Contact Energy Limited has announced a total dividend of NZD 0.2529 per share for the six months ending June 2025, including an ordinary and supplementary dividend, with a Dividend Reinvestment Plan available.
- Total dividend of NZD 0.25294118 per share declared
- Dividend comprises NZD 0.23 ordinary and NZD 0.02294118 supplementary components
- Ex-date set for 25 August 2025; payment date on 24 September 2025
- Dividend Reinvestment Plan (DRP) available with elections due by 27 August 2025
- Dividend is unfranked and subject to withholding tax
Dividend Announcement Overview
Contact Energy Limited, a key player in New Zealand's energy sector, has declared a total dividend of NZD 0.25294118 per share for the six-month period ending 30 June 2025. This dividend includes an ordinary dividend of NZD 0.23 and a supplementary dividend of NZD 0.02294118, the latter payable to non-New Zealand resident shareholders. The announcement was made on 18 August 2025, with the ex-dividend date set for 25 August and the record date on 26 August.
Payment and Reinvestment Details
The dividend payment is scheduled for 24 September 2025. Shareholders have the option to participate in Contact Energy’s Dividend Reinvestment Plan (DRP), which allows them to reinvest dividends into new shares rather than receiving cash. Elections for the DRP must be lodged by 27 August 2025. The DRP shares will be newly issued and rank equally with existing shares from the issue date, ensuring no dilution in shareholder rights.
Tax and Currency Considerations
The dividend is unfranked, meaning it does not carry any imputation credits, and is subject to withholding tax at a rate of 15%. The primary currency for the dividend payment is New Zealand dollars (NZD). While the Australian dollar equivalent of the dividend has not yet been disclosed, Contact Energy has committed to releasing this information by 1 September 2025, which will be important for Australian investors assessing their returns.
Strategic Implications
This dividend declaration reflects Contact Energy’s ongoing commitment to returning value to shareholders while maintaining flexibility through the DRP. The availability of the DRP may appeal to investors seeking to compound their holdings without incurring transaction costs. However, the unfranked nature of the dividend and withholding tax implications could influence the attractiveness for certain investor segments, particularly non-residents.
Looking Ahead
Investors will be watching closely for the AUD equivalent dividend figure and the uptake of the DRP, which could impact share supply and demand dynamics. As Contact Energy navigates the evolving energy market, dividend policy will remain a key signal of financial health and shareholder alignment.
Bottom Line?
Contact Energy’s dividend announcement underscores steady shareholder returns amid evolving market conditions, with DRP participation set to shape investor engagement.
Questions in the middle?
- What will be the Australian dollar equivalent of the dividend and how will it affect cross-border investor sentiment?
- How many shareholders will opt into the DRP, and what impact might this have on share liquidity and price?
- Will Contact Energy maintain or adjust its dividend policy in response to market or regulatory changes in the coming periods?