Magellan Financial Group grows dividend as steady 1H26 results land

The Magellan Financial Group Ltd (ASX: MFG) share price is in focus today after the company delivered a steady interim result, with operating profit holding firm at $83.1 million and a 50% lift in fully franked dividends to 39.5 cents per share.

What did Magellan Financial Group report?

• Assets under management (AUM) rose 3% to $39.9 billion at 31 December 2025
• Operating earnings per share increased 5% to 48.6 cents
• Operating profit was $83.1 million, unchanged from 1H25
• Strategic partnership income surged 109% to $25.7 million
• Investment management revenue fell 17% to $106.9 million
• Interim dividend jumped 50% to 39.5 cents per share, fully franked

What else do investors need to know?

Magellan maintained a strong capital position at the end of December, holding $504 million in liquid assets and no debt. Share buy-backs continued, with $38.4 million returned to shareholders during the half.

Net flows were positive for the institutional segment thanks to inflows into Airlie Australian Equities and Global Listed Infrastructure. Meanwhile, retail outflows stabilised while new client and product wins, especially through Vinva, added diversity to the income stream.

Recent investments in leadership, technology and governance are aimed at supporting scalable, operationally robust growth across Magellan Investment Partners, which also completed a rebrand in the half.

What’s next for Magellan Financial Group?

Looking forward, Magellan plans to expand its global distribution, especially in Asia Pacific, North America, and Europe, while continuing to focus on performance and operational efficiency. Further innovation and investment in automation and AI are on the agenda, along with ongoing development of strategic partnerships.

The company remains committed to returning capital to shareholders through dividends and share buy-backs, while carefully assessing future growth and investment opportunities. Management has highlighted sustaining and growing institutional client relationships as a key priority for the second half.

Magellan Financial Group share price snapshot

Over the pat 12 months, Magellan Financial Group shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Magellan Financial Group grows dividend as steady 1H26 results land appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.