{"id":829673,"date":"2026-11-10T03:14:11","date_gmt":"2026-11-10T03:14:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/829673\/"},"modified":"2026-11-10T03:14:11","modified_gmt":"2026-11-10T03:14:11","slug":"why-mff-shares-are-a-retirees-dream-for-2027","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/829673\/","title":{"rendered":"Why MFF shares are a retiree’s dream for 2027"},"content":{"rendered":"

MFF Capital Investments Ltd (ASX: MFF<\/a>) shares are among the strongest picks for retiree passive income<\/a>, in my opinion.<\/p>\n

It’s not a famous business like BHP Group Ltd (ASX: BHP<\/a>) or Commonwealth Bank of Australia (ASX: CBA<\/a>), but it’s still very sizeable with a market capitalisation<\/a> of more than $3 billion according to the ASX.<\/p>\n

I would rather choose MFF over BHP and CBA for passive income because of MFF’s solid dividend yield<\/a> and impressive growth rate.<\/p>\n

Let’s look at how attractive the listed investment company (LIC)<\/a> is for passive income.<\/p>\n

\"A<\/p>\n

Image source: Getty Images<\/p>\n

Solid dividend yield<\/p>\n

Retirees may be focused on the amount of dividend income that could come in from an investment, so let’s start with the dividend yield from the LIC.<\/p>\n

MFF paid an annual dividend per share of 21 cents in FY26. That represents a trailing dividend yield of 4% excluding franking credits<\/a> and 5.75% including franking credits. That’s competitive with the best term deposit rates from banks like CBA.<\/p>\n

But the dividend yield in the new financial year could be even larger.<\/p>\n

The board of directors has already indicated that they plan to increase the payout again in FY27.<\/p>\n

With its FY26 result<\/a>s, released in August, MFF said it plans to grow its interim dividend to 12 cents per share, and I expect the FY27 final dividend to be 13 cents per share.<\/p>\n

Therefore, I’m expecting the FY27 annual dividend to be 25 cents per share. At the time of writing, with the MFF share price of $5.21, the forward dividend yield could be 4.8% excluding franking credits and 6.9% including franking credits.<\/p>\n

Strong and regular dividend growth<\/p>\n

The LIC has a great track record of delivering pleasing investment returns, which is helping fund impressive dividend increases.<\/p>\n

As at 30 June 2026, the business reported that, over the prior decade, its post-tax net tangible assets (NTA) return averaged 14.7% per year, and over the past five years it averaged 14%.<\/p>\n

Over the five years to FY26, the five-year dividend compound annual growth rate (CAGR)<\/a> was 26%. I’d say that’s an exceptional growth rate. It has increased its regular annual payout each year since 2018, so it already has an impressive dividend record.<\/p>\n

In FY27, I expect the business to increase its annual payout by another 19%.<\/p>\n

If it continues to increase its annual dividend by 4 cents per share each year, which I think it will, the payout would grow by a further 16% in FY28. Of course, dividends are not guaranteed payments.<\/p>\n

Diversified portfolio<\/p>\n

Many retirees may have their portfolios focused on Australian companies and property. I think it’d be a good idea to have some of our assets invested in international shares too.<\/p>\n

As an LIC, the investment team can decide where they want to invest. MFF can look across the entire global stock market for ideas for opportunities.<\/p>\n

MFF seeks businesses with competitive advantages and above-average prospects for profit growth.<\/p>\n

This has led the business to own shares like Mastercard, Visa, Amazon, Alphabet, Microsoft, Bank of America and American Express. <\/p>\n

With attractive dividends and the ability to change its portfolio over time, I think this is a great option for retirees to own for the long term.<\/p>\n","protected":false},"excerpt":{"rendered":"MFF Capital Investments Ltd (ASX: MFF) shares are among the strongest picks for retiree passive income, in my…\n","protected":false},"author":2,"featured_media":829674,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-829673","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/829673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=829673"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/829673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/829674"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=829673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=829673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=829673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}