Endeavour’s Dividend Update Raises Questions on DRP Participation and Share Dilution

Dividend Confirmation and Payment Details

Endeavour Group Limited (ASX, EDV) has provided an update to its dividend notification for the financial period ending 29 June 2025. The company confirmed an ordinary dividend of 6.3 cents per share, fully franked at the 30% corporate tax rate, payable on 14 October 2025. The record date for shareholders eligible to receive the dividend is 3 September 2025, with the ex-dividend date falling on 2 September 2025.

This update follows a previous announcement made on 25 August 2025, refining currency payment arrangements and the terms of the Dividend Reinvestment Plan (DRP).

Currency Options for Shareholders

One notable feature of this dividend update is the flexibility offered to shareholders regarding the currency in which dividends are paid. Shareholders with registered bank accounts in Australia will receive their dividends in Australian dollars (AUD), while those with New Zealand bank accounts will receive payments in New Zealand dollars (NZD). The NZD dividend amount is calculated using an exchange rate of 1.1129, resulting in a payment of approximately NZD 0.0701 per share.

Shareholders can also elect to receive their dividend in a currency different from the default arrangement by updating their payment instructions with Endeavour's share registry, MUFG Corporate Markets (AU) Limited, by 5, 00 pm on 3 September 2025.

Dividend Reinvestment Plan Terms

Endeavour Group continues to offer a Dividend Reinvestment Plan, allowing shareholders to reinvest their dividends into new shares rather than receiving cash. Participation in the DRP is optional, with the default option being cash payment if no election is made.

The DRP price will be calculated based on the average daily volume weighted average price of Endeavour shares traded on the ASX over a 10 trading day period starting on 5 September 2025, shortly after the record date. The price for DRP shares is set at AUD 3.67 per share, with no discount applied. There are no minimum or maximum limits on participation, and the new shares issued under the DRP will rank equally with existing shares from the date of issue.

Implications for Shareholders and Market

This update provides clarity for shareholders on how they can receive their dividends and participate in the DRP. The absence of a discount on DRP shares may temper some shareholder enthusiasm for reinvestment, but the flexibility in currency payments and the absence of participation limits could encourage broader engagement.

Investors should note the potential dilution effect from new shares issued under the DRP, which could modestly impact share price dynamics. The company’s approach to fully franked dividends continues to reflect a commitment to returning value to shareholders while maintaining a transparent and shareholder-friendly distribution policy.