Sims Limited Sets AUD 0.13 Fully Franked Dividend for H1 2025

Dividend Announcement Overview

Sims Limited (ASX – SGM), a key player in the recycling and metals sector, has declared an ordinary dividend of AUD 0.13 per share, fully franked at the corporate tax rate of 30%. This dividend covers the six-month period ending 30 June 2025, reflecting the company’s commitment to delivering consistent returns to its shareholders.

The dividend timetable is clearly laid out – the ex-dividend date is 30 September 2025, with the record date following on 1 October 2025. Shareholders on the register by this date will be eligible for the dividend payment, which is scheduled for 15 October 2025. Notably, Sims Limited has confirmed that no external approvals, such as security holder or regulatory consents, are required ahead of the dividend payment.

Implications for Investors

The fully franked nature of the dividend means shareholders receive a tax credit equivalent to the 30% corporate tax already paid by Sims Limited, enhancing the after-tax value of the payout. This is particularly attractive for Australian investors who can offset this credit against their own tax liabilities.

While the dividend amount itself is modest, it signals steady financial health and cash flow stability within Sims Limited. Given the company’s position in the materials recycling sector, this payout may also reflect resilience amid fluctuating commodity prices and global supply chain challenges.

Looking Ahead

Investors will be watching closely for Sims Limited’s upcoming financial results and any commentary on future dividend policy. The absence of a securities plan for dividends and no mention of foreign income components suggest a straightforward distribution approach for now. However, market participants will be keen to see if this steady dividend trend continues or if adjustments are warranted based on broader economic conditions.