aug 2026
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chart
AFI only managed to double its price in 2022 (if you bought in at the price of $4 during the 2009 GFC).
That's 13 years !!! Its now (in 2026) below $7.
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ASX:AFI (Australian Foundation Investment Company) has maintained a highly stable, low-debt profile over the last 5 years with consistent profits and an ultra-low management fee. However, its earnings and dividend growth have been modest, with the dividend payout ratio exceeding recent earnings. [1, 2, 3, 4, 5, 6]
Financial Snapshot
- Profit: The full-year profit for FY2025 was $285.0 million (down from $296.4 million in FY2024). For the half-year ending December 31, 2025, the profit was $147.0 million. The profit drop was primarily due to trimmed bank holdings and lower dividends from resource companies. [1, 2, 3, 4]
- Debt: AFI operates a fortress-like, debt-free balance sheet with virtually no external debt. [1]
- ROE & Returns: The Return on Equity (ROE) has tracked around 3.28%. Over the past 5 years, earnings have grown by about 2.5% per year, and EPS growth has hovered around 8.6%. [1, 2, 3]
- Management Expense Ratio (MER): AFI continues to offer an extremely low cost structure, with an MER of just 0.16% and no additional performance fees. [1, 2]
Dividend & Payout
AFI targets fully franked dividends that grow faster than inflation. However, in recent reporting, the dividend payout ratio has been elevated (over 100%) of earnings, partially sustained by accumulated capital gains and franking credits. You can review ongoing payout updates on the Australian Foundation Investment Company (ASX:AFI) page. [1, 2, 3, 4, 5]
5-Year Performance & Outlook
As a Listed Investment Company (LIC), AFI's performance is tied to its underlying portfolio. The total portfolio return has generally mirrored the broader market, though it can periodically lag large-cap benchmarks due to its defensive, low-turnover tilt. The company aims to provide stable, attractive total returns with a heavy emphasis on dividends. [1, 2, 3, 4, 5]
For more details on their long-term performance, you can read the latest AFIC Annual Report or check the Performance - AFIC portal.
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ASX:AFI (Australian Foundation Investment Company) and ASX:ARG (Argo Investments) are nearly identical blue-chip Listed Investment Companies (LICs) that trade neck-and-neck in performance, fees, and long-term shareholder returns. [1]
Key Metrics Comparison
| Metric | ASX:AFI (AFIC) | ASX:ARG (Argo) |
|---|---|---|
| Share Price | ~$6.60 | ~$9.18 |
| Market Capitalisation | ~$8.11 Billion | ~$6.90 Billion |
| Dividend Yield | ~4.02% (fully franked) | ~4.19% (fully franked) |
| Price-to-Earnings (P/E) | ~27.8x | ~26.6x |
| Management Expense Ratio (MER) | ~0.13% – 0.15% | ~0.13% – 0.15% |
Long-Term 10-Year Growth
- AFI 10-Year Return: Delivers approximately 9.2% to 9.5% per annum (including net asset per share growth and dividends with franking credits). [1, 2]
- ARG 10-Year Return: Tracks very closely at roughly 8.7% to 9.0% per annum on a total shareholder return basis.
Dividends & Dividend Growth
- Consistency: Both companies have multi-decade track records of uninterrupted, fully franked dividend payments through various economic cycles. [1]
- AFI: Holds a razor-thin historical edge for absolute dividend consistency and smoothing reserves during market downturns. [1]
- ARG: Recently moved to pay dividends on a quarterly schedule rather than semi-annually, providing a more regular income stream alongside occasional listed investment company (LIC) capital gain components offering tax deductions for certain SMSFs
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