News Corporation Declares New Dividend for Class A Non-Voting Common Stock
NEWS CORPORATION.. (NWS) Share Update August 2024 Thursday 8th
News Corporation Declares New Dividend for Class A Non-Voting Common Stock
News Corporation has announced a new dividend for its Class A Non-Voting Common Stock (CDI 1:1), reflecting a payout of USD 0.10 per share. This announcement is significant for investors looking for income from their stock holdings.
Instant Summary:
- Dividend amount: USD 0.10 per share.
- Ex-dividend date: October 9, 2024.
- Record date: November 9, 2024.
- Payment date: October 9, 2024.
- The dividend is unfranked and will be paid in USD or AUD depending on the holder's location.
Dividend Details
News Corporation has declared a dividend of USD 0.10 per share for its Class A Non-Voting Common Stock (CDI 1:1). This dividend relates to the financial period ending June 30, 2024. The ex-dividend date is set for October 9, 2024, meaning that investors must own the stock before this date to be eligible for the dividend.
The record date is November 9, 2024, which is the date on which the company will determine the list of shareholders eligible to receive the dividend. The payment date is scheduled for October 9, 2024, when eligible shareholders will receive their dividend payments.
Currency and Tax Information
The dividend will be paid in USD to holders of News Corporation Class A common stock. For holders of CDIs representing News Corporation Class A common stock on the ASX, the dividend will be paid in Australian dollars (AUD). The exact AUD equivalent will be announced on September 27, 2024.
The dividend is unfranked, meaning it does not include any tax credits. A withholding tax rate of 30% will apply to the dividend distribution.
This dividend announcement is likely to have a positive impact on News Corporation's stock price, as dividends are often seen as a sign of financial health and a reward to shareholders. However, the unfranked nature of the dividend and the 30% withholding tax may slightly dampen investor enthusiasm, particularly among those seeking tax-efficient income.
Investor Reaction:
Analysts are likely to view this dividend announcement positively, as it indicates that News Corporation is generating sufficient cash flow to reward its shareholders. However, some investors may be concerned about the lack of franking credits and the relatively high withholding tax rate.
Conclusion:
Investors should consider the implications of this dividend announcement and how it fits into their overall investment strategy. With the ex-dividend date approaching, those interested in receiving the dividend should ensure they purchase shares before October 9, 2024. As always, it's important to stay informed and make investment decisions based on a thorough understanding of the company's financial health and market conditions.