Ricegrowers Announces AUD 0.50 Fully Franked Dividend for FY25
Ricegrowers Limited announces a fully franked dividend of AUD 0.50 per Class B share for the fiscal year ending April 2025, accompanied by a dividend reinvestment plan offering a 3% discount.
- Ordinary fully franked dividend of AUD 0.50 per Class B share
- Dividend payable on 21 July 2025 with ex-date 1 July and record date 2 July
- Dividend Reinvestment Plan (DRP) available with 3% discount
- DRP shares issued based on VWAP from 1 to 9 July 2025
- DRP participation limited to Australian registered shareholders
Dividend Announcement Overview
Ricegrowers Limited (ASX – SGL), a key player in the Australian food products sector, has declared an ordinary dividend of AUD 0.50 per Class B Limited-Voting Ordinary share. This dividend is fully franked, reflecting the company’s solid tax position and commitment to returning value to shareholders. The dividend relates to the financial year ending 30 April 2025 and will be paid on 21 July 2025.
The ex-dividend date is set for 1 July 2025, with the record date following on 2 July 2025. These dates are critical for investors to determine eligibility for the dividend payment. The announcement confirms no external approvals were required, indicating a straightforward distribution process.
Dividend Reinvestment Plan Details
Ricegrowers has also activated its Dividend Reinvestment Plan (DRP) for this distribution. Shareholders can elect to reinvest their dividends into new shares rather than receive cash. The DRP offers a 3% discount on the issue price, which will be calculated based on the volume weighted average price (VWAP) of Class B shares over the seven business days from 1 July to 9 July 2025.
Importantly, the DRP shares will be newly issued and rank pari passu with existing shares from the date of issue, ensuring equal rights for reinvested shareholders. Participation is limited to shareholders with registered addresses in Australia, reflecting regulatory and administrative considerations.
Implications for Shareholders and Market
This dividend announcement underscores Ricegrowers’ steady financial performance and shareholder-friendly capital management. The fully franked nature of the dividend is particularly attractive to Australian investors seeking tax-efficient income. The DRP option provides flexibility, allowing shareholders to compound their investment at a slight discount, potentially enhancing long-term returns.
From a market perspective, the issuance of new shares under the DRP could modestly increase the company’s share capital, a factor investors will watch closely. The absence of any unusual conditions or approvals suggests confidence in the company’s outlook and cash flow stability.
Overall, Ricegrowers’ dividend and DRP announcement aligns with expectations for a mature, stable company in the consumer staples sector, balancing income distribution with capital growth opportunities.
Bottom Line?
As Ricegrowers prepares to pay and reinvest dividends, investors will be watching DRP uptake and its impact on share capital closely.
Questions in the middle?
- What level of participation will shareholders show in the DRP given the 3% discount?
- How might the issuance of new shares under the DRP affect Ricegrowers’ share price post-payment?
- Will Ricegrowers maintain this dividend level or adjust policy in future financial periods?
