• Half-year profit down 4.6% to $147.0 million
• Interim dividend maintained at 12.0 cents per share fully franked
• 2.5 cents per share special dividend declared

AFIC's investment focus is on a diversified portfolio of Australian equities, seeking to provide attractive dividend and capital growth to shareholders over the medium to long term. The half-year profit was $147.0 million, down from $154.2 million in the previous corresponding period. The decrease was primarily due to lower dividends from BHP, Woodside Energy Group and Woolworths Group (special dividend paid last half year) amongst others, and from the reduced holdings because of sales in Commonwealth Bank of Australia and Wesfarmers. The interim dividend was maintained at 12.0 cents per share fully franked. A special dividend of 2.5 cents per share has also been declared, reflecting the substantial balance of franking credits built up over recent years, particularly through the generation of realised capital gains. The portfolio return for the half year was negative 2.0%, including franking, underperforming the S&P/ASX 200 Accumulation Index return of 4.2% including franking over the same period. The underperformance came from large core holdings that had significant declines in their share prices during the year, as well as AFIC's lack of exposure to small and mid-cap resources which were up substantially. AFIC has made portfolio adjustments, including trimming positions in Wesfarmers, Commonwealth Bank, Netwealth, Westpac and NAB, and building positions in Woolworths, Telstra and Sigma Healthcare.

Based on the ordinary interim dividend declared, the ordinary final dividend paid and including the proposed 5 cents of special dividends previously announced in December for this financial year, the grossed-up dividend yield on the share price of $7.19 at 31 December 2025 is 6.3%.

Despite extreme geopolitical uncertainty and a more indeterminate outlook for economic growth and inflation, the market delivered another strong year of performance in the 12 months to 31 December 2025. While AFIC remains cautious in this environment, the company believes that owning a diversified portfolio of high-quality companies can produce an attractive level of income and capital growth over the long term.