The A2 Milk Company has announced a fully franked ordinary dividend of NZD 0.115 per share for the six months ending June 2025, payable in October with flexible currency options for shareholders.
- Ordinary dividend of NZD 0.115 per share for H1 FY25
- Dividend fully franked at 30% corporate tax rate
- Payment date set for 3 October 2025
- Dividend payable in NZD or AUD depending on shareholder bank account
- 15% withholding tax applies to dividend payments
Dividend Announcement Overview
The A2 Milk Company Limited (ASX, A2M) has declared an ordinary dividend of NZD 0.115 per share for the six-month period ending 30 June 2025. This announcement, made on 18 August 2025, confirms a fully franked dividend, reflecting the company’s continued commitment to returning value to shareholders.
The dividend is fully franked at the prevailing corporate tax rate of 30%, which means shareholders will benefit from tax credits attached to their dividend payments. The ex-dividend date is set for 18 September 2025, with the record date following on 19 September 2025. Payments will be made on 3 October 2025.
Currency and Payment Details
Shareholders will receive their dividend payments in either New Zealand dollars (NZD) or Australian dollars (AUD), depending on the bank account nominated for receipt. Those with Australian bank accounts will be paid in AUD, while New Zealand bank account holders will receive NZD. This dual-currency payment arrangement is designed to accommodate the company’s shareholder base across both countries.
The exact AUD equivalent of the dividend will be disclosed on 25 September 2025, once exchange rates are confirmed. All dividends will be paid by direct credit, ensuring a streamlined and efficient payment process.
Tax Implications and Withholding
A withholding tax rate of 15% applies to the dividend payments, though the exact amount withheld will vary depending on individual shareholder circumstances. Detailed withholding tax information will be provided in dividend statements issued to shareholders, ensuring transparency and clarity.
The company has confirmed that no supplementary dividends will be paid, and there are no additional approvals required for this dividend distribution. This straightforward approach underscores A2 Milk’s stable financial position and confidence in its ongoing profitability.
Looking Ahead
This dividend announcement signals A2 Milk’s steady performance in a competitive dairy sector, balancing shareholder returns with operational growth. Investors will be watching closely for the upcoming AUD exchange rate disclosure and any market reactions as the payment date approaches.
Bottom Line?
As A2 Milk delivers a fully franked dividend, investors await currency details and market response ahead.
Questions in the middle?
- What will be the final AUD equivalent dividend amount after exchange rates are set?
- How will the 15% withholding tax impact different categories of shareholders?
- Will this dividend signal a sustained payout policy for the remainder of FY25?