Dividend Clarity or Confusion? Cedar Woods Corrects DRP Default Option

Dividend Update and Correction

Cedar Woods Properties Limited (ASX – CWP) has issued an important update to its recent dividend announcement, clarifying the default option under its Dividend Reinvestment Plan (DRP). Contrary to the initial communication, the default for shareholders who do not specify their participation preference is now confirmed as opting out of the DRP, meaning they will receive their dividend as a cash payment.

This correction ensures clarity for investors ahead of the upcoming dividend payment cycle and aligns with standard market practices where cash payment is often the default choice unless shareholders actively elect to reinvest.

Dividend Details and Payment Schedule

The company declared an ordinary dividend of 19 Australian cents per fully paid ordinary share, fully franked at the 30% corporate tax rate. This dividend covers the six-month period ending 30 June 2025. The record date to determine eligible shareholders is 2 October 2025, with an ex-dividend date of 1 October 2025. Payment is scheduled for 31 October 2025.

Importantly, no shareholder or regulatory approvals are required for this dividend, allowing for a smooth and timely distribution to investors.

Dividend Reinvestment and Bonus Security Plans

Cedar Woods continues to offer both a Dividend Reinvestment Plan and a Bonus Security Plan (BSP) for shareholders wishing to reinvest their dividends into new shares. Both plans will issue new securities at a 2.5% discount to a volume-weighted average price (VWAP) calculated over a period spanning two business days prior to and six business days after the record date.

The election deadline for participation in either plan is 17 October 2025 at 4 – 00pm. Notably, there are no minimum or maximum participation limits, and the new securities issued will rank equally with existing shares from the date of issue on 31 October 2025.

Market Implications and Investor Considerations

This update provides clarity and certainty for Cedar Woods shareholders as they consider their dividend options. The fully franked nature of the dividend enhances its attractiveness, particularly for investors seeking tax-effective income streams. Meanwhile, the DRP and BSP offer a cost-effective way to increase holdings at a slight discount, potentially appealing to long-term investors.

However, the final DRP price will only be announced after market close on 10 October 2025, introducing a short window of uncertainty for those weighing reinvestment decisions.