Woolworths Sets AUD 0.45 Dividend with No DRP Discount for September
Woolworths Group Limited has announced a fully franked ordinary dividend of AUD 0.45 per share for the six months ending June 2025, payable in September with an optional dividend reinvestment plan.
- Ordinary fully franked dividend of AUD 0.45 per share
- Dividend relates to six months ending 29 June 2025
- Ex-dividend date set for 2 September 2025
- Dividend payment date scheduled for 26 September 2025
- Dividend Reinvestment Plan (DRP) available with no discount
Woolworths Announces Dividend for FY25 First Half
Woolworths Group Limited, one of Australia's leading supermarket and grocery retailers, has declared an ordinary dividend of AUD 0.45 per share for the six-month period ending 29 June 2025. This dividend is fully franked, reflecting the company’s ongoing commitment to returning value to shareholders while maintaining a strong tax position.
The dividend will be paid on 26 September 2025, with the ex-dividend date set for 2 September 2025 and the record date on 3 September 2025. These dates are critical for investors to note, as shares purchased on or after the ex-date will not be eligible for the dividend payment.
Dividend Reinvestment Plan Details
Woolworths continues to offer a Dividend Reinvestment Plan (DRP) for shareholders who prefer to reinvest their dividends into additional shares rather than receive cash. Notably, the DRP for this dividend carries no discount, meaning shares will be allocated at the average volume weighted price over a 10-day trading period starting 5 September 2025. This approach aligns with Woolworths’ transparent and shareholder-friendly policies.
However, participation in the DRP is restricted to shareholders with registered addresses in Australia and New Zealand, excluding international investors from this option. Shareholders must lodge their DRP election by 4 September 2025 if they wish to participate.
Implications and Market Context
The fully franked dividend signals Woolworths’ confidence in its financial health and operational performance amid a competitive retail environment. The payout reflects steady earnings and a stable cash flow position, reassuring investors of the company’s resilience. The absence of a DRP discount may temper some reinvestment enthusiasm but underscores a fair valuation approach.
Investors will be watching closely how the market responds post the ex-dividend date, as well as the uptake of the DRP option. This dividend announcement fits within Woolworths’ broader strategy to balance shareholder returns with reinvestment in growth initiatives.
Bottom Line?
Woolworths’ steady dividend payout underscores its financial stability, but the zero DRP discount leaves questions about reinvestment appeal.
Questions in the middle?
- Will Woolworths maintain or increase its dividend in the second half of FY25?
- How will the zero discount on the DRP affect shareholder participation rates?
- What impact will the dividend announcement have on Woolworths’ share price post ex-dividend date?
