Turners’ Dividend and New Share Issuance Could Shift Capital Dynamics
Turners Automotive Group has announced a fully franked quarterly dividend of NZD 0.10588235 per share, alongside a supplementary unfranked dividend and a Dividend Reinvestment Plan offering a 2% discount.
- Ordinary fully franked dividend of NZD 0.10588235 per share
- Supplementary unfranked dividend of NZD 0.01588235 per share
- Dividend payable on 29 July 2025 with ex-date 11 July 2025
- Dividend Reinvestment Plan (DRP) available with 2% discount
- DRP shares to be newly issued and rank pari passu with existing shares
Turners Automotive Declares Quarterly Dividend
Turners Automotive Group Limited (ASX: TRA) has announced its ordinary dividend for the quarter ending 31 March 2025. Shareholders will receive a fully franked dividend of NZD 0.10588235 per share, payable on 29 July 2025. The dividend carries a 100% franking credit, reflecting the company’s tax-paid earnings and providing a tax advantage to eligible investors.
The dividend’s ex-date is set for 11 July 2025, with the record date following on 14 July 2025. This timing aligns with typical market practices, allowing investors to position themselves ahead of the dividend payout.
Supplementary Dividend and DRP Details
In addition to the ordinary dividend, Turners Automotive is paying a supplementary unfranked dividend of NZD 0.01588235 per share. While unfranked dividends do not carry tax credits, they often reflect income streams not subject to corporate tax, such as foreign income.
Importantly, the company offers a Dividend Reinvestment Plan (DRP) that allows shareholders to reinvest their dividends into new shares rather than receiving cash. The DRP includes a 2% discount on the volume weighted average price of shares traded on the New Zealand Exchange over five trading days starting from the ex-date. This discount incentivizes participation and can help shareholders compound their investment over time.
Shareholders wishing to participate in the DRP must lodge their election by 15 July 2025. The new shares issued under the DRP will rank equally with existing shares, ensuring no dilution of shareholder rights.
Implications for Investors and Market
Turners Automotive’s dividend announcement signals steady cash flow generation and a commitment to returning value to shareholders. The fully franked nature of the ordinary dividend is particularly attractive to investors seeking tax-efficient income. Meanwhile, the supplementary dividend and DRP offer additional flexibility and potential growth opportunities.
With the DRP shares being newly issued, investors should monitor the impact on the company’s capital structure and share register. Uptake of the DRP could influence future liquidity and shareholder composition.
Bottom Line?
As Turners Automotive balances shareholder returns with capital management, investor response to the DRP will be key to watch in the coming months.
Questions in the middle?
- What level of shareholder participation will the DRP attract this quarter?
- How might the issuance of new shares under the DRP affect Turners’ share price and capital structure?
- Will Turners maintain or adjust its dividend policy in future quarters amid evolving market conditions?
