Editing HBM Healthcare Investments
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'''Exhibit 13: Dividend history since FY16<ref>Source: HBM Healthcare Investments, Edison Investment Research.</ref>''' | '''Exhibit 13: Dividend history since FY16<ref>Source: HBM Healthcare Investments, Edison Investment Research.</ref>''' | ||
In an environment of persistently low yields on cash and bonds, HBMN has long recognised the attractiveness to its shareholders of a regular income, even though companies in the earlier-stage healthcare and biotech space tend to be more focused on R&D spending than paying dividends to investors. As a result, since 2013 the fund has followed a policy of paying out 3–5% of NAV each year as a cash distribution, with the ambition of providing a stable to rising payout each year (CAGR of 10.8% a year from FY17 to FY22, setting aside the one-off ‘anniversary payment’ of CHF3.00 paid in respect of FY21). The CHF9.70 per share payout proposed for FY22 equates to 3.4% of NAV and is a 3.8% yield on the current share price. As in recent years, the distribution will be paid in September and treated as a reduction in the par value of the shares, which is more tax efficient for HBMN than transferring part of the par value into capital reserves and then paying it out. | In an environment of persistently low yields on cash and bonds, HBMN has long recognised the attractiveness to its shareholders of a regular income, even though companies in the earlier-stage healthcare and biotech space tend to be more focused on R&D spending than paying dividends to investors. As a result, since 2013 the fund has followed a policy of paying out 3–5% of NAV each year as a cash distribution, with the ambition of providing a stable to rising payout each year (CAGR of 10.8% a year from FY17 to FY22, setting aside the one-off ‘anniversary payment’ of CHF3.00 paid in respect of FY21). The CHF9.70 per share payout proposed for FY22 equates to 3.4% of NAV and is a 3.8% yield on the current share price. As in recent years, the distribution will be paid in September and treated as a reduction in the par value of the shares, which is more tax efficient for HBMN than transferring part of the par value into capital reserves and then paying it out. |