Elders Declares 18c Dividend Partially Franked at 70%, Payable January 2025
Elders Limited has updated its dividend announcement, confirming an ordinary dividend of AUD 0.18 per share payable in January 2025, with key dates revised from earlier guidance.
- Ordinary dividend of AUD 0.18 per share declared
- Dividend partially franked at 70%, unfranked portion 30%
- Dividend payment date set for 24 January 2025
- Dividend Reinvestment Plan (DRP) available with 1.5% discount
- Key dividend dates updated from prior November announcement
Dividend Update and Key Dates
Elders Limited (ASX: ELD), a leading agribusiness company, has issued an update to its previously announced dividend details for the six-month period ending 30 September 2024. The company confirmed an ordinary dividend of AUD 0.18 per fully paid ordinary share, payable on 24 January 2025. This update revises the timetable initially provided in November 2024, notably adjusting the ex-dividend date to 17 December 2024 and the record date to 18 December 2024.
The dividend is partially franked at 70%, reflecting a franked amount of AUD 0.126 per share and an unfranked component of AUD 0.054 per share. This partial franking aligns with Elders’ ongoing approach to balancing shareholder returns with tax efficiency.
Dividend Reinvestment Plan Details
Shareholders have the option to participate in Elders’ Dividend Reinvestment Plan (DRP), which remains fully available for this dividend. The DRP price will be calculated based on the volume weighted average price (VWAP) of Elders shares from 7 January to 20 January 2025, with a 1.5% discount applied. The DRP securities will be newly issued and rank pari passu with existing shares, with no minimum or maximum participation limits.
The default position for shareholders who do not elect to participate in the DRP is to receive the dividend in cash. The deadline for DRP election lodgement was 20 December 2024.
Implications for Investors and Market
This dividend update underscores Elders’ commitment to delivering consistent shareholder returns amid a dynamic agricultural sector. The partial franking credits offer tax advantages to eligible investors, while the DRP discount provides an incentive for reinvestment, potentially supporting share price stability.
Investors should note the revised key dates, which differ from earlier announcements, and adjust their trading and participation plans accordingly. The payment date of 24 January 2025 marks the final step in this dividend cycle, with the market likely to respond to the confirmed payout and reinvestment terms.
Bottom Line?
Elders’ dividend update refines shareholder expectations and sets the stage for early 2025 market activity.
Questions in the middle?
- How will the partial franking impact different investor segments’ after-tax returns?
- What is the anticipated shareholder uptake of the DRP at the offered discount?
- Could the updated dividend timetable influence Elders’ share price volatility in the lead-up to payment?