Macquarie Sets 5.88% Annual Distribution Rate for Capital Notes
Macquarie Group Limited has announced an ordinary dividend of AUD 1.4663 per security for its perpetual capital notes, payable in June 2025 with partial franking.
- Ordinary dividend of AUD 1.4663 per security declared
- Dividend partially franked at 35%
- Distribution relates to 91-day period ending 15 June 2025
- Payment date set for 16 June 2025
- Total distribution rate of 5.8815% per annum
Macquarie Group's Latest Dividend Announcement
Macquarie Group Limited has declared an ordinary dividend distribution of AUD 1.4663 per security for its CAP NOTE 3-BBSW+2.65% PERP NON-CUM RED T-12-31. This announcement, made on 9 May 2025, confirms the dividend will be paid on 16 June 2025, with an ex-date of 28 May and a record date of 29 May 2025.
Dividend Details and Franking
The dividend relates to a 91-day payment period ending 15 June 2025 and is partially franked at 35%, reflecting a franked amount of AUD 0.5132 per security. The remaining 65% of the dividend is unfranked but includes a conduit foreign income component of AUD 0.9531 per security. This partial franking aligns with Macquarie’s approach to balancing shareholder tax credits with the nature of the income generated.
Distribution Rate and Calculation
The total distribution rate for this period is calculated at 5.8815% per annum. This rate is derived from the 90-day BBSW mid-rate at the start of the distribution period (4.1137%) plus a fixed margin of 2.65%, adjusted for franking effects. The announcement provides transparency on how the distribution rate is set, including tax and franking rate considerations.
Implications for Investors
For investors holding Macquarie’s perpetual capital notes, this dividend announcement confirms a steady income stream with a clear timetable. The partial franking component offers some tax efficiency, which may be attractive to Australian investors. The fixed margin combined with the BBSW reference rate ensures the distribution reflects prevailing market interest rates, providing a degree of protection against rate fluctuations.
Context Within Macquarie’s Capital Strategy
This distribution fits within Macquarie Group’s broader capital management framework, which includes issuing hybrid securities to support its funding and regulatory capital requirements. The announcement does not indicate any changes to the dividend policy or capital structure, suggesting stability in Macquarie’s approach to investor returns on these instruments.
Bottom Line?
Macquarie’s steady dividend on its capital notes underscores its commitment to reliable income streams amid evolving market conditions.
Questions in the middle?
- Will Macquarie maintain or adjust the franking percentage in future distributions?
- How might changes in the BBSW rate affect upcoming dividend payments?
- What impact could broader market interest rate shifts have on Macquarie’s capital note yields?
