At a glance

  • Pepper Money paid 15.0c per share in fully franked dividends with ex-dates in the 12 months to 24 September 2026.
  • At $1.705, that works out to a trailing Yield of 8.80%, or 12.57% when franking credits are grossed up.
  • There is no Special Dividend in the window, so the headline figure rests entirely on ordinary payouts.
  • Challenger's Takeover talks collapsed in March 2026 after it cut its indicative bid to $2.25, and the shares now sit below the $1.76 they traded at before the bid.
  • The stock is in the All Ordinaries but not the S&P/ASX 300, and its share price is down 14.11% over 12 months.

A Dividend Yield is a simple fraction: the cash a company paid out, divided by its share price. It can climb because the company pays more, or because the share price slides while the payout holds steady. For Pepper Money (ASX:PPM), the story is mostly about the share price.

Pepper Money is a non-bank lender, writing home loans and asset finance outside the traditional banking system.

Earlier this year, the market was pricing Pepper Money with a potential takeover in mind. Challenger had been in talks about acquiring the business, and investors who bought in were effectively betting on a control premium. Then the talks collapsed in March 2026, after Challenger cut its indicative bid to $2.25. With no deal on the table, the premium drained out of the share price.

The shares have not recovered. At $1.705 on 24 September 2026, Pepper Money trades below the $1.76 it traded at before the bid emerged.

How much did Pepper Money pay in the last 12 months?

The trailing yield is built on the FY25 final dividend and the 1H26 interim dividend, both fully franked:

FY25 final dividend: 7.8c per share, fully franked, ex-dividend 12 March 2026.

1H26 interim dividend: 7.2c per share, fully franked, ex-dividend 8 September 2026, payable 8 October 2026.

Add them together and you get 15.0c per share. Divide that by the $1.705 share price (170.5c) and the result is 15.0 ÷ 170.5 = 8.80%.

Notice that the 7.2c interim is a little smaller than the 7.8c final that preceded it, so this is not a dividend marching steadily higher. There is also no special dividend propping up the number. Pepper Money's last special, 12.5c, came in June 2025, outside the 12-month window. That matters because specials can make a trailing yield look far more generous than the ordinary payout justifies. Here, the 8.80% is Ordinary Dividends only.

Timing is the other catch. The shares went ex-dividend for the 7.2c interim on 8 September 2026, so anyone buying at $1.705 today will not receive that payment when it lands on 8 October 2026. There is no guarantee future dividends will match what came before.

What does "fully franked" add to the picture?

Both dividends in the window carry 100% franking, meaning Pepper Money has already paid Australian company tax on the profits being distributed. Eligible shareholders receive franking credits that can reduce their own tax bill, or in some cases be refunded.

The real value depends on your tax position. A retiree in a low-tax setting may capture the full benefit, while a foreign investor generally cannot use the credits at all. The cash yield of 8.80% is the cleaner number for comparison; treat the 12.57% as an upper bound.

What could change the yield from here?

A trailing yield is a rear-view mirror. It tells you what was paid, not what will be paid.

The share price. If the shares recover, the yield on the same 15.0c falls. If they slide further, the yield rises, but that would reflect investor worry rather than a better deal.

The dividend itself. Non-bank lenders are sensitive to funding costs, competition for borrowers and Credit quality. If margins tighten or Bad Debts rise, the board can trim the payout. The smaller interim is a reminder that dividends move in both directions.

No bid floor. While Challenger was at the table, the prospect of a takeover supported the share price. That support is gone, and investors should not assume another suitor will appear.

Index exposure. Pepper Money has been in the All Ordinaries since March 2022 but is not in the S&P/ASX 300, which puts it outside many index funds focused on larger constituents and can mean thinner trading.