Key Highlights

  • The annual fully franked dividend is $1.32 per share, described as a dividend yield of 6.6%.
  • Underlying NPATA rose 13.8% to $107.9 million, and group revenue rose 6.8% to $602.1 million.
  • Debt to EBITDA was 0.4 times, with no debt facilities due in the next 12 months.
  • The approximate yield is near 7.2%, or about 10.2% grossed up, with no reinvestment plan.

McMillan Shakespeare Limited (ASX:MMS) provides salary packaging, novated leasing, fleet management and related services in Australia and New Zealand. Its brands include Maxxia and the digital-first Oly, and customers are employees of partner employers, plus corporate and government fleets. FY26 revenue was $602.1 million and EBITDA was $180.7 million.

The group earns fees and margins from administering salary packages and novated leases, and interest on finance receivables, which reached $587 million. Novated leases under management grew 13.5% to about 90,000, and battery electric vehicles made up 57% of new novated lease sales, helped by the fringe benefits tax exemption. Technology and automation have lifted its operating margin, and it keeps low debt, at 0.4 times EBITDA, which supports its fully franked dividend.

The Dividend Picture

MMS has an approximate yield of about 7.2% at a price near $18.44, franking of 100%, a grossed-up yield of about 10.2% and no reinvestment plan. The release states an annual fully franked dividend of $1.32 per share and a dividend yield of 6.6%, which uses the company's own reference price, so it differs from the yield above. Underlying earnings per share rose 13.8% to $1.55, so the dividend equals about 85% of underlying EPS, a calculation from the stated figures.

Understanding the Dividend Data for McMillan Shakespeare

At a share price of approximately $18.44, the approximate yield is 7.2%. Franking is 100%, which lifts the grossed-up yield to about 10.2% from the cash yield of about 7.2%. The grossed-up figure adds the value of franking credits for holders who can use them, and it is not a cash payment. No distribution reinvestment plan is available, so payments are made in cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $716 of cash distributions over a year before tax, calculated from the stated percentage. The company quotes its own 6.6% yield on a different reference price. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

FY26 Results

McMillan Shakespeare Limited (ASX:MMS) announced its FY26 results on 28 August 2026.

Group revenue grew 6.8% to $602.1 million, and EBITDA rose 14.1% to $180.7 million, lifting the operating margin 250 basis points to 41.5%. Statutory NPAT from continuing operations rose 11.4% to $106.7 million, and return on capital employed was 62.1%.

Customers

Novated lease sales rose 8.4%, and new battery electric vehicle sales rose 113% to 57% of new novated leases. Onboard Finance receivables grew 16.6% to $587 million.

Business Drivers

The chief executive describes FY26 as a record year, with earnings growth, expanding margins and customer growth across every segment. Leases under management grew 13.5% to 90,000 and novated sales grew 8.4%. The Oly platform delivered 77% growth in novated sales and 185% growth in new employer registrations, supporting a push into the SME market. Battery electric vehicles accounted for 57% of new novated lease sales, helped by accelerating adoption and certainty over the government's fringe benefits tax exemption. Technology investment in automation, artificial intelligence and digital self-service helped lift the operating margin by 250 basis points.

Balance Sheet and Reporting Basis

Debt to EBITDA of 0.4 times and no debt facilities due in the next 12 months leave the balance sheet flexible, and return on capital employed was 62.1%. Onboard Finance receivables grew 16.6% to $587 million. The company no longer reports results on a normalised basis, and comparatives have been restated, so growth rates compare like with like. Group Remuneration Services underlying NPATA rose 24.9% to $82.5 million.

How the Payout Measure Works

The measure that matters for this dividend is underlying NPATA and EPS. Underlying earnings per share of $1.55 against a dividend of $1.32 gives a payout near 85%. NPATA adds back non-cash amortisation of acquired intangibles. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 28 August 2026. The extract does not give the payment dates. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.