Macquarie’s Dividend Update Signals No New Shares Unless Market Shifts
Macquarie Group Limited has updated details for its interim dividend, confirming a fully franked payout of AUD 2.80 per share and setting the Dividend Reinvestment Plan price at AUD 195.34.
- Interim dividend of AUD 2.80 per share fully franked at 35%
- Dividend payment scheduled for 17 December 2025
- DRP price fixed at AUD 195.34 based on 8-day VWAP
- No new shares to be issued under DRP unless market purchases impractical
- DRP participation default is cash payment if no election made
Macquarie Confirms Interim Dividend Details
Macquarie Group Limited has provided an update to its interim dividend announcement, reinforcing its commitment to delivering shareholder returns with a fully franked dividend of AUD 2.80 per ordinary share. The dividend relates to the six-month period ending 30 September 2025 and will be paid on 17 December 2025, with a record date set for 18 November 2025.
Dividend Reinvestment Plan Pricing Set
Central to this update is the confirmation of the Dividend Reinvestment Plan (DRP) price, which has been fixed at AUD 195.34 per share. This price is calculated as the arithmetic average of the daily volume weighted average price (VWAP) of Macquarie shares traded on the ASX over eight trading days, from 24 November to 3 December 2025. This methodology aligns with the DRP rules and reflects recent market activity, providing a transparent and fair basis for reinvestment.
DRP Participation and Share Issuance
The DRP remains fully operational for this dividend, allowing shareholders to reinvest their dividends into additional Macquarie shares without any discount applied to the DRP price. Notably, the company does not intend to issue new shares for the DRP unless purchasing shares on the market becomes impractical or inadvisable. This approach helps manage dilution while maintaining flexibility in fulfilling reinvestment obligations.
Franking and Tax Considerations
The dividend is fully franked at a corporate tax rate of 35%, with AUD 0.98 of the dividend franked and AUD 1.82 unfranked but classified as conduit foreign income. This structure offers tax advantages to Australian resident shareholders, enhancing the after-tax yield of the dividend payment.
Looking Ahead
With no approvals required from shareholders or regulatory bodies for this dividend distribution, Macquarie is positioned to execute the payment smoothly. The update clarifies key details for investors considering their dividend reinvestment options and sets the stage for monitoring DRP participation rates and market reactions as the payment date approaches.
Bottom Line?
Macquarie’s clear DRP pricing and fully franked dividend underscore steady shareholder returns amid a stable market backdrop.
Questions in the middle?
- Will DRP participation rates meet or exceed previous interim dividends?
- How might the DRP pricing impact Macquarie’s share price in the short term?
- Could market conditions prompt Macquarie to issue new shares under the DRP?
