FFI Holdings Declares Fully Franked AUD 0.10 Dividend with DRP Option

Dividend Announcement Overview

FFI Holdings Limited (ASX: FFI) has declared an ordinary dividend of AUD 0.10 per fully paid ordinary share, fully franked at the 30% corporate tax rate. 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 go ex-dividend on 4 April 2025, with the record date set for 7 April 2025. Shareholders on the register at that date will be eligible for payment on 17 April 2025. The fully franked nature of the dividend means investors receive the benefit of franking credits, enhancing the after-tax yield for Australian resident shareholders.

Dividend Reinvestment Plan Details

FFI Holdings also maintains a Dividend Reinvestment Plan (DRP), which shareholders can elect to participate in. The DRP offers a 5% discount on the volume weighted average market price of shares traded on the ASX over the five business days following the ex-dividend date, subject to a price cap of AUD 3.75 per share. This mechanism allows shareholders to compound their investment by acquiring additional shares at a discount without incurring brokerage fees.

The deadline for DRP election is 10 April 2025 at 8:00 pm, with new shares issued shortly thereafter. Notably, there are no minimum or maximum participation limits, making the plan accessible to all shareholders. If shareholders do not make an election, the default payment method is cash.

Implications and Market Context

This dividend announcement signals FFI Holdings’ stable financial position and confidence in its earnings outlook. The fully franked dividend underscores the company’s ability to generate taxable profits and maintain a healthy tax position. For investors, the combination of a reliable dividend and an attractive DRP option enhances the appeal of holding FFI shares, particularly in a low-interest-rate environment where income generation is prized.

While the dividend amount is consistent with prior payments, the capped price for DRP shares suggests management is mindful of balancing shareholder value with market price stability. This approach may help mitigate dilution risks while encouraging reinvestment.

Overall, FFI Holdings’ dividend distribution reflects prudent capital management and a shareholder-friendly stance, which could support positive sentiment in the lead-up to the payment date.