Kelsian Group Limited has announced a fully franked ordinary dividend of AUD 0.095 per share for the six months ending June 2025, accompanied by a Dividend Reinvestment Plan offering shareholders a choice to reinvest.
- Ordinary fully franked dividend of AUD 0.095 per share
- Dividend payable on 21 October 2025 with ex-date 15 September
- Dividend Reinvestment Plan (DRP) available with no discount
- DRP shares to be newly issued and rank pari passu
- DRP election deadline set for 17 September 2025
Dividend Announcement Overview
Kelsian Group Limited (ASX – KLS), a key player in public transport services, has declared an ordinary dividend of AUD 0.095 per share for the half-year period ending 30 June 2025. This dividend is fully franked, reflecting the company’s ability to distribute profits with attached Australian tax credits, which is often welcomed by investors seeking tax-efficient income streams.
The dividend will be paid on 21 October 2025, with the critical ex-dividend date set for 15 September 2025 and the record date on 16 September 2025. These dates are essential for shareholders to note, as eligibility for the dividend depends on holding shares before the ex-date.
Dividend Reinvestment Plan Details
Kelsian has also confirmed the availability of a Dividend Reinvestment Plan (DRP) for this distribution. Shareholders can elect to reinvest their dividends into new shares rather than receive cash. Notably, the DRP will issue new shares at a price calculated as the average daily volume weighted average price over a 10-day trading period starting 19 September 2025, with no discount applied. This approach suggests a fair market valuation without incentivising reinvestment through a price concession.
The DRP election deadline is 17 September 2025 at 5 – 00 pm, and the new shares issued under the plan will rank equally with existing shares from the date of issue. Participation is open to shareholders in Australia, New Zealand, the United Kingdom, Jersey, Canada, and qualified institutional buyers in the United States, subject to eligibility conditions outlined in the company’s DRP rules.
Implications and Market Context
This dividend announcement underscores Kelsian’s steady financial position and commitment to returning value to shareholders. The fully franked nature of the dividend signals that the company has paid Australian corporate tax at the standard 30% rate on its earnings, which can be an attractive feature for investors mindful of tax credits.
While the dividend amount of AUD 0.095 per share is modest, it is consistent with the company’s historical payout patterns and reflects ongoing operational stability in the public transport sector. The absence of a DRP discount may indicate management’s confidence in the current share price and a desire to avoid dilution or undervaluation.
Investors will be watching closely for shareholder uptake of the DRP and any subsequent impact on Kelsian’s share price following the ex-dividend date. The company’s clear communication and transparent timetable provide a solid framework for investor decision-making ahead of the payment date.
Bottom Line?
Kelsian’s fully franked dividend and DRP offer a steady income opportunity, setting the stage for investor engagement this autumn.
Questions in the middle?
- What level of shareholder participation will the DRP attract without a discount?
- Will Kelsian maintain or increase dividend payouts in future periods amid sector challenges?
- How might the share price respond post ex-dividend given the new shares issued under the DRP?