Cadence Capital (ASX: CDM) Announces Fully Franked 3-Cent Dividend for Half-Year Ending 30 June 2026

Cadence Capital Declares 3-Cent Dividend for Six Months Ending 30 June 2026

Cadence Capital Limited announced an ordinary dividend of AUD 0.03000000 per fully paid ordinary share for the six-month financial period ending 30 June 2026. The formal dividend notification was lodged on 15 July 2026, confirming the dividend’s ordinary status aligned with the company’s half-year earnings cycle. This dividend approach is consistent with typical Australian listed investment companies that distribute returns generated from their investment portfolios to shareholders regularly.

Operating as a listed investment company focused on Australian equities, Cadence Capital generates returns through active portfolio management rather than commercial sales. The dividend declaration reflects the company’s ability to produce distributable income during the relevant period. However, the company did not disclose the total dividend payout amount or provide commentary on portfolio performance or earnings for the half-year ended 30 June 2026 in this update.

Fully Franked Dividend at 30% Corporate Tax Rate Offers Tax Advantages to Eligible Shareholders

The declared dividend is fully franked at 100%, with a corporate tax rate of 30%. This means the entire AUD 0.03 per share dividend includes franking credits calculated at the Australian corporate tax rate. Eligible Australian resident shareholders benefit from these franking credits, which can offset personal income tax liabilities or potentially generate refunds if their marginal tax rate is lower than the corporate rate.

There is no unfranked component or conduit foreign income associated with this dividend, confirming it as a fully franked domestic distribution. The franked amount per security is AUD 0.03000000. International or non-resident shareholders should seek independent tax advice regarding the applicability of Australian franking credits to their circumstances, as treatment may differ significantly.

Dividend Timeline: Ex-Dividend, Record, and Payment Dates for CDM Shareholders

Key dates for this dividend include an ex-dividend date of 29 September 2026, meaning shares purchased on or after this date will not qualify for the dividend. Shareholders must hold shares before this date to be eligible. The record date, when the share registry determines entitlement, is 30 September 2026.

The dividend payment date is 15 October 2026. Shareholders opting for cash will receive AUD 0.03 per share via their nominated bank account or cheque. Those participating in the Dividend Reinvestment Plan will receive newly issued CDM shares on the same date, ensuring all entitlements are settled simultaneously for ease of portfolio management.

Dividend Reinvestment Plan Fully Applicable for June 2026 Half-Year Dividend

Cadence Capital confirmed the Dividend Reinvestment Plan (DRP) is fully applicable to this dividend, designated as "Full DRP." Eligible shareholders may elect to reinvest their dividends into additional CDM shares. Shareholders who do not submit an election will receive the dividend in cash by default. The DRP election deadline is 5:00 pm on Friday, 2 October 2026, and election notices must be lodged with the share registry by this time.

Participation in the DRP allows shareholders to acquire additional shares without brokerage fees, an attractive option for long-term investors seeking to compound their investment. There are no minimum or maximum participation limits, and no additional conditions beyond the election deadline. The DRP plan rules are accessible on Cadence Capital’s website as detailed in the company update.

VWAP-Based Pricing to Determine DRP Share Issue Price Between 29 September and 2 October 2026

The DRP reinvestment price will be calculated using a Volume Weighted Average Price (VWAP) methodology over the period from the ex-dividend date (29 September 2026) through to the DRP election deadline (2 October 2026). This four-day window ensures the reinvestment price reflects the average market price weighted by trading volume rather than a single day’s closing price.

No discount will be applied to the VWAP for DRP participants, as the discount rate is set at 0.0000%. The final DRP price will be determined after the calculation period ends on 2 October 2026. Shares issued under the DRP will rank equally with existing CDM ordinary shares and will be newly issued rather than purchased on-market.

No External Regulatory Approvals Required for Dividend Payment

The company confirmed that no external regulatory approvals are necessary before the dividend payment proceeds as scheduled. Specifically, no shareholder approvals, court orders, ASIC filings, ACCC or FIRB approvals, or other external conditions are required before the dividend payment date. This assurance removes regulatory uncertainty and provides shareholders confidence that the dividend will be paid on 15 October 2026 as announced.

This lack of regulatory conditions is typical for ordinary dividend distributions by Australian listed investment companies but remains a material confirmation for shareholders planning their cash flow or tax strategies. The company did not disclose any conditions that could delay or alter the dividend payment in its update.

Cadence Capital’s Business Model and Dividend Context as a Listed Investment Company

Cadence Capital Limited operates as an Australian listed investment company, pooling shareholder capital to invest primarily in ASX-listed equities. Unlike operating companies generating revenue from goods or services, Cadence Capital’s income arises from dividends, interest, and realized capital gains from its portfolio. Dividend distributions represent returns generated by the portfolio during the reporting period.

The half-year period ended 30 June 2026 aligns with the Australian financial year cycle. The board’s decision to declare a dividend of AUD 0.03 per share reflects distributable income from portfolio activities during this timeframe. The company did not disclose portfolio value, net tangible assets per share, or earnings per share in this update. Shareholders seeking detailed financial information should consult the company’s half-year financial report or other market disclosures.

Important Considerations for CDM Shareholders and Prospective Investors Ahead of October 2026 Dividend

Current shareholders should note the DRP election deadline of 5:00 pm on Friday, 2 October 2026. Those wishing to reinvest dividends must lodge election notices with the share registry by this time. Shareholders who do not act will receive the AUD 0.03 per share dividend in cash on 15 October 2026. It is essential to verify that bank details with the share registry are up to date to avoid payment delays.

Prospective investors should be aware that the ex-dividend date of 29 September 2026 is the cutoff for eligibility to receive this dividend. Shares purchased on or after this date will not include entitlement to the 3-cent dividend. The immediate share price impact of the dividend announcement was not disclosed. Investors should also consider that listed investment companies carry risks related to portfolio performance, which can influence future dividend capacity, net tangible asset values, and share price relative to net asset value.