At a glance

  • Latitude declared 10.5c per share in fully franked dividends with ex-dates in the 12 months to 24 September 2026, with no specials.
  • The shares went ex-dividend on 22 Sep 2026, so buyers at today's price will not receive the 5.5c interim payable on 22 Oct 2026.
  • Latitude pays out about 95--100% of its earnings, leaving little room for error.

Latitude (ASX:LFS) is a consumer finance Business operating in Australia and NZ. It offers Credit cards, personal loans and instalment finance, including "buy now, pay later"-style products that let shoppers spread the cost of purchases.

Its dividend story rests on a very high payout ratio. Latitude pays out about 95--100% of its earnings, which means almost every dollar of profit goes back to shareholders. That helps explain why the dividend is large relative to the share price.

The dividends are 100% franked. Latitude pays Australian company tax on its profits, and franking credits pass that tax paid through to shareholders. For investors who can use those credits, the grossed-up Yield of 17.44% shows the combined value of the Cash Dividend and the attached credits.

How were the dividends in the last 12 months paid?

Latitude's 10.5c total came from its regular payments, with no specials involved:

FY25 final: 5.0c fully franked, ex-dividend 20 Mar 2026, paid 21 Apr 2026.

1H26 interim: 5.5c fully franked, ex-dividend 22 Sep 2026, paid 22 Oct 2026.

The 1H26 interim of 5.5c was larger than the FY25 final of 5.0c, so the dividend has been edging up rather than being cut. That sets Latitude apart from several other high-yield stocks, where the headline figure is propped up by special dividends that may never be repeated.

The timing is important, though. The interim went ex-dividend on 22 Sep 2026, just before the 24 September 2026 price used here. That means the 5.5c belongs to investors who held the shares before the ex-date. Anyone buying now is buying after that dividend has been stripped out of the price.

Why isn't Latitude in the S&P/ASX 300?

Latitude has been in the All Ordinaries since March 2022, but it is not in the S&P/ASX 300. Our inference is that a big part of the story is its Shareholder register, although no reason is formally stated.

KKR, Shinsei and Vatpo together hold about 72% of the company. That leaves a low free float, meaning relatively few shares are available to trade on the market. S&P indices are weighted by the shares freely available to investors, so a small free float can limit a company's standing in the larger indices. It can also make the shares less liquid, which may cause bigger price swings when investors buy or sell.

What could change from here?

The high Payout Ratio cuts both ways. With about 95--100% of Earnings paid out, any fall in profit is likely to flow straight through to a lower dividend. There is little retained profit to cushion a weaker period.

Credit quality is the key swing factor. A rise in arrears or Bad Debts across credit cards, personal loans or instalment products would pressure earnings. Funding costs and competition in consumer finance can also squeeze margins.

The concentrated register is another consideration. With about 72% held by KKR, Shinsei and Vatpo, decisions by those major holders could shape the company's direction and the share price. Finally, the trailing yield includes a dividend that new buyers will not receive, so future income depends entirely on what the board declares next.