CBA Declares AUD 2.60 Dividend with No DRP Discount for FY25 H1

Dividend Announcement Overview

Commonwealth Bank of Australia (CBA) has declared an ordinary dividend of AUD 2.60 per fully paid ordinary share for the six months ending 30 June 2025. This dividend is fully franked, reflecting the bank’s continued profitability and strong capital position. The payment is scheduled for 29 September 2025, with an ex-dividend date of 20 August and a record date of 21 August.

Dividend Reinvestment Plan Details

Alongside the cash dividend, CBA offers shareholders the option to participate in a Dividend Reinvestment Plan (DRP). Notably, the DRP will not include any discount on the reinvestment price, which is calculated as the average daily volume weighted average price of CBA shares traded on the ASX and Cboe over a 20 trading day period starting 25 August 2025. Shareholders wishing to elect participation must do so by 5pm on 22 August 2025.

Currency Flexibility for Shareholders

In a move that reflects CBA’s international shareholder base, dividend payments can be made in Australian Dollars (AUD), New Zealand Dollars (NZD), or British Pounds (GBP), depending on the shareholder’s registered address. Shareholders in Australia, New Zealand, and the United Kingdom will receive dividends in their local currency by default, but all shareholders can elect to receive payments in any of the three currencies by setting up an account with OFX Group Limited or by updating their bank details accordingly.

Participation Conditions and Geographic Reach

The DRP is open to shareholders in multiple countries including Australia, New Zealand, the United Kingdom, Canada, Denmark, Hong Kong, Ireland, Singapore, Norway, Switzerland, and the United Arab Emirates. This broad eligibility underscores CBA’s global investor reach. However, shareholders outside Australia are advised to carefully review the DRP rules and eligibility notices before deciding to participate.

Implications for Investors

The fully franked nature of the dividend means Australian investors can benefit from franking credits, potentially reducing their tax liabilities. The absence of a DRP discount may temper some investor enthusiasm for reinvestment, but the flexibility in currency choice and broad geographic eligibility could encourage participation from international shareholders. Market watchers will be keen to observe the uptake of the DRP and how currency fluctuations might impact dividend returns.