No DRP Discount: What Suncorp’s Dividend Update Means for Investors
Suncorp Group Limited has updated its dividend details for the first half of FY2025, confirming a fully franked dividend of 49 cents per share and revising the Dividend Reinvestment Plan price to $21.17.
- Ordinary fully franked dividend of AUD 0.49 per share
- Dividend payable on 24 September 2025
- Dividend Reinvestment Plan (DRP) price set at AUD 21.17 with no discount
- Dividend payments in AUD or NZD based on shareholder banking instructions
- DRP participation limited to shareholders in Australia, New Zealand, UK, and Hong Kong
Dividend Update and Payment Details
Suncorp Group Limited has provided an update to its dividend distribution for the six-month period ending 30 June 2025. The company confirmed an ordinary dividend of 49 cents per fully paid ordinary share, which is fully franked, reflecting the company’s ongoing profitability and commitment to returning value to shareholders. The dividend will be paid on 24 September 2025, with the record date set on 20 August 2025 and the ex-dividend date on 19 August 2025.
Dividend Reinvestment Plan (DRP) Pricing and Participation
Alongside the dividend announcement, Suncorp updated the price for its Dividend Reinvestment Plan (DRP) to AUD 21.17 per share. Notably, there is no discount applied to the DRP price, which is calculated based on the volume weighted average price over a defined period. Shareholders who elect to participate in the DRP will have their dividends reinvested at this price rather than receiving a cash payment. The DRP is open to shareholders with registered addresses in Australia, New Zealand, the United Kingdom, and Hong Kong, ensuring broad participation across key markets.
Currency and Payment Arrangements
Suncorp has clarified its currency arrangements for dividend payments. Shareholders with Australian bank accounts will receive payments in Australian dollars, while those with New Zealand bank accounts will receive payments in New Zealand dollars. For shareholders without specified banking instructions, payments will be withheld in the relevant currency based on their registered address. The NZD payments are converted at a fixed exchange rate of AUD/NZD 1.1054, set by the Reserve Bank of Australia as of 20 August 2025. This dual-currency approach reflects Suncorp’s recognition of its shareholder base’s geographic diversity.
Implications for Investors
The fully franked nature of the dividend means shareholders can benefit from franking credits, which may reduce their overall tax liability depending on their jurisdiction. The absence of a discount on the DRP price suggests Suncorp is maintaining a conservative approach to capital management, balancing shareholder returns with the need to preserve capital. Investors will be watching closely how this dividend fits into Suncorp’s broader financial strategy amid ongoing economic uncertainties.
Bottom Line?
Suncorp’s dividend update reinforces steady shareholder returns while setting a clear framework for reinvestment options.
Questions in the middle?
- Will Suncorp maintain this dividend level in the second half of FY2025 amid economic pressures?
- How will currency fluctuations impact the actual dividend received by New Zealand shareholders?
- What is the potential impact of no DRP discount on shareholder participation rates?
