Coles Group Limited has updated its dividend announcement, confirming a fully franked ordinary dividend of AUD 0.41 per share payable on 30 March 2026, with flexible currency payment options for shareholders.
- Ordinary dividend of AUD 0.41 per share fully franked at 30%
- Dividend payable on 30 March 2026 with record date 11 March 2026
- Dividend payments available in AUD, GBP, or NZD based on shareholder instructions
- Dividend Reinvestment Plan (DRP) offered with no discount
- Update clarifies currency arrangements and exchange rates used
Dividend Details Confirmed
Coles Group Limited has reaffirmed its commitment to returning value to shareholders with an ordinary dividend of AUD 0.41 per share, fully franked at the corporate tax rate of 30%. This dividend relates to the six-month period ending 4 January 2026 and will be paid on 30 March 2026. The record date for determining eligible shareholders is 11 March 2026, with the ex-dividend date falling on 10 March 2026.
Multi-Currency Dividend Payments
In a nod to its diverse shareholder base, Coles has outlined flexible currency payment options. Shareholders who provide valid banking instructions by 12 March 2026 will receive their dividends via direct credit in Australian dollars (AUD), British pounds (GBP), or New Zealand dollars (NZD). The exchange rates applied for GBP and NZD payments are based on Reserve Bank of Australia published rates as of 12 March 2026, specifically AUD/GBP at 0.5298 and AUD/NZD at 1.2115.
For shareholders without valid banking details, payments will be issued by cheque in Australian dollars if their registered address is outside Australia or New Zealand. Those within Australia or New Zealand who have not provided banking details will have their dividends held in a non-interest bearing account until they update their details, ensuring compliance with Coles' mandatory direct credit policy.
Dividend Reinvestment Plan Remains Available
Coles continues to offer a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividends into additional shares rather than receiving cash. The DRP will be fully available without any discount on the share price, which will be calculated as the average market price over five trading days starting 17 March 2026. Participation is limited to shareholders with registered addresses in Australia or New Zealand as of the record date.
Implications for Investors
This update clarifies the currency arrangements and confirms the dividend details without altering the amount or payment dates previously announced. The multi-currency payment option is particularly relevant for international investors seeking to manage currency exposure. Meanwhile, the fully franked nature of the dividend underscores Coles' ongoing profitability and tax compliance, factors that typically appeal to income-focused investors.
Bottom Line?
Coles’ dividend update solidifies income expectations while spotlighting currency flexibility for shareholders.
Questions in the middle?
- How will currency fluctuations impact the effective dividend received by international shareholders?
- What level of shareholder participation is expected in the Dividend Reinvestment Plan this cycle?
- Could future dividend payments see changes in currency options or DRP discounting policies?