SOL.AX Stock Today: January 19 Income Hunt Backs 28-Year Dividend Streak
The SOL.AX dividend is back in the spotlight as Australian investors chase stable income on 19 January. Washington H. Soul Pattinson’s SOL.AX has lifted dividends every year since 1998, making it a standout among ASX dividend shares. Recent quotes near A$38.14 put the trailing cash yield around 2.7%, while grossed-up yield estimates sit closer to 3.9%. With scope to reach about 4.1% in FY26 at current prices, this steady payer is drawing attention from passive income stocks fans seeking reliable, franked cash flows.
Why income seekers rate SOL today
Across Australia, we see growing interest in passive income stocks as consumers juggle higher living costs. Investors are prioritising reliable cash returns and franking credits. The SOL.AX dividend track record sets it apart within dividend growth ASX names. A long payment history, diversified investments, and measured capital allocation offer a mix of income resilience and potential growth that many retirees and SMSFs value.
Recent trading around A$38.14 places shares above the 50-day average (A$36.83) and slightly below the 200-day average (A$39.08). Momentum is firm with RSI at 64.65 and ADX at 28.28, while MFI at 95.02 flags overbought conditions. Price nears the upper Bollinger Band at A$38.53. Short term, this suggests strength but limited upside unless volume expands or catalysts arrive.
Dividend track record and payout math
Washington H. Soul Pattinson has increased its dividend every year since 1998. The latest trailing dividend per share is about A$1.03, implying a cash yield near 2.7% at A$38.14. According to Motley Fool AU, the grossed-up yield is around 3.9% today, with scope to about 4.1% in FY26 at current prices source.
For many ASX dividend shares, franking can lift effective income for eligible taxpayers. A 30% franking rate implies a gross-up factor near 1.43. Applied to a 2.7% cash yield, the effective yield approximates 3.9%, aligning with recent commentary source. This helps the SOL.AX dividend compete with term deposits while preserving potential for capital growth over time.
Valuation, strength, and risks to watch
Key metrics look solid for an income name. Debt-to-equity is about 0.11 and interest coverage sits near 10.35, indicating conservative gearing. The payout ratio on trailing earnings is high at roughly 97%, so sustainability rests on look-through cash flows and portfolio income. That makes investment execution and asset-level distributions important for the durability of the SOL.AX dividend.
At recent levels, price-to-book is near 1.5 and free cash flow yield is about 1.65% on trailing numbers. Shares trade just below the 200-day average but above the 50-day line. For long-term holders, the combination of diversified assets, franking benefits, and a long increase streak may offset valuation sensitivity, but new buyers should allow for swings around broader market moves.
Catalysts and what could drive yield next
The next earnings update is scheduled for 17 March 2026. We will watch any distribution commentary, portfolio realisations, and look-through income trends. Our system grade is B (HOLD), with medium-term forecasts implying modest upside toward A$38.38 in 12 months and A$45.32 over three years, subject to markets and cash generation.
Three items could support dividend growth: steady portfolio income, selective exits at attractive multiples, and lower funding costs. A pullback toward the 50-day average may offer better entry for yield-minded buyers. For income planning, assume cash yield near 2.7% and consider franking to estimate effective returns from the SOL.AX dividend.
Final Thoughts
For Australian investors, the SOL.AX dividend offers a rare blend of reliability and tax-effective income. A 28-year streak of increases, franked payouts, and diversified assets underpin its appeal among dividend growth ASX names. Trailing cash yield sits near 2.7% at about A$38.14, translating to roughly 3.9% grossed-up, with scope to 4.1% in FY26 if prices hold. Still, the high payout ratio against trailing earnings and momentum near overbought levels suggest patience on entry. Our take for 19 January: keep SOL on your watchlist, monitor the 17 March earnings update, and use pullbacks to align yield targets with your income goals and tax position. Always size positions within a diversified portfolio.
FAQs
Is the SOL.AX dividend fully franked, and why does that matter?
Washington H. Soul Pattinson generally pays franked dividends, which may include franking credits that offset tax for eligible Australian investors. Franking can lift the effective after-tax return, turning a 2.7% cash yield into an approximate 3.9% grossed-up yield at current prices. Always check the latest declaration for franking levels, as franking availability depends on profit sources and company tax paid.
What yield can I expect from the SOL.AX dividend today?
On recent pricing around A$38.14 and trailing dividends of about A$1.03 per share, the cash yield is close to 2.7%. With franking credits, the indicative grossed-up yield is around 3.9%, according to recent commentary. Some analysts see scope to roughly 4.1% grossed-up in FY26 if the share price stays near current levels and management maintains its payout trajectory.
How safe is the SOL.AX dividend given current financials?
Balance sheet settings look conservative with low gearing and solid interest coverage. However, the trailing payout ratio on accounting earnings appears high, so dividend capacity relies on look-through cash flows and portfolio distributions. The long record of increases since 1998 supports confidence, but investors should monitor asset-level income, realisations, and management guidance at results to gauge ongoing sustainability.
When is the next key date for SOL.AX income investors?
The next earnings update is scheduled for 17 March 2026. Investors should look for commentary on dividend plans, franking levels, and portfolio cash generation. Any guidance on asset sales, distributions from holdings, or changes in funding costs will inform payout sustainability and potential growth. Price action around the update may also offer more attractive entry points for yield-focused portfolios.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
