Ramsay Health Care Confirms Fully Franked Dividend on CARES Securities

Dividend Confirmation and Background

Ramsay Health Care Limited has updated the market to confirm the payment of an ordinary dividend on its Convertible Adjustable Rate Equity Securities (CARES). This announcement follows an earlier conditional statement from April 2025, which hinged on the Board resolving to pay the dividend in accordance with the original CARES terms outlined in the 2005 prospectus.

The condition has now been satisfied, allowing Ramsay Health Care to proceed with the dividend payment scheduled for 20 October 2025. This dividend relates to a six-month period ending 19 October 2025 and is fully franked, reflecting the company’s confidence in its ongoing profitability and tax position.

Dividend Details and Calculation

The dividend amount is AUD 3.0748 per security, fully franked at the prevailing corporate tax rate of 30%. The record date for entitlement is set for 29 September 2025, with an ex-dividend date of 26 September 2025. The dividend rate is calculated based on the 180-day Bank Bill Swap Rate (BBSW) observed on 22 April 2025, plus a margin of 4.85%, adjusted for tax considerations.

This rate structure reflects the stepped-up margin announced back in 2010, ensuring that investors receive a stable and predictable income stream from these perpetual preference securities. The dividend payment is subject to certain approvals, which have now been met, though the exact nature of one approval labeled as 'Other' remains unspecified.

Implications for Investors and Market

For investors holding Ramsay Health Care’s CARES securities, this update provides clarity and reassurance regarding income expectations. The fully franked nature of the dividend enhances its attractiveness, particularly for Australian investors seeking tax-efficient returns. It also signals the company’s ongoing commitment to rewarding holders of these hybrid securities despite the complex conditions attached to their issuance.

Market watchers will note that the dividend rate’s linkage to the BBSW plus margin means it will fluctuate with market interest rates, offering some protection against rising rates but also exposing holders to variability. The confirmation of payment after the conditional period may also influence secondary market pricing of these securities.

Looking Ahead

While this announcement closes the chapter on the conditional dividend payment for this period, investors will be keen to monitor Ramsay Health Care’s future dividend policies and any potential changes to CARES terms. The company’s ability to maintain these payments amid evolving market and regulatory conditions will remain a key focus.