were still strong. The company then redeployed the proceeds into high-quality growth stocks with better long-term prospects.
Gold stocks had driven strong early-year gains. But Cadence's managers saw shifting market conditions ahead. They chose to lock in profits and move into names like CSL, Cochlear, Pro Medicus, and A2 Milk finnewsnetwork. This disciplined shift positioned the portfolio for the next cycle rather than chasing fading commodity strength.
Opportunities Fund Crushes Market Benchmark
Cadence Opportunities Fund blew past the market in 2026. The fund posted a 30.3% increase in value while the All Ordinaries Accumulation Index returned far less finnewsnetwork. The outperformance margin was 24.6 percentage points. Including dividends, the share price jumped about 41% for the full year finnewsnetwork.
The fund's record after-tax profit hit $5.66 million finnewsnetwork. Revenue from ordinary activities surged 202% to $10.57 million sharecafe. Strong gold stock performance early in the year drove much of the gain. The fund's long-run track record since inception shows consistent outperformance of its benchmark.
Franked Dividends Deliver Double-Digit Gross Yields
Cadence Capital announced fully franked dividends totaling 4.0 cents per share for 2026 finnewsnetwork. This includes a final dividend of 3.0 cents and a special dividend of 1.0 cent. At the announcement price of about 75.5 cents, the yield reached 7.9% after tax. But the gross yield — accounting for franking credits — hit 11.4% sharecafe.
Cadence Opportunities Fund was even more generous. It declared a final dividend of 7.5 cents plus a special dividend of 2.0 cents finnewsnetwork. An interim dividend of 7.5 cents had already been paid. The fund's nav after tax stood at $2.26 per share. A dividend reinvestment plan will be available for shareholders wanting to compound returns finnewsnetwork.
Strong Balance Sheet Supports Dividend Sustainability
Cadence Capital shares traded at a 6% discount to pre-tax net asset value finnewsnetwork. The company held substantial cash and franking credits to support future dividends. Franking credits alone totaled 5.4 cents per share — enough to fully frank two years of dividends at current levels sharecafe.
This financial strength gives the company flexibility to maintain or even grow distributions in 2027. Revenue jumped 313% to $63.3 million in FY2026 finnewsnetwork. The robust earnings support the higher special dividends announced this year. Investors get both growth potential from the portfolio pivot and solid income from franked payouts.
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