Cleanaway’s Dividend Strategy Tests Shareholder Appetite Amid Currency Choices
Cleanaway Waste Management announces a fully franked dividend of AUD 0.032 per share for the first half of FY25, with a Dividend Reinvestment Plan offering a 1.5% discount and currency payment flexibility.
- Ordinary fully franked dividend of AUD 0.032 per share
- Dividend payable on 7 October 2025 with ex-date 12 September 2025
- Dividend Reinvestment Plan (DRP) available with 1.5% discount
- Shareholders can elect payment in AUD or NZD
- DRP price based on VWAP from 17 to 23 September 2025
Cleanaway's Dividend Announcement
Cleanaway Waste Management Limited has declared an ordinary dividend of AUD 0.032 per share for the six-month period ending 30 June 2025. This dividend is fully franked, reflecting the company’s confidence in its financial position and ongoing profitability. The payment is scheduled for 7 October 2025, with the ex-dividend date set for 12 September and the record date on 15 September.
Dividend Reinvestment Plan Details
Alongside the cash dividend, Cleanaway offers shareholders the option to participate in a Dividend Reinvestment Plan (DRP). This plan allows shareholders to reinvest their dividends into new shares at a 1.5% discount to the market price. The DRP price will be calculated based on the volume weighted average price (VWAP) of Cleanaway shares traded on the ASX from 17 to 23 September 2025. This approach provides a transparent and fair valuation mechanism for reinvested shares.
Currency Flexibility for Shareholders
In a nod to its shareholder base across Australia and New Zealand, Cleanaway has confirmed that dividends can be paid in either Australian dollars or New Zealand dollars. Shareholders with a registered address in New Zealand who have provided their banking details can elect to receive their dividend payments in NZD. This currency flexibility, along with the option to participate in the DRP, enhances shareholder choice and convenience.
No Approvals Required and Board Confidence
The dividend payment does not require any external approvals, such as from security holders or regulatory bodies, underscoring the straightforward nature of this distribution. The announcement has been authorised by Cleanaway’s Board, signaling their endorsement of the company’s current financial health and commitment to returning value to shareholders.
Looking Ahead
With the dividend and DRP details now public, investors will be watching closely to see how many shareholders opt to reinvest versus take cash, and how the share price responds during the DRP pricing period. The company’s ability to sustain fully franked dividends will also be a key metric for assessing its ongoing operational performance in the waste management sector.
Bottom Line?
Cleanaway’s dividend announcement reinforces steady shareholder returns while setting the stage for investor decisions on reinvestment and currency preferences.
Questions in the middle?
- What will be the uptake rate for the Dividend Reinvestment Plan among shareholders?
- How might currency fluctuations between AUD and NZD impact shareholder returns?
- Will Cleanaway maintain or increase dividend payments in the second half of FY25?