Old Mutual finalized dividend terms: what it means for Old Mutual stock

Published on 10/08/2026 at 11:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Old Mutual raised its interim dividend 8.00 percent to 40.00 cents on September 8, 2026. For Old Mutual stock, the approved buyback was ZAR 1.00 billion.

Old Mutual, ZAE000255360, Illustration mit AI erstellt.

Old Mutual (ISIN ZAE000255360) had finalized the currency terms for its 40.00 cents interim dividend on September 16, 2026, according to Sharenet. The decision followed interim results for the six months ended June 30, 2026, which combined stronger operating performance with weaker investment returns.

Dividend terms meet stronger operations

Old Mutual declared the interim dividend at 40.00 cents per share on September 8, 2026, an 8.00 percent increase from 37.00 cents in the comparable period. The board also approved a ZAR 1.00 billion share buyback, while the company set the London Stock Exchange payment date for November 6, 2026.

The operating picture was mixed. According to Reuters on September 8, 2026, adjusted headline earnings fell 30.00 percent to ZAR 2.95 billion in the first half of 2026 from ZAR 4.20 billion a year earlier, as market volatility weakened investment returns.

Returns improve as earnings diverge

Results from operations per share increased 11.00 percent to 126.30 cents in the first half of 2026 from 113.50 cents a year earlier. The same report showed life annual premium equivalent sales up 21.00 percent to ZAR 7.85 billion and value of new business up 32.00 percent to ZAR 569.00 million.

That contrast matters for the dividend case. Operating earnings and sales supported the payout increase, but adjusted earnings remained exposed to investment-market conditions, making the 8.00 percent dividend growth less dependent on a single profit line.

Old Mutual also reported 742,000 OM Bank customers and ZAR 1.40 billion of retail deposits at June 30, 2026. The banking build adds a growth angle, while the approved buyback directs capital back toward shareholders during the same reporting period.

Capital returns define the next test

Old Mutual stock is tied to two competing figures from the first half of 2026: return on group equity value reached 12.70 percent, while the company retained a ZAR 3.10 billion discretionary capital balance at June 30, 2026. The balance had fallen from ZAR 6.10 billion at December 31, 2025, after the completion of a ZAR 3.00 billion buyback program.

The combination gives the dividend decision a measurable framework. Investors can weigh the 40.00 cents distribution and ZAR 1.00 billion buyback against the lower adjusted earnings base and the capital required to expand OM Bank.