News Corporation has announced a USD 0.10 per share dividend for its Class A non-voting common stock, reflecting steady returns for investors amid a complex media landscape.
- Dividend of USD 0.10 per Class A non-voting common stock
- Ex-dividend date set for March 11, 2025
- Payment scheduled for April 9, 2025
- Dividend is unfranked with a 30% withholding tax
- Dividend relates to the six-month period ending December 31, 2024
Dividend Announcement Overview
News Corporation (ASX: NWS) has confirmed a dividend distribution of USD 0.10 per Class A non-voting common stock, payable on April 9, 2025. The announcement, made on February 6, 2025, sets the ex-dividend date for March 11, 2025, with a record date of March 12, 2025. This dividend corresponds to the financial period ending December 31, 2024.
Currency and Tax Considerations
The dividend will be paid primarily in US dollars, reflecting News Corporation’s global shareholder base and its US-listed securities. Holders of the ASX-listed CHESS Depositary Interests (CDIs) representing the Class A shares will receive payments in Australian dollars. The company has disclosed a withholding tax rate of 30%, which is standard for many international dividend payments and may impact the net income received by shareholders depending on their tax residency.
Unfranked Dividend Implications
Notably, the dividend is unfranked, meaning it does not carry any Australian franking credits. This is typical for distributions from foreign entities or those with limited Australian taxable income. Investors should consider the tax implications of receiving unfranked dividends, especially in jurisdictions where franking credits provide tax offsets.
Context Within News Corporation’s Financial Strategy
This dividend announcement aligns with News Corporation’s ongoing commitment to returning value to shareholders, despite the challenges facing the media and publishing sectors. The steady dividend payout suggests confidence in the company’s cash flow and profitability, even as it navigates digital transformation and evolving consumer habits.
Looking Ahead
Investors will be watching closely for News Corporation’s upcoming financial results and any commentary on future dividend policy. The company’s ability to sustain or grow dividends will be a key indicator of its financial health and strategic direction in a competitive media environment.
Bottom Line?
News Corporation’s dividend signals steady shareholder returns but invites scrutiny on future growth amid sector challenges.
Questions in the middle?
- Will News Corporation maintain or increase dividend payouts in upcoming periods?
- How will the unfranked nature of the dividend affect different classes of investors?
- What impact will currency fluctuations have on the AUD payments to CDI holders?