Partial Franking and Currency Choices Highlight APA Group’s Latest Dividend
APA Group has updated its dividend details for the half-year ending June 2025, confirming a 30-cent per unit distribution, partially franked, with a Dividend Reinvestment Plan and currency choices for investors.
- Ordinary dividend of AUD 0.30 per security confirmed
- Dividend partially franked at 21.5653%
- Payment date set for 10 September 2025
- Dividend Reinvestment Plan (DRP) offered with 1.5% discount
- Currency election available for Australian and New Zealand securityholders
Dividend Update and Payment Details
APA Group has released an update to its dividend distribution for the six months ending 30 June 2025, confirming an ordinary dividend payment of AUD 0.30 per fully paid unit. This update clarifies the actual dividend amount and provides detailed information on tax components and payment arrangements, following an earlier announcement in July.
The dividend is partially franked at approximately 21.6%, reflecting a franked amount of AUD 0.0647 per security, with the remainder unfranked. The payment date is scheduled for 10 September 2025, with the record date set on 30 June 2025 and an ex-dividend date of 27 June 2025.
Dividend Reinvestment Plan and Pricing
APA Group continues to offer a Dividend Reinvestment Plan (DRP) for this distribution, allowing investors to reinvest their dividends into new securities rather than receiving cash. The DRP price will be calculated based on a 10-day volume weighted average price starting seven trading days after the record date, with a 1.5% discount applied. The issue date for DRP securities is set for 10 September 2025, and these new securities will rank pari passu with existing units.
Investors who do not elect to participate in the DRP will receive their dividend payments in cash by default. There are no minimum or maximum participation limits for the DRP, making it accessible to all securityholders.
Currency Options for Securityholders
Notably, APA Group provides currency election options for its securityholders, particularly those based in New Zealand. Securityholders with a registered address in New Zealand may choose to receive their distribution payments in either Australian dollars (AUD) or New Zealand dollars (NZD). The NZD payment amount is set at NZD 0.32304 per security, based on an exchange rate of AUD/NZD 1.0768.
If no currency election or DRP participation is made by the record date, payments to New Zealand securityholders will be withheld in NZD. The company facilitates this process through direct credit forms available via the share registry.
Tax Components and Compliance
The update also provides detailed tax component information, confirming that the dividend is not fully franked and includes unfranked portions. The applicable corporate tax rate for franking credits is 30%. There are no conduit foreign income amounts associated with this distribution.
Importantly, no external approvals such as securityholder or court approval were required for this dividend payment, indicating a smooth regulatory process.
Overall, this update offers clarity and reassurance to income-focused investors regarding their expected returns and the flexibility available in managing their dividend payments.
Bottom Line?
With a clear dividend and flexible reinvestment options, APA Group sets the stage for steady income returns this September.
Questions in the middle?
- Will participation in the DRP increase significantly given the 1.5% discount?
- How will currency election uptake among New Zealand securityholders impact cash flow?
- Could future dividends see changes in franking levels reflecting tax strategy shifts?
