Shareholder centre

Dividend Reinvestment Plan (DRP)

With the return to full dividend franking from September 2015, Challenger's Board of Directors have established the Challenger Limited Dividend Reinvestment Plan ('DRP'). The DRP enables you to receive some or all of your future dividends as Challenger shares instead of in cash. As all brokerage and associated costs are paid for by Challenger, the DRP provides a cost effective means to increase your ownership in Challenger.

An overview of the DRP is provided below.

DRP overview

  • Participation in the DRP is optional and available to all shareholders with a registered address in Australia on the dividend record date.
  • Shares allocated under the DRP will rank equally with existing Challenger ordinary shares.
  • The number of shares acquired under the DRP will be based on Challenger's volume weighted average share price, over the ten trading days commencing on the second trading day after each dividend record date.
  • Challenger can either issue new shares or acquire shares on-market (or use a combination of both) to satisfy DRP requirements.
  • For each dividend, holding statements will be sent to DRP participants showing the number of shares issued or transferred to you as part of the DRP.

Should a shareholder wish to participate in the DRP, an election needs to be completed via Challenger's share registry.

Challenger recommends shareholders read the DRP rules carefully before determining whether or not to participate in the DRP.

DRP timetable 1H17

Interim results and dividend announced for six months ended 31 December 2016

14 Feb

Ex-dividend date for interim dividend 

28 Feb

Record date for interim dividend 

1 Mar

DRP election date for interim dividend 

2 Mar

DRP pricing period 

3-16 Mar

Interim dividend payment date 

28 Mar

Allotment and dispatch of holding statements to shareholders (for DRP participants) 

28 Mar

Frequently asked questions


Who can participate in the DRP?

Challenger shareholders with a registered address in Australia at the relevant record date may participate in the DRP.

If you hold Challenger shares which were issued under an employee share plan, you will not be eligible to participate in the DRP.

Is participation optional?

Yes the decision to participate in the DRP is entirely yours. You can change your DRP participation at any time by lodging a variation with Challenger's share registry (see FAQ Can I change my participation at any time?).

Can I reinvest just some of my dividends?

Yes. Simply tell us how many of your shares you want to participate in the DRP. For shares not participating in the DRP, dividend payments will continue to be paid in accordance with your payment instructions.

How do I participate?

You can apply online by logging onto the investor centre. You will need your Shareholder Reference Number (SRN) or Holder Identification Number (HIN) to login.

Alternatively you can contact Challenger's share registry (Computershare Investor Services) on 1800 780 782 (within Australia) or +61 3 9415 4065 (outside Australia) and request a DRP form to be mailed to you.

When will my dividend reinvestment start?

If your DRP election is received by the DRP election date, your dividend reinvestment starts for that dividend payment.

The DRP election date for the interim dividend is 2 March 2017.

Is there a maximum participation level?

No. Currently there is no limit on participation. However, the directors may at their discretion impose a limit on participation from time to time.

What if I have more than one Challenger shareholding?

You'll need to lodge a separate election for each shareholding. To make it easier to manage your shareholding, you may want to combine your shareholdings. Please contact Challenger's share registry (Computershare Investor Services) for details about combining your shareholdings.

Can I change my participation at any time?

Yes. Simply lodge your variation with Challenger's share registry online and the variation will be effective from the next dividend payment, provided it is received by the DRP election date for that dividend payment.

If you have more than one Challenger shareholding, you will need to lodge a variation with Computershare Investor Services for each shareholding. 

At what price will the shares be allotted or transferred?

The price will be calculated using the volume weighted average share price over the ten trading days commencing on the second trading day after each dividend record date.

What will it cost me to participate?

There is no cost for you to participate. No brokerage fees, commission or stamp duty will be payable for any shares allotted or transferred under the DRP.

Will I receive a dividend statement?

After each issue or transfer of shares under the DRP, a dividend statement will be provided to you in accordance with your communication election, which will show full details of shares issued or transferred to you under the DRP.

Can the DRP be modified, suspended or cancelled?

Challenger's Directors can modify, suspend or terminate the DRP at any time.  Any modification, suspension or termination will be notified to the ASX or, at the Directors' discretion, in accordance with the provisions regarding giving notice to shareholders contained in Challenger's Constitution. Challenger also intends to update its website where there are changes to the DRP.

What happens to the carry forward residual in my DRP Account if I end my participation in the DRP or sell my shares or Challenger suspends or terminates the DRP?

In the event that: 

  • you cease to participate in the DRP because you have sold all of your Challenger shares; or
  • you opt out of, or the Challenger Directors suspend or terminate the DRP, and you sell all of your shares before the next record date,

and the residual balance in your DRP account is more than $10, it will be paid to you at the time of payment of the next final dividend. If the residual balance is $10 or less, you are taken to have directed Challenger to donate this residual balance to a charity nominated by Challenger.

If you opt out of, or the Challenger Directors suspend or terminate the DRP, and you remain a Challenger shareholder, any residual DRP account balance at that time will be added to your next dividend payment and returned in accordance with your payment instructions.  

Residual DRP account balances are not transferable and do not accrue interest.

Need more information?

If you have further questions about how the DRP operates and how you can participate, please contact our share registry (Computershare Investor Services) on 1800 780 782 (within Australia) or +61 3 9415 4065 (outside Australia).