IPH Limited Declares AUD 0.195 Dividend with Full DRP Option

Dividend Announcement Overview

IPH Limited, a key player in the investment services sector, has declared an ordinary dividend of AUD 0.195 per fully paid ordinary share for the six months ending 30 June 2025. This announcement, made on 21 August 2025, confirms the company’s commitment to returning value to shareholders amid a stable financial period.

The dividend is 30% franked, reflecting the company’s payment of Australian corporate tax at the prevailing rate of 30%. This partial franking means shareholders receive a tax credit on a portion of their dividend, which can be advantageous for Australian investors seeking tax efficiency.

Key Dates and Payment Details

The ex-dividend date is set for 28 August 2025, with the record date following on 29 August 2025. Shareholders registered by this date will be eligible for the dividend payment scheduled for 23 September 2025. These dates are critical for investors to note, as buying shares before the ex-date ensures entitlement to the dividend.

Importantly, IPH Limited offers a Dividend Reinvestment Plan (DRP) for this dividend. Shareholders can elect to reinvest their dividend payments into new shares rather than receiving cash. The DRP election deadline is 1 September 2025 at 5, 00 pm AEST. Shares issued under the DRP will be newly created and rank equally with existing shares from the issue date, ensuring no dilution of shareholder rights.

DRP Mechanics and Investor Implications

The DRP price will be calculated as the average daily volume-weighted market price of IPH shares traded on the ASX over a 10 trading day period starting two days after the record date. Notably, there is no discount applied to the DRP price, which may influence shareholder participation rates depending on market conditions.

For investors, the availability of a full DRP without a discount offers a straightforward way to compound investment in IPH Limited without incurring brokerage fees. However, the absence of a discount might temper enthusiasm among income-focused shareholders who prefer immediate cash returns.

Context and Market Positioning

This dividend announcement aligns with IPH Limited’s steady financial performance and ongoing shareholder value strategy. While the 30% franking level is moderate, it reflects the company’s tax position and the mix of domestic and foreign income sources. The announcement does not indicate any unusual approvals or conditions, suggesting a smooth execution of the dividend payment and DRP process.

Investors will be watching how the market responds around the ex-date and payment date, particularly in relation to share price movements and DRP uptake. The company’s transparent communication and clear timetable help maintain investor confidence in its capital management approach.