Dividend Currency Complexities Pose Questions for News Corp Shareholders
News Corporation has announced an ordinary dividend of USD 0.10 per Class B Voting Common Stock-CDI, payable in October 2025, with distinct currency arrangements for Australian and US investors.
- Ordinary dividend of USD 0.10 per security declared
- Dividend payable on 8 October 2025 with ex-date 9 September 2025
- Dividend unfranked and subject to 30% withholding tax
- Payments in USD for common stock holders and AUD for ASX CDI holders
- No approvals or securities plans required for this dividend
Dividend Announcement Details
News Corporation has declared an ordinary dividend of USD 0.10 per Class B Voting Common Stock-CDI, reflecting the company’s ongoing commitment to returning value to shareholders. The dividend relates to the six-month period ending 30 June 2025 and will be paid on 8 October 2025. Investors should note the ex-dividend date is set for 9 September 2025, with the record date following on 10 September 2025.
Currency and Tax Considerations
One of the more intricate aspects of this dividend is the currency arrangement. Holders of News Corporation’s Class B common stock will receive their payments in US dollars, while holders of the ASX-listed CHESS Depositary Interests (CDIs) will be paid in Australian dollars. The exact AUD equivalent and exchange rates will be disclosed closer to the payment date, on 26 September 2025. This dual-currency approach reflects the company’s cross-border shareholder base and the complexities of managing dividends across different markets.
Additionally, the dividend is unfranked, meaning it does not carry Australian franking credits, and is subject to a 30% withholding tax. This tax rate may impact the net returns for certain investors, particularly those outside the United States and Australia, depending on their tax residency and applicable treaties.
No Additional Approvals or Plans Required
Importantly, News Corporation confirmed that no shareholder, court, or regulatory approvals are required ahead of the dividend payment. There is also no securities plan linked to this dividend, simplifying the process for investors and the company alike. This straightforward approach suggests confidence in the company’s financial position and dividend policy stability.
Looking Ahead
While the dividend announcement is routine, the currency arrangements and withholding tax implications underscore the nuanced considerations for global investors in multinational companies like News Corporation. Market participants will be watching for the AUD conversion details later this month, which could influence investor sentiment and trading activity around the payment date.
Bottom Line?
As News Corporation prepares to distribute dividends across currencies, investors will keenly await currency conversion details and tax impacts.
Questions in the middle?
- What will be the AUD equivalent of the USD 0.10 dividend upon conversion?
- How might the 30% withholding tax affect different classes of investors?
- Will currency fluctuations ahead of the payment date influence investor returns?
