Cochlear Declares AUD 2.15 Fully Franked Dividend for H1 2025

Dividend Announcement Overview

Cochlear Limited, a leader in medical devices specialising in hearing implants, has declared an ordinary dividend of AUD 2.15 per share for the half-year period ending 31 December 2025. This dividend is 85% franked, indicating that a significant portion of the dividend carries Australian tax credits, which can be advantageous for shareholders seeking tax efficiency.

The key dates for investors to note are the ex-dividend date on 19 March 2026, the record date on 20 March 2026, and the payment date set for 13 April 2026. These dates are critical for shareholders to ensure eligibility for the dividend payment.

Currency Flexibility for Shareholders

In a move reflecting its international shareholder base, Cochlear offers dividend payments in multiple currencies. While the primary currency is Australian dollars (AUD), shareholders registered in the United Kingdom, New Zealand, and the United States will receive payments in British pounds (GBP), New Zealand dollars (NZD), and US dollars (USD) respectively. The currency conversion will be based on exchange rates published on 20 March 2026, with the converted payments released the following business day.

This arrangement underscores Cochlear's recognition of its global investor community and provides a convenient mechanism to mitigate currency risk for overseas shareholders. However, shareholders cannot elect to receive a currency different from their default based on registered address.

Implications and Market Context

The 85% franking level suggests Cochlear continues to generate strong taxable profits, allowing it to pass on substantial franking credits to shareholders. This is generally viewed positively by investors, as it enhances the after-tax return on dividends. The dividend amount itself is consistent with the company’s historical payout patterns, reflecting steady financial performance amid a competitive healthcare market.

Investors will be watching the upcoming exchange rate disclosures closely, as currency fluctuations could impact the effective dividend value for international shareholders. Additionally, the absence of any required approvals or conditions for this dividend signals confidence from Cochlear’s board in its ongoing financial health.