Turners Automotive Declares Fully Franked Dividend with DRP Incentive
Turners Automotive Group Limited has announced a fully franked ordinary dividend for the quarter ending June 2025, accompanied by a dividend reinvestment plan offering a 2% discount.
- Ordinary dividend of NZD 0.08235 per share declared
- Dividend fully franked at 100%, with supplementary unfranked component
- Dividend reinvestment plan (DRP) available with 2% discount
- Key dates – ex-dividend on 13 October, record date 14 October, payment on 30 October
- New shares issued under DRP will rank pari passu with existing shares
Dividend Announcement Overview
Turners Automotive Group Limited (ASX, TRA) has confirmed its ordinary dividend payment for the quarter ending 30 June 2025. The company will distribute NZD 0.08235294 per share, reflecting a fully franked dividend component of NZD 0.07 and a supplementary unfranked dividend of NZD 0.01235294. This dividend underscores Turners’ ongoing commitment to delivering shareholder returns amid a competitive automotive retail environment.
Franking and Tax Implications
The ordinary dividend is fully franked at 100%, meaning shareholders benefit from imputation credits that offset New Zealand corporate tax paid by the company. The supplementary dividend, however, is unfranked, which is typical for foreign-exempt securities and may have different tax implications for investors depending on their jurisdiction.
Dividend Reinvestment Plan Details
Turners is offering shareholders the option to participate in a Dividend Reinvestment Plan (DRP), which allows dividends to be reinvested in new shares at a 2% discount to the volume-weighted average price on the NZX over a five-day period starting on the ex-dividend date. This DRP is fully optional, with the default being cash payment if no election is made. Importantly, shares issued under the DRP will rank equally with existing shares, preserving shareholder rights and voting power.
Key Dates and Market Impact
The ex-dividend date is set for 13 October 2025, with the record date following on 14 October. Payment of the dividend will occur on 30 October 2025. These dates are critical for investors to determine eligibility for the dividend and to make informed decisions about participation in the DRP. The announcement is unlikely to surprise the market, given Turners’ consistent dividend policy, but the DRP discount could encourage reinvestment and support share price stability.
Looking Ahead
While the dividend announcement reflects steady financial health, investors will be watching closely for Turners’ upcoming earnings reports and any commentary on future dividend sustainability. The balance between franked and unfranked components also invites scrutiny regarding the company’s tax positioning and cash flow management.
Bottom Line?
Turners’ fully franked dividend and attractive DRP offer set the stage for steady shareholder returns, but future earnings will be key to sustaining this momentum.
Questions in the middle?
- Will Turners maintain or increase dividend payouts in upcoming quarters?
- How will the supplementary unfranked dividend affect investor tax outcomes?
- What impact will the DRP participation rate have on Turners’ capital structure?
