Dividends

Dividend per share (cents) FY16 FY15 FY14 FY13 FY12
Interim Dividend 20 10 5 16 12
Final Dividend 20* 15 5 16 20
Total Annual Dividend 40 25 10 32 32

* 10 cents per share paid in June and September

DIVIDEND AND DISTRIBUTION REINVESTMENT PLANS

The Fonterra Co-Operative Group Limited Dividend Reinvestment Plan allows farmer shareholders to receive shares in lieu of all or part of a cash dividend. The Fonterra Shareholders’ Fund (Fund) Distribution Reinvestment Plan allows unit holders to receive units in lieu of all or part of a cash distribution.

DIVIDEND POLICY

Fonterra's Board seeks to maintain a consistent dividend stream in the normal course of events. This is expected to be between 65% to 75% of adjusted Net Profit After Tax over time. In considering payment of the dividend, the Board will have regard to all relevant factors, but in particular:

  • Any non-recurrent items that affect profit after tax;
  • Average dividends paid over the previous three years;
  • Near-term earnings projections, investment priorities and gearing targets; and
  • Any other factors the Board considers relevant, including existing or likely market conditions that may impact Fonterra or our shareholders.

The Board has indicated that it will target 40% to 50% of the annual dividend to be paid at the half year.

The Fonterra Board has the discretion to distribute any surplus capital to shareholders by way of a Special Dividend or other alternative distribution methods.