Macquarie Sets DRP Price at AUD 213.66 Ahead of July Dividend

• Final dividend of AUD 3.90 per share declared
• Dividend fully franked at 35%
• DRP allocation price fixed at AUD 213.66 per share
• DRP shares expected to be acquired on market unless impractical
• Dividend payment scheduled for 2 July 2025

Macquarie's Dividend Update

Macquarie Group Limited has provided an update to its previously announced final dividend for the financial period ending 31 March 2025. The company confirmed a dividend of AUD 3.90 per ordinary share, fully franked at a corporate tax rate of 35%. This dividend is set to be paid on 2 July 2025, with the record date established as 20 May 2025.

Dividend Reinvestment Plan Pricing

Central to this update is the clarification of the Dividend Reinvestment Plan (DRP) price, which has been fixed at AUD 213.66 per share. This price is calculated as the arithmetic average of the daily volume weighted average price (VWAP) of Macquarie shares traded on the ASX over nine trading days, spanning from 27 May to 6 June 2025. The DRP allows shareholders to reinvest their dividends into additional shares rather than receiving cash, and Macquarie has confirmed that shares allocated under the DRP will primarily be acquired on market unless such acquisition becomes impractical or inadvisable.

Implications for Shareholders

Participation in the DRP is optional, with the default option for shareholders who do not elect to participate being a cash dividend payment. There are no minimum or maximum limits on participation, and the plan is open to Australian and New Zealand residents. The absence of a discount on the DRP price suggests Macquarie is aiming to balance shareholder value with capital management prudence, avoiding dilution while providing a straightforward reinvestment mechanism.

Context and Market Considerations

This update follows the initial dividend announcement made on 9 May 2025 and reflects Macquarie's ongoing commitment to transparent communication with its investors. The fully franked nature of the dividend enhances its attractiveness, particularly for Australian investors who can benefit from franking credits. The DRP pricing methodology, tied closely to recent market prices, provides a fair and market-reflective basis for share allocation under the plan.

Investors will be watching closely to see the level of participation in the DRP and how the market responds to the dividend payment and share reinvestment activity in early July. Given Macquarie's strong position in the financial sector, these dividend details contribute to the broader narrative of steady income generation and shareholder value retention.

Bottom Line?

Macquarie’s clear dividend and DRP pricing set the stage for shareholder decisions ahead of July’s payout.

Questions in the middle?

• What level of shareholder participation will the DRP attract given the set price?
• Could market conditions between now and July affect the practicality of acquiring shares on market for the DRP?
• How might the fully franked dividend influence investor appetite amid current tax environments?