Macquarie Sets 5.62% Annualised Distribution Rate for December Payment

Macquarie Group’s Latest Dividend Announcement

Macquarie Group Limited has declared an ordinary dividend distribution of AUD 1.4003 per security for its capital note series identified as CAP NOTE 3-BBSW+2.90% PERP NON-CUM RED T-09-27. This announcement, made on November 7, 2025, confirms the company’s ongoing commitment to providing steady income streams to holders of its hybrid securities.

Details of the Distribution

The dividend relates to a quarterly period ending December 17, 2025, with an ex-dividend date set for December 2 and a record date on December 3. The payment will be made on December 18, 2025. Notably, the dividend is partly franked at 35%, reflecting Macquarie’s tax credit arrangements, which can be an important consideration for Australian investors seeking to maximise after-tax returns.

How the Dividend Rate is Calculated

The distribution rate for this period stands at an annualised 5.6164%, derived from the 90-day Bank Bill Swap Rate (BBSW) at the start of the payment period plus a fixed margin of 2.90%. This rate is then adjusted for franking credits, which effectively reduces the gross yield to reflect the tax benefits passed on to investors. The calculation methodology is standard for this type of perpetual capital note, balancing market interest rate movements with fixed premium returns.

Investor Implications and Market Context

For investors, this dividend announcement reinforces Macquarie’s stable income profile amid a complex interest rate environment. The partly franked nature of the dividend adds an additional layer of tax efficiency, which may appeal to income-focused portfolios. While the distribution rate is competitive, it also reflects the hybrid security’s risk profile, including its perpetual and non-cumulative features.

Overall, Macquarie’s announcement aligns with market expectations and provides clarity on income flows for holders of these capital notes heading into the final quarter of 2025.