MFF Capital Investments Confirms Fully Franked Dividend and DRP/BSP Prices
MFF Capital Investments Limited has updated its dividend details for the half-year ending December 2024, announcing a fully franked dividend of 8 cents per share and setting reinvestment prices for its DRP and BSP plans.
- Ordinary fully franked dividend of AUD 0.08 per share for H2 FY24
- Dividend payment date set for 14 May 2025
- DRP and BSP prices fixed at AUD 4.0958 with no discount
- Approximate participation rates: 23.54% for DRP, 5.99% for BSP
- Plans limited to shareholders in Australia and New Zealand
Dividend Update and Payment Details
MFF Capital Investments Limited (ASX: MFF) has provided an update to its dividend distribution for the six-month period ending 31 December 2024. The company confirmed an ordinary dividend of AUD 0.08 per fully paid ordinary share, which is fully franked, reflecting the company’s ongoing commitment to delivering shareholder value through consistent income streams.
The dividend record date was 23 April 2025, with the ex-dividend date falling a day earlier on 22 April 2025. Shareholders can expect payment on 14 May 2025, marking a key date for income-focused investors in the investment trust sector.
Dividend Reinvestment and Bonus Share Plans
Alongside the cash dividend, MFF has set the Dividend Reinvestment Plan (DRP) price at AUD 4.0958 per share. This price is calculated based on the volume-weighted average price (VWAP) over a five-day trading period starting from the ex-date. Notably, there is no discount applied to the DRP price, which may influence shareholder participation decisions.
The Bonus Share Plan (BSP) price is set identically at AUD 4.0958, also with no discount. Both plans will issue new shares, which will rank pari passu with existing shares from the issue date, maintaining shareholder equity balance.
Participation Rates and Geographic Limitations
Approximately 23.54% of shares on issue, representing 13.47% of shareholders, are expected to participate in the DRP. The BSP has a smaller participation rate, with about 5.99% of shares on issue and 1.33% of shareholders opting in. Participation in both plans is limited to shareholders residing in Australia and New Zealand, reflecting regulatory and operational considerations.
The default option for shareholders who do not elect to participate in either plan is to receive the dividend in cash. There are no minimum or maximum participation thresholds, offering flexibility to shareholders of all sizes.
Implications for Investors
The fully franked nature of the dividend provides tax advantages for Australian shareholders, enhancing the after-tax yield. The absence of discounts on the DRP and BSP prices suggests MFF is maintaining a conservative approach to capital management, potentially reflecting confidence in the current share price level.
Investors should monitor actual participation rates post-payment to assess the impact on MFF’s capital base and share liquidity. The update also sets a benchmark for future dividend expectations and reinvestment plan terms.
Bottom Line?
MFF’s steady dividend and reinvestment pricing underscore its disciplined capital strategy, but participation rates will reveal shareholder appetite for growth versus income.
Questions in the middle?
- Will participation rates in the DRP and BSP increase in future distributions?
- How might the lack of discount on reinvestment plans affect MFF’s share price momentum?
- What are the implications of limiting DRP and BSP participation to Australian and New Zealand shareholders?
