Westpac Bank's (WBC) Dividends for December 2013

Westpac Bank (WBC), one of Australia's big-four banks, on Monday declared their final dividends for 2012/13. The dividends to be paid on 19 December 2013 are:

• an 88 cent per share fully franked ordinary dividend, plus
• a 10 cent per share special dividend, also fully franked
• shareholders will receive $3.0 billion in dividends plus $1.3 billion in franking credits

The total dividends are $1.40 per share (98 cents cash + 42 cents franking credits). This is an increase of 20 cents (14c cash + 6c franking credits) over the dividend paid in December 2012.



The shares trade ex-dividend on 8 November 2013. A shareholder must own WBC shares at the close of trading on 7 November in order to receive the dividend.

WBC has a Dividend Reinvestment Plan (DRP) for shareholders who wish to receive their dividends as more WBC shares rather than a cash payment.

The full-year dividends for 2012/13 total $2.77 per share ($1.94 cash + $0.83 franking credits), which is 17% higher than last year. Ordinary full-year dividends are $2.49 ($1.74 cash + $0.75 franking credits), a 5% increase over 2011/12.

The two special dividends paid in 2013 (totalling 20c cash + 8c franking credits) are the first special dividends paid by WBC since 1989.

Shareholders will receive $6.0 billion in dividends from 2012/13 profits, plus $2.6 billion in franking credits.

Last 10 Years Dividends (2002/03 to 2012/13)

The chart shows the dividends from 2003 to 2013:

The most remarkable features of WBC's dividends for the past decade are:

• Full-year dividends increased by 149% in 10 years (9.5 % p.a.).
• Excluding the special dividends in 2012/13, dividends increased by 123% (8.4% p.a.).
• Dividends grew much faster than inflation of 31% over the decade (2.7% p.a.).
• Dividend growth was significantly greater than the 78% average dividend growth for Australian dividend-paying companies.
• Dividends have been fully franked every year.
• Dividends grew strongly from 2003 to 2008, rising 82% (12.7% p.a.) from 78 cents to $1.42 (cash dividends).
• Dividends fell 18% in 2009 due to the global financial crisis (GFC), back to the 2006 dividend level of $1.16 (cash).
• WBC's dividends recovered quickly with 2010 dividends just 2% below those of 2008, and 2011 dividends being 10% higher than 2008's pre-GFC record dividends.
• Ordinary dividends have increased 50% since 2009, with 2013's ordinary dividends being 22% higher than in 2008.
• Dividends were increased in 9 out of 10 years, with the only reduction in 2009. WBC has increased dividends in 19 of the 20 years since 1993.