Bendigo and Adelaide Bank Confirms Fully Franked AUD 0.33 Dividend for FY2025

Dividend Update and Context

Bendigo and Adelaide Bank Limited (ASX, BEN) has issued an update to its previously announced dividend details for the financial period ending 30 June 2025. The bank confirmed an ordinary dividend of AUD 0.33 per fully paid ordinary share, fully franked at the corporate tax rate of 30%. This dividend is scheduled for payment on 30 September 2025, with a record date set for 3 September 2025, and an ex-dividend date of 2 September 2025.

Dividend Reinvestment Plan Clarifications

Alongside the dividend announcement, Bendigo and Adelaide Bank provided further details on its Dividend Reinvestment Plan (DRP). Notably, the DRP will apply to this dividend with no discount offered on the reinvestment price, which has been calculated as an average share price of AUD 12.73 over a ten trading day period commencing 9 September 2025. Importantly, the shares to satisfy the DRP will not be newly issued but instead purchased by a third party, a detail that can influence the bank’s capital management strategy and shareholder dilution considerations.

Participation and Market Implications

The bank expects approximately 12.51% of its fully paid ordinary shares to participate in the DRP for this dividend. This participation rate reflects shareholder appetite for reinvestment versus cash dividends and may provide insight into investor confidence in the bank’s prospects. The absence of a discount on the DRP price suggests the bank is aiming to balance shareholder returns with prudent capital management.

Broader Significance

This update follows a previous announcement in August 2025 and serves to clarify key details around dividend payment and reinvestment mechanisms. For investors, the fully franked nature of the dividend is attractive, offering tax credits that enhance the effective yield. Meanwhile, the DRP structure indicates a measured approach to capital allocation, avoiding dilution while providing shareholders with reinvestment flexibility.

Overall, Bendigo and Adelaide Bank’s dividend update underscores its commitment to delivering shareholder value through consistent income streams while maintaining capital discipline in a competitive banking sector.