Jardine Matheson targets 5% annual dividend growth, launches US$500 million share buyback

[SINGAPORE] Jardine Matheson Holdings (JMH) has pledged to grow its dividend by at least 5 per cent annually through to 2030 and has launched a US$500 million share buyback programme.

They were among the shareholder-return and portfolio-recycling targets that the conglomerate laid out at its first-ever Investor Day held in Hong Kong on Tuesday (Jun 16).

The targets are part of the company’s efforts to shift away from its traditional owner-operator model to become a return-focused investment company. JMH has a primary listing on the London Stock Exchange and secondary listings on the Singapore Exchange (SGX) and in Bermuda.

Other objectives named in its latest investment strategy were:

• delivering at least 9 per cent per annum total shareholder returns over the next five years;
• recycling at least US$4 billion capital from its portfolio, excluding recycling commitments from subsidiaries Hongkong Land and Astra; and,
• building minimally US$200 million in additional profit after tax and minority interests through inorganic acquisitions.

The conglomerate added that it will seek to be a control owner of its portfolio companies, as well as make investments which offer diversification and improve its quality of earnings.

Its portfolio companies include DFI Retail Group and luxury hotel chain Mandarin Oriental. The latter was taken private in late 2025, and was delisted from SGX on Jan 20.

JMH will also invest in “market-leading businesses” which can scale from a geographic base in Asia-Pacific, it noted. These businesses must have the ability to adopt technology, including artificial intelligence.

The investments should be growth-accretive and be able to generate cash and contribute to dividend per share and earnings per share in the medium term.

JMH is also looking for investments where it can hold a controlling or joint-controlling stake and can “align with management”.

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These investments must have a pathway to more than US$100 million in profit after tax and minority interests in under five years.

On Tuesday, Lincoln Pan, CEO of JMH, said that the company’s objective is to become an “outstanding investor and owner dedicated to building a diverse portfolio of high-quality, scaled businesses in Asia-Pacific”.

JMH shares on Tuesday fell 3.7 per cent or US$2.45 to close at US$63.55.