ANZ’s New DRP Discount Raises Questions on Future Dividend Strategy

ANZ’s Dividend Reinvestment Plan Update

ANZ Group Holdings Limited has notified its shareholders in Australia and New Zealand of a forthcoming 1.5% discount on the acquisition price for shares purchased under its Dividend Reinvestment Plan (DRP) and Bonus Option Plan (BOP) for the 2025 final dividend. This marks a notable change, as no discount has been applied to these plans in recent years.

The final dividend itself is expected to remain steady at 83 cents per share, franked at 70%, consistent with the first half of the year, though it remains subject to board approval and will be officially announced alongside ANZ’s full-year audited results on 10 November 2025.

What This Means for Shareholders

The introduction of a discount on the DRP and BOP acquisition price effectively offers shareholders a modest incentive to reinvest their dividends back into ANZ shares rather than taking cash. This discount reduces the effective purchase price of new shares, potentially enhancing long-term returns for those who choose to participate.

Participation in these plans remains voluntary and flexible, with shareholders able to commence, cease, or vary their involvement up until 5, 00pm AEDT on 17 November 2025. Importantly, shares allotted under these plans incur no brokerage or transaction fees, making them a cost-effective way to increase shareholdings.

Looking Ahead

While the current discount applies only to the 2025 final dividend, ANZ’s board will decide on discount policies for future dividends on a case-by-case basis, with announcements expected around the time of each dividend declaration. This cautious approach suggests the bank is balancing shareholder incentives with broader capital management considerations amid evolving market conditions.

Shareholders based in the United States, its territories, or Canada remain ineligible to participate in the DRP or BOP, reflecting regulatory constraints. Meanwhile, Australian resident shareholders are reminded to provide their tax details to avoid withholding on unfranked dividend components.

Overall, this update signals ANZ’s intent to maintain shareholder engagement through its dividend plans while subtly adjusting terms to reflect current strategic priorities.