Macquarie Group Limited has announced a fully franked ordinary dividend of AUD 3.90 per share for the half-year ending March 2025, accompanied by a dividend reinvestment plan with no discount.
- Ordinary dividend of AUD 3.90 per share for H1 2025
- Dividend is 35% franked with a payment date of 2 July 2025
- Ex-dividend date set for 19 May 2025, record date 20 May 2025
- Dividend Reinvestment Plan (DRP) available with no discount
- Shares for DRP expected to be acquired on market, no new issue planned
Macquarie Group’s Dividend Announcement
Macquarie Group Limited (ASX: MQG) has confirmed an ordinary dividend payment of AUD 3.90 per fully paid ordinary share for the six months ending 31 March 2025. This announcement, made on 9 May 2025, outlines key dates and details that will be closely watched by income-focused investors and market participants.
The dividend is 35% franked, reflecting the company’s ongoing ability to generate taxable profits and distribute tax credits to shareholders. The payment date is scheduled for 2 July 2025, with the ex-dividend date set for 19 May 2025 and the record date on 20 May 2025. These dates will be critical for investors aiming to qualify for the dividend.
Dividend Reinvestment Plan Details
Macquarie’s Dividend Reinvestment Plan (DRP) remains in place and applicable to this dividend. Shareholders who elect to participate must do so by 21 May 2025, 5:00 pm. Notably, the DRP does not offer a discount on the reinvestment price; instead, the price will be calculated as the arithmetic average of the daily volume weighted average market price of MQG shares traded on the ASX over a nine-business-day period commencing four business days after the election date.
The company expects to acquire shares on market to satisfy DRP allocations, issuing new shares only if market purchases become impractical or inadvisable. This approach helps mitigate dilution risk for existing shareholders. Participation in the DRP is optional, with the default option being cash payment for those who do not make an election.
Implications and Market Context
This dividend announcement underscores Macquarie’s steady financial performance amid a complex economic environment. The 35% franking level signals a balanced approach to tax credits, while the substantial AUD 3.90 per share payout reflects confidence in ongoing earnings. Investors will be watching closely to see how the market responds around the ex-dividend date and whether uptake of the DRP influences share price dynamics.
Given the absence of a DRP discount, shareholders opting for reinvestment will be exposed to prevailing market prices, which could introduce variability in the effective yield from the dividend. The company’s transparent communication and clear timetable provide a solid framework for investors to plan their participation.
Bottom Line?
Macquarie’s dividend and DRP setup signal confidence but leave open questions on shareholder reinvestment appetite amid market fluctuations.
Questions in the middle?
- Will the DRP uptake be strong despite no discount offered?
- How will the 35% franking level impact investor demand in different tax jurisdictions?
- Could market volatility between the record and payment dates affect share price and dividend yield?