ARB Announces 35 Cents Fully Franked Dividend for H1 2025 with 2% DRP Discount
ARB Corporation Limited has announced a fully franked ordinary dividend of AUD 0.35 per share for the half-year ending June 2025, alongside shareholder-friendly reinvestment plans.
- Ordinary fully franked dividend of AUD 0.35 per share
- Dividend payable on 17 October 2025 with ex-dividend date 2 October
- Dividend Reinvestment Plan (DRP) and Bonus Security Plan (BSP) offered with 2% discount
- DRP and BSP securities to be newly issued and rank pari passu
- No approvals required; DRP election deadline 8 October 2025
Dividend Announcement Overview
ARB Corporation Limited, a key player in the automotive parts and accessories sector, has declared an ordinary dividend of AUD 0.35 per share for the six months ending 30 June 2025. This dividend is fully franked, reflecting the company’s strong tax position and commitment to returning value to shareholders.
The dividend will be paid on 17 October 2025, with an ex-dividend date set for 2 October 2025 and a record date of 3 October 2025. These dates are critical for investors to determine eligibility for the dividend payment.
Shareholder Reinvestment Options
In addition to the cash dividend, ARB offers shareholders the opportunity to participate in a Dividend Reinvestment Plan (DRP) and a Bonus Security Plan (BSP). Both plans provide a 2% discount on the volume weighted average market price of shares sold on the ASX during the five business days following the ex-dividend date, subject to board discretion in the event of abnormal trading.
The DRP and BSP securities will be newly issued and rank equally with existing shares from the date of issue, which is also 17 October 2025. This approach allows shareholders to compound their investment in ARB without incurring brokerage fees, while the discount provides an added incentive.
Administrative Details and Market Implications
Shareholders wishing to participate in the DRP or BSP must lodge their election notices by 5, 00 pm AEDT on 8 October 2025. If no election is made, the default option is to receive the dividend in cash. Importantly, no external approvals or conditions are required for this dividend distribution, streamlining the process for shareholders.
This dividend announcement underscores ARB’s ongoing financial health and its strategy to balance rewarding shareholders with maintaining capital for growth. The fully franked nature of the dividend is particularly attractive to Australian investors seeking tax-effective income streams.
Bottom Line?
ARB’s dividend and reinvestment plans signal steady shareholder returns ahead, with market participation in DRP and BSP set to reveal investor confidence.
Questions in the middle?
- What level of shareholder uptake will the DRP and BSP see this cycle?
- Will ARB maintain or increase dividend payouts in the next financial period?
- How might board discretion on pricing affect reinvestment plan participation amid market volatility?