New Hope Declares Fully Franked AUD 0.15 Final Dividend for FY2025

Dividend Announcement Overview

New Hope Corporation Limited (ASX, NHC), a key player in the coal mining sector, has declared its ordinary final dividend for the financial year ending 31 July 2025. The company will pay a fully franked dividend of AUD 0.15 per ordinary share, reflecting a commitment to returning value to shareholders amid a challenging commodities environment.

The dividend is fully franked, meaning it carries a 30% corporate tax credit, which can be particularly attractive to Australian investors seeking tax-effective income. The ex-dividend date is set for 22 September 2025, with the record date following on 23 September 2025. Shareholders on the register by this date will be eligible to receive the dividend payment scheduled for 8 October 2025.

Dividend Reinvestment Plan Details

New Hope also offers a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividend payments into new shares rather than receiving cash. Notably, the DRP carries no discount on the share price, which is calculated as the average volume weighted average price (VWAP) of shares traded on the ASX between 25 September and 1 October 2025. This approach ensures fairness and transparency in pricing for participating shareholders.

The DRP shares will be newly issued and rank equally with existing shares from the date of issue, maintaining shareholder equity without dilution concerns. Shareholders must elect to participate by 24 September 2025, with the default option being cash payment for those who do not make an election.

Context and Market Implications

This dividend announcement signals New Hope’s stable financial footing and confidence in its ongoing operations despite the volatility often seen in the coal mining sector. The fully franked nature of the dividend underscores the company’s profitability and tax position, which may appeal to income-focused investors.

While the dividend amount itself is modest, the availability of a DRP without a discount might influence shareholder participation rates, potentially impacting the company’s capital structure and share liquidity. Investors will be watching closely to see how the market responds to this balanced approach to shareholder returns and capital management.