• AFIC has built up substantial franking credits, particularly from realised capital gains
• Board intends to pay 2.5 cents per share special dividend with 2026 interim dividend
• Additional 2.5 cents per share special dividend to be paid with 2026 final dividend

Australian Foundation Investment Company Limited (AFIC) has announced that it will pay a special dividend in addition to its regular interim and final dividends in 2026. The Board recognises that AFIC has built up a substantial balance of franking credits, particularly through the generation of realised capital gains, and has considered the most appropriate means of distributing some of this balance without compromising the underlying ordinary dividends going forward. In this regard, the Board intends to pay a special dividend of 2.5 cents per share, fully franked, in addition to the interim dividend due to be announced with the interim results on 21 January 2026. The Board is also intending to pay an additional 2.5 cents per share special dividend, fully franked, with the final dividend expected to be declared with the financial year result to be announced on 27 July 2026. With this result, Directors will also consider further capital management initiatives for the next financial year taking into consideration the balance of franking credits and the generation of realised capital gains.