Turners Automotive Confirms Fully Franked Dividend and DRP for Q1 2025
Turners Automotive Group has updated its dividend details for the quarter ending March 2025, declaring a fully franked ordinary dividend alongside a supplementary unfranked payout and a Dividend Reinvestment Plan with a 2% discount.
- Ordinary dividend of NZD 0.09 per share, fully franked at 28%
- Supplementary unfranked dividend of NZD 0.01588235 per share
- Dividend record date set for 14 July 2025, payment on 29 July 2025
- Dividend Reinvestment Plan (DRP) available with a 2% discount
- No external approvals required before dividend payment
Dividend Update and Payment Schedule
Turners Automotive Group Limited (ASX: TRA), a key player in the automotive retail sector, has provided an update to its dividend distribution for the quarter ending 31 March 2025. The company confirmed an ordinary dividend payment of NZD 0.09 per share, which is fully franked at the corporate tax rate of 28%. This franked status means shareholders will benefit from tax credits, enhancing the dividend's attractiveness.
Alongside the ordinary dividend, Turners Automotive declared a supplementary dividend of NZD 0.01588235 per share, which is unfranked. This supplementary component reflects the company's New Zealand tax environment and is paid in New Zealand dollars, with the total dividend equating to approximately AUD 0.0975 per share based on current exchange rates.
Dividend Reinvestment Plan Details
Investors have the option to participate in the company's Dividend Reinvestment Plan (DRP), which offers a 2% discount on the reinvestment price. The DRP shares will be newly issued and rank equally with existing shares from the date of issue. The reinvestment price is calculated based on the volume-weighted average sale price on the NZX Main Board over five trading days starting from the ex-dividend date, 11 July 2025.
The record date for dividend eligibility is 14 July 2025, with payments scheduled for 29 July 2025. Shareholders who do not actively elect to participate in the DRP will receive their dividends in cash by default.
Regulatory and Market Implications
Notably, Turners Automotive confirmed that no external approvals, such as security holder, court, or regulatory consents, are required prior to the dividend payment. This streamlines the process and signals confidence in the company’s financial position and governance.
For investors, the combination of a fully franked ordinary dividend and a supplementary unfranked dividend reflects the company’s balanced approach to rewarding shareholders while managing tax considerations. The DRP’s discount may encourage reinvestment, potentially supporting share price stability post-dividend.
As the automotive retail sector continues to navigate evolving market conditions, Turners Automotive’s dividend update offers a clear signal of ongoing profitability and shareholder value focus.
Bottom Line?
Turners Automotive’s dividend update sets the stage for investor engagement ahead of July’s payment date, with the DRP offering a strategic reinvestment opportunity.
Questions in the middle?
- How will the market respond to the combined franked and unfranked dividend components?
- What level of shareholder participation can be expected in the DRP at a 2% discount?
- Will Turners Automotive maintain or increase dividend payouts in subsequent quarters amid sector challenges?
