Why Is Super Retail Group Offering a Fully Franked AUD 0.64 Dividend Now?
Super Retail Group Limited has announced a fully franked dividend of AUD 0.64 per share, combining ordinary and special dividends, payable in October 2025 with a Dividend Reinvestment Plan available.
- Total dividend of AUD 0.64 per share, fully franked at 30%
- Ordinary dividend of AUD 0.34 and special dividend of AUD 0.30
- Ex-dividend date set for 8 September 2025, payment on 16 October 2025
- Dividend Reinvestment Plan (DRP) offered with no discount
- DRP participation limited to shareholders in Australia and New Zealand
Dividend Announcement Overview
Super Retail Group Limited (ASX, SUL) has declared a total dividend of AUD 0.64 per fully paid ordinary share, payable on 16 October 2025. This dividend is composed of an ordinary dividend of AUD 0.34 and a special dividend of AUD 0.30, both fully franked at the corporate tax rate of 30%. The ex-dividend date is set for 8 September 2025, with the record date following on 9 September 2025.
Franking and Tax Implications
The full franking of the dividend means shareholders will receive a credit for the tax already paid by the company, enhancing the after-tax return for Australian investors. This is particularly attractive for income-focused investors seeking tax-efficient distributions. The special dividend component signals a one-off return of value, possibly reflecting strong recent performance or excess cash reserves.
Dividend Reinvestment Plan Details
Super Retail Group offers a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividend payments into additional shares rather than receiving cash. Notably, the DRP carries no discount on the share price, which will be calculated as the average volume weighted average price over a 10-day trading period from 12 to 25 September 2025. Shares allocated under the DRP will be acquired on-market and transferred on the payment date.
However, participation in the DRP is restricted to shareholders with registered addresses in Australia and New Zealand, excluding international investors. Additionally, any residual positive cash balances resulting from the DRP allocation process will be donated to the Australian Red Cross Society, reflecting a philanthropic gesture by the company.
Market and Investor Implications
This dividend announcement reinforces Super Retail Group’s commitment to returning value to shareholders while maintaining a balanced capital management approach. The inclusion of a special dividend may indicate confidence in the company’s cash flow and earnings stability. Investors will be watching closely to see the uptake of the DRP, which can influence share price dynamics and liquidity in the lead-up to the payment date.
Overall, the fully franked dividend and the availability of a DRP without discount provide shareholders with flexible options to optimise their investment returns in line with their tax and income preferences.
Bottom Line?
Super Retail Group’s dividend signals steady shareholder returns, but DRP participation limits and special dividend motives warrant close investor attention.
Questions in the middle?
- What drove the decision to include a special dividend alongside the ordinary dividend?
- How will the exclusion of international shareholders from the DRP affect overall participation rates?
- Will the market respond positively to the fully franked dividend amid current retail sector conditions?
