ARGO Investments Limited has updated its dividend distribution announcement, confirming a fully franked ordinary dividend of AUD 0.17 per share for the half-year ending December 2024 and correcting previous details on its Bonus Security Plan pricing.
- Ordinary dividend of AUD 0.17 per share, fully franked at 30%
- Dividend relates to six months ending 31 December 2024
- Record date set for 10 February 2025, payment on 14 March 2025
- Correction issued regarding Bonus Security Plan (BSP) pricing details
- Dividend Reinvestment Plan (DRP) and BSP fully offered with no discount
Dividend Update and Correction
ARGO Investments Limited (ASX: ARG) has issued an important update to its dividend distribution announcement originally made on 3 February 2025. The company confirmed an ordinary dividend of AUD 0.17 per fully paid ordinary share, fully franked at the corporate tax rate of 30%. This dividend covers the six-month financial period ending 31 December 2024.
The update primarily corrects an earlier error related to the Bonus Security Plan (BSP) pricing, clarifying that the BSP price remains unknown until after the pricing period concludes. This correction ensures transparency and accuracy for shareholders participating in the dividend reinvestment and bonus security plans.
Key Dates and Dividend Mechanics
Shareholders registered by the record date of 10 February 2025 will be eligible for the dividend, with the ex-dividend date set for 7 February 2025. The dividend payment is scheduled for 14 March 2025. ARGO’s Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) are both fully offered for this distribution, with no discount applied to the pricing of shares issued under these plans.
Notably, the DRP shares will be priced based on the volume-weighted average price of ARG shares traded from the record date through to the payment date, ensuring a fair market value for reinvested dividends. The BSP follows the same pricing methodology. Both plans exclude shareholders with registered addresses outside Australia and New Zealand from participation.
Implications for Investors
The fully franked nature of the dividend is particularly attractive for Australian investors, as it provides a tax credit that can offset tax liabilities. The absence of a discount on DRP and BSP shares suggests ARGO is maintaining a conservative approach to capital management, avoiding dilution while still offering shareholders the option to reinvest dividends.
By correcting the BSP pricing details promptly, ARGO reinforces its commitment to clear communication and regulatory compliance, which is critical in maintaining investor confidence. The neutralisation of DRP and BSP share issuance through third-party market purchases further mitigates dilution concerns.
Investors should monitor how the market responds to this update, especially given the correction and the steady dividend yield in a competitive investment environment.
Bottom Line?
ARGO’s precise dividend update and BSP correction underscore its steady capital management and commitment to shareholder transparency.
Questions in the middle?
- How will the market react to the corrected BSP pricing details?
- Will ARGO maintain this dividend level amid evolving market conditions?
- What impact will the exclusion of international shareholders from DRP and BSP have on participation rates?