BKI Investment Company Limited has updated its dividend announcement, confirming a fully franked ordinary dividend of 3.95 cents per share and setting the Dividend Reinvestment Plan price at $1.74 with no discount.
- Fully franked ordinary dividend of AUD 0.0395 per share
- Dividend payable on 27 February 2026
- DRP price fixed at AUD 1.74 with zero discount
- On-market share purchase completed by Morgans Financial Limited
- DRP participation defaults to cash payment if no election made
Dividend Details and Payment Schedule
BKI Investment Company Limited has provided an update to its dividend distribution announcement for the six months ending 31 December 2025. The company confirmed an ordinary dividend of 3.95 cents per share, fully franked at the corporate tax rate of 30%. This dividend is scheduled for payment on 27 February 2026, with the record date set on 10 February 2026.
Dividend Reinvestment Plan Pricing and Mechanics
Alongside the dividend confirmation, BKI disclosed the Dividend Reinvestment Plan (DRP) price at AUD 1.74 per share. Notably, there is no discount applied to the DRP price, which is calculated as the arithmetic average of the daily volume-weighted average price over a five-day trading period following the record date. This approach aims to reflect a fair market value for reinvested shares.
The DRP is a full plan, allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. However, if shareholders do not actively elect to participate, the default option is a cash payment. There are no minimum or maximum participation limits or other conditions attached to the DRP.
On-Market Share Purchase Completion
Importantly, the update confirms that Morgans Financial Limited completed the on-market purchase of BKI shares during the DRP pricing period. This mechanism supports the allocation of shares to DRP participants without issuing new shares, potentially mitigating dilution effects for existing shareholders.
Implications for Investors
For investors, the fully franked dividend represents a reliable income stream with the benefit of franking credits, which can be valuable for Australian taxpayers. The DRP pricing at market value without discount suggests a conservative approach by BKI, balancing shareholder returns with capital management. The completion of on-market purchases indicates active management of share supply during the DRP period.
Overall, this update provides clarity on shareholder returns and capital structure management as BKI closes its 2025 financial year. Investors will be watching closely how the DRP uptake influences share price dynamics and the company’s capital base moving forward.
Bottom Line?
BKI’s fully franked dividend and disciplined DRP pricing signal steady income and prudent capital management ahead.
Questions in the middle?
- What level of shareholder participation will the DRP attract given the zero discount?
- How might the on-market share purchases impact BKI’s share price post-dividend payment?
- Will BKI maintain this dividend policy and DRP structure in future periods?