ASX’s Dividend Plan Raises Questions on Currency Impact and Share Dilution

ASX Announces Half-Year Dividend

ASX Limited has declared an ordinary dividend of AUD 1.121 per fully paid ordinary share for the six months ending 30 June 2025. This dividend is fully franked, reflecting the company’s solid tax position and ongoing profitability. The ex-dividend date is scheduled for 22 August 2025, with the record date following on 25 August and payment set for 19 September 2025.

Dividend Reinvestment Plan Offers Flexibility

Shareholders have the option to participate in ASX’s Dividend Reinvestment Plan (DRP), which allows them to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP carries no discount on the share price, and the shares issued under the plan will not be newly created but acquired through on-market purchases, aiming to neutralise dilution effects.

The DRP election deadline is 26 August 2025, giving shareholders a clear window to decide their preferred dividend treatment. The reinvestment price will be calculated as the average daily volume weighted average price of ASX shares traded over eight trading days following the election cut-off, ensuring a fair market-based valuation.

Currency Options Reflect Shareholder Diversity

ASX has also confirmed arrangements for dividend payments in multiple currencies to accommodate its shareholder base in Australia and New Zealand. Australian residents can receive dividends in Australian dollars (AUD) or elect to receive New Zealand dollars (NZD) if they hold a New Zealand bank account. Conversely, New Zealand residents can receive payments in NZD or opt for AUD if they have an Australian bank account.

This currency flexibility is designed to streamline payments and reduce foreign exchange inconvenience for shareholders. Exchange rates for NZD payments will be disclosed closer to the payment date, with shareholders able to make or change their currency election until 26 August 2025.

Implications for Investors and Market

The fully franked dividend underscores ASX’s steady earnings and commitment to returning value to shareholders. The availability of the DRP without a discount and its neutralisation strategy may appeal to investors seeking to compound their holdings without dilution concerns. Meanwhile, the currency election options reflect ASX’s recognition of its trans-Tasman shareholder base and aim to enhance investor convenience.

Overall, this dividend announcement aligns with market expectations and provides clarity on ASX’s capital management approach for the coming months.