Cleanaway’s Dividend Signals Steady Returns Amid Waste Sector Challenges
Cleanaway Waste Management Limited has announced a fully franked ordinary dividend of AUD 0.028 per share, payable on April 10, 2025, with a Dividend Reinvestment Plan available for shareholders.
- Ordinary dividend of AUD 0.028 per share declared
- Dividend fully franked at 30% corporate tax rate
- Ex-dividend date set for March 5, 2025
- Dividend payment scheduled for April 10, 2025
- Dividend Reinvestment Plan (DRP) offered with no discount
Dividend Announcement Details
Cleanaway Waste Management Limited (ASX: CWY), a leading player in Australia's waste management sector, has declared an ordinary dividend of AUD 0.028 per share. This dividend is fully franked, reflecting the company's ability to distribute profits with attached franking credits at the prevailing corporate tax rate of 30%. The dividend relates to the six-month period ending December 31, 2024.
The ex-dividend date is scheduled for March 5, 2025, with the record date following on March 6. Shareholders on the register as of the record date will be eligible to receive the dividend payment on April 10, 2025.
Dividend Reinvestment Plan and Currency Options
Cleanaway continues to offer its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP is offered without any discount on the reinvestment price, which will be calculated as the average volume weighted average price (VWAP) of Cleanaway shares traded on the ASX from March 10 to March 14, 2025.
The company has also confirmed currency arrangements for dividend payments. Shareholders with registered addresses in New Zealand who have provided appropriate banking details will receive their dividends in New Zealand dollars. This option is available to those shareholders who elect to receive payment in NZD by March 6, 2025.
Implications for Investors
The fully franked nature of the dividend is a positive signal of Cleanaway’s ongoing profitability and tax position, which can be particularly attractive to Australian investors seeking to maximise after-tax returns. The absence of a DRP discount suggests the company is confident in its current share price and is not incentivising reinvestment through discounted pricing.
Given the timing of the dividend and the DRP election deadline, shareholders will need to make timely decisions regarding participation. The DRP’s availability exclusively to shareholders with Australian or New Zealand registered addresses reflects regulatory and administrative considerations.
Overall, this dividend announcement underscores Cleanaway’s steady approach to shareholder returns amid a sector that continues to face evolving environmental and regulatory challenges.
Bottom Line?
Cleanaway’s fully franked dividend and DRP terms set the stage for shareholder value continuity amid market uncertainties.
Questions in the middle?
- Will Cleanaway maintain or increase dividend payouts in future periods?
- How might evolving environmental regulations impact Cleanaway’s profitability and dividend capacity?
- What is the expected market reaction to the DRP pricing and shareholder uptake?
