Fat Prophets Offers 4.56% Yield Special Dividend and 2.5% DRP Discount
Fat Prophets Global Contrarian Fund has announced a fully franked special dividend of 5 cents per share, reflecting strong investment performance. The dividend reinvestment plan offers shareholders a 2.5% discount on reinvested shares, signaling confidence in future growth.
- 5 cent fully franked special dividend declared
- Dividend yield of 4.56% based on recent share price
- Dividend Reinvestment Plan (DRP) available with 2.5% discount
- On-market share purchases to satisfy DRP participation
- Key dates – ex-dividend 27 August, payment 25 September 2025
Strong Performance Spurs Special Dividend
Fat Prophets Global Contrarian Fund (ASX – FPC) has announced a fully franked special dividend of 5 cents per share, a move that underscores the fund’s robust investment performance in recent months. This dividend equates to a 4.56% yield based on the closing share price of $1.095 on 22 July 2025, offering shareholders a meaningful return on their investment.
Dividend Reinvestment Plan Enhances Shareholder Value
Alongside the dividend, Fat Prophets has activated its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends at a 2.5% discount to the volume weighted average price of shares traded over three days starting 28 August 2025. This feature not only encourages long-term investment but also provides an attractive entry point for reinvestment, potentially boosting shareholder wealth over time.
On-Market Share Purchases to Support DRP
In a strategic move to manage capital structure, the company will attempt to acquire shares on-market to satisfy DRP participation. If the on-market purchases fall short within the 20 trading days following the record date, Fat Prophets will issue new shares to cover the remaining dividend reinvestment. This approach balances shareholder dilution concerns with the need to maintain liquidity and market stability.
Important Dates for Shareholders
Key dates for investors include the ex-dividend date on 27 August 2025 and the record date on 28 August 2025. Shareholders must elect to participate in the DRP by 29 August 2025, with dividend payments and share transfers scheduled for 25 September 2025. These timelines provide clarity for investors planning their portfolio moves around the dividend event.
Looking Ahead
The declaration aligns with the expanded dividend policy announced in June 2025, reflecting Fat Prophets’ commitment to delivering consistent returns while managing capital prudently. Market watchers will be keen to observe shareholder uptake of the DRP and any subsequent impact on the share price as the ex-dividend date approaches.
Bottom Line?
Fat Prophets’ special dividend and DRP signal confidence, but shareholder response will shape the next phase.
Questions in the middle?
- What level of shareholder participation will the DRP attract?
- How will the balance between on-market purchases and new share issuance affect share supply?
- Will the dividend announcement influence Fat Prophets’ share price momentum post ex-dividend?
