Could DUI’s Dividend Reinvestment Plan Limit Shareholder Participation Outside Australia?
Diversified United Investment Limited has announced a fully franked ordinary dividend of AUD 0.09 per share for the six months ending June 2025, accompanied by a Dividend Reinvestment Plan with no discount.
- Ordinary fully franked dividend of AUD 0.09 per share
- Dividend payable on 19 September 2025
- Ex-dividend date set for 28 August 2025
- Dividend Reinvestment Plan (DRP) available with no discount
- DRP participation deadline on 1 September 2025
Dividend Announcement Overview
Diversified United Investment Limited (ASX, DUI) has declared an ordinary dividend of AUD 0.09 per share for the six-month period ending 30 June 2025. This dividend is fully franked at the corporate tax rate of 30%, reflecting the company’s ongoing commitment to delivering tax-efficient income to its shareholders.
The dividend will be paid on 19 September 2025, with the ex-dividend date set for 28 August 2025 and the record date on 29 August 2025. These dates are critical for investors to note, as purchasing shares before the ex-dividend date ensures eligibility for the dividend payment.
Dividend Reinvestment Plan Details
In addition to the cash dividend, DUI offers a Dividend Reinvestment Plan (DRP) that allows shareholders to reinvest their dividends into new shares rather than receiving cash. Notably, the DRP shares will be newly issued and rank equally with existing shares from the date of issue, maintaining shareholder equity.
The DRP price will be calculated as the volume weighted average price of DUI shares traded on the ASX over the five trading days commencing on the ex-dividend date, without any discount. This approach ensures transparency and fairness in pricing for participating shareholders.
Shareholders wishing to participate in the DRP must lodge their election by 1 September 2025. The plan is currently available only to residents of Australia, New Zealand, and the Norfolk Islands, which may limit participation from international investors.
Implications for Investors
The fully franked nature of the dividend is particularly attractive for Australian investors, as it provides a tax credit that can offset their tax liabilities. The steady dividend payment underscores DUI’s stable income-generating profile within the investment trust sector.
Investors will be watching closely to see how the market responds around the ex-dividend date, especially given the availability of the DRP with no discount. The reinvestment option may encourage long-term holding and support the company’s capital base.
Bottom Line?
As the dividend payment approaches, investor participation in the DRP and market reaction post ex-dividend date will be key to watch.
Questions in the middle?
- What impact will the DRP participation have on DUI’s share capital and liquidity?
- How might the fully franked dividend influence investor demand amid current market conditions?
- Will the geographic restrictions on DRP participation affect overall uptake and shareholder composition?