Helia's Capital Returns Surprisingly Large, but Caution Warranted

Dow Jones
08/12
 

2332 GMT - The size of Helia's capital return surprises Macquarie. Helia, which provides lenders mortgage insurance, said it would pay a A$0.27/share special dividend on top of its A$0.16/share interim dividend. It also declared a share buyback worth up to A$75 million. "However, Helia have had buyback programs in place in the past without executing," says Macquarie. "Indeed, the last time Helia actually meaningfully repurchased shares was in 2024 despite having a program in place until end-2025." Macquarie forecasts A$4.00/share of total dividends over the next five years. It retains an "underperform" call on Helia, but lifts its price target by 5.6%, to A$3.80/share, partly to reflect the capital returns. Helia ended Tuesday at A$5.64.

 

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