Monadelphous Declares AUD 0.33 Dividend for H1 2024, Revises DRP Deadline
Monadelphous Group Limited has announced a fully franked ordinary dividend of AUD 0.33 per share for the half-year ending December 2024, alongside an update to its Dividend Reinvestment Plan election deadline.
- Ordinary dividend of AUD 0.33 per share fully franked at 30%
- Dividend payable on March 28, 2025, with record date March 7
- Dividend Reinvestment Plan (DRP) election deadline extended to March 10, 2025
- DRP shares to be issued at average VWAP over 10 trading days post-record date
- No approvals required for dividend payment; DRP participation optional
Dividend Announcement Overview
Monadelphous Group Limited (ASX: MND), a key player in engineering services within the construction sector, has confirmed an ordinary dividend of AUD 0.33 per fully paid share. This dividend is fully franked at the corporate tax rate of 30%, reflecting the company’s ongoing commitment to delivering shareholder value through consistent returns.
The dividend relates to the six-month period ending December 31, 2024, with a record date set for March 7, 2025. Shareholders can expect payment on March 28, 2025. This announcement updates a previous release from February 17, 2025, primarily to revise the Dividend Reinvestment Plan (DRP) election date.
Dividend Reinvestment Plan Details
Monadelphous offers a Dividend Reinvestment Plan that allows shareholders to reinvest their dividends into new shares rather than receiving cash. The updated deadline for DRP election submissions is March 10, 2025, at 5:00 pm. This extension provides investors additional time to decide whether to participate in the DRP.
The price for DRP shares will be calculated as the arithmetic average of the daily volume weighted average price (VWAP) over the 10 trading days commencing on the second trading day after the record date (March 11 to March 24, 2025). This method aims to provide a fair market price for reinvested shares. The new shares issued under the DRP will rank equally with existing shares from the date of issue on March 28, 2025.
Implications and Market Context
The fully franked nature of the dividend signals Monadelphous’s strong tax position and profitability, which is reassuring for investors seeking stable income streams. The absence of any required external approvals for the dividend payment underscores the company’s straightforward capital management approach.
Given the construction and engineering services sector’s cyclical nature, this dividend announcement may reflect confidence in the company’s order book and operational outlook. The DRP’s flexibility, with no minimum or maximum participation limits, encourages shareholder engagement and supports capital retention within the company.
Investors will be watching closely how the market responds to the dividend and the DRP participation rates, as these can provide insight into shareholder sentiment and confidence in Monadelphous’s future performance.
Bottom Line?
Monadelphous’s steady dividend and updated DRP terms set the stage for shareholder engagement ahead of a pivotal 2025.
Questions in the middle?
- Will DRP participation rates increase with the extended election deadline?
- How might market conditions during the DRP pricing period affect reinvestment value?
- What does the fully franked dividend indicate about Monadelphous’s tax and earnings outlook?
