Performance history

Shareholder returns

Shareholder returns comprise dividend income and the change in value of the share.

Dividend income

Fully franked dividends are an important tax effective component of an investor’s return. Milton aims to payout between 85% and 95% of underlying operating profit(1) as ordinary dividends and to pass on to shareholders fully franked special dividends as they accumulate.

Milton doubled its full year ordinary dividend of 44 cents per share in 2001 to 88 cents per share in 2008. Following the GFC the ordinary dividend was lowered in line with Milton's underlying operating profit and as the underlying operating profit has increased so too has the fully franked ordinary dividend.

In October 2013 Milton split its shares in the ratio of five for one. The following dividend history graph has been adjusted accordingly.

(1) Underlying operating profit after tax excludes special investment revenue, acquisition costs of subsidiaries and realized capital gains and losses.


*Values have been restated to take into account the 5 for 1 share split in Oct 2013

Value of the share

Net Tangible Asset Backing (NTA)(2)

Milton reports its NTA(2) to the ASX each month. The NTA, which fluctuates as the market value of the underlying investments change, provides a guide to the value of a Milton share.

The following chart shows Milton’s NTA since 30 November 2000 compared with the movement in the All Ordinaries Index. Whilst Milton is NOT an index investor, movements in its NTA are highly correlated with movements in the All Ordinaries Index.

Milton's NTA in the following chart has been adjusted for the five for one share split that occurred in October 2013.

(2) NTA is calculated before providing for tax on unrealised capital gains as Milton is a long term investor and does not intend to dispose of its long term investment portfolio


Value of the share

Share Price

Milton’s shares have traded on the ASX since 1958.

Over time Milton’s share price has tended to trade close to its NTA.

Milton's share price in the following chart has been adjusted for the five for one share split that occurred in October 2013.

Milton’s shares may trade below NTA, in which case they are said to be trading at a discount and from time to time they may trade above NTA and this is referred to as a premium.

Total returns

Total returns are theoretical calculations that assume each dividend is reinvested in shares.

The Total Portfolio Return (TPR) uses the NTA as the share value and provides a guide as to the performance of the investment portfolio.

The Total Shareholder Return (TSR) uses the share price as the share value and so it provides a guide to the return a shareholder would have received had the shares been sold.

The calculation of these Total Returns is similar to that of the Accumulation Return of the All Ordinaries Index (XAOAI). However it should be noted that the TPR is reduced by the payment of tax and expenses whilst the XAOAI is calculated pre tax and expenses.

Similarly a comparison of the TSR and the XAOAI is complicated because the calculations do not take into account the franking benefit that attaches to the dividends. Since the introduction of franking all of Milton’s dividends have been fully franked whereas the dividends from the basket of companies in the All Ordinaries Index are not all fully franked.