ANZ Announces 83c Dividend, 70% Franked, Payable July 2025
ANZ Group Holdings Limited has announced an interim dividend of 83 cents per share, partially franked at 70%, payable on 1 July 2025, with options for shareholders to receive payments in AUD, NZD, or GBP.
- Interim dividend of AUD 0.83 per share declared
- Dividend partially franked at 70%, with 30% unfranked sourced from conduit foreign income
- Dividend payable on 1 July 2025, with ex-date 13 May and record date 14 May
- Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) available with no discount
- Shareholders can elect payment currency among AUD, NZD, or GBP
ANZ's Interim Dividend Announcement
ANZ Group Holdings Limited has declared an interim ordinary dividend of 83 cents per share for the six months ending 31 March 2025. This dividend is partially franked at 70%, reflecting the bank's ongoing profitability and commitment to returning value to shareholders. The payment is scheduled for 1 July 2025, with the ex-dividend date set for 13 May and the record date on 14 May.
Franking and Tax Implications
Of the total dividend, 70% is franked, meaning it carries Australian franking credits at the corporate tax rate of 30%. The remaining 30% is unfranked but will be sourced from ANZ's conduit foreign income account. This structure allows ANZ to optimise tax efficiency for shareholders. Australian resident shareholders are advised to provide their Tax File Number (TFN), Australian Business Number (ABN), or relevant exemptions to avoid withholding tax on the unfranked portion.
Dividend Payment Options and Currency Flexibility
ANZ offers shareholders flexibility in how they receive their dividend payments. By default, dividends are paid in Australian dollars to Australian shareholders, New Zealand dollars to New Zealand shareholders, and British pounds to those in the United Kingdom and associated territories. However, shareholders can elect to receive their dividends in any of these three currencies by submitting their preference by 15 May 2025. This currency election option reflects ANZ's international shareholder base and enhances convenience.
Dividend Reinvestment and Bonus Security Plans
Shareholders also have access to a Dividend Reinvestment Plan (DRP) and a Bonus Security Plan (BSP), both of which allow reinvestment of dividends into new shares without any discount applied. The DRP and BSP provide shareholders with flexible options to grow their investment in ANZ without incurring brokerage fees. Participation requires election by 15 May 2025, with the DRP price calculated as the average share price over the period from 19 to 30 May 2025.
Looking Ahead
This dividend announcement underscores ANZ's steady financial performance and its commitment to shareholder returns amid a complex economic environment. The partial franking and conduit foreign income sourcing demonstrate prudent tax management, while the multi-currency payment options and reinvestment plans cater to a diverse investor base. Market participants will be watching closely how shareholders respond to these options and how the dividend impacts ANZ's share price post ex-dividend date.
Bottom Line?
ANZ’s dividend strategy balances rewarding shareholders with tax efficiency and global payment flexibility, setting the stage for investor engagement this mid-year.
Questions in the middle?
- How will the partial franking impact investor demand for ANZ shares post-dividend?
- What proportion of shareholders will opt into the DRP or BSP given the zero discount?
- How might currency election preferences influence ANZ’s foreign exchange exposure?
