Orora Limited Declares AUD 0.05 Dividend for FY24 Shareholders

Orora’s Dividend Announcement

Orora Limited (ASX: ORA), a key player in the packaging manufacturing sector, has declared an ordinary dividend of AUD 0.05 per fully paid ordinary share. This dividend covers the six-month period ending 31 December 2024, reflecting the company’s ongoing commitment to returning value to shareholders.

The dividend will be paid on 3 April 2025, with the record date set for 3 March 2025 and the ex-dividend date on 28 February 2025. Shareholders registered by the record date will be eligible to receive the payment.

Unfranked Dividend and Tax Implications

Notably, the dividend is entirely unfranked, meaning it does not carry any franking credits. This could influence the after-tax return for Australian investors, particularly those who typically benefit from franking credits. The unfranked nature suggests Orora’s earnings for this period may have limited Australian tax paid or that the company is distributing income that is not frankable.

The dividend is split into an unfranked amount of AUD 0.0375 and a conduit foreign income component of AUD 0.0125 per share, which may have different tax treatment for investors depending on their jurisdiction.

Dividend Reinvestment Plan Details

Orora continues to offer a Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. For this dividend, the DRP is fully available with no discount applied to the reinvestment price. The DRP price will be calculated as the arithmetic average of the weighted average market price over the ten ASX trading days from 6 March to 19 March 2025.

Shareholders wishing to participate must lodge their election by 4:00 pm on 4 March 2025. The DRP shares will not be newly issued but rather acquired on-market, which may have implications for share liquidity and market dynamics.

Context and Market Implications

This dividend announcement provides a steady signal of Orora’s financial health and cash flow stability following the end of its 2024 financial period. While the unfranked status might temper enthusiasm among certain investors, the availability of the DRP offers flexibility for shareholders seeking to compound their investment.

Investors will be watching closely how the stock performs around the ex-dividend date and whether the market interprets the dividend as a sign of confidence or caution amid broader sector and economic conditions.