Domino's Pizza Enterprises has announced a six-month ordinary dividend of AUD 0.215 per share, unfranked, payable in October with a Dividend Reinvestment Plan offering a 1% discount.
- Ordinary unfranked dividend of AUD 0.215 per share
- Dividend payable on 3 October 2025
- Ex-date set for 2 September 2025, record date 3 September 2025
- Dividend Reinvestment Plan (DRP) available with 1% discount
- DRP participation limited to shareholders in Australia and New Zealand
Dividend Announcement Overview
Domino's Pizza Enterprises Limited (ASX, DMP) has declared an ordinary dividend of AUD 0.215 per fully paid ordinary share for the six months ending 29 June 2025. This dividend is unfranked, meaning it carries no franking credits, and will be paid on 3 October 2025. The ex-dividend date is set for 2 September 2025, with the record date following on 3 September 2025.
Dividend Reinvestment Plan Details
Shareholders have the option to participate in Domino's Dividend Reinvestment Plan (DRP), which allows them to reinvest their dividend payments into new shares rather than receiving cash. The DRP shares will be newly issued and rank equally with existing shares from the date of issue. Notably, the DRP offers a 1% discount on the average market price calculated over a 10 trading day period starting 8 September 2025, providing an incentive for shareholders to reinvest.
Participation in the DRP is limited to shareholders with registered addresses in Australia and New Zealand. The deadline to elect participation is 4 September 2025 at 5, 00 pm. If shareholders do not make an election, they will receive the dividend payment in cash by default.
Implications for Investors
The unfranked nature of the dividend means investors will not receive franking credits, which may affect the after-tax return depending on their tax circumstances. However, the availability of the DRP with a discount could appeal to investors seeking to increase their holdings in Domino's Pizza Enterprises at a slight price advantage.
Given the company's steady dividend policy and the reinvestment option, this announcement reinforces Domino's commitment to returning value to shareholders while supporting capital growth through the DRP. Market participants will be watching closely to see the uptake of the DRP and how it influences share price dynamics around the ex-dividend date.
Bottom Line?
Domino's dividend and DRP offer a balanced approach to shareholder returns, but the unfranked status may prompt tax considerations ahead.
Questions in the middle?
- What proportion of shareholders will opt into the DRP versus taking cash dividends?
- How might the unfranked dividend impact investor demand, particularly for tax-sensitive holders?
- Will the DRP uptake influence Domino's share price performance post ex-dividend date?