Sandon Capital Investments Announces Fully Franked Monthly Dividend of $0.0047 Per Share with Dividend Reinvestment Plan Option

Sandon Capital Investments Confirms AUD 0.0047 Monthly Dividend Per Share

On 3 July 2026, Sandon Capital Investments Limited advised the market it will pay an ordinary dividend of AUD 0.0047 per fully paid ordinary share for the one-month financial period ending 31 July 2026. This announcement represents a new declaration rather than an update or correction, confirming the dividend amount as current and authoritative as of the disclosure date.

Monthly income distributions are a hallmark of Sandon Capital’s investment proposition as a listed investment company. By providing dividends monthly rather than semi-annually, the company appeals to investors seeking steady, predictable cash flow. While the per-share payment of $0.0047 is modest, it accumulates into a consistent stream of fully franked income when paid over twelve months. The company did not disclose the total aggregate dollar amount of this distribution across all shares outstanding.

Fully Franked Dividend at 25% Corporate Tax Rate Maximizes Tax Efficiency for Eligible Shareholders

The dividend is fully franked at 100% with an applicable corporate tax rate of 25%, meaning the entire AUD 0.0047 per share carries franking credits and has no unfranked component (confirmed at AUD 0.00000000 per share). This is particularly beneficial for Australian resident shareholders, including self-managed superannuation funds (SMSFs) and individuals with marginal tax rates below the corporate rate, as they may offset or receive refunds on the franking credits attached.

Superannuation funds taxed at 15% in accumulation phase, and especially those in pension phase taxed at zero, can significantly enhance after-tax returns through these franking credits. The dividend contains no conduit foreign income component, confirming its entirely domestic nature.

Important Dividend Dates: Ex-Date 13 July, Record Date 14 July, Payment on 31 July 2026

To qualify for the dividend, investors must hold SNC shares before the ex-dividend date of 13 July 2026. Purchases on or after this date will not be eligible for this distribution. The record date, when the company’s register is reviewed to identify eligible shareholders, is 14 July 2026.

Dividend payments will be made on 31 July 2026, the same day new shares issued under the DRP will be allotted to participating shareholders. This alignment ensures all eligible shareholders receive their entitlements simultaneously. The company confirmed that no regulatory approvals or shareholder consents, including court, ACCC, or FIRB approvals, are required before payment.

Dividend Reinvestment Plan Available with Election Deadline of 15 July 2026

Sandon Capital offers a full Dividend Reinvestment Plan applicable to this monthly dividend. Shareholders wishing to reinvest their dividend into additional SNC shares must submit their DRP election to the share registry by 17:00 AEST on Wednesday 15 July 2026. This provides a brief window between the ex-date and election deadline for shareholders to confirm participation.

Shareholders who do not submit an election will automatically receive the dividend in cash. There are no minimum or maximum amounts or shareholding requirements for DRP participation, and no additional conditions were disclosed. Full DRP plan details are available on the company’s website at sandoncapital.com.au.

DRP Share Price Based on VWAP Over Four Trading Days Without Discount

The price for shares issued under the DRP will be calculated using the volume weighted average price (VWAP) of SNC shares traded on the ASX from 13 July to 16 July 2026. This four-day period smooths short-term price fluctuations to provide a fair market price for reinvestment.

The DRP will be offered at no discount (0.0000%), meaning shares will be issued at the prevailing market price during the calculation window. The final DRP price will be determined after the trading period ends. Shares issued under the DRP will rank equally with existing fully paid ordinary shares from the issue date of 31 July 2026, carrying identical rights and entitlements.

Sandon Capital’s Monthly Dividend Model Appeals to Income-Focused LIC Investors

As a listed investment company with an activist strategy focused on Australian equities, Sandon Capital generates franking credits through its investments and distributes them via regular fully franked dividends. Its monthly dividend schedule differentiates it from many ASX-listed peers that pay dividends semi-annually or annually, making it attractive to investors prioritizing consistent income.

Income-focused investors, including retirees and SMSF trustees, closely monitor the consistency of monthly dividends. Any changes in the monthly payment or suspension of distributions may indicate shifts in portfolio income or management’s view on payout sustainability. The company did not provide forward guidance on future monthly dividends in this announcement, so investors should watch for upcoming updates.

No External Approvals Required, Ensuring Dividend Payment on 31 July 2026

The company confirmed that no external approvals are necessary before the 31 July 2026 payment. This includes no need for securityholder approval, court orders, ASIC filings, ACCC clearance, or FIRB consent. This provides shareholders with strong assurance that the dividend will be paid on schedule unless extraordinary circumstances arise.

This contrasts with special dividends or capital returns that often require approvals. The straightforward nature of this ordinary monthly dividend reflects Sandon Capital’s established distributable reserves and franking credit balance. Investors can rely on the announced payment date for cash flow planning.

Next Steps for SNC Shareholders

Shareholders wishing to participate in the DRP for this dividend must submit their election by 17:00 AEST on 15 July 2026. Those preferring cash need not take any action. Shareholders unsure of their DRP status should contact the company’s share registry before the deadline.

Looking ahead, investors will observe whether Sandon Capital maintains the AUD 0.0047 monthly dividend or adjusts it based on portfolio performance. The company provided no guidance on future distributions in this release. The next monthly dividend announcement will clarify if the current rate continues. The immediate impact on SNC’s share price was not evident from available information.

Understanding the Value of Franking Credits Attached to the Dividend

Eligible shareholders should consider the grossed-up dividend value, which includes franking credits. With a 25% corporate tax rate and 100% franking, the franking credit per AUD 0.0047 dividend is calculated as (dividend / (1 - tax rate)) × tax rate, equating to approximately AUD 0.001567 per share. This results in a grossed-up dividend of about AUD 0.006267 per share before individual tax effects.

The benefit of franking credits varies depending on the shareholder’s tax situation. Corporate entities, trusts, high-income individuals, and superannuation funds in accumulation phase will each experience differing tax outcomes. Shareholders should seek independent financial and tax advice to understand the specific impact. The company did not provide tax guidance or shareholder-specific commentary in its announcement.