Elders Limited has updated its dividend details for the six months ending March 2025, confirming an 18-cent per share payout, half of which is franked, with a Dividend Reinvestment Plan offering a 1.5% discount.
- Ordinary dividend of AUD 0.18 per share declared
- Dividend is 50% franked, payable on 27 June 2025
- Dividend Reinvestment Plan (DRP) available with 1.5% discount
- DRP shares to be newly issued and rank pari passu
- No external approvals required before dividend payment
Dividend Update and Payment Details
Elders Limited has provided an update to its previously announced dividend distribution for the six-month period ending 31 March 2025. The company confirmed an ordinary dividend of 18 cents per fully paid ordinary share, payable on 27 June 2025. Notably, this dividend is 50% franked, reflecting the company’s ongoing commitment to returning value to shareholders while managing its tax position.
Dividend Reinvestment Plan Terms
Shareholders have the option to participate in Elders’ Dividend Reinvestment Plan (DRP), which remains fully applicable to this dividend. The DRP price will be calculated based on the volume weighted average price (VWAP) of Elders shares from 11 June to 24 June 2025, with a 1.5% discount applied. This discount offers an incentive for shareholders to reinvest dividends into additional shares rather than taking cash, potentially compounding their investment over time.
No Approvals Required and Share Issuance
The update clarifies that no external approvals; such as from security holders, courts, or regulatory bodies; are required before the dividend payment. Additionally, shares issued under the DRP will be newly created and will rank equally with existing shares from the date of issue, ensuring DRP participants receive full shareholder rights immediately.
Market and Investor Implications
This update provides certainty to investors on the timing and structure of the dividend payment, which slightly differs from earlier announcements made in March 2025. The combination of a franked dividend and a discounted DRP price may appeal to income-focused investors and those looking to increase their stake in Elders without incurring brokerage costs. However, the lack of a fully franked dividend means some investors may face tax considerations depending on their individual circumstances.
Looking Ahead
As Elders moves forward, investors will be watching how the company balances shareholder returns with reinvestment in its agricultural services business. The DRP discount and dividend payment timing could influence trading activity in the lead-up to the ex-dividend date on 3 June 2025.
Bottom Line?
Elders’ updated dividend and DRP terms set the stage for shareholder engagement as the company navigates growth and returns.
Questions in the middle?
- What factors influenced the change in the dividend payment date from earlier guidance?
- How might the 1.5% DRP discount impact shareholder participation rates?
- Will Elders maintain or increase dividend levels in the next reporting period?