No DRP Discount: What It Means for Laserbond Shareholders’ Returns
Laserbond Limited has confirmed its fully franked ordinary dividend for the six months ending June 2025 and announced the Dividend Reinvestment Plan price, offering shareholders a clear picture of returns and reinvestment options.
- Ordinary fully franked dividend of AUD 0.008 per share
- Dividend payable on 26 September 2025
- Dividend Reinvestment Plan (DRP) price set at AUD 0.50610 with no discount
- Full participation in DRP with new shares to be issued
- Record date set for 5 September 2025
Dividend Details Confirmed
Laserbond Limited (ASX, LBL), a player in the industrial manufacturing sector, has confirmed the details of its ordinary dividend for the first half of the 2025 financial year. Shareholders will receive a fully franked dividend of 0.8 cents per share, reflecting the company’s ongoing commitment to returning value to investors. The dividend relates to the six-month period ending 30 June 2025, with a payment date scheduled for 26 September 2025.
Dividend Reinvestment Plan Price Set
Alongside the dividend announcement, Laserbond has confirmed the Dividend Reinvestment Plan (DRP) price at AUD 0.50610 per share. Notably, there is no discount applied to the DRP price, which is calculated as the arithmetic average of the daily volume-weighted average market price over a specified period. This approach ensures transparency and fairness for shareholders choosing to reinvest dividends into new shares.
Participation and Share Issuance
The company offers full participation in the DRP, with new shares to be issued rather than sourced from existing holdings. Shareholders who do not actively elect to participate will receive their dividend in cash by default. There are no minimum or maximum limits on participation, and shares issued under the DRP will rank equally with existing shares from the date of issue.
Implications for Investors
This update provides clarity for Laserbond investors on the expected income from their holdings and the option to compound their investment through the DRP. The fully franked nature of the dividend means shareholders benefit from franking credits, which can be particularly advantageous for Australian taxpayers. However, the absence of a DRP discount may influence the attractiveness of reinvestment for some.
Looking Ahead
As the payment date approaches, market participants will be watching for any shifts in shareholder participation in the DRP and how the share price responds post-dividend. Laserbond’s steady dividend policy underscores its financial stability, but investors will be keen to see if this trend continues into the full year and beyond.
Bottom Line?
Laserbond’s confirmed dividend and DRP pricing set a steady tone, but investor appetite for reinvestment without a discount remains to be seen.
Questions in the middle?
- Will Laserbond maintain or increase its dividend in the second half of FY2025?
- How will the market react to the DRP price set with no discount?
- What proportion of shareholders will opt into the DRP versus taking cash dividends?
