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Middlefield Canadian Income PCC on Friday reported rising dividends, alongside an increased net asset value at the end of its first half year. The Jersey-based investor, which targets larger Canadian and US high-yield equities, received approval in August for its intended voluntary wind-up and rollover into an exchange-traded fund. As Middlefield Canadian stated on Friday, the new ETF will maintain its existing investment strategy and manager. Shareholders have the option to receive ETF shares, with alternatives including a cash exit, or a combination of cash and ETF shares. The firm’s net asset value per share rose to 134.61 pence as of June 30, from 121.22p one year prior and 134.05p at the end of 2024. Shares in Middlefield Canadian were 1.0% higher at 138.07 pence on Friday afternoon in London. For the first six months of 2025, the company reported a 13.9% share price return, and a 2.6% net asset value return. Its benchmark and the S&P/TSX Composite Index delivered 4.3% and 6.0% returns, respectively. Middlefield reported a 9.3% share price return and a 4.7% NAV return for the three months ended June 30, against a 4.4% rise from the benchmark. ‘Positive stock selection within the financials, energy, and real estate sectors were the biggest positive contributors to performance, whilst the utilities sector was the biggest detractor,’ said Chair Michael Phair. ‘Building on a strong 2024, the fund’s recent performance highlights the resilience and attractiveness of high-quality, dividend-paying companies within Canada’s core sectors.’ Middlefield recounted paying three quarterly dividends, each of 1.375p per share and representing a 4% on-year increase, in January, April and July. It declared another 1.375p dividend on Thursday. The fund also noted that in early 2025 it approved a 0.2p boost to its annual dividend target, to 5.5p per share. This was due to ‘the excess earnings generated...in 2024’ and ‘the prospect of dividend growth from the underlying portfolio’, Middlefield said. Going forward, the company said: ‘We believe the recent period of solid performance in Canadian equities will continue...Amid elevated trade uncertainty, the fund is well-diversified across resilient, high-quality sectors that are less exposed to tariffs. ‘The pro-growth policy direction under the Carney government...further supports a constructive backdrop for Canadian stocks. We also believe the AI-driven infrastructure cycle will be a durable long-term theme, supporting incremental investment in power generation, pipelines, and natural gas infrastructure, areas where the fund maintains meaningful exposure.’ Middlefield, meanwhile, ‘is focused on high-quality companies with strong balance sheets, robust free cash flow generation, and a proven ability to grow their dividends...MCT offers an attractive mix of growing income combined with capital appreciation potential, with a constructive outlook for the second half of the year.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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