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This week, three small-cap firms—Resimac, Pepper Money, and Tasmea—made headlines by announcing unexpected special dividends, reflecting their strong financial health, optimistic outlooks on future earnings, and prudent capital management strategies.
Resimac Enhances Shareholder Returns
Resimac (ASX: RMC), a non-bank lender, declared a fully franked special dividend of 12 cents per share, yielding around 12% based on a $1.00 share price. This decision came after a strategic review that revealed surplus capital following the divestment of non-core financial assets, which were less than 5% of the company’s net assets in the first half of FY25. These assets were identified as non-essential to Resimac’s main objectives.
Before this announcement, Resimac shares had declined by 13% year-to-date, impacted by disappointing first-half FY25 results, where net profit dropped by 12.2% to $15 million, attributed to substantial increases in collective provisioning, especially in the asset finance sector.
Pepper Money Rewards Shareholders
Pepper Money (ASX: PPM), another key player in the non-bank lending space, revealed a fully franked special dividend of 12.5 cents per share, offering about 7% in yield. This payout was supported by the company’s robust unrestricted cash position and ongoing capital management strategies.
The shares of Pepper Money had already appreciated by 16% year-to-date prior to the announcement, buoyed by exceeding market expectations with its FY24 results on February 27, marked by strong loan growth and efficient cost management. Following news of the special dividend, the stock price surged, opening 4.5% higher, climbing up to 10.2% intraday, and closing 6.9% higher at $1.77, with a further increase of 5% in the next session.
Tasmea Reflects Growth Confidence
Tasmea (ASX: TEA) also declared a fully franked special dividend of 12 cents per share, yielding about 4%. The company cited strong cash flows, substantial undrawn debt capacity, and a promising growth pipeline as reasons for the dividend, indicating confidence in an FY26 outlook that surpasses its long-term goals.
Since its debut in April 2024, Tasmea has shown impressive earnings growth, with FY24 results exceeding key prospectus targets by 1-10%, alongside a fully franked dividend of 4 cents per share. This positive momentum continued into the first half of FY25, as reported on February 24, 2025.
Key financial highlights for Tasmea include:
- Revenue increased by 27.6% to $246.6 million
- Net profit after tax (NPAT) up by 76.6% to $27.9 million
- Earnings per share rose by 53.5% to 15.2 cents
- Interim fully franked dividend doubled to 5 cents per share
- Upgraded FY25 NPAT guidance to $52 million, up from $48 million
- Positive outlook for key commodities such as iron ore, copper, and gold, with major iron ore miners aiming to maintain or boost production levels.
Market Response to Dividend Announcements
All three companies enjoyed significant share price increases on the days of their announcements, with ongoing buying momentum in subsequent sessions:
- Resimac saw its stock open 10.5% higher at 94 cents and closed the session up 13.5%, gaining an additional 5.2% in the following sessions.
- Pepper Money opened at a 4.5% premium, rose to a peak of 10.2%, and finished the session up 6.9% at $1.77, climbing another 5% the next day.
- Tasmea opened 3.5% higher, closed up 8.6% at $3.15—its highest in three months—and subsequently eased around 1.5% over the following two sessions.
Looking Ahead
These special dividends indicate sound financial health, disciplined capital strategies, and confidence in future cash flows. Resimac’s payout underscores a refined focus on core operations amid challenges in its asset finance unit. Pepper Money’s dividend showcases its capability to maintain loan growth while rewarding shareholders. Meanwhile, Tasmea’s distribution, backed by upgraded guidance and strong commodity prospects, positions the firm as a potential high-growth player in the industrial sector. Management’s dividends signal confidence in sustained growth, and I will monitor these companies to see if their positive momentum continues in the coming months.
