Coles Announces AUD 0.32 Dividend Payable September 22 with DRP Available

Dividend Announcement Overview

Coles Group Limited (ASX, COL), a major player in the Australian retail sector, has declared an ordinary dividend of AUD 0.32 per fully paid ordinary share for the financial year ending 29 June 2025. This dividend is fully franked, reflecting the company’s confidence in its ongoing profitability and commitment to returning value to shareholders.

The dividend will be paid on 22 September 2025, with an ex-dividend date of 5 September and a record date of 8 September. These dates are critical for investors to note, as eligibility for the dividend depends on share ownership as of the record date.

Dividend Reinvestment Plan Details

Coles has also confirmed the availability of a Dividend Reinvestment Plan (DRP) for this distribution. Shareholders who opt into the DRP can reinvest their dividends into new Coles shares rather than receiving cash. The DRP will be offered without any discount to the market price, which will be calculated as the average daily volume-weighted price over five trading days starting 10 September 2025.

Participation in the DRP requires shareholders to lodge their election by 9 September 2025. Notably, the DRP is currently only open to shareholders with registered addresses in Australia or New Zealand, a limitation that may affect international investors.

Currency and Payment Options

In a nod to its diverse shareholder base, Coles will pay dividends in multiple currencies depending on shareholder banking details. Payments will be made by direct credit in Australian dollars (AUD), Pound Sterling (GBP), or New Zealand dollars (NZD). Shareholders who do not provide valid banking instructions by the deadline will receive payments by cheque or have their dividends held in a non-interest-bearing account until banking details are updated.

The exchange rates for GBP and NZD payments will be disclosed on 10 September 2025, providing transparency for shareholders opting for foreign currency payments.

Implications and Investor Considerations

This dividend announcement underscores Coles’ stable financial position and its ongoing commitment to shareholder returns. The fully franked nature of the dividend is especially attractive for Australian investors seeking tax-effective income. Meanwhile, the DRP offers a flexible option for reinvestment, though the lack of a discount and geographic restrictions may influence participation rates.

Investors should also consider the timing of the dividend and the currency options available, particularly those holding shares outside Australia and New Zealand. The forthcoming disclosure of exchange rates will be an important factor for those electing to receive payments in GBP or NZD.