Kogan.com Declares 7 Cents Dividend with DRP Price Set at AUD 3.77
Kogan.com Ltd has announced a fully franked ordinary dividend of 7 cents per share for the six months ending June 2025, alongside details of its Dividend Reinvestment Plan pricing.
- Ordinary dividend of AUD 0.07 per share declared
- Dividend is 68.6% franked
- Dividend Reinvestment Plan (DRP) price set at AUD 3.77 per share
- DRP offers a 2.5% discount on the 5-day volume weighted average price
- DRP participation limited to shareholders in Australia and New Zealand
Dividend Announcement Overview
Kogan.com Ltd (ASX – KGN), a leading player in the Australian e-commerce sector, has confirmed an ordinary fully paid dividend of 7 cents per share for the six-month period ending 30 June 2025. The dividend is scheduled to be paid on 28 November 2025, with a record date set for 12 September 2025. This announcement updates the company’s previous dividend notification by specifying the Dividend Reinvestment Plan (DRP) price.
Franking and Dividend Details
The dividend is 68.6% franked, reflecting Kogan.com’s capacity to distribute profits with attached franking credits, which can be valuable for Australian shareholders seeking tax offsets. The unfranked portion stands at 31.4%, indicating a partial distribution of earnings not subject to Australian corporate tax.
Dividend Reinvestment Plan Pricing
Kogan.com’s DRP will apply to this dividend, allowing shareholders to reinvest their dividend payments into new shares rather than receiving cash. The DRP price has been set at AUD 3.77 per share, representing a 2.5% discount to the five-day volume weighted average price leading up to the record date. This discount is a common incentive to encourage participation in the DRP, potentially supporting the company’s capital base.
Participation Conditions and Market Implications
Participation in the DRP is limited to shareholders with registered addresses in Australia or New Zealand, excluding international investors from this option. The new shares issued under the DRP will rank equally with existing shares from the issue date, maintaining shareholder equity balance. Notably, no external approvals were required for the dividend payment, suggesting a straightforward distribution process.
Looking Ahead
This dividend announcement underscores Kogan.com’s ongoing commitment to returning value to shareholders while balancing capital management through the DRP. Investors will be watching closely to see how the market responds to the dividend and reinvestment plan, especially given the discount offered and the partial franking of the dividend.
Bottom Line?
Kogan.com’s dividend and DRP update sets the stage for shareholder returns and capital strategy into late 2025.
Questions in the middle?
- What level of shareholder participation will the DRP attract given the 2.5% discount?
- How will the partial franking impact investor demand and tax considerations?
- Could the DRP issuance influence Kogan.com’s share price performance post-dividend?
