Ansell Limited has announced a USD 0.222 per share dividend for the six months ending December 2024, payable in March 2025 with a full dividend reinvestment plan available.
- USD 0.222 dividend per ordinary share for H2 2024
- Dividend is unfranked and paid in US dollars
- Ex-dividend date set for February 14, 2025
- Dividend payment scheduled for March 6, 2025
- Full Dividend Reinvestment Plan (DRP) offered without discount
Dividend Announcement Overview
Ansell Limited (ASX: ANN), a global leader in healthcare and medical devices, has declared an ordinary dividend of USD 0.222 per fully paid ordinary share. This dividend relates to the financial reporting period ending December 31, 2024, marking the company’s continued commitment to returning value to shareholders amid a complex global economic backdrop.
The dividend will be paid in US dollars, reflecting Ansell’s international revenue base and currency exposure. The ex-dividend date is set for February 14, 2025, with the record date following on February 17, 2025. Shareholders can expect payment on March 6, 2025.
Unfranked Dividend and Tax Implications
Notably, the dividend is unfranked, meaning it carries no Australian franking credits. This is consistent with Ansell’s status as a multinational entity with significant foreign income streams. The entire dividend amount is classified as conduit foreign income, which may have varying tax implications for shareholders depending on their jurisdiction and tax residency.
Investors should consider how the unfranked nature of the dividend affects their after-tax returns, especially those relying on franking credits for tax efficiency. The company has not indicated any currency hedging arrangements related to the dividend payment, leaving shareholders exposed to potential currency fluctuations between the US dollar and their local currency.
Dividend Reinvestment Plan Details
Ansell continues to offer a Dividend Reinvestment Plan (DRP) for this distribution, allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. The DRP is fully available with no discount applied to the reinvestment price, which will be calculated over a five-day pricing period starting February 20, 2025.
Shareholders wishing to participate in the DRP must lodge their election by 5:00 pm on February 18, 2025. Participation is limited to residents of Australia, New Zealand, and the United Kingdom, reflecting regulatory and administrative considerations. The DRP shares will not be newly issued but sourced from existing shares, maintaining the company’s capital structure.
Context and Market Implications
This dividend announcement signals Ansell’s stable cash flow generation and confidence in its ongoing operations despite global uncertainties in healthcare supply chains and currency volatility. The USD-denominated dividend aligns with the company’s international footprint and revenue streams, which may appeal to investors seeking exposure to global healthcare markets.
However, the unfranked nature of the dividend and absence of a DRP discount might temper enthusiasm among income-focused investors who value tax efficiency and immediate reinvestment incentives. Analysts will be watching how this dividend fits into Ansell’s broader capital management strategy and its impact on share price momentum in the coming months.
Bottom Line?
Ansell’s steady dividend underscores resilience but leaves open questions on currency risk and shareholder tax impact.
Questions in the middle?
- How will currency fluctuations affect the effective dividend yield for Australian investors?
- What is Ansell’s outlook on future dividend frankings given its foreign income profile?
- Will the lack of a DRP discount influence shareholder participation rates?