Qantas Dividend Update Highlights Currency Risks and DRP Exclusion
Qantas Airways has updated its dividend announcement for the six months ending June 2025, confirming a fully franked total dividend of AUD 0.264 per share with clarified currency payment arrangements for New Zealand shareholders.
- Total dividend of AUD 0.264 per share confirmed
- Dividend split into AUD 0.165 ordinary and AUD 0.099 special dividends
- Fully franked dividends at 30% corporate tax rate
- NZD payment option updated with exchange rate of 1.1173 NZD per AUD
- Record date set for 17 September 2025, payment on 15 October 2025
Dividend Update and Currency Clarification
Qantas Airways Limited has issued an update to its dividend distribution announcement for the first half of the 2025 financial year. The airline confirmed a total fully franked dividend of AUD 0.264 per ordinary share, comprising an ordinary dividend of AUD 0.165 and a special dividend of AUD 0.099. This update primarily clarifies the New Zealand dollar (NZD) equivalent payment amount and the exchange rate applied.
Fully Franked Dividend Reflects Strong Cash Flow
The dividends are fully franked at the corporate tax rate of 30%, signaling Qantas’s robust profitability and tax position. Fully franked dividends are attractive to investors as they carry imputation credits, reducing the tax payable on dividend income. The split between ordinary and special dividends suggests the company is returning surplus cash to shareholders while maintaining operational flexibility.
Currency Payment Arrangements for Shareholders
Qantas has confirmed that dividends will be paid in Australian dollars (AUD) by default. However, shareholders with registered addresses in New Zealand who have provided NZD banking instructions will receive their dividends in NZD. The updated NZD equivalent payment per share is NZD 0.295, based on an exchange rate of 1.1173 NZD per AUD as of the record date, 17 September 2025. This currency option aims to streamline payments for New Zealand investors but does not allow shareholders to choose other currencies.
Key Dates and Dividend Reinvestment Plan Status
The ex-dividend date is 16 September 2025, with the record date on 17 September 2025. Dividend payments are scheduled for 15 October 2025. Notably, the Dividend Reinvestment Plan (DRP) is not applicable for this distribution, meaning shareholders will receive cash payments rather than reinvested shares.
Looking Ahead
This dividend update follows Qantas’s FY25 preliminary results announcement and provides clarity on shareholder returns amid ongoing market volatility and currency fluctuations. Investors will be watching how the airline balances shareholder distributions with capital investment and operational challenges in the evolving aviation sector.
Bottom Line?
Qantas’s fully franked dividend update underscores steady shareholder returns but leaves currency risk and future payout policies in focus.
Questions in the middle?
- Will Qantas maintain or increase dividend payouts in the full FY25 results?
- How might currency fluctuations impact NZD dividend payments going forward?
- What are the implications of excluding the Dividend Reinvestment Plan for this distribution?
