Dividend Stability Tested: Bendigo and Adelaide Bank’s Latest Payout Signals Confidence

Dividend Announcement Overview

Bendigo and Adelaide Bank Limited (ASX – BEN) has confirmed an ordinary dividend payment of AUD 0.33 per share, fully franked, for the half-year period ending 30 June 2025. This announcement, made on 25 August 2025, signals the bank’s continued commitment to returning value to shareholders amid a competitive banking environment.

The dividend is fully franked at the corporate tax rate of 30%, meaning shareholders receive a tax credit alongside their cash payment. This is an important consideration for investors seeking reliable income streams with tax efficiency.

Key Dates and Dividend Mechanics

The ex-dividend date is set for 2 September 2025, with the record date following on 3 September 2025. Shareholders on the register by this date will be eligible for the dividend payment scheduled for 30 September 2025. Bendigo and Adelaide Bank also offers a Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash.

Notably, the DRP for this dividend carries no discount and does not involve the issue of new shares, instead utilizing existing shares on the market. Shareholders wishing to participate must lodge their election by 4 September 2025. The reinvestment price will be calculated as the average daily volume weighted average price over a ten trading day period starting 9 September 2025.

Context and Market Implications

This dividend announcement aligns with Bendigo and Adelaide Bank’s stable dividend policy and reflects steady financial performance through the first half of 2025. While the dividend amount is consistent with prior periods, the fully franked status underscores the bank’s solid tax position and profitability.

For investors, the absence of a DRP discount may influence decisions on whether to take dividends in cash or reinvest. The bank’s approach suggests confidence in its share price stability and capital management strategy, avoiding dilution through new share issuance.

As the banking sector navigates ongoing economic challenges and regulatory pressures, Bendigo and Adelaide Bank’s dividend declaration will be closely watched as a barometer of its financial health and shareholder returns.