Judo Capital Declares Fully Franked AUD 1.82 Quarterly Distribution on Capital Notes
Judo Capital Holdings Limited has announced a fully franked quarterly distribution of AUD 1.81682 per capital note, payable in August 2025. This payment reflects the company’s ongoing commitment to rewarding investors amid stable market conditions.
- AUD 1.81682 distribution per capital note JDOPA
- 100% franked dividend ensuring tax efficiency
- Distribution based on BBSW plus 6.5% margin
- Payment scheduled for 18 August 2025
- Subject to Judo’s discretion and standard conditions
Judo Capital’s Latest Distribution Announcement
Judo Capital Holdings Limited has confirmed a new ordinary dividend distribution for its capital notes (ASX code JDOPA), set at AUD 1.81682 per note. This distribution is fully franked, meaning investors benefit from a 100% franking credit, effectively reducing their tax burden on the income received. The payment is scheduled for 18 August 2025, covering the quarter ending 15 August 2025.
Understanding the Distribution Rate
The distribution rate is calculated using a formula that combines the 3-month Bank Bill Swap Rate (BBSW) with a fixed margin of 6.5%, adjusted for corporate tax considerations. For this period, the total annualised distribution rate stands at approximately 7.21%, reflecting both market interest rates and the premium margin established during the capital notes’ bookbuild process.
Investor Considerations and Conditions
While the dividend is declared, the payment remains subject to Judo Capital’s absolute discretion and the absence of any payment conditions on the distribution date. This is a standard safeguard embedded in the capital notes’ terms, ensuring the company maintains financial flexibility. Additionally, the distribution amount could be adjusted if the applicable franking rate changes before the payment date, a nuance investors should monitor closely.
Market and Regulatory Context
Judo Capital’s announcement aligns with its ongoing strategy to provide steady income streams to noteholders while navigating the regulatory environment. The fully franked nature of the dividend is particularly attractive in the Australian tax context, enhancing the effective yield for investors. No external approvals were required for this distribution, underscoring the routine nature of this quarterly payment.
Looking Ahead
As Judo Capital continues to manage its capital notes program, investors will be watching for any shifts in interest rates or company discretion that could impact future distributions. The company’s transparent communication and adherence to prospectus terms provide a degree of confidence, but the inherent discretion clause means some uncertainty remains.
Bottom Line?
Judo’s fully franked distribution underscores steady returns but leaves room for discretion-driven adjustments ahead.
Questions in the middle?
- Will Judo maintain the 100% franking rate for upcoming distributions?
- How might changes in the BBSW rate affect future distribution yields?
- Could Judo’s discretion clause lead to distribution deferrals under market stress?
