Macquarie Group Limited has announced a quarterly distribution of AUD 1.5598 per MQGPG capital note, payable in September 2026. The distribution is partly franked at 35%, reflecting a total annualised yield of 6.19%.
- Quarterly distribution of AUD 1.5598 per MQGPG capital note
- Distribution partly franked at 35%
- Total annualised distribution rate of 6.1883%
- Payment date set for 15 September 2026
- No approvals required ahead of payment
Distribution Details and Timing
Macquarie Group Limited (ASX:MQG) has set a quarterly distribution of AUD 1.5598 per security for its MQGPG capital notes, payable on 15 September 2026. The ex-date is scheduled for 28 August 2026, with the record date following on 31 August 2026. Notably, no security holder or regulatory approvals are required before the payment, streamlining the process for investors.
Franking and Tax Components
The distribution is partially franked at 35%, meaning investors will receive a franking credit reflecting the corporate tax already paid on part of the income. Specifically, AUD 0.5459 per security is franked, while the remaining AUD 1.0139 is unfranked but includes a conduit foreign income component. The applicable corporate tax rate for franking credits is 30%, which influences the overall yield calculation.
Calculation of Distribution Rate
The annualised distribution rate stands at 6.1883%, derived from a 90-day BBSW reference rate of 4.4666% plus a fixed margin of 2.65%, adjusted for the franking component. This rate reflects the current interest rate environment and Macquarie’s methodology for setting capital note distributions. The payment period covers 92 days from 15 June to 14 September 2026.
Investor Implications
For holders of MQGPG capital notes, this distribution continues Macquarie’s established pattern of quarterly payments with partial franking, which can be attractive for income-focused investors seeking a blend of yield and tax efficiency. The distribution rate, while lower than some prior payments, aligns with prevailing benchmark interest rates and the company’s capital management strategy.
Positioning Within Macquarie’s Capital Framework
This announcement fits into Macquarie’s broader capital notes program, which complements its strong capital position reported in recent quarters. The company's ability to maintain consistent distributions on these hybrid securities supports its reputation for disciplined capital management amid evolving market conditions.
Bottom Line?
Macquarie’s steady quarterly distribution on MQGPG capital notes offers a reliable income stream with a modest franking benefit, reflecting current interest rates and tax settings.
Questions in the middle?
- How will shifts in the BBSW rate affect future MQGPG distributions?
- What impact might changes in corporate tax policy have on franking credits for capital note holders?
- Will Macquarie adjust its capital note margins if interest rates rise further?