Wesfarmers Unveils $0.40 Special Dividend with Multi-Currency Payment Choices
Wesfarmers updates details on its 2025 special dividend, confirming a fully franked payout of 40 cents per share with multiple currency payment options. The dividend is part of a broader capital management initiative approved at the recent AGM.
- Special dividend of AUD 0.40 per share fully franked
- Dividend payable on 4 December 2025, contingent on AGM-approved capital return
- Capital return component of $1.10 also payable on 4 December
- Shareholders can elect dividend payment in AUD, NZD, or GBP
- Dividend Investment Plan participation available for dividend but not capital return
Context of the Dividend Announcement
Wesfarmers Limited has provided an update to its earlier announcement regarding the special dividend component of its 2025 capital management initiative. The special dividend, set at 40 cents per share and fully franked, will be paid on 4 December 2025. This payment is contingent upon shareholder approval of the capital return component, which was secured at the company’s Annual General Meeting held on 30 October 2025.
Details of the Capital Return and Dividend
Alongside the special dividend, Wesfarmers will return capital to shareholders at a rate of $1.10 per share, also payable on 4 December. This capital return is separate from the dividend and does not carry franking credits. The company has clarified that while shareholders may participate in the Dividend Investment Plan (DIP) for the dividend component, this option does not extend to the capital return.
Currency Payment Options and Shareholder Flexibility
In a notable update, Wesfarmers has expanded its currency payment arrangements. Shareholders can receive their dividend payments in Australian Dollars (AUD), New Zealand Dollars (NZD), or Pound Sterling (GBP), regardless of their registered address, by nominating a bank account in their preferred currency. The company has provided specific exchange rates for NZD and GBP payments, ensuring transparency. Shareholders without a nominated valid bank account outside these regions will receive their dividends via AUD cheque.
Dividend Reinvestment Plan and Executive Share Considerations
The Dividend Reinvestment Plan (DRP) remains available for the special dividend, with no discount applied to reinvested shares. However, participation is limited to shareholders with registered addresses in Australia and New Zealand. Additionally, payments related to unquoted shares issued under the Key Executive Equity Performance Plan (KEEPP) will be deferred until those shares vest and are quoted, introducing some timing uncertainty for affected executives.
Implications for Investors
This update provides Wesfarmers shareholders with clarity on the timing, amount, and currency flexibility of their upcoming special dividend and capital return. The fully franked nature of the dividend enhances its attractiveness, particularly for Australian investors seeking tax-effective income. The multi-currency payment option reflects Wesfarmers’ recognition of its diverse shareholder base and global reach.
Bottom Line?
Wesfarmers’ clear dividend and capital return framework sets the stage for investor decisions ahead of the December payment date.
Questions in the middle?
- How will shareholder uptake of the Dividend Investment Plan influence Wesfarmers’ capital structure?
- What impact might currency election choices have on foreign investor participation?
- Will the deferred payment timing for KEEPP shares affect executive retention or market perception?
