Unfranked Dividend and New DRP Shares: What Risks Loom for Perpetual Investors?

Dividend Details Confirmed

Perpetual Limited has provided an update to its dividend announcement for the six months ending 31 December 2025, confirming an ordinary dividend of 59 cents per fully paid ordinary share. The dividend is fully unfranked, reflecting the company’s current tax position, and will be paid to shareholders on 7 April 2026. The record date for entitlement was 13 March 2026, with shares trading ex-dividend from 12 March.

Dividend Reinvestment Plan Pricing

Alongside the dividend details, Perpetual has set the price for its Dividend Reinvestment Plan (DRP) shares at AUD 16.1074. This price is calculated using the 10-day volume weighted average price (VWAP) from 16 to 27 March 2026, with no discount applied. The DRP allows shareholders to reinvest their dividends into new shares rather than receiving cash, and in this case, the new shares will be newly issued and rank pari passu with existing shares from the date of issue.

Participation and Conditions

Participation in the DRP is optional, with the default option for shareholders who do not make an election being a cash dividend payment. There are no minimum or maximum limits on the amount of shares that can be acquired through the DRP, and no additional conditions apply. This flexibility may encourage a broad range of shareholders to participate, potentially supporting Perpetual’s capital base.

Implications for Investors

The fully unfranked nature of the dividend means investors will need to consider their individual tax circumstances carefully, as no franking credits will be attached. The DRP pricing mechanism based on VWAP ensures a market-reflective price, but the absence of a discount may influence participation rates. Investors will be watching closely to see how the market responds to the dividend payment and the uptake of the DRP shares.