Finbar Group Ltd (ASX:FRI), the Western Australian apartment developer, has declared a fully franked final Dividend of 3 cents per share for FY26. The shares are due to trade ex-dividend on 3 September 2026, with a Record Date of 4 September and payment on 25 September 2026. Against a share price around 80 cents, that single 3-cent payment equates to the roughly 3.7% single-payout Yield flagged in the headline. The final lifts Finbar's full-year distribution to 5.5 cents per share, all fully franked, and follows a sharp rebound in profit as the group cleared completed projects and rebuilt a substantial pre-sales pipeline.

Dividend in focus

The 3-cent final is fully franked, and combined with the interim it takes the full-year payout to 5.5 cents fully franked. It is important not to annualise the single final: the roughly 3.7% figure is a one-off single-payout yield on the recent share price, not a forward annual yield. Franking credits attached at the company tax rate add after-tax value for eligible Australian holders. For a developer whose Earnings and dividends are inherently lumpy - tied to when apartment projects settle - the fairer read is the full-year 5.5-cent total against the share price. Holders on the register before the 4 September record date receive payment on 25 September.

Why income investors may be watching

Finbar offers fully franked dividends backed by a record pre-sales book that provides unusual visibility over future settlement revenue. The Western Australian market has been a relative bright spot, with population growth and constrained Supply supporting apartment demand. Having resumed dividends after a leaner stretch, the group's improving profitability and large pipeline give income investors a clearer line of sight on distribution capacity than at many cyclical developers. The franking credits further enhance the appeal for those able to use them.

Risks

Property development is cyclical and cash-flow lumpy: Revenue and profit swing with the timing of project completions, so dividends can vary sharply year to year. Finbar is heavily concentrated in Perth apartments, leaving it exposed to a single regional market, construction cost inflation, builder availability and interest-rate-sensitive buyer demand. Pre-sales must still settle to convert into revenue, and settlement defaults or delays would hurt. A softer property cycle in Western Australia, tighter lending conditions or rising financing costs could all pressure earnings, and a single 3-cent final is no guarantee of the next payout.

Investor takeaway

Finbar's 3-cent fully franked final - a roughly 3.7% single-payout yield - and 5.5-cent full-year total cap a year of rebounding profit and record pre-sales. Investors may want to watch the pace of settlements, Perth apartment demand, construction costs and the conversion of the $1.8 billion pipeline to judge whether distributions can be sustained. Those seeking the franked income need to be on the register before the 3 September ex-date, with payment following on 25 September.