Ryder Capital Raises Dividends 20%, Shifts to Quarterly Payouts in FY26
Ryder Capital Limited has announced a 20% increase in its annual dividend, moving to quarterly payments starting January 2026, enhancing income certainty for shareholders.
- Dividend increased to 12 cents per share annually, up 20% from FY25
- Quarterly dividends of 3 cents per share fully franked to commence in January 2026
- Dividend imputation crediting rate raised to 30% for FY26
- New policy aims to provide greater income visibility and certainty
- Ryder Capital reaffirms commitment to steady or growing fully franked dividends
Ryder Capital Enhances Dividend Policy
Ryder Capital Limited has taken a significant step to boost shareholder returns by announcing an updated dividend policy that not only increases the total dividend payout by 20% but also introduces quarterly dividend payments starting in FY26. This move marks a shift from the company’s previous dividend schedule, aiming to provide investors with more regular and predictable income streams.
The Board has resolved to pay dividends of 3 cents per share fully franked each quarter for the remaining three quarters of FY26, December, March, and June, resulting in an annualised dividend of 12 cents per share. This compares favorably to the 10 cents per share paid in FY25, reflecting Ryder’s confidence in its ongoing earnings and cash flow stability.
Increased Imputation Credits Signal Strong Tax Position
Alongside the dividend increase, Ryder Capital announced an uplift in its dividend imputation crediting rate from 25% to 30% for FY26. This adjustment follows the company exceeding the Australian Taxation Office’s base rate entity threshold in FY25, allowing shareholders to benefit from higher franking credits attached to their dividends. For investors, this means a more tax-efficient income stream, enhancing the overall attractiveness of Ryder’s shares.
Strategic Implications and Market Context
The decision to move to quarterly dividends aligns Ryder Capital with a growing trend among ASX-listed investment management firms seeking to provide shareholders with greater income certainty and more frequent returns. Quarterly payments can also help smooth investor cash flow expectations and potentially support the share price by demonstrating consistent profitability and cash generation.
While the announcement is positive, the company has not disclosed detailed financial metrics alongside the dividend update, leaving some questions about the sustainability of the increased payout and its impact on Ryder’s capital structure. Investors will be keen to review the upcoming FY25 financial results to assess the underlying earnings quality supporting this enhanced dividend policy.
Chairman Peter Constable emphasized Ryder’s commitment to delivering steady to increasing fully franked dividends, signaling confidence in the company’s future earnings trajectory and its ability to maintain shareholder-friendly distributions.
Bottom Line?
Ryder Capital’s dividend upgrade and quarterly payout schedule set a new standard for shareholder income, but sustainability will be closely watched.
Questions in the middle?
- What financial metrics underpin Ryder Capital’s ability to sustain the increased dividend?
- How will the shift to quarterly dividends affect Ryder’s cash flow management and capital allocation?
- Will the market respond positively to the enhanced dividend policy in terms of share price performance?
