Cochlear Limited has announced a fully franked dividend of AUD 2.15 per share for the six months ending December 2024, payable in multiple currencies on April 14, 2025.
- Dividend of AUD 2.15 per share declared for H2 FY24
- 80% of dividend amount is franked, reflecting strong tax credits
- Dividend payable April 14, 2025, with ex-date March 20 and record date March 21
- Shareholders can receive dividends in AUD, GBP, NZD, or USD based on registered address
- No shareholder or regulatory approvals required for dividend payment
Dividend Announcement Overview
Cochlear Limited (ASX: COH), a global leader in implantable hearing solutions, has declared an ordinary dividend of AUD 2.15 per fully paid ordinary share for the six-month period ending December 31, 2024. The dividend will be paid on April 14, 2025, with an ex-dividend date of March 20 and a record date of March 21. This announcement underscores Cochlear's ongoing commitment to delivering shareholder value amid a competitive healthcare landscape.
Franking and Tax Implications
The dividend is 80% franked, meaning AUD 1.72 of the dividend carries franking credits at the prevailing corporate tax rate of 30%. The remaining 20% is unfranked but includes a conduit foreign income component of AUD 0.43 per share. This partial franking structure reflects Cochlear's tax position and offers shareholders a significant tax credit, which can be particularly beneficial for Australian resident investors.
Currency Payment Options
In a nod to its international shareholder base, Cochlear offers dividend payments in four currencies: Australian Dollar (AUD), British Pound (GBP), New Zealand Dollar (NZD), and US Dollar (USD). Payments in foreign currencies will be converted from AUD at exchange rates published on March 21, 2025, and paid out on March 24, 2025. Shareholders receive currency payments based on their registered address, with no option to elect a different currency. This multi-currency approach facilitates smoother dividend receipt for global investors.
No Additional Approvals Required
The dividend payment does not require any shareholder, court, or regulatory approvals, indicating a straightforward distribution process. This suggests Cochlear's confidence in its cash flow and balance sheet strength to support ongoing shareholder returns without external conditions or delays.
Looking Ahead
While the dividend announcement is a positive signal of Cochlear’s financial health, investors will be watching closely for the company’s upcoming full-year results and guidance to assess sustainability. The partial franking and foreign income components also invite scrutiny on Cochlear’s international operations and tax strategy. Overall, this dividend declaration reinforces Cochlear’s reputation as a reliable dividend payer in the healthcare sector.
Bottom Line?
Cochlear’s solid dividend payout signals steady financial footing but invites scrutiny on future earnings and tax strategy.
Questions in the middle?
- Will Cochlear maintain or increase dividend levels in FY25 amid global economic uncertainties?
- How will currency fluctuations impact the effective dividend received by international shareholders?
- What does the partial franking reveal about Cochlear’s evolving tax and profit mix?