Metcash Announces AUD 0.085 Fully Franked Dividend for H1 2025
Metcash Limited has announced a fully franked ordinary dividend of AUD 0.085 per share for the half-year ending October 2025, accompanied by a Dividend Reinvestment Plan offering shareholders a choice to reinvest without discount.
- Ordinary fully franked dividend of AUD 0.085 per share
- Dividend relates to six months ending 31 October 2025
- Ex-dividend date set for 12 December 2025
- Dividend payment scheduled for 28 January 2026
- Dividend Reinvestment Plan available with no discount
Metcash’s Dividend Announcement
Metcash Limited (ASX, MTS), a key player in Australia's wholesale distribution sector, has declared an ordinary dividend of AUD 0.085 per share, fully franked at the corporate tax rate of 30%. This dividend covers the six-month period ending 31 October 2025, reflecting the company’s ongoing commitment to returning value to shareholders.
The dividend will go ex-dividend on 12 December 2025, with the record date set for 15 December 2025. Shareholders on the register by this date will be eligible to receive the payment, which is scheduled for 28 January 2026. The fully franked status means investors will benefit from a tax credit, enhancing the effective yield on their investment.
Dividend Reinvestment Plan Details
Metcash also offers a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividend payments into additional shares rather than receiving cash. Notably, the DRP carries no discount, with shares issued at the volume weighted average price (VWAP) of Metcash shares traded on the ASX during the pricing period from 5 January to 16 January 2026.
The deadline for shareholders to elect participation in the DRP is 16 December 2025. Shares issued under the DRP will rank equally with existing shares from the issue date, ensuring reinvested dividends contribute fully to shareholder equity.
Implications and Market Context
This dividend announcement signals Metcash’s stable financial position and confidence in its cash flow generation. The fully franked nature of the dividend is particularly attractive to Australian investors seeking tax-efficient income. While the dividend amount is consistent with prior payments, the absence of a DRP discount may influence shareholder participation rates.
Investors will be watching closely for Metcash’s upcoming earnings results to assess the sustainability of dividend payments and the company’s broader growth trajectory in a competitive retail distribution environment.
Bottom Line?
Metcash’s steady dividend and DRP terms set the stage for investor decisions ahead of the new year.
Questions in the middle?
- Will Metcash maintain or increase dividend payouts in the next financial period?
- How will the lack of a DRP discount affect shareholder reinvestment participation?
- What do upcoming earnings indicate about Metcash’s cash flow and dividend sustainability?
