AUI Sets DRP Price at AUD 11.35, Declares Fully Franked Total Dividend of AUD 0.28

Dividend Update and DRP Details

Australian United Investment Company Limited (AUI) has provided an important update to its recent dividend distribution announcement, specifying the issue price for its Dividend Reinvestment Plan (DRP). This update follows the initial dividend notification released on 21 August 2025 and clarifies key details for shareholders considering reinvestment options.

The company declared a total dividend of AUD 0.28 per share for the six-month period ending 30 June 2025. This total comprises an ordinary dividend of AUD 0.20 per share and a special dividend of AUD 0.08 per share, both fully franked at the corporate tax rate of 30%. The full franking status ensures shareholders receive the benefit of tax credits, enhancing the effective yield on their investment.

DRP Pricing and Participation Conditions

Crucially, AUI has set the DRP issue price at AUD 11.3494 per share, calculated as the volume weighted average price of shares traded on the ASX over the five trading days commencing from the ex-dividend date, without any discount. This transparent pricing methodology aligns with market norms and provides shareholders a fair basis to reinvest dividends into additional shares.

The DRP is fully available to eligible shareholders, with no minimum or maximum participation limits. However, participation is restricted to residents of Australia, New Zealand, and the Norfolk Islands, reflecting regulatory and administrative considerations. Shareholders who do not elect to participate will receive their dividends in cash. The deadline for DRP election was 1 September 2025, with the dividend payment and DRP share issue scheduled for 19 September 2025.

Implications for Investors

This update provides clarity for investors assessing income and reinvestment strategies. The combination of a fully franked dividend and a DRP priced close to market levels offers a balanced approach to income generation and capital growth. The special dividend component adds an extra layer of return for shareholders, signaling the company’s confidence in its financial position.

Investors should note the geographic restrictions on DRP participation, which may affect some holders’ ability to reinvest. Additionally, the absence of a discount on the DRP shares suggests the company is prioritizing fairness and market alignment over incentivizing reinvestment through price concessions.