Why News Corporation’s USD 0.10 Dividend Matters for ASX Investors
News Corporation has announced an ordinary dividend of USD 0.10 per Class A Non-Voting Common Stock-CDI, payable in October 2025, with payments made in USD or AUD depending on shareholder location.
- Ordinary dividend of USD 0.10 per security announced
- Dividend payable on October 8, 2025, with ex-date September 9
- Dividend is unfranked and subject to 30% withholding tax
- Payments made in USD or AUD depending on shareholder registration
- AUD equivalent dividend and exchange rates to be disclosed later
Dividend Announcement Details
News Corporation has declared an ordinary dividend of USD 0.10 per Class A Non-Voting Common Stock-CDI, reflecting the company’s ongoing commitment to returning value to shareholders. The dividend relates to the six-month period ending June 30, 2025, with an ex-dividend date set for September 9, 2025, and a record date of September 10, 2025. Payment is scheduled for October 8, 2025.
Currency and Tax Considerations
Notably, the dividend will be paid in US dollars to holders of the underlying Class A common stock, while holders of the CDIs on the ASX will receive payments in Australian dollars. The exact AUD equivalent and the exchange rates used for conversion will be disclosed closer to the payment date, on September 26, 2025. This arrangement reflects the company’s dual listing structure and the geographic diversity of its investor base.
The dividend is unfranked, meaning it does not carry Australian franking credits, and is subject to a withholding tax rate of 30%. This tax treatment is particularly relevant for international investors, who should factor this into their net yield calculations.
Implications for Investors
For investors, the announcement provides clarity on expected income from News Corporation holdings but also introduces some currency risk due to the pending AUD conversion rates. The absence of a securities plan for dividends and the lack of franking credits suggest a straightforward cash distribution without additional tax offsets.
Overall, the dividend aligns with News Corporation’s steady financial management and shareholder return strategy, although the final AUD payout remains to be confirmed. Investors will be watching the forthcoming exchange rate disclosures closely to assess the full impact on their returns.
Bottom Line?
As News Corporation sets its dividend payout in motion, the forthcoming currency details will be key to understanding the true value for Australian investors.
Questions in the middle?
- What will be the final AUD equivalent of the dividend once exchange rates are announced?
- How might the 30% withholding tax impact international investor demand for News Corporation shares?
- Will News Corporation maintain this dividend level or adjust it in future periods amid market conditions?
