Wesfarmers Sets December Payout: $0.40 Dividend Fully Franked, $1.10 Capital Return
Wesfarmers has updated details on its 2025 special dividend, confirming a fully franked payout of $0.40 per share alongside a $1.10 capital return, both payable in December following shareholder approval.
- Special dividend of AUD 0.40 per share fully franked
- Capital return of AUD 1.10 per share approved at 2025 AGM
- Dividend and capital return payable on 4 December 2025
- Dividend Investment Plan available for special dividend only
- Dividend payments offered in AUD, NZD, or GBP currencies
Wesfarmers Updates Dividend Details
Wesfarmers Limited has provided an update to its earlier announcement regarding the special dividend component of its 2025 capital management initiative. The company confirmed a special dividend of 40 cents per share, fully franked, payable on 4 December 2025. This payment is contingent on shareholder approval of the capital return component at the recent Annual General Meeting held on 30 October 2025.
The capital return itself, approved by shareholders, amounts to $1.10 per share and will be paid on the same date as the special dividend. This dual payment structure reflects Wesfarmers’ ongoing commitment to returning value to shareholders through a combination of income and capital distribution.
Dividend Investment Plan and Currency Options
Eligible shareholders can participate in the Wesfarmers Dividend Investment Plan (DIP) for the special dividend portion, allowing them to reinvest their dividend payments into additional shares without any discount. Notably, the capital return component is excluded from the DIP, meaning it will be paid solely in cash.
Wesfarmers also offers flexibility in dividend payment currencies. Shareholders may elect to receive their dividends in Australian Dollars (AUD), New Zealand Dollars (NZD), or British Pounds Sterling (GBP), depending on their preference and banking arrangements. This multi-currency option caters to the company’s diverse shareholder base across Australia, New Zealand, and the United Kingdom.
Additional Details and Market Implications
The update clarifies that the default option for shareholders who do not elect to participate in the DIP is a cash payment. The dividend reinvestment price will be calculated based on the volume weighted average price of Wesfarmers shares over a seven-day trading period in November, with no discount applied.
For shares issued under the Key Executive Equity Performance Plan (KEEPP), payment of dividends will be deferred until the shares vest and are quoted, reflecting standard executive remuneration arrangements.
This announcement reinforces Wesfarmers’ strategic approach to capital management, balancing shareholder returns with financial discipline. Investors will be watching closely how the market responds to the combined impact of the special dividend and capital return on the company’s share price and balance sheet.
Bottom Line?
Wesfarmers’ dual payout strategy signals a robust capital return plan, but investor uptake of the reinvestment plan will be key to watch.
Questions in the middle?
- How will the market react to the combined special dividend and capital return on payment day?
- What proportion of shareholders will elect to participate in the Dividend Investment Plan?
- Could the capital return impact Wesfarmers’ future investment or acquisition strategies?
