Woolworths Sets Dividend at 45c Per Share with DRP Price of $27.78
Woolworths Group Limited has updated its dividend details, confirming a fully franked 45 cent per share payout for the first half of FY25 and setting the Dividend Reinvestment Plan price at $27.78.
- Ordinary fully franked dividend of AUD 0.45 per share
- Dividend record date set for 3 September 2025
- Dividend payment scheduled for 26 September 2025
- Dividend Reinvestment Plan (DRP) price updated to AUD 27.78 with no discount
- Shareholders outside Australia and New Zealand excluded from DRP participation
Dividend Update and Payment Details
Woolworths Group Limited has confirmed an ordinary dividend of 45 cents per share, fully franked at the 30% corporate tax rate, for the six months ending 29 June 2025. The dividend record date is set for 3 September 2025, with payments to be made on 26 September 2025. This update follows a previous announcement made in late August, refining the details around the dividend and its reinvestment plan.
Dividend Reinvestment Plan Price Adjustment
The company has also updated the Dividend Reinvestment Plan (DRP) price to AUD 27.78 per share, calculated as the average daily volume weighted average price over a ten trading day period from 5 to 18 September 2025. Notably, there is no discount applied to the DRP price, which means shareholders opting to reinvest their dividends will do so at market value rather than at a reduced rate.
Participation Conditions and Geographic Restrictions
Woolworths has confirmed that the DRP will be a full plan, allowing shareholders to reinvest their entire dividend if they choose. However, shareholders with registered addresses outside Australia and New Zealand are excluded from participating in the DRP. This geographic restriction is consistent with regulatory and administrative considerations but may disappoint offshore investors seeking to reinvest dividends directly.
No Additional Approvals Required
The dividend payment does not require any external approvals such as security holder, court, or regulatory consents, indicating a straightforward distribution process. This clarity should reassure investors about the timely receipt of their dividends and the company’s confidence in its financial position.
Implications for Investors
For income-focused investors, the fully franked dividend maintains Woolworths’ reputation as a reliable dividend payer within the consumer staples sector. The absence of a DRP discount may influence some shareholders’ decisions on whether to take dividends in cash or reinvest. Meanwhile, the exclusion of offshore shareholders from the DRP could impact the reinvestment dynamics for international investors.
Bottom Line?
Woolworths’ steady dividend and clear DRP terms set the stage for investor confidence as FY25 progresses.
Questions in the middle?
- Will Woolworths maintain or increase dividend payouts in the second half of FY25?
- How will the lack of a DRP discount affect shareholder reinvestment participation rates?
- What are the strategic reasons behind excluding offshore shareholders from the DRP?