ANZ Sets 83-Cent Interim Dividend with Flexible Currency Options

• Interim dividend of AUD 0.83 per ordinary share, 70% franked
• Dividend payable on 1 July 2025 with record date 14 May 2025
• Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) prices set at AUD 28.89
• Dividends payable in AUD, NZD, or GBP based on shareholder location
• Unfranked dividend portion sourced from conduit foreign income account

ANZ Confirms Interim Dividend Details

ANZ Group Holdings Limited has provided an update to its previously announced interim dividend for the six months ending 31 March 2025. The bank will pay an ordinary dividend of 83 cents per fully paid ordinary share, with 70% of this amount franked, reflecting the company’s ongoing commitment to returning value to shareholders while managing franking credits prudently.

The dividend is scheduled for payment on 1 July 2025, with a record date of 14 May 2025 and an ex-dividend date of 13 May 2025. This timeline aligns with standard market practices, giving shareholders clarity on eligibility and payment expectations.

Dividend Reinvestment and Bonus Security Plans

ANZ has also detailed its Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) for this dividend. Both plans offer shareholders the option to reinvest dividends into new shares rather than receiving cash, with the issue price set at AUD 28.89 per share. Notably, there is no discount applied to the DRP or BSP prices, which may influence shareholder participation decisions.

Participation in these plans is voluntary, with the default option being a cash dividend payment for shareholders who do not elect otherwise. The DRP and BSP securities will rank equally with existing shares from the date of issue, maintaining shareholder equity.

Multi-Currency Dividend Payments

Reflecting its international shareholder base, ANZ will pay dividends in Australian Dollars (AUD), New Zealand Dollars (NZD), or British Pounds Sterling (GBP), depending on the shareholder’s registered address. The exchange rates used for conversion are AUD/NZD 1.087563 and AUD/GBP 0.481511 as of the announcement date. Shareholders can also elect to receive dividends in a different nominated currency subject to ANZ’s direct credit payment policies.

This multi-currency approach underscores ANZ’s recognition of its diverse investor base and the importance of providing flexible payment options that accommodate different jurisdictions.

Tax and Franking Considerations

The unfranked portion of the dividend, amounting to 30%, will be sourced from ANZ’s conduit foreign income account. Australian resident shareholders are reminded to provide their Tax File Number (TFN), Australian Business Number (ABN), or relevant exemptions to avoid withholding tax on the unfranked dividend component. This administrative detail is crucial for ensuring shareholders receive their full dividend entitlement without unnecessary tax deductions.

Additionally, New Zealand imputation credits of NZD 0.12 per share will be attached to cash dividends and DRP amounts, although these credits do not apply to shares issued under the BSP.

Looking Ahead

ANZ’s updated dividend announcement provides shareholders with comprehensive details on payment amounts, currency options, and reinvestment plans, reinforcing the bank’s steady approach to shareholder returns. Investors will be watching closely to see how participation in the DRP and BSP unfolds and how currency fluctuations might impact foreign shareholders’ returns.

Bottom Line?

ANZ’s clear dividend framework and flexible currency options set the stage for steady shareholder engagement amid evolving market conditions.

Questions in the middle?

• What level of shareholder participation will the DRP and BSP attract given the absence of discounts?
• How might currency fluctuations between announcement and payment dates affect foreign shareholder returns?
• Will ANZ maintain or adjust its dividend policy in response to future economic or regulatory changes?