Supply Network Limited Declares Fully Franked AUD 0.32 Dividend with DRP Option

Dividend Announcement Overview

Supply Network Limited (ASX: SNL) has declared an ordinary dividend of AUD 0.32 per fully paid ordinary share, fully franked at the corporate tax rate of 30%. This dividend corresponds to the six-month period ending December 31, 2024, signaling the company’s continued commitment to returning value to shareholders amid a stable financial environment.

The dividend will be paid on April 4, 2025, with an ex-dividend date of March 20, 2025, and a record date of March 21, 2025. These dates set the timeline for investors to qualify for the dividend payment, providing clarity for portfolio planning and income expectations.

Dividend Reinvestment Plan Details

Notably, Supply Network Limited offers a Dividend Reinvestment Plan (DRP) that allows shareholders to reinvest their dividends into additional shares at a 2.5% discount to the volume weighted average price during the five business days following the ex-dividend date. The DRP election deadline is March 26, 2025, at 5:00 pm, giving investors a window to opt in or out of the plan.

The DRP shares will rank pari passu with existing shares and will be issued without a minimum or maximum participation limit, making it accessible to all shareholders regardless of their holding size. This plan supports shareholder loyalty and provides a cost-effective way to compound investment in the company.

Implications and Market Context

The fully franked nature of the dividend is particularly attractive to Australian investors, as it implies the company has paid tax on its profits, reducing the tax burden on shareholders. This dividend announcement reflects Supply Network Limited’s solid earnings performance and prudent capital management during the reporting period.

While the dividend amount is consistent with expectations and no extraordinary approvals were required, the presence of a DRP with a discount indicates the company’s strategy to balance cash returns with reinvestment opportunities. Investors may view this as a sign of confidence in future growth prospects.

Overall, this dividend declaration reinforces Supply Network Limited’s position in the financial services sector as a reliable income-generating investment, with mechanisms in place to support shareholder engagement and capital growth.