Ansell Limited has updated its FY25 interim dividend details, confirming a payment of USD 0.222 per share with an AUD equivalent of 0.3486, payable on March 6, 2025.
- FY25 interim dividend set at USD 0.222 per share
- Dividend payable on March 6, 2025
- Record date fixed at February 17, 2025
- Dividend fully unfranked and paid in USD
- Dividend Reinvestment Plan available without discount
Dividend Update and Currency Impact
Ansell Limited (ASX: ANN), a global leader in healthcare and medical devices, has provided an update to its FY25 interim dividend announcement. The company confirmed a dividend of USD 0.222 per ordinary share, translating to an Australian dollar equivalent of AUD 0.3486 based on the actual exchange rate of AUD 1.00 to USD 0.6369 as of February 18, 2025.
The dividend relates to the six-month period ending December 31, 2024, with a record date set for February 17, 2025, and a payment date scheduled for March 6, 2025. This update follows the initial announcement made on February 10, 2025, clarifying the exchange rate applied for the dividend calculation.
Dividend Characteristics and Shareholder Options
The interim dividend is fully unfranked, reflecting Ansell’s current tax positioning and international revenue streams. The entire dividend amount is classified as conduit foreign income, which may have tax implications for certain investors depending on their jurisdiction.
Ansell continues to offer a Dividend Reinvestment Plan (DRP) for shareholders wishing to reinvest their dividends into additional shares. Notably, the DRP carries no discount on the reinvestment price, which will be calculated over a five-day pricing period commencing three days after the record date. The DRP is available to shareholders residing in Australia, New Zealand, and the United Kingdom, with a default option of cash payment for those who do not elect to participate.
Context and Market Implications
This dividend update underscores Ansell’s steady approach to shareholder returns amid a complex global currency environment. The use of USD as the primary currency for dividend payments aligns with the company’s international operations and revenue base. However, fluctuations in exchange rates remain a factor for Australian investors, potentially impacting the AUD value of their dividend receipts.
Investors will be watching closely for any further updates ahead of the payment date, especially given the absence of franking credits and the reliance on foreign income classifications. The DRP’s no-discount policy may also influence shareholder participation rates, as reinvestment decisions weigh the relative attractiveness of cash versus additional equity.
Bottom Line?
Ansell’s confirmed interim dividend offers clarity but leaves currency volatility and tax treatment as key considerations for investors.
Questions in the middle?
- How might future currency fluctuations affect Ansell’s dividend payouts?
- Will Ansell maintain its unfranked dividend policy amid evolving tax landscapes?
- What level of shareholder participation can be expected in the no-discount DRP?