Highlights

  • Cleanaway (ASX:CWY) has declared a final Dividend of 3.5 cents per share.
  • The dividend is fully franked at 100% and has an annual Yield of 2.66%.
  • The ex-dividend date is 11 September 2026, with payment scheduled for 8 October 2026.
  • Cleanaway delivered double-digit growth in net Revenue and underlying EBIT during FY26.

Cleanaway Waste Management (ASX:CWY), Australia's largest waste-services company, has declared a fully franked final dividend of 3.5 cents per share after a FY26 result showing double-digit Earnings growth. The dividend has an ex-dividend date of 11 September 2026, a Record Date of 14 September 2026 and payment is scheduled for 8 October 2026. The distribution is fully franked at 100% and carries an annual yield of 2.66%. Cleanaway's appeal has long rested on the defensive, recurring nature of waste collection and processing. However, the company's corporate activity and ongoing earnings growth add another dimension to its shareholder-return outlook.

Dividend in focus

The 3.5-cent final dividend is fully franked at 100%, providing eligible Australian shareholders with associated franking credits. The annual yield provided is 2.66%, while the key dates are an ex-dividend date of 11 September 2026, a record date of 14 September 2026 and a payment date of 8 October 2026.

The distribution builds on Cleanaway's broader dividend profile and reflects the company's ability to return cash to shareholders while continuing to invest in its operations and infrastructure.

Investors should treat the 3.5-cent final as a single payment rather than annualising it. The sustainability of future distributions will depend on earnings, free cash flow, Capital requirements and Cleanaway's broader capital-management decisions.

What is driving the business?

FY26 was solid. Cleanaway grew net revenue 13.1% to about $3,736.7 million and lifted underlying EBIT 14.2% to $470.2 million. Statutory net profit fell 37.2% to $98.5 million, weighed by roughly $160 million of one-off adjustments, so the underlying earnings trend was materially stronger than the headline profit suggests.

Growth was led by the core solid-waste collections business, benefiting from centralised sales and fleet optimisation, with recovery expected across liquids, technical and health services.

Management guided to FY27 underlying EBIT of $500 million to $530 million and EBITDA of $935 million to $985 million, pointing to continued momentum in its infrastructure-like network of assets.

Why income investors may be watching

Waste management is a defensive industry, with households and businesses continuing to generate waste through different economic conditions. That recurring Demand can provide Cleanaway with relatively stable revenue and cash-flow characteristics, supporting its appeal among income-oriented investors.

The fully Franked Dividend also adds potential after-tax value for eligible Australian shareholders. Meanwhile, ongoing earnings growth and the company's extensive network of collection, processing and disposal Assets provide a platform for further cash generation.

For income investors, the key question is whether Cleanaway can continue converting underlying earnings growth into sustainable free Cash Flow while balancing dividends with Capital Expenditure and other corporate priorities.

Risks

Cleanaway faces operational risks including cost inflation, landfill and regulatory requirements, contract renewals and the capital demands associated with maintaining and expanding its infrastructure network.

The gap between underlying and statutory profit also bears watching. While the decline in statutory net profit was influenced by significant one-off adjustments, recurring earnings and cash generation remain more important indicators of dividend sustainability.

Investors may want to watch FY27 guidance delivery, free cash flow, operating costs and capital expenditure when assessing whether the company's defensive income characteristics can continue to compound.

Investor takeaway

Cleanaway (ASX:CWY) has declared a 3.5-cent fully franked final dividend carrying an annual yield of 2.66%. The distribution comes alongside strong FY26 underlying performance, with net revenue rising 13.1% and underlying EBIT increasing 14.2%.

The company's recurring waste-management operations provide a defensive foundation for cash generation, while FY27 guidance points to further underlying earnings growth. However, investors should continue to monitor statutory earnings, free cash flow, capital requirements and operating costs.

For income investors, Cleanaway's fully franked distribution offers exposure to a relatively defensive business, but the longer-term appeal depends on the company's ability to keep converting operational growth into sustainable Shareholder returns.