Computershare Declares AUD 0.45 Unfranked Dividend for FY24

• Dividend of AUD 0.45 per ordinary share declared
• Dividend is unfranked, reflecting 100% unfranked status
• Ex-dividend date set for February 18, 2025
• Payment date scheduled for March 19, 2025
• Full Dividend Reinvestment Plan (DRP) available with no discount

Dividend Announcement Overview

Computershare Limited (ASX: CPU), a global leader in financial and investment services, has declared an ordinary dividend of AUD 0.45 per fully paid ordinary share. This dividend relates to the six-month period ending December 31, 2024, and will be paid to shareholders on March 19, 2025. The ex-dividend date is set for February 18, 2025, with the record date following on February 19.

Unfranked Dividend Details and Tax Implications

Notably, the dividend is entirely unfranked, meaning no Australian franking credits will be attached. This unfranked status indicates that the dividend is paid out of income that has not been subject to Australian corporate tax, which may influence the after-tax return for Australian shareholders depending on their individual tax circumstances. The unfranked nature also suggests that Computershare’s earnings for this period may have been generated outside Australia or are otherwise not eligible for franking.

Dividend Reinvestment Plan (DRP) Details

Shareholders have the option to participate in Computershare’s Dividend Reinvestment Plan (DRP), which remains fully open for this dividend. The DRP allows shareholders to reinvest their dividend payments into additional shares without any discount, as the DRP discount rate is set at 0%. The reinvestment price will be calculated based on the average volume-weighted price over a ten trading day period commencing on a date determined by the Board. Importantly, if shareholders do not make an election to participate, dividends will be paid in cash by default.

Context and Market Implications

This dividend announcement underscores Computershare’s ongoing commitment to returning value to shareholders despite the unfranked status. The payment aligns with the company’s historical dividend policy and reflects stable earnings through the first half of FY2025. Investors will be watching closely how the unfranked dividend influences sentiment, especially given the broader market’s sensitivity to dividend yields and tax efficiency.

While the absence of franking credits might temper appeal for some domestic investors, the availability of the DRP without a discount provides a flexible option for shareholders seeking to compound their investment. The timing of the dividend payment and the DRP election deadline on February 20, 2025, will be key dates for investors to note.

Bottom Line?

Computershare’s unfranked dividend signals steady returns but invites scrutiny on tax impacts and future payout sustainability.

Questions in the middle?

• Will Computershare’s unfranked dividend status persist in future periods?
• How might the unfranked dividend affect domestic versus international shareholder demand?
• What are the implications of the zero discount DRP on shareholder participation rates?