Cadence Capital Boosts Shareholder Returns with 3.0c Final and 1.0c Special Dividends
Cadence Capital Limited has declared a fully franked 3.0 cents per share final dividend and a 1.0 cent special dividend following a robust 2026 financial year, delivering a combined 7.9% yield based on current share prices.
- 3.0 cents per share fully franked final dividend declared
- Special fully franked 1.0 cent dividend for December quarter
- Full year dividend totals 6.0 cents per share
- Dividend reinvestment plan available for final dividend
- Strong 20.1% return and 30.6% share price appreciation in FY2026
Strong Dividend Yield Reflects Robust 2026 Performance
Cadence Capital Limited (ASX:CDM) has announced a fully franked final dividend of 3.0 cents per share, lifting its full year dividend to 6.0 cents per share fully franked. This payout translates to a 7.9% fully franked yield or an 11.4% gross yield when factoring in franking credits, based on the current share price of $0.755. The final dividend ex-date is set for 29 September 2026, with payment scheduled for 15 October 2026.
Special Dividend Rewards Shareholders After Strong Returns
In addition to the final dividend, the board has declared a special fully franked dividend of 1.0 cent per share for the December quarter. This comes on the back of a stellar 2026 financial year, where Cadence delivered a 20.1% return and a 30.6% increase in share price including dividends and franking. The special dividend ex-date is 15 December 2026, with payment on 23 December 2026, further enhancing the total yield for shareholders.
Profit Reserves and Franking Credits Support Dividend Sustainability
Cadence currently holds profit reserves equivalent to 25 cents per share, covering four years of dividend payments, alongside franking credits sufficient for two years at 5.4 cents per share. This strong buffer underscores the company’s capacity to maintain dividend payments amid varying market conditions.
Dividend Reinvestment Plan Maintains Shareholder Engagement
The dividend reinvestment plan (DRP) will be operational for the final dividend, offering shareholders an opportunity to compound their investment without incurring brokerage fees. Those not yet registered for the DRP are encouraged to consider enrolment ahead of the final dividend payment.
Bottom Line?
Cadence Capital’s generous fully franked dividends and strong profit reserves position it well to sustain shareholder returns amid evolving market dynamics.
Questions in the middle?
- How will the market respond to the combined yield amid current interest rate conditions?
- Will Cadence maintain its dividend payout ratio if market volatility increases?
- Could the special dividend signal a shift towards more frequent extraordinary payouts?
