Why JB Hi-Fi Is Paying a Fully Franked AUD 2.05 Dividend This September
JB Hi-Fi Limited has announced a fully franked dividend of AUD 2.05 per share for the first half of FY2025, combining ordinary and special dividends payable in September.
- Total dividend of AUD 2.05 per share announced
- Dividend split into AUD 1.05 ordinary and AUD 1.00 special dividend
- Fully franked at 30% corporate tax rate
- Ex-dividend date set for 21 August 2025
- New Zealand shareholders to receive NZD equivalent payments
Dividend Announcement Overview
JB Hi-Fi Limited, a leading player in the Australian consumer electronics retail sector, has declared a fully franked dividend of AUD 2.05 per share for the six months ending 30 June 2025. This dividend comprises an ordinary dividend of AUD 1.05 and a special dividend of AUD 1.00, both fully franked at the prevailing corporate tax rate of 30%. The announcement was made on 11 August 2025, with the payment scheduled for 5 September 2025.
Key Dates and Payment Details
The ex-dividend date is set for 21 August 2025, meaning investors must hold shares before this date to be eligible for the dividend. The record date follows on 22 August 2025, confirming the shareholders entitled to receive the payment. Notably, JB Hi-Fi will pay dividends in Australian dollars, but New Zealand shareholders will receive payments in New Zealand dollars, converted at market rates, with the exact exchange rate to be confirmed closer to the payment date.
Implications for Shareholders
The fully franked nature of the dividend means shareholders can benefit from franking credits, effectively reducing their tax liability on the dividend income. The inclusion of a special dividend alongside the ordinary dividend signals JB Hi-Fi’s confidence in its cash flow and profitability for the period. This move may be interpreted as a reward to shareholders and a positive signal about the company’s financial health amid a competitive retail environment.
Currency Considerations for Investors
JB Hi-Fi’s approach to currency payments reflects its shareholder base across Australia and New Zealand. While Australian investors will receive payments in AUD, New Zealand investors will be paid in NZD based on an estimated exchange rate of 1 AUD to 1.093 NZD. This currency arrangement is standard practice but introduces a variable element for New Zealand shareholders depending on currency fluctuations at the time of payment.
Looking Ahead
As the payment date approaches, market participants will be watching for any shifts in JB Hi-Fi’s operational performance that could influence future dividend policies. The company’s ability to sustain or grow dividends will be a key indicator of its ongoing financial stability and strategic positioning in the consumer electronics retail sector.
Bottom Line?
JB Hi-Fi’s robust dividend payout underscores its strong first-half performance, setting the stage for investor scrutiny on sustainability and growth prospects.
Questions in the middle?
- Will JB Hi-Fi maintain or increase dividend payouts in the second half of FY2025?
- How will currency fluctuations impact New Zealand shareholders’ dividend returns?
- What operational factors underpin the decision to issue a special dividend alongside the ordinary dividend?
