CAR Group Announces Semi-Annual Dividend of AUD 0.385, 50% Franked

Dividend Announcement Details

CAR Group Limited (ASX: CAR) has declared an ordinary dividend of AUD 0.385 per fully paid ordinary share for the six-month period ending 31 December 2024. The dividend is partially franked at 50%, equating to a franked amount of AUD 0.1925 per share, with the remaining 50% unfranked. This partial franking reflects the company's tax position and offers shareholders some tax credits on their dividend income.

The ex-dividend date is scheduled for 14 March 2025, with the record date following on 17 March 2025. Shareholders registered by the record date will be eligible to receive the dividend, which will be paid on 14 April 2025. This timeline aligns with standard market practice, allowing investors to plan accordingly.

Dividend Reinvestment Plan (DRP) Features

CAR Group has confirmed the availability of a Dividend Reinvestment Plan (DRP) for this dividend. Shareholders who elect to participate can reinvest their dividend payments into new shares rather than receiving cash. Notably, the DRP will be offered without any discount to the market price, which will be calculated as the volume weighted average price of shares traded on the ASX over the five trading days following the record date.

The deadline for DRP election is 5:00 pm on 18 March 2025. The new shares issued under the DRP will rank equally with existing shares from the date of issue, which is set for 14 April 2025, coinciding with the dividend payment date. However, participation in the DRP is restricted to shareholders with registered addresses in Australia or New Zealand, a common limitation reflecting regulatory and administrative considerations.

Implications for Investors and Market Sentiment

This dividend announcement signals CAR Group’s ongoing commitment to returning value to shareholders amid a stable financial environment. The partial franking indicates a balanced tax strategy, while the availability of a DRP without discount suggests confidence in the company’s share price and future prospects. Investors may view the dividend as a positive indicator of the company’s earnings quality and cash flow stability.

Market participants will likely monitor the share price movement leading up to the ex-dividend date and assess shareholder uptake of the DRP. The absence of a discount on the DRP shares could temper participation levels, but it also underscores management’s confidence in the intrinsic value of the stock.

Overall, CAR Group’s dividend distribution aligns with expectations for a financially sound investment services company, maintaining shareholder engagement while preserving capital flexibility.