Cadence Opportunities Fund posts record profit and lifts fully franked interim dividend

The latest update is out from Cadence Opportunities Fund Ltd. ( (AU:CDO) ).

Cadence Opportunities Fund has reported a record half-year profit before tax of $9.1 million and profit after tax of $6.4 million, with its portfolio rising 36.1% and outperforming the All Ordinaries Accumulation Index by 31.7%. Performance was driven largely by strong gains in gold mining holdings such as Kingsgate, Equinox, Robex, Turaco, Endeavour and New Gold, which benefited from a sharp rerating in gold equities as the Australian dollar gold price climbed.

The board declared a fully franked interim dividend of 7.5 cents per share, implying a 7.1% yield based on the current share price and supported by profit reserves of 48 cents per share, equivalent to more than three years of dividends at the current rate. The company will operate its dividend reinvestment plan for this payout and intends to buy back DRP shares when they trade below pre-tax NTA, while also capitalising on elevated capital raisings in the resources sector amid a higher interest rate environment and persistent inflation pressures.

The most recent analyst rating on (AU:CDO) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Cadence Opportunities Fund Ltd. stock, see the AU:CDO Stock Forecast page.

More about Cadence Opportunities Fund Ltd.

Cadence Opportunities Fund Limited is an Australia-based listed investment company that trades on the ASX under the code CDO. The fund is actively managed and focuses on opportunistic investments, with a notable tilt toward resource and gold mining companies, seeking to generate returns through both portfolio gains and capital-raising-driven trading opportunities.

Average Trading Volume: 24,422

Technical Sentiment Signal: Buy

See more data about CDO stock on TipRanks’ Stock Analysis page.