Elders Limited has announced a fully franked ordinary dividend of AUD 0.18 per share for the half-year ending March 2025, accompanied by a Dividend Reinvestment Plan offering a 1.5% discount on new shares.
- Ordinary dividend of AUD 0.18 per share declared
- Dividend is 50% franked, payable on 27 June 2025
- Ex-date set for 3 June 2025, record date 4 June 2025
- Dividend Reinvestment Plan (DRP) available with 1.5% discount
- DRP shares to be newly issued and rank pari passu
Elders Limited Announces Half-Year Dividend
Elders Limited, a key player in Australia's agricultural services sector, has declared an ordinary dividend of AUD 0.18 per fully paid ordinary share for the six months ending 31 March 2025. This dividend is 50% franked, reflecting the company's partial payment of corporate tax credits, and is scheduled for payment on 27 June 2025.
The ex-dividend date is set for 3 June 2025, with the record date following on 4 June 2025. These dates are critical for shareholders to determine eligibility for the dividend payment. Notably, the dividend payment date differs from previously announced key dates, a detail shareholders should note to avoid confusion.
Dividend Reinvestment Plan Offers Attractive Option
Elders Limited continues to offer its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into new shares rather than receiving cash. For this dividend, the DRP includes a 1.5% discount on the volume weighted average price (VWAP) of shares traded between 11 June and 24 June 2025. This discount provides an incentive for shareholders to increase their stake in the company.
The DRP shares will be newly issued and rank equally with existing shares from the issue date of 27 June 2025. Shareholders wishing to participate must lodge their election by 6 June 2025. There are no minimum or maximum participation limits, making the plan accessible to all shareholders.
Implications for Investors and Market
This dividend announcement signals Elders Limited's ongoing commitment to returning value to shareholders while balancing capital management through the DRP. The partial franking of the dividend suggests a moderate tax position, which may influence investor appetite depending on individual tax circumstances.
Investors will be watching closely how the market responds to the dividend and DRP details, particularly the uptake of the reinvestment option and its impact on share capital and liquidity. The 1.5% discount on DRP shares could encourage participation, potentially diluting existing holdings but also supporting the company's equity base.
Bottom Line?
Elders’ dividend and DRP details set the stage for shareholder engagement and market movement in the coming months.
Questions in the middle?
- What is the expected uptake rate of the DRP given the 1.5% discount?
- How will the partial franking affect different investor segments’ net returns?
- Could the new share issuance under the DRP impact Elders’ share price or liquidity?