Coles’ Dividend Update Highlights No DRP Discount and Regional Participation Limits

Dividend Details Confirmed

Coles Group Limited has provided an update to its dividend distribution details for the six months ending 4 January 2026. The company confirmed an ordinary dividend of 41 cents per share, fully franked at the 30% corporate tax rate, reflecting steady income returns for shareholders. The dividend will be paid on 30 March 2026, with a record date set for 11 March and an ex-dividend date of 10 March.

Dividend Reinvestment Plan Pricing and Participation

Alongside the dividend announcement, Coles updated the price for its Dividend Reinvestment Plan (DRP). The DRP price is set at AUD 21.32010, calculated as the average market price over five trading days starting 17 March 2026, with no discount applied. This approach aligns with Coles’ policy to offer reinvestment at fair market value, avoiding dilution of shareholder value.

Participation in the DRP remains limited to shareholders with registered addresses in Australia or New Zealand as at the dividend record date. This geographic restriction is consistent with previous DRP rules and reflects regulatory and administrative considerations.

Currency Options for Dividend Payments

Coles continues to offer dividend payments in multiple currencies to accommodate its diverse shareholder base. Shareholders can receive dividends in Australian dollars (AUD), Pound Sterling (GBP), or New Zealand dollars (NZD), depending on their registered banking details. The exchange rates used for GBP and NZD payments are based on Reserve Bank of Australia reference rates as of 12 March 2026.

For shareholders who do not provide valid banking details, payments will be made by cheque in AUD or held in a non-interest bearing account until banking details are updated, ensuring all shareholders receive their dividends in a timely manner.

Implications for Investors

This update provides clarity for investors on income expectations and reinvestment options ahead of the March payment date. The fully franked nature of the dividend enhances its attractiveness, particularly for Australian investors seeking tax-effective income streams. The absence of a DRP discount suggests Coles is confident in its share price stability and shareholder value proposition.

Investors will be watching how many shareholders opt into the DRP versus taking cash dividends, as this can signal confidence in the company’s growth prospects. Additionally, the multi-currency payment options reflect Coles’ recognition of its international shareholder base and add a layer of convenience that could influence investor sentiment.