Judo Announces AUD 1.91175 Quarterly Distribution on Capital Notes
Judo Capital Holdings has announced a fully franked quarterly distribution of AUD 1.91175 per capital note, reflecting a 7.668% annualised yield based on prevailing BBSW rates plus margin.
- Quarterly distribution of AUD 1.91175 per capital note
- Distribution fully franked at 100%
- Annualised distribution rate of 7.668%
- Distribution subject to company discretion and payment conditions
- Record date 7 August 2026, payment date 17 August 2026
Distribution Details and Yield Calculation
Judo Capital Holdings Limited (ASX:JDO) has declared a quarterly distribution of AUD 1.91175 per Judo Capital Note (JDOPA), fully franked at 100%, payable on 17 August 2026. This payment corresponds to the period ending 16 August 2026, with an ex-date of 6 August and a record date of 7 August. The distribution rate equates to an annualised yield of 7.668%, calculated by combining the 3-month BBSW rate with a 6.5% margin, adjusted for the 30% Australian corporate tax rate.
Franking and Payment Conditions
The distribution is fully franked, meaning investors receive the benefit of Australian tax credits at the 30% corporate rate. However, the announced franking rate is currently an estimate; if the actual franking rate on the payment date falls below 100%, the distribution amount will be adjusted accordingly. Importantly, the payment remains subject to Judo's absolute discretion and standard payment conditions, which are typical for capital notes of this type.
Context Within Judo's Financial Performance
This distribution announcement arrives on the back of Judo Bank's recent strong lending growth and stable capital position, as highlighted in its Q3 results. The bank has maintained a robust capital buffer and reaffirmed its FY26 guidance amid economic uncertainty, which underpins the sustainability of these capital note distributions. The yield offered by the notes reflects prevailing market conditions and the bank's credit profile, consistent with prior distributions such as the AUD 1.825 fully franked payment announced earlier this year.
Implications for Investors
Investors considering Judo Capital Notes should note the quarterly distribution's dependence on both the BBSW benchmark and the margin determined at issuance. The payment's fully franked status enhances after-tax returns for Australian investors. However, the discretionary nature of the payment and the potential for franking adjustments introduce elements of uncertainty. Monitoring Judo's financial performance and any updates to distribution conditions will be crucial ahead of the payment date.
Bottom Line?
While the fully franked 7.67% yield is attractive, investors should keep an eye on Judo’s discretionary payment conditions and franking adjustments as August approaches.
Questions in the middle?
- Will Judo maintain the 100% franking rate at payment time?
- How might changes in the 3-month BBSW rate affect future distributions?
- What impact could broader credit market conditions have on Judo’s discretion to pay?
