Pinnacle’s No-Discount DRP Raises Questions on Shareholder Participation
Pinnacle Investment Management Group Limited has announced a fully franked ordinary dividend of AUD 0.29 per share for the half-year ending December 2025, with a dividend reinvestment plan available to shareholders.
- Ordinary dividend of AUD 0.29 per share declared
- Dividend is 80% franked, reflecting strong tax credits
- Dividend payment scheduled for 20 March 2026
- Dividend Reinvestment Plan (DRP) offered with no discount
- Currency payment options include AUD and NZD depending on shareholder location
Dividend Announcement Details
Pinnacle Investment Management Group Limited (ASX – PNI) has declared an ordinary dividend of AUD 0.29 per fully paid ordinary share for the six-month period ending 31 December 2025. This dividend is 80% franked, meaning shareholders will benefit from a significant franking credit reflecting the company’s tax payments. The ex-dividend date is set for 2 March 2026, with the record date following on 3 March 2026. Payment to shareholders will be made on 20 March 2026.
Dividend Reinvestment Plan and Currency Options
Shareholders have the option to participate in Pinnacle’s Dividend Reinvestment Plan (DRP), which allows them to reinvest their dividends into additional shares rather than receiving cash. Notably, the DRP is offered with no discount on the share price, and the reinvestment price will be calculated based on the volume weighted average price between 9 and 13 March 2026. The deadline for DRP election is 13 March 2026.
In a nod to its shareholder base across Australia and New Zealand, Pinnacle offers dividend payments in both Australian dollars (AUD) and New Zealand dollars (NZD). Shareholders with New Zealand bank accounts or addresses will receive payments in NZD, converted from AUD prior to the payment date. Shareholders can also elect their preferred currency by 3 March 2026, providing flexibility in managing their income streams.
Implications for Investors
The declaration of an 80% franked dividend at AUD 0.29 per share signals Pinnacle’s ongoing commitment to delivering shareholder returns while maintaining a strong tax position. The availability of the DRP without a discount suggests the company is encouraging long-term investment and shareholder loyalty. Additionally, the currency options reflect Pinnacle’s recognition of its trans-Tasman investor base, potentially enhancing appeal to New Zealand investors.
Investors will be watching closely to see the uptake of the DRP and how the dividend yield compares with peers in the asset management sector. The absence of a discount on the DRP shares may influence participation rates, while the franked component supports tax-effective income strategies.
Bottom Line?
Pinnacle’s dividend announcement reinforces steady income returns with shareholder-friendly reinvestment options, setting the stage for investor decisions ahead of the payment date.
Questions in the middle?
- What will be the uptake rate of the Dividend Reinvestment Plan given the absence of a discount?
- How will currency fluctuations between AUD and NZD impact the effective dividend received by New Zealand shareholders?
- Will Pinnacle maintain or adjust its dividend policy in response to market conditions in the upcoming financial periods?
