FPH Announces NZD 0.282 Dividend Payable July 4, Unfranked with 15% Tax
Fisher & Paykel Healthcare has announced an ordinary dividend of NZD 0.28235294 per share for the six months ending March 31, 2025, payable on July 4. The dividend is unfranked and includes a supplementary component, with a 15% withholding tax applied.
- Ordinary dividend of NZD 0.28235294 per share declared
- Dividend relates to six months ending 31 March 2025
- Ex-dividend date set for 23 June 2025, payment on 4 July 2025
- Dividend is fully unfranked with a supplementary component
- 15% withholding tax applies, no approvals required
Dividend Announcement Overview
Fisher & Paykel Healthcare Corporation Limited (ASX: FPH) has declared an ordinary dividend of NZD 0.28235294 per share for the half-year period ending 31 March 2025. This dividend will be payable to shareholders on 4 July 2025, with the ex-dividend date scheduled for 23 June and the record date on 24 June. The announcement confirms the company’s ongoing commitment to returning value to its investors amid a stable operating environment.
Dividend Structure and Tax Implications
The dividend is entirely unfranked, meaning it does not carry Australian franking credits. This is consistent with Fisher & Paykel Healthcare’s New Zealand base and tax structure. Additionally, a supplementary dividend of NZD 0.04235294 per share is included, which is also unfranked. Investors should note that a withholding tax rate of 15% applies to the dividend payments, reflecting cross-border tax considerations for foreign investors.
Currency and Payment Details
The dividend is declared in New Zealand dollars (NZD), with the Australian dollar equivalent to be disclosed on 1 July 2025. This delay in currency conversion information introduces a minor uncertainty for Australian investors assessing the exact yield in their home currency. Importantly, no external approvals or regulatory conditions are required for this dividend payment, streamlining the process for shareholders.
Context Within the Healthcare Sector
Fisher & Paykel Healthcare operates in the medical devices sector, a space that has seen steady demand driven by global healthcare needs. The dividend announcement aligns with the company’s solid financial performance and suggests confidence in its cash flow generation. While the dividend is unfranked, the consistent payout signals a stable income stream for investors, which may be particularly attractive in a sector often viewed as defensive.
Looking Ahead
Investors will be watching the upcoming release of the Australian dollar equivalent dividend figure closely, as currency fluctuations could impact returns. The ex-dividend date in late June will also be a key moment for market reaction, potentially influencing share price movements. Overall, Fisher & Paykel Healthcare’s dividend declaration reinforces its shareholder-friendly approach while navigating the complexities of cross-border taxation and currency exposure.
Bottom Line?
Fisher & Paykel Healthcare’s steady dividend underscores resilience but leaves currency and tax nuances in focus for investors.
Questions in the middle?
- How will currency fluctuations affect the Australian dollar equivalent dividend yield?
- What impact might the unfranked status have on investor demand, especially in Australia?
- Could future dividend policies shift if global healthcare market conditions change?