Steadfast Sets Fully Franked Dividend and DRP Price for September Payout
Steadfast Group Limited has updated its dividend announcement, confirming a fully franked dividend of AUD 0.117 per share and setting the Dividend Reinvestment Plan price at AUD 5.982 with a 2.5% discount.
- Ordinary dividend of AUD 0.117 per share fully franked at 30%
- Dividend relates to six months ending 30 June 2025
- Dividend payment date set for 26 September 2025
- DRP price fixed at AUD 5.982 with a 2.5% discount
- New shares issued under DRP rank pari passu from issue date
Dividend Details Confirmed
Steadfast Group Limited (ASX, SDF) has provided an update to its earlier dividend announcement, confirming a fully franked ordinary dividend of AUD 0.117 per share. This dividend covers the six-month period ending 30 June 2025 and will be paid to shareholders on 26 September 2025. The dividend is fully franked at the corporate tax rate of 30%, reflecting Steadfast’s ongoing commitment to delivering shareholder value through consistent income streams.
Dividend Reinvestment Plan Price Set
Alongside the dividend confirmation, Steadfast has announced the Dividend Reinvestment Plan (DRP) price at AUD 5.982 per share. This price incorporates a 2.5% discount to the volume weighted average price (VWAP) of the company’s shares traded on the ASX over the five trading days from 8 to 12 September 2025. The DRP allows shareholders to reinvest their dividends into new fully paid ordinary shares, which will be newly issued and rank equally with existing shares from the issue date.
No Approvals or Conditions Required
Importantly, the dividend payment and DRP participation do not require any external approvals such as shareholder, court, or regulatory consents. This streamlined process ensures timely payment and share issuance, providing clarity and certainty for investors. The default option for shareholders who do not elect to participate in the DRP remains a cash dividend payment.
Implications for Investors
For investors, the fully franked dividend offers an attractive after-tax yield, particularly for Australian resident shareholders who can utilise the franking credits. The DRP discount provides an incentive for shareholders to reinvest dividends, potentially supporting the company’s capital base without diluting existing shareholders disproportionately. However, the extent of participation in the DRP and its impact on share capital growth remain to be seen.
Looking Ahead
As the dividend payment date approaches, market participants will be watching for investor uptake of the DRP and any subsequent share price movements. Steadfast’s ability to maintain a fully franked dividend signals financial strength, but the balance between cash payouts and reinvestment will be key to monitoring the company’s capital management strategy going forward.
Bottom Line?
Steadfast’s dividend update underscores steady shareholder returns while setting the stage for potential capital growth through its DRP.
Questions in the middle?
- What level of shareholder participation is expected in the DRP at the announced discount?
- How will the new share issuance under the DRP affect Steadfast’s share capital and earnings per share?
- Will Steadfast maintain this dividend level and franking status in future periods amid market uncertainties?
