Monadelphous Sets DRP Price at AUD 21.49 for Fully Franked Dividend
Monadelphous Group Limited has updated its dividend announcement, confirming a fully franked ordinary dividend of AUD 0.39 per share and setting the Dividend Reinvestment Plan price at AUD 21.49. The dividend relates to the six months ending June 2025, with payments scheduled for late September.
- Ordinary fully franked dividend of AUD 0.39 per share declared
- Dividend relates to six months ending 30 June 2025
- Record date set for 4 September 2025, payment on 25 September 2025
- Dividend Reinvestment Plan (DRP) price fixed at AUD 21.49 per share
- New shares to be issued under DRP with no discount applied
Dividend Details Confirmed
Monadelphous Group Limited (ASX, MND), a key player in the engineering and construction sector, has provided an update to its dividend distribution announcement. The company confirmed an ordinary dividend of AUD 0.39 per fully paid share, which is fully franked, reflecting the corporate tax rate of 30%. This dividend relates to the financial period ending 30 June 2025.
The record date for shareholders eligible to receive this dividend was set for 4 September 2025, with the ex-dividend date on 3 September 2025. Payment of the dividend is scheduled for 25 September 2025, ensuring timely returns to investors.
Dividend Reinvestment Plan Price Set
In addition to the cash dividend, Monadelphous has announced the Dividend Reinvestment Plan (DRP) price at AUD 21.49 per share. This price was calculated as the arithmetic average of the daily volume weighted average market price over a 10 trading day period starting on 8 September 2025, shortly after the record date.
The DRP is fully applicable to this dividend, allowing shareholders to reinvest their dividends into new shares rather than receiving cash. Notably, there is no discount applied to the DRP price, and new shares issued under the plan will rank equally with existing shares from the date of issue.
Implications for Shareholders and Market
Monadelphous’ decision to maintain a fully franked dividend signals confidence in its earnings and cash flow stability. The absence of a discount on the DRP price suggests a balanced approach to capital management, aiming to preserve shareholder value while supporting the company’s capital structure.
For investors, participation in the DRP offers a convenient way to compound their investment without incurring brokerage fees, though the default option remains cash payment for those who do not elect to participate. The upcoming issuance of new shares under the DRP will slightly increase the company’s share capital, a factor to watch in terms of potential dilution.
Overall, this update reinforces Monadelphous’ commitment to returning value to shareholders while maintaining financial discipline amid ongoing market conditions.
Bottom Line?
Monadelphous’ clear dividend and DRP terms set the stage for shareholder returns and capital strategy through late 2025.
Questions in the middle?
- What level of shareholder participation will the DRP attract given no discount is offered?
- How will the new share issuance under the DRP impact Monadelphous’ share price and capital structure?
- Will Monadelphous maintain this dividend level and franking status in future periods amid market uncertainties?
