Cadence Capital Announces Fully Franked Special Dividend of 1 Cent Per Share Payable in December 2026

Details of Cadence Capital's 1 Cent Special Dividend Announced on 15 July 2026

On 15 July 2026, Cadence Capital Limited submitted an Appendix 3A.1 notification to the ASX confirming a special dividend of AUD $0.01 per ordinary fully paid security. This dividend is classified as a special distribution, distinct from regular interim or final dividends, and is not linked to any specific financial year period. This classification is important for investors assessing Cadence Capital's capital management and distribution strategy.

The announcement states the total dividend payment per security is AUD $0.01000000 in Australian dollars, with no additional currency arrangements disclosed. The company provided no further commentary in the Appendix 3A.1’s 'further information' section, limiting the announcement to the dividend schedule and franking details. Investors seeking insight into the rationale for this special dividend or the portfolio performance driving it should monitor future Cadence Capital updates.

Full Franking at 30% Corporate Tax Rate Adds Value for Australian Shareholders

A key feature of this dividend for eligible Australian resident shareholders is its full franking status. Cadence Capital confirmed the dividend is 100% franked with no unfranked portion. The franking credit corresponds to the 30% Australian corporate tax rate. This means the AUD $0.01 dividend per share includes franking credits that Australian resident shareholders may apply against their income tax liabilities, depending on their tax situation.

The franked amount per security is AUD $0.01000000, with zero unfranked and zero conduit foreign income amounts. This confirms the entire dividend carries maximum franking benefits without any foreign income component. For tax-sensitive investors such as self-managed super funds, fully franked dividends can enhance after-tax returns. Shareholders should consult tax professionals to understand the impact of franking credits on their individual tax circumstances.

Important Dates: Ex-Dividend on 15 December, Record Date 16 December, Payment on 23 December 2026

Cadence Capital’s dividend timetable includes three key dates. The ex-dividend date is 15 December 2026; shares purchased on or after this date will not qualify for the special dividend. The record date is 16 December 2026, when the company’s share register will be reviewed to determine eligible shareholders. The dividend payment will be made on 23 December 2026, allowing shareholders to receive the distribution shortly before the Christmas holiday period. The timing is relevant for shareholders and advisors managing cash flow expectations.

Dividend Reinvestment Plan Not Applicable to This Special Dividend

While Cadence Capital operates a Dividend Reinvestment Plan (DRP) for its securities, the Appendix 3A.1 filing confirms the DRP does not apply to this special dividend. Shareholders will receive the AUD $0.01 per share dividend as a cash payment rather than having the option to reinvest in additional shares at a discount. Investors wishing to increase their holdings must do so via on-market purchases on the ASX. Shareholders should ensure their payment and DRP instructions are current ahead of the 16 December 2026 record date.

No External Approvals Required for Dividend Payment

Cadence Capital confirmed that no external regulatory or shareholder approvals are necessary for the dividend to proceed. Specifically, no security holder, court, ASIC, ACCC, or FIRB approvals are required. This routine confirmation indicates no anticipated regulatory obstacles to the dividend payment, supporting the announced timetable of ex-dividend on 15 December, record on 16 December, and payment on 23 December 2026.

The absence of approval conditions provides shareholders with certainty on the timing and delivery of the special dividend. However, investors should continue monitoring official company communications for any updates affecting the dividend schedule or amount.

Cadence Capital’s Role as an ASX-Listed Investment Company

Cadence Capital Limited (ASX:CDM) is a listed investment company focusing on investing in ASX-listed equities to generate capital growth and income for shareholders. Unlike managed funds, its shares trade on the ASX, with prices influenced by investor sentiment and net asset value. The company’s ABN is 17 112 870 096, as noted in the Appendix 3A.1 filing. Dividend distributions are a key element of Cadence Capital’s income return strategy. This special fully franked dividend declaration aligns with capital management activities closely followed by income-focused LIC investors. No details on portfolio composition or net asset value changes were included in this update; investors should consult Cadence Capital’s latest reports for comprehensive information.

Implications of the Special Dividend Classification for Income Investors

The Appendix 3A.1 filing specifies this payment as a special dividend, not an interim or final dividend, and unrelated to any specific financial year period. For investors tracking Cadence Capital’s dividend history, this distinction is crucial. Special dividends are typically one-off payments and do not necessarily indicate changes to the company’s regular dividend policy or future payout levels.

Investors should avoid assuming this special dividend signals a recurring increase in income. No guidance on regular dividend schedules or future distributions was provided. For a full understanding of Cadence Capital’s income outlook, investors should review the company’s annual and half-year reports along with portfolio and net tangible asset updates released via the ASX and investor relations channels.

Tax and Franking Credit Considerations for Various Shareholder Types Holding CDM Shares

The fully franked AUD $0.01 special dividend has different tax implications depending on shareholder type. Australian resident individuals can use franking credits to reduce income tax on dividends and may receive refunds if their marginal tax rate is below 30%. Complying superannuation funds, including self-managed super funds in accumulation phase, also benefit from franking credits to reduce tax liabilities, enhancing the attractiveness of fully franked dividends.

SMSF pension phase investors, where earnings are generally tax-free, may receive full refunds of franking credits, increasing overall returns. Non-resident shareholders typically cannot claim franking credits under Australian tax law. The company did not disclose the resident versus non-resident shareholder composition. All shareholders should seek advice from qualified tax professionals to understand the tax implications of this distribution in their personal situations.

Risks for Investors Considering Cadence Capital’s LIC Structure and Special Dividend

Although the fully franked special dividend is positive for income investors, LIC investors should consider risks inherent in Cadence Capital’s structure. The underlying portfolio is exposed to market risks, with share values fluctuating due to market conditions, sector trends, and individual company performance. Portfolio declines can affect the company’s ability to pay future dividends.

Additionally, LIC shares may trade at a discount or premium to net asset value, adding return variability compared to direct equity ownership or unlisted funds. Investors buying CDM shares near the ex-dividend date to capture the AUD $0.01 dividend should be aware that share prices often adjust downward on the ex-date, potentially reducing the net benefit of dividend capture. This company update did not provide information on current discounts or premiums to NTA, portfolio performance, or future dividend capacity. The immediate share price impact was unclear from public information at the time.