Australian Foundation Investment Company Updates Interim Dividend Details

Interim Dividend Update

Australian Foundation Investment Company Limited (ASX: AFI) has provided an update to its interim dividend announcement originally made on January 22, 2025. The company confirmed a fully franked ordinary dividend of AUD 0.12 per share relating to the six-month period ending December 31, 2024. The dividend is scheduled for payment on February 25, 2025, with a record date of February 4 and an ex-dividend date of February 3.

This update primarily clarifies the foreign currency exchange rates applicable to shareholders receiving dividends in New Zealand Dollars (NZD) and British Pounds Sterling (GBP). The exchange rates are set at AUD 1 to NZD 1.0980 and AUD 1 to GBP 0.5000, respectively. These rates will determine the equivalent dividend amounts for shareholders opting for payment in these currencies, with NZD dividends at 0.13176 per share and GBP dividends at 0.06 per share.

Dividend Reinvestment and Substitution Plans

AFI also updated details regarding its Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (BSP). Both plans offer shareholders the option to reinvest their dividends into new shares rather than receiving cash. The issue price for shares under both plans has been set at AUD 7.40, calculated as the volume weighted average price of AFI shares traded on the ASX and Cboe automated trading systems over the five trading days following the ex-dividend date.

Participation in the DRP and BSP is fully open to shareholders, with no minimum or maximum investment limits. The plans are designed to provide flexibility, allowing shareholders to elect participation by February 5, 2025. If no election is made, shareholders will receive their dividends in cash by default.

Currency Options and Shareholder Flexibility

Shareholders have the ability to choose their preferred currency for dividend payments, overriding default arrangements based on residency. Those who provide Australian, New Zealand, or British financial institution account details can receive dividends in AUD, NZD, or GBP respectively, regardless of their country of residence. This flexibility reflects AFI’s commitment to accommodating its diverse shareholder base across multiple jurisdictions.

The dividend is fully franked at 30%, ensuring shareholders benefit from franking credits that reduce the tax payable on dividend income. This is consistent with AFI’s historical approach to dividend distributions, supporting its reputation as a reliable income-focused investment company.

Looking Ahead

With the dividend payment date approaching, investors will be watching closely to see shareholder uptake of the DRP and BSP options, as well as any market reaction to the currency exchange rates applied. The update provides clarity and transparency, reinforcing AFI’s steady approach to shareholder returns amid fluctuating currency markets.