Farmer Business Developments plc announced a 17c per share end-of-2023 special dividend.

The payment arose after FBD Holdings plc – in which Farmer Business Developments holds 27.8% of voting rights – paid a dividend in October.

Chair Pat Murphy said the company slightly rounded up the payment from FBD Holdings in order to bring the dividend to a round 17c per share.

The dividend, added to the 9c payout in June of 2023, means a total of 26c per share was earned during the year.

For the most common shareholder of the company, this means that their IR£50 investment in the late 1960s will have provided €2,696 before dividend withholding tax in this year alone.

Electronic transfer

Payment of the special dividend was made by electronic funds transfer and by post on 20 December. Shareholders who purchased shares in the company’s autumn share sale also received the 17c dividend.

For the original investors who put their 50 punts to work in the late 1960s, the total dividend payout they have received since has been €19,615.

With the fact that the shares they bought are now valued at €19,804.79, this means the original investment has provided a €39,419.79 return in both capital gains and dividend payments.

Liquidity

The board of Farmer Business Developments plc has tried to increase liquidity in the companies shares in 2023 by holding both a share buyback and a share issue scheme. Both the buyback and the share sale scheme saw over three million shares change hands.

Pat Murphy said at the company’s AGM earlier this year that the “board’s objective in the proposed voluntary share buy-back and share sale initiatives is to improve liquidity in our shares and achieve a sustainable situation where those shareholders who wish to do so can realise their investment at a reasonable price while others can build their investment”.

As well as its shares in FBD Holdings plc, the company also owns 100% of FBD Hotels & Resorts and a diverse range of investments, including development land in Germany.