Bluescope Steel has announced a special unfranked dividend of AUD 1.00 per share, payable in late February 2026, signaling a notable return to shareholders outside its regular dividend schedule.
- Special unfranked dividend of AUD 1.00 per share
- Ex-dividend date set for 20 January 2026
- Record date on 21 January 2026
- Payment scheduled for 24 February 2026
- Dividend Reinvestment Plan not applicable to this distribution
Bluescope Steel’s Special Dividend Announcement
Bluescope Steel Limited (ASX, BSL) has declared a special dividend of AUD 1.00 per ordinary share, to be paid on 24 February 2026. This dividend is unfranked, meaning it does not carry any franking credits for Australian tax purposes. The ex-dividend date is set for 20 January 2026, with the record date following on 21 January 2026.
Context and Implications
Special dividends are typically one-off payments made outside the company’s regular dividend schedule, often reflecting excess cash reserves or proceeds from asset sales. Bluescope’s decision to issue an unfranked special dividend suggests the payment is funded from profits that have not been taxed in Australia or from other non-franked sources.
Importantly, the company has confirmed that no external approvals were required for this dividend, indicating a straightforward internal decision. Additionally, Bluescope’s Dividend Reinvestment Plan (DRP) will not apply to this special dividend, so shareholders will receive the payment in cash rather than having the option to reinvest in additional shares.
Market and Shareholder Considerations
The announcement is likely to attract attention from investors seeking income, especially given the AUD 1.00 per share payout, which is a meaningful sum relative to typical dividends in the steel sector. However, the absence of franking credits may influence the after-tax return for Australian shareholders.
Share price movements around the ex-dividend date will be closely watched, as the market adjusts for the dividend payout. The company has not provided details on the source of funds or any changes to its ongoing dividend policy, leaving some questions about future shareholder returns.
Looking Ahead
Investors will be keen to see if Bluescope Steel follows this special dividend with further distributions or if this is a one-off event reflecting a particular financial circumstance. The payment date of 24 February 2026 will be a key date for shareholders expecting the cash return.
Bottom Line?
Bluescope’s special dividend offers a clear cash return now, but leaves open questions about its future payout strategy.
Questions in the middle?
- What is the source of funds for this unfranked special dividend?
- Will Bluescope Steel maintain or increase regular dividends following this payment?
- How will the market react to the ex-dividend date given the unfranked nature of the payout?