Adairs Sets DRP Price at $2.64 for Fully Franked 4 Cent Dividend
Adairs Limited has updated its final dividend details, confirming a fully franked 4 cent per share payout and setting the Dividend Reinvestment Plan price at $2.64 per share.
- Final dividend of AUD 0.04 per share fully franked
- Dividend payable on 7 October 2025 with record date 11 September 2025
- DRP price set at AUD 2.64, reflecting a 1.5% discount to VWAP
- Approximately 595,000 new shares to be issued under the DRP
- No approvals required for dividend payment or DRP issuance
Adairs Updates Dividend Details
Adairs Limited (ASX, ADH), a key player in the Australian home furnishings retail sector, has provided an update to its previously announced final dividend for the six months ending 29 June 2025. The company confirmed a fully franked ordinary dividend of 4 cents per share, payable on 7 October 2025, with a record date set for 11 September 2025.
Dividend Reinvestment Plan Price Confirmed
The update notably includes the Dividend Reinvestment Plan (DRP) price, which was absent from the initial announcement. Adairs has set the DRP price at AUD 2.64 per share. This price is calculated as the average volume weighted average price (VWAP) of the company’s shares traded over a five-day period starting two business days after the record date, less a 1.5% discount. This discount is a common incentive to encourage shareholders to reinvest dividends back into the company.
Impact on Share Capital and Shareholders
Under the DRP, approximately 594,991 new ordinary shares will be issued, representing a modest increase in the company’s share capital. The DRP is a full plan with no minimum or maximum participation limits, allowing shareholders flexibility in how they receive their dividend payments. Those who do not elect to participate will receive their dividend in cash by default.
No Additional Approvals Required
Importantly, Adairs has confirmed that no external approvals, such as security holder, court, or regulatory consents, are required for the dividend payment or the issuance of shares under the DRP. This streamlines the process and provides certainty around the timing and execution of the dividend and share issuance.
Context and Market Implications
Adairs’ decision to maintain a fully franked dividend at 4 cents per share signals confidence in its earnings and cash flow stability amid a competitive retail environment. The DRP discount, while modest, may attract shareholder participation, potentially supporting the share price by reducing selling pressure post-dividend. Investors will be watching closely to see the uptake of the DRP and how the market responds to the incremental share issuance in early October.
Bottom Line?
Adairs’ dividend update reinforces steady shareholder returns while subtly expanding capital, next moves will reveal investor appetite for reinvestment.
Questions in the middle?
- What proportion of shareholders will opt into the DRP versus taking cash dividends?
- How will the issuance of nearly 595,000 new shares affect Adairs’ share price in the short term?
- Will Adairs maintain this dividend level amid evolving retail market conditions in the next financial year?
