Australian Foundation Investment Company Limited has updated its interim and special dividend details, including foreign currency exchange rates and pricing for its Dividend Reinvestment and Substitution Share Plans.
- Interim dividend of AUD 0.12 per share fully franked
- Special dividend of AUD 0.025 per share fully franked
- Dividends payable in AUD, NZD, or GBP based on shareholder residency or account details
- Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (BSP) securities priced at AUD 6.90
- Dividend payment scheduled for 26 February 2026
Dividend Update and Currency Arrangements
Australian Foundation Investment Company Limited (AFIC) has provided an update to its previously announced interim and special dividends for the six-month period ending 31 December 2025. The company confirmed an ordinary dividend of 12 cents per share and a special dividend of 2.5 cents per share, both fully franked at the corporate tax rate of 30%. These dividends reflect AFIC's ongoing commitment to delivering consistent returns to shareholders.
Notably, AFIC has detailed the foreign currency exchange rates that will apply to dividend payments for shareholders outside Australia. Dividends will be paid in Australian dollars (AUD) by default, but shareholders resident in New Zealand will receive payments converted to New Zealand dollars (NZD) at an exchange rate of AUD 1 to NZD 1.1554. Similarly, shareholders in Great Britain and certain Crown dependencies will receive payments in British pounds (GBP) at a rate of AUD 1 to GBP 0.5078. Shareholders can also elect to receive dividends in a currency different from their default by providing relevant financial institution details.
Dividend Reinvestment and Substitution Plans
AFIC continues to offer both a Dividend Reinvestment Plan (DRP) and a Dividend Substitution Share Plan (BSP), allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. The issue price for shares under both plans has been set at AUD 6.90, calculated as the volume weighted average price of AFIC shares traded on the ASX and Cboe over the five trading days following the ex-dividend date.
Participation in these plans remains optional, with the default option being cash payment if shareholders do not elect to participate. Both DRP and BSP securities will be newly issued and rank equally with existing shares from the date of issue, scheduled for 26 February 2026. There are no minimum or maximum participation limits, but eligibility criteria apply as outlined in the respective plan rules.
Implications for Shareholders
This update provides clarity on the currency arrangements and reinvestment pricing ahead of the dividend payment date, enabling shareholders to make informed decisions about their dividend preferences. The fully franked nature of both dividends underscores AFIC's strong franking credit position, which can be particularly valuable for Australian investors seeking tax-effective income.
With dividends payable on 26 February 2026 and record date set at 3 February 2026, shareholders have a clear timeline to lodge any elections for the DRP or BSP. The inclusion of foreign currency payment options also reflects AFIC's recognition of its international shareholder base and the importance of accommodating diverse investor needs.
Bottom Line?
AFIC’s detailed dividend update sets the stage for shareholder decisions on reinvestment and currency preferences ahead of the February payout.
Questions in the middle?
- What will be the uptake rate for the Dividend Reinvestment Plan and Bonus Security Plan this cycle?
- How might currency fluctuations between announcement and payment dates affect foreign shareholders’ returns?
- Will AFIC maintain this dividend level and franked status in upcoming reporting periods?