The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has lifted 2% this morning following its annual general meeting (AGM).
The investment house’s shares are trading at $29.59 at the time of writing, up by 58 cents.
Highlights from the AGM
Washington H. Soul Pattinson provided an update on the first four months to 30 November.
The company says that its financial services portfolio is up 16%, while its pharmaceutical portfolio is also up by 10% during this period.
Its base metals investments are also performing well this month, with copper and zinc prices increasing by 20% and 21% respectively.
Meanwhile, the recovery in thermal coal price of up to 33% is underpinning its stake in New Hope Corporation Limited (ASX: NHC).
In terms of outlook, Washington H. Soul Pattinson says that cash generation from the portfolio remains strong to support future dividends, while liquidity is readily available for new opportunities and investments.
Disappointing FY20
Earlier in the year, the company had reported a 44% full-year decrease in its underlying net profit before tax (NPAT) to $169.7 million.
The company said that the fall in profits were due to New Hope experiencing falling coal prices, as well as lower coal production from its Acland mines.
The disappointing results were also caused by COVID-19-related impact to its Brickworks Limited (ASX: BKW) building products business.
The Washington H. Soul Pattinson portfolio
Washington H. Soul Pattinson says that over the last 20 years, its total shareholder return (TSR) has outperformed the market by 14.3% per annum.
During this 20-year period, an investment in Washington H. Soul Pattinson appreciated approximately 13.5 times, while an investment in the index increased by just 2.3 times.
Washington H. Soul Pattinson says it is also the only company in the top 500 listed companies in Australia to have increased its dividend every year for the last 20 years, and that it hasn’t missed paying dividends since listing in 1903.
As of today, the company’s top investment is in its Telecommunications Portfolio, representing 35% of the overall portfolio. This is followed by investment in Brickworks, which makes up 25.5%. The stake in New Hope rounds up the top three, making up 10% of Washington H. Soul Pattinson’s portfolio.
About the Washington H. Soul Pattinson share price in 2020
The Washington H. Soul Pattinson share price has gained almost 40% this year, after dropping 20% in April. The share price is currently closing in on its 52-week high of $29.66.
The company commands a market cap of $6.95 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and 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.
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