Freightways Declares NZD 0.2235 Dividend for FY24, Unfranked and Steady

Dividend Announcement Overview

Freightways Group Limited (ASX: FRW) has confirmed a dividend distribution of NZD 0.22352941 per ordinary share, marking a steady return to shareholders for the half-year period ending December 31, 2024. The announcement, made on February 17, 2025, sets the ex-dividend date for March 6, 2025, with the payment scheduled for April 1, 2025.

This dividend is classified as an ordinary distribution and is fully unfranked, meaning it carries no Australian franking credits. Investors should note the 15% withholding tax applicable, reflecting the company’s New Zealand tax jurisdiction and foreign exempt status on the NZX.

Context and Implications

Freightways operates in the logistics and courier services sector, a space that has seen consistent demand despite broader economic uncertainties. The declared dividend, while modest, signals the company’s confidence in its cash flow generation and operational stability. The absence of any required shareholder or regulatory approvals prior to payment simplifies the process and reduces execution risk.

The dividend comprises two components: an ordinary dividend of NZD 0.19 per share and a supplementary dividend of NZD 0.03352941 per share, both unfranked. This structure is typical for companies listed on the NZX with foreign exempt status, designed to accommodate tax treaty arrangements and investor tax obligations.

Investor Considerations

While the dividend yield may not be headline-grabbing, it provides a reliable income stream for investors focused on steady returns from the logistics sector. The unfranked nature of the dividend means Australian investors will need to consider the withholding tax impact on their net returns. Additionally, the currency exposure to the New Zealand dollar introduces a layer of foreign exchange risk, particularly relevant for investors domiciled outside New Zealand.

Market watchers will be keen to observe Freightways’ upcoming financial results and guidance to assess whether this dividend level is sustainable or poised for growth. The company’s ability to maintain or increase distributions will be a key indicator of its operational health amid evolving market conditions.