News Corporation has announced an ordinary dividend of USD 0.10 per Class B Voting Common Stock-CDI, payable in October 2025 with key dates set for September. The dividend is unfranked and subject to withholding tax, with payments in USD and AUD depending on the security held.
- Ordinary dividend of USD 0.10 per security declared
- Ex-date set for 9 September 2025, payment on 8 October 2025
- Dividend is unfranked and subject to 30% withholding tax
- Payments in USD for common stock holders, AUD for ASX CDI holders
- No approvals or securities plans required for this distribution
Dividend Announcement Overview
News Corporation, a major player in the media and publishing sector, has confirmed an ordinary dividend payment of USD 0.10 per Class B Voting Common Stock-CDI. This dividend relates to the six-month period ending 30 June 2025 and is scheduled for payment on 8 October 2025. The ex-dividend date is set for 9 September 2025, with the record date following on 10 September 2025, marking the key dates shareholders need to note to qualify for the payout.
Currency and Tax Considerations
The dividend will be paid in US dollars to holders of News Corporation Class B common stock, while holders of CDIs (CHESS Depositary Interests) on the Australian Securities Exchange will receive their payments in Australian dollars. This dual currency arrangement reflects the company’s cross-border shareholder base and the structure of its securities. The exact AUD equivalent of the dividend will be disclosed closer to the payment date, on 26 September 2025, once exchange rates are confirmed.
Importantly, the dividend is unfranked, meaning it does not carry Australian franking credits. Consequently, a withholding tax rate of 30% applies, which is standard for foreign investors receiving dividends from US-based entities. This tax treatment may influence the net income received by shareholders depending on their jurisdiction and tax arrangements.
Regulatory and Approval Status
News Corporation has indicated that no additional approvals are required for this dividend payment, including security holder, court, or regulatory approvals. There is also no securities plan linked to this dividend, simplifying the distribution process. This straightforward approach suggests the company is maintaining a steady and predictable dividend policy, which can be reassuring for investors seeking stable income streams.
Implications for Investors
For investors, the announcement confirms a modest but consistent return on their holdings in News Corporation. The unfranked nature of the dividend and the withholding tax implications highlight the importance of considering after-tax returns, especially for international investors. The timing of the dividend also provides a clear calendar for those looking to optimise their portfolio around income events.
Looking ahead, the company’s dividend policy and currency arrangements will remain key factors to monitor, particularly as exchange rate fluctuations can impact the AUD equivalent payments for Australian investors. The forthcoming disclosure of the exchange rate on 26 September will provide further clarity.
Bottom Line?
As News Corp sets its dividend timetable, investors will watch currency and tax impacts closely ahead of October’s payment.
Questions in the middle?
- How will exchange rate movements affect the AUD equivalent dividend for CDI holders?
- What impact will the 30% withholding tax have on different classes of investors?
- Will News Corporation maintain or adjust its dividend policy in response to market conditions?