CAR Group Limited has announced a fully paid ordinary dividend of AUD 0.425 per share for the six months ending December 2025, accompanied by a Dividend Reinvestment Plan (DRP) with no discount.
- Ordinary dividend of AUD 0.425 per share for H2 FY25
- Dividend 30% franked, payable on 13 April 2026
- Ex-date set for 13 March 2026, record date 16 March 2026
- Dividend Reinvestment Plan available with no discount
- DRP shares to be newly issued and rank pari passu
Dividend Announcement Overview
CAR Group Limited has declared an ordinary fully paid dividend of AUD 0.425 per share for the six-month period ending 31 December 2025. This announcement, released on 8 February 2026, confirms the company’s commitment to returning value to shareholders amid a steady operating environment in the automotive retail sector.
The dividend is partially franked at 30%, reflecting a franked amount of AUD 0.1275 per share, with the remaining 70% unfranked. This mix indicates CAR Group’s tax position and the extent of franking credits available to investors, a detail that can influence the after-tax return for shareholders.
Key Dates and Payment Details
The dividend will be paid on 13 April 2026, with an ex-dividend date of 13 March 2026 and a record date of 16 March 2026. These dates are critical for investors to determine eligibility for the dividend payment. Shareholders on the register as of the record date will receive the dividend, while those purchasing shares on or after the ex-date will not.
CAR Group has also confirmed that no external approvals, such as shareholder or court approval, are required for this dividend, streamlining the payment process.
Dividend Reinvestment Plan Details
Importantly, CAR Group offers a Dividend Reinvestment Plan (DRP) for this dividend. The DRP allows shareholders to reinvest their dividend payments into new shares rather than receiving cash. Notably, the DRP will not be offered at a discount, with the reinvestment price calculated as the volume weighted average price of shares traded on the ASX over the five trading days following the record date.
The deadline for shareholders to elect participation in the DRP is 17 March 2026 at 5 – 00 pm. Shares issued under the DRP will be newly created and will rank equally with existing shares from the issue date, 13 April 2026. However, participation is limited to shareholders with registered addresses in Australia or New Zealand, unless otherwise decided by the board.
Implications for Shareholders and Market
This dividend announcement underscores CAR Group’s steady financial footing and its ongoing strategy to reward shareholders. The absence of a discount on the DRP may temper participation levels, as investors often seek a price incentive to reinvest dividends. Nevertheless, the availability of the DRP provides flexibility for shareholders to compound their investment in the company.
Investors will be watching closely how the market responds around the ex-dividend date and the uptake of the DRP, which could influence CAR Group’s capital structure and share liquidity in the near term.
Bottom Line?
CAR Group’s dividend and DRP offer a clear signal of confidence, but shareholder uptake will be key to watch.
Questions in the middle?
- What will be the shareholder participation rate in the DRP given the lack of discount?
- How will the partial franking impact investor demand, especially for tax-sensitive shareholders?
- Could this dividend policy signal a stable or cautious outlook for CAR Group’s future earnings?