Lindsay Australia Sets DRP Price, Confirms Fully Franked Dividend
Lindsay Australia Limited has updated its dividend announcement to include the Dividend Reinvestment Plan (DRP) price at a 5% discount, confirming a fully franked ordinary dividend for the six months ending June 2025.
- Ordinary fully franked dividend of AUD 0.015 per share
- Dividend relates to six months ending 30 June 2025
- Record date set for 30 September 2025, payment on 10 October 2025
- DRP reinvestment price fixed at AUD 0.62 with a 5% discount
- New shares to be issued under the DRP with no minimum or maximum participation limits
Dividend Details Confirmed
Lindsay Australia Limited (ASX, LAU) has provided an update to its dividend distribution announcement, finalising key details for shareholders ahead of the upcoming payment. The company declared an ordinary dividend of 1.5 cents per share, fully franked at the 30% corporate tax rate, reflecting earnings for the six months ending 30 June 2025. This dividend will be payable on 10 October 2025 to shareholders on record as of 30 September 2025.
Dividend Reinvestment Plan Price Set
In a notable update, Lindsay Australia disclosed the Dividend Reinvestment Plan (DRP) reinvestment price, set at AUD 0.62 per share. This price is calculated as the weighted average market price over the five trading days leading up to and including the record date, with a 5% discount applied to incentivize participation. Shareholders opting into the DRP will receive new shares issued by the company rather than a cash dividend, allowing them to compound their investment.
Participation and Market Impact
The DRP is fully optional, with the default for shareholders who do not elect participation being a cash payment of the dividend. Importantly, there are no minimum or maximum limits on participation, making it accessible to all shareholders regardless of their holding size. The issuance of new shares under the DRP will increase the company’s share capital, potentially diluting existing holdings depending on uptake rates.
Strategic Implications
This update provides clarity for investors evaluating income returns and capital growth opportunities with Lindsay Australia. The fully franked nature of the dividend enhances its attractiveness, particularly for Australian investors seeking tax-effective income. Meanwhile, the DRP discount and issuance of new shares could support liquidity and shareholder engagement, though the ultimate impact will hinge on participation levels.
Looking Ahead
As the record date approaches, market participants will be watching closely to see how shareholders respond to the DRP offer. The balance between cash dividend takers and reinvestors will influence Lindsay Australia’s capital structure and potentially its share price dynamics in the near term.
Bottom Line?
Lindsay Australia’s dividend update sets the stage for shareholder decisions that could reshape its capital base and investor returns.
Questions in the middle?
- What proportion of shareholders will elect to participate in the DRP versus taking cash?
- How might the issuance of new shares under the DRP affect Lindsay Australia’s share price and liquidity?
- Will future dividends maintain full franking and similar DRP terms amid evolving market conditions?
