Highlights

  • Chorus Limited (ASX:CNU) has declared a NZ$0.360 final Dividend with a 5.72% annual yield.
  • The dividend has an ex-date of 14 September 2026 and a payment date of 6 October 2026.
  • Chorus reported FY2026 Revenue of NZ$1.029 billion and EBITDA of about NZ$726 million.
  • High debt, regulatory settings and the lack of Australian franking remain key considerations for income investors.

Dividend in focus

Chorus Limited (ASX:CNU) is New Zealand's largest fixed-line broadband infrastructure operator, owning the bulk of the country's fibre network. The company has declared a FY2026 final dividend of NZ$0.360 per share, with an annual Yield of 5.72%. The shares have an ex-dividend date of 14 September 2026, a Record Date of 15 September 2026 and a payment date of 6 October 2026. The dividend carries 0% franking.

Chorus has guided to a minimum FY2027 dividend of NZ 62 cents per share, extending a steadily rising payout that management links to growing fibre cash flows. Australian holders should note the tax treatment, as the dividend carries no franking, which can affect its after-tax value compared with a domestic Australian payer.

What is driving the business?

Chorus reported FY2026 revenue of NZ$1.029 billion and EBITDA of about NZ$726 million, up roughly 3%, while net profit jumped to NZ$37 million from just NZ$4 million a year earlier. The turnaround reflects rising fibre uptake, which reached 75.9% across the network, with fibre connections climbing to 1.147 million and average revenue per user increasing to NZ$59.51.

The Business now operates as an all-fibre network following the completion of its copper transition, and Capital Expenditure eased to NZ$375 million from NZ$415 million. With the heaviest build phase behind it, Chorus is positioning as a regulated infrastructure Utility able to convert stable cash flows into growing Shareholder returns.

Why income investors may be watching

Fibre infrastructure carries utility-like characteristics: predictable demand, regulated returns and high barriers to entry. Data usage keeps rising, averaging 731GB per connection each month, supporting a long runway for revenue on an essential-service network.

For income investors, the appeal is a defensive, growing dividend backed by monopoly-style assets. Investors may want to watch whether rising fibre uptake and per-user revenue can keep funding the progressive dividend path, while also considering the impact of the 0% franking rate for Australian investors.

Risks

Chorus carries substantial debt, with net Debt of about NZ$3.174 billion and net debt-to-EBITDA of 4.37 times, a level that leaves the dividend sensitive to interest rates and refinancing costs, even though its weighted average cost of debt has improved to 4.95%.

As a regulated entity, its revenue and returns are set through New Zealand's regulatory framework, creating policy risk. Currency movements affect the value of NZ-dollar dividends for Australian holders, while the lack of franking reduces after-tax appeal. Investors may want to watch the balance between debt reduction and the promised dividend growth.

Investor takeaway

Chorus Limited (ASX:CNU) offers exposure to an essential, utility-like fibre network with a rising, regulated dividend. Its latest final dividend is NZ$0.360 per share, with a 5.72% annual yield, a 14 September 2026 ex-date and a 6 October 2026 payment date. The 0% franking rate is an important consideration for Australian shareholders.

The dividend proposition remains supported by the company's fibre network and improving business performance, but investors may want to watch the high debt load, regulatory settings and the sustainability of future dividend growth.